FROM THE MINISTER
Industry growth initiative for innovative SMEs A
ustralia is a wonderful place to organisations, and launch a new tech start-up and • Grant funding for some projects. grow it into a thriving business. We have a world-class research The IGP also will align with other ecosystem producing many important Australian government initiatives like breakthrough ideas and processes. the $15 billion National Reconstruction Our researchers and companies Fund. collaborate closely with their overseas Support will be focussed on projcounterparts on new and emerging ects in the NRF’s seven priority areas opportunities. – value-add in resources; value-add But they also need support to grow in agriculture, forestry and fisheries; and prosper – advice, expertise, finance, transport; medical science; renewables and investment. and low emission technologies; defence To that end, the Australian governcapability; and enabling capabilities. ment is moving quickly to implement our Many Aussie tech start-ups have gone new Industry Growth Program (IGP). on to do important things, emerging as We announced this new $392 million household names internationally. initiative in our May budget – and in Many others in sectors like medical June my department released a discusscience, quantum computing, robotics, sion paper to help shape its design and and software – where we punch above implementation. our weight in terms of R&D – are on the Consultation ended on 30 July, giving verge of taking off. a broad cross-section of views about the But even the most promising of startprogram’s design. ups and SMEs can experience problems The IGP will take an agile and indusas they work to commercialise their try-led approach to supporting innovaideas, grow, or scale up their operations. tive SMEs to commercialise their ideas The most common of these is when and expand their operations. substantial efforts on a new enterprise It will offer grant funding for some have begun but self-sustaining revenues eligible projects as well as access to have yet to be generated. industry-led specialist advisory services That in turn can quickly lead to capifrom industry partner organisations. tal depletion. It is anticipated the IGP will include Navigating this so-called valley of the following design features: death can be testing, particularly given • Industry Growth Program advisers that angel and venture capital firms may • Access to industry-led specialist advibe potentially unwilling to put more ads-industry-update-packserv-Inside 1 12/07/2023 PM sory services from industry partner 214mm-(w)x92mm-JULY.pdf money into a business they3:24:50 consider
Minister for Industry and Science
Ed Husic
unproven. Rebuilding Australia’s industrial and manufacturing capability will be contingent on the future success of our start-ups and SMEs. It is vital therefore, that they have options available for navigating commercialisation and growth challenges. Around the world, evaluation studies have shown that expert advice combined with matched grants enables earlystage companies to increase revenue, grow their workforce, and attract new investment. Boosting commercialisation and entrepreneurship also increases
innovation, economic complexity, and productivity. These are prerequisites to building sovereign capability and creating worthwhile jobs and career paths. Encouragingly, the start-up ecosystem in Australia is now one of the fastest-growing globally, with the start-up rate being one of the highest in the world (Statista). By backing Australian ideas, enabling entrepreneurs to build their capability – and complementing other university, industry, and government initiatives – the IGP will help to nurture innovative companies to become the big employers of the future.
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14 | Industry Update Issue 133 Aug/Sep 2023
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