"based on understanding of" is correct and usable in written English.
You can use it when explaining an idea that is based on the understanding of a certain concept. For example, "I decided to use a different approach to the problem based on my understanding of the situation."
According to Olsen, a trend in academia and industry will be to establish that Parkinson's disease for example, is not one disease, but perhaps 10, and to develop individualized treatments based on understanding of etiology.
Based on understanding of such mechanisms, strategies for alleviating HTS at the grain-filling stage in spring maize are summarized.
In order to clarify fume formation mechanism in arc welding, quantitative investigation based on understanding of interaction among the electrode, arc and weld pool is indispensable.
In the model calibration a process engineering approach, i.e. based on understanding of the process and the model structure, is needed.
Regrettably, sustainable mahogany management systems developed based on understanding of the species' ecology will not be as simple as current harvest regulations in Brazil imply.
Furthermore, robot partners should interact with human based on understanding of human.
But Ms. Cajune said there was also an uncanny kinship between the tribal and Buddhist cultures, based on understandings of sacred landscapes, and even notions of honor and respect.
Other heuristics based on understandings of problem domains have been also proposed in the literature such as shifting bottlenecks [5].
The design of the knowledge-based rules is based on our understanding of the characteristics of VANETs [37].
The university said its policy against interracial dating was based on its understanding of the story of the Tower of Babel.
Those assumptions were based on current understanding of the potency of various forms of ER to induce transcription.
