INDUSTRY INNOVATION PRECINCTS. March 2013

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1 INDUSTRY INNOVATION PRECINCTS March 2013

2 A Plan for Australian Jobs The Australian Government s Industry and Innovation Statement comprises: Backing Australian firms to win more work at home, Supporting Australian industry to increase exports and win business abroad, and Establishing up to 10 industry-led Industry Innovation Precincts Providing support for SMEs with high growth potential in precincts through Growth Opportunities and Leadership Development (GOLD) Helping Australian small and medium businesses to grow and create new jobs.

3 Three Elements of the Precincts Initiative Precincts will also have a direct relationship with the Government s $236.3 million Industrial Transformation Research Program (ITRP).

4 What is an Industry Innovation Precinct? Industry-led networks focusing on industries in areas of Australian competitive advantage and emerging opportunities. Focus nationally to better coordinate existing services and leverage Australian research capacity as well as provide new tools and services to enable Australian businesses to invest, innovate and grow.

5 Industry Innovation Precincts Total funding of $504.5 million to : $238.4 million Industry Innovation Precincts $236.3 million Australian Research Council s Industrial Transformation Research Program $29.8 million Manufacturing Technology Innovation Centre Two types: competitive advantage and emerging opportunities. Funding for each of the Precincts in areas of competitive advantage will be up to $4 million per year and up to $1.5 million per year for the Precincts in areas of emerging opportunity. Precincts will be for an initial period of five years.

6 Industry Innovation Precincts Outcomes The outcomes of the program include: helping to build the quality and scale of industry; increase sales, revenue and profits of Australian firms participating in the Precincts; increase the number of Australian firms exporting and quantity of exports; improve employment opportunities and contribute to the creation of quality jobs and a skilled workforce; increase foreign direct investment; increase the level of industry-led research and the transfer of new knowledge to industry; and deliver substantial economic, environmental and social benefits to Australia.

7 Precinct Composition Precincts will have core partners including several businesses and researcher providers such as universities and the CSIRO. Business must lead the application. Must be governed by a board comprising: chairperson independent of the Precinct partners, and majority of board members from industry

8 Precinct Selection Up to 5 Precincts in current Australian competitive advantage. First two are in manufacturing and food. Up to 5 smaller Precincts in areas of emerging opportunities and strong export potential. Up to 8 will be selected through a competitive, two-stage facilitated process in 2013 and will be operational in National Precincts Board: Independent, expert and industry-led Provide advice to government on the selection of Precincts.

9 Manufacturing Industry Innovation Precinct Industry-led Board chaired by Mr Albert Goller. Headquartered in south east Melbourne with a location in South Australia that will support defence manufacturing. The Board will determine Precinct partners and activities, based on consultation with stakeholders. Operational by July 2013 with initial services delivered from May Consultations underway:

10 Food Industry Innovation Precinct Industry-led Board chaired by Mr Peter Schutz. Physical location will be in Melbourne, with a final location to be determined by the chair and Precinct partners. The Precinct will network nationally to leverage the significant research and infrastructure assets that exist. The Board and Precinct management will determine activities, based on consultation with stakeholders. Operational by July Consultations underway:

11 Precinct Selection Process Two stage facilitated competitive selection process Stage one: industry-led applications invited against identified selection criteria. Stage two: negotiation and facilitation between applicants to bring together the best combination of participants to lead each precinct. The National Precincts Board may consider the merits of combining similar proposals.

12 Precinct Selection Process Announcement of initiative and first two precincts (Manufacturing and Food) February 2013 Consultation with stakeholders March 2013 Stage one applications requested May 2013 Precinct sectors/area, locations and likely partners announced July/August 2013 Stage two facilitation process August November 2013 Outcomes of stage two announced December 2013 Additional precincts operational 2014

13 Precinct Selection Process Selection Criteria The capacity to create new growth opportunities, including taking new products and services to market, which enhances the competitiveness of Australian business. Existing research and industry capability in the identified area, as demonstrated by people, scale and resources. The ability to create critical mass in areas of competitive advantage or emerging opportunities (including collaborative capacity). Funding and in-kind commitments from state and local governments, industry and research organisations.

14 Essential Precinct Activities and Services Precincts will: Build networks and linkages businesses, advisors, education bodies, research institutions and government to improve access to knowledge and expertise and create the critical mass for future growth. develop a long term strategy for the sector, including a consideration of export and inward investment opportunities. provide services that address strategic industry needs and fill service delivery gaps. provide Growth Opportunities and Leadership Development (GOLD) services to high potential small to medium enterprises (SMEs).

15 Optional Precinct Activities Precincts could also undertake to support optional activities including: Facilitating links to research and development services Business and management capabilities Market access and intelligence (including export and supply chain opportunities) Facilitating links to commercialisation services Facilitating access to venture capital and investment.

16 Optional Precinct Activities (continued) Base funding for individual Precincts is not intended to: fund the purchase of land, buildings or other infrastructure, or be used for firms to conduct research, commercialisation or other activities.

17 Growth Opportunities and Leadership Development (GOLD) for SMEs GOLD will provide advanced business support (accelerated business growth) to high potential SMEs, including coordination of services for: management development and business design solutions. supply chain improvement programs and enhanced marketing services. Enterprise Connect, AusIndustry, Austrade and the Export Finance and Insurance Corporation will participate in the delivery of GOLD services.

18 Industry Collaboration Fund Competitive, merit-based program with the objective of encouraging and building on business-led collaborations within Precincts. Larger scale projects that have knowledge spill-over and bring new innovation practices to Australia or build global partnerships. Only open to Precincts, or business-led collaborations that participate in a Precinct. Fund will commence in Grants ranging between $100,000 and $10 million, with a matched funding requirement.

19 Industry Collaboration Fund Projects under the fund may address/include: Market opportunity; Technology opportunities; Value chain projects.

20 Industry Innovation Network The Industry Innovation Network will be an internet accessible resource that facilitates open access to data, information sharing, and linking businesses to potential suppliers, partners and customers. It will: connect geographically dispersed users; providing a medium for sharing knowledge; offering a point of contact for international organisations; and raise awareness of, build capability and grow the culture for Australian innovation.

21 Industry Innovation Network Centralised portal functions will include: linkages and networks; knowledge repository and exchange; and news and event notification. Proposed future services may include: training services and tools; online collaborative tools; and access to intermediaries.

22 Industry Innovation Precincts Consultation Feedback from the consultation process will inform the final design of the three components of the Industry Innovation Precincts Questions you may wish to consider on the Industry Innovation Precincts include: Are there aspects of the initiative that are unclear? Are the eligibility requirements reasonable? Are there any barriers to developing an application?

23 Industry Innovation Precincts Consultation Questions you may wish to consider on the Industry Collaboration Fund include: Does the proposed framework support potential projects that could create significant benefits? Is there sufficient incentive for businesses and research institutions to participate in projects? Questions you may wish to consider on the Industry Innovation Network include: What functionality would you like to see? Are there barriers to collaborating online? What would encourage you to re-use a network?

24 DEPARTMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION Industry House 10 Binara Street Canberra City, ACT 2601, Australia Telephone

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