Industry Growth Program: discussion paper

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The Hon. Minister Ed Husic, MP 30 JULY, 2023
PO Box 6022, House of Representatives
Parliament House, Canberra ACT 2600
Via Email: minister.husic@industry.gov.au

Dear Minister Husic,
Ed

Convaim is pleased to provide a submission on the Industry Growth Program
(IGP). We value the diligent work of our public servants in implementing this
initiative and welcome the Albanese Government’s directive in establishing this
program.

I am writing to you as the CEO of Convaim, a registered lobbyist firm passionate
about the future of Australia’s Arts, Deep Tech, Renewables industries and
Australian manufacturing. I want to take a moment to appreciate the commendable
work you and your team have done in launching the National Reconstruction Fund
(NRF) and changes to the Critical Technologies List. This initiative speaks volumes
about your commitment to fostering a prosperous and forward-thinking Australia.

My company provides services to advance a modern, forward-thinking Australian
workplace. This vision comes to reality through diligent initiatives such as this and
the indispensable work of public servants. Our clients include innovative SMEs
eager to foster innovation, create employment, and contribute significantly to
Australia’s economy and industrial resilience. Beyond advocacy, I am also the CEO
of Balance Mat, a company that qualifies postural sway data for concussion and
falls risk, and I support my family’s angel investments in the start-up sector

We have closely followed your announcements about the new Industry Growth
Program. I am expressing our support for this significant initiative. The focus on
bridging the “valley of death” for young businesses and SMEs is an admirable
approach that aligns perfectly with the needs of our clients. Further, we look
forward to reintegrating program delivery into the public service, as the experiment
in outsourcing these responsibilities has been disappointing.

We commend the program’s focus on providing expert advice and matched
grants to enable early-stage companies to increase revenue, grow their workforce,
and attract investment. This transformative step will help our clients and other
Australian businesses flourish nationally and internationally.

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The program’s strong focus on commercialisation and early-stage business
growth advice, combined with grants, is a high-impact, cost-effective way to back
Australian ideas and build capability. It effectively positions innovative, early-
stage Australian businesses on a sustainable growth path, enabling them to
seek potential funding through the National Reconstruction Fund or attract other
investment interests in the future.

Having reviewed the proposed features of the program, we would like to
contribute our insights towards its design and implementation. Considering our
experience working with SMEs and startups, we can offer valuable feedback that
would make the program even more effective.

To this end, we have comprehensively responded to the questions posed in the
consultation paper. We look forward to contributing our thoughts on the eligibility
criteria for innovative SMEs, the design elements of the program, the role of
industry partner organisations, program governance, and other vital areas.

Once again, I extend my congratulations for this commendable initiative, and
we look forward to contributing to the discussion to make the Industry Growth
Program a success.

Yours Faithfully,

George Tulloch
CEO

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WHAT OBJECTIVE CRITERIA SHOULD DETERMINE ELIGIBLE INNOVATIVE
SMES? FOR EXAMPLE, ANNUAL TURNOVER OF $20 MILLION OR LESS,
EMPLOYEE CAP AND NET ASSET CAP?
The objective criteria for determining eligible innovative SMEs under the IGP
should consider the context and uniqueness of the startup environment in
Australia, as well as the core objectives of the Government.

Firstly, the ground floor of the NRF should serve as the leading guide for
eligibility. The fund already outlines clear criteria for qualifying businesses, and
aligning the IGP with these existing standards can streamline the application
process for potential beneficiaries while ensuring a consistent approach to
supporting innovative SMEs across different government initiatives.

An annual turnover cap of $20 million or less for specific metrics seems
appropriate. This would ensure that the program targets SMEs rather than larger,
more established corporations. Moreover, it would focus on businesses in their
growth phase, which typically face unique challenges and could benefit most
from the program’s support. However, enforcing an employee cap might be less
beneficial. The IGP intends to foster growth, and implementing an employee
cap could limit a company’s expansion potential, which would counter the
Government’s objective of enhancing high-tech employment. Many startups
remunerate employees with equity and a base salary, often allowing them
to attract higher-skilled, enthusiastic workers. Such arrangements empower
workers to leverage their income for wealth generation, thereby increasing market
competition.

Lastly, assessing eligibility based on a company’s net assets might not be a
suitable criterion. Given that those assets in a startup environment are usually
self-reported, such a criterion could be manipulated. Therefore, it might be best
to omit net assets as an eligibility factor to maintain the program’s integrity and
ensure its support is targeted appropriately.

WHAT LEVEL OF GRANT MATCHING IS APPROPRIATE? SHOULD THERE
BE A VARIATION FOR EARLIER STAGE TECHNOLOGY READINESS LEVELS
(TRLS) PROGRAMS AND THE SIZE OF THE GRANT?
Determining the appropriate level of grant matching for small to medium
enterprises (SMEs) involves a balance of incentivising innovation and responsible
management of taxpayer funds. Historically, a 50% grant matching model has
proven to be effective. This model ensures that businesses have a vested interest
in the project’s success, as they must progressively match the funds provided by
the Government. This reduces the risk to taxpayers and encourages a sense of

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ownership and responsibility within the SMEs. After all, as this is a government
grant program, the expectation is that there should be an equal contribution from
parties looking to utilise tax monies in a profit-oriented environment.

The grant size should reflect the opportunity presented by the proposed project.
Every innovative venture has different financial needs depending on factors such
as the industry, technology, and the market it aims to serve. For instance, some
projects of SMEs require significant investment to transform a Minimum Viable
Product (MVP) into a fully deployable solution. A “phantom” criteria exist within
the grant request amount. By understanding the funding needs and the amount
requested, a business demonstrates its grasp of the financial realities of its
project, which can serve as an indicator of its overall capability.

There could be a case for varying the level of grant matching. Early-stage TRLs
often represent a higher risk as the technology is still being developed and may be
tested in real life. This can deter businesses from pursuing these projects despite
their potential benefits. A higher level of grant matching could be implemented for
earlier-stage TRLs, providing a stronger incentive for businesses to take on these
ambitious projects.

This approach aligns with the understanding that grant size should be
proportional to opportunity. Businesses are tackling large-scale problems and
pushing the boundaries of current technology. They represent considerable
innovation and economic growth opportunities. The Government can foster an
environment that promotes technological advancement.

ARE THERE BARRIERS BEYOND THE PRE-PROFIT STAGE THAT THE
PROGRAM SHOULD CONSIDER SUPPORTING?
Small to medium enterprises (SMEs) face challenges beyond the pre-profit
stage, particularly in commercialisation, especially in an export market or a
market already populated by one or more large corporations (mainly foreign-
owned). Transitioning from a developed product or service to a commercially viable
offering can often be challenging, also called crossing the ‘Valley of Death’. Market
development grants, such as the Export Market Development Grants (EMDG), could
be an effective strategy to support SMEs during this phase. Providing at least 50%
upfront funding can give these companies the necessary resources to overcome
obstacles in market research, product localisation, and marketing strategies
tailored for the target market.

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Moreover, the program should consider promoting industrial partnerships to
enhance SMEs’ commercialisation capabilities. By providing tax-effective schemes
encouraging collaboration with companies operating in allied markets, SMEs can
leverage their partners’ existing market knowledge, distribution networks, and
customer relationships. These collaborations could help SMEs reduce market entry
barriers, accelerate their growth and enhance their competitiveness.

In addition to these measures, a response to the Inflation Reduction Act
is required. Much like the R&D Tax Incentive, a similar but more targeted
scheme could assist manufacturing development. This program would provide
tax incentives to companies investing in advanced manufacturing processes,
production techniques, and innovative product design. This measure could
stimulate investment, improve competitiveness, and create jobs in the
manufacturing sector, contributing to the economy’s overall growth.

The broader challenge for Australia is the ‘brain drain’ phenomenon, where
highly skilled workers leave the country for opportunities overseas. Australia
has invested millions of dollars in producing every post-graduate, only to see
them seek employment abroad. The recent shifts in the structure of global tech
companies’ workforces and the changing work dynamics due to the pandemic
present a unique opportunity. The program should look into ways to attract these
workers back to Australia through incentives for companies that hire locally or
through schemes that make it attractive for overseas Australians to return. Doing
so could significantly enhance the country’s tech sector and further innovation and
economic growth.

SHOULD TECHNOLOGY READINESS LEVELS (TRLS) BE USED
TO DETERMINE PROJECT ELIGIBILITY? IF SO, WHAT ARE THE
APPROPRIATE TRLS FOR COMMERCIALISATION AND EARLY-STAGE
GROWTH PHASES?
Determining a project’s eligibility based on Technology Readiness Levels (TRLs)
could be limiting. While TRLs are essential indicators of a technology’s maturity,
they do not necessarily reflect a project’s commercial potential. Many companies
might have achieved a high TRL, indicating technical viability. Yet, they may still
need to reach the market due to the inherent challenges in their commercialisation
strategies. Thus, relying solely on TRLs may need to pay more attention to some
innovative projects with significant market potential yet to mature technically.

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In contrast, the Commercial Readiness Index (CRI) or Business Readiness Level
could offer a more holistic understanding of a project’s potential. These metrics
evaluate a project’s technical viability and assess its market readiness, financial
planning, and risk management strategies. For instance, the Australian Renewable
Energy Agency (ARENA) has developed a CRI that considers the multifaceted
barriers that new technologies and entrants face in their commercialisation
process related to their investment mandate. The CRI recognises that retiring
technology risk through the TRL framework often leaves significant commercial
uncertainty and risk in the demonstration and deployment phase. Therefore, it
provides a more robust framework to evaluate projects intending to enter markets
typically supplied by proven incumbents and financed by risk-averse capital
markets.

However, it’s worth noting that while ARENA’s Commercial Readiness Index offers
a comprehensive evaluation method, it is not directly applicable to the IGP, being
focussed on ARENA market development goals rather than industry development
per se. Tech entrepreneurs, for instance, have demonstrated that commercial
readiness is validated throughout the TRL process, with market traction building
as the product features are developed and refined. This suggests that commercial
readiness begins at the Minimum Viable Product (MVP) stage or even earlier if
secured intellectual property is a target. Therefore, it would be beneficial to
understand and incorporate this new commercialisation model for programs like
the Industry Growth Program, which strongly focuses on manufacturing. This
approach would encourage participants to validate their market potential earlier,
fostering more robust growth and efficient resource allocation.

HOW SHOULD WE DETERMINE WHICH PROJECTS HAVE THE MOST
POTENTIAL FOR FUTURE GROWTH AND MARKET IMPACT?
Determining which projects have the most potential for future growth and
market impact is a multifaceted task that should consider the proposals’ strategic,
economic, social, and labour considerations. A balanced and representative
assessment committee is crucial to this process. The committee should comprise
proven start-up investors, founders, expert industrialists and union representatives
who can collectively appreciate technologies’ total impact on the Australian and
global markets. Such a diverse board would ensure a comprehensive understanding
of the various factors that contribute to the potential success of a project and its
market impact.

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Proven start-up investors, angel investors, and VCs bring expertise in spotting
growth potential, financial sustainability, and market opportunities. On the other
hand, founders can provide insight into the operational challenges and innovative
solutions that are often crucial to the success of early-stage projects. In contrast,
expert industrialists offer a historical perspective of having achieved manufacturing
industry success. Union representation ensures that the labour perspective is
factored into the evaluation, safeguarding workers’ rights and promoting equitable
growth. This diversity of perspectives is essential for making well-rounded
decisions reflecting the multi-dimensional growth and market impact.

Consideration should be given to the potential of projects to create jobs and
stimulate commercial activity. It’s in the interest of the Government to support
initiatives that will boost employment, particularly in high-growth sectors. In
addition, projects that have the potential to open up new commercial markets or
disrupt existing ones could have significant economic benefits, stimulating growth
and innovation in the broader economy.

Evaluation of projects should be based on their alignment with Australia’s Critical
Technologies List. This list outlines the technologies of strategic importance to
Australia’s national interest, including but not limited to sectors such as energy,
medical devices, artificial intelligence, quantum technologies, and advanced
materials. Projects contributing to these critical technologies may have significant
market potential and contribute to the national strategic objectives, further
enhancing their value.

The board should pay attention to the social impact of the projects. Projects
that offer solutions to social challenges, improve quality of life, or contribute to
sustainability could have a far-reaching social impact, fulfilling the Government’s
responsibility towards social welfare. Considering job creation, commercial
potential, alignment with critical technologies, and social implications, this broad-
based evaluation approach would help identify the projects with the highest
potential for future growth and market impact.

In the modern era of generative AI and trained consultant grant writers, the
case for public servants, as was the case in previous programs, or consultants,
as was the recent model, representing the applicants within the final stage of the
pitching process is no longer industry standard. A core part of the assessment
process should include a traditional business pitch to the Committee. This
face-to-face interaction will allow an appropriate estimation of the applicant’s
capabilities outside the written environment. A founder’s capacity to lead and

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direct the team, particularly in the startup environment, guides the project’s
success. Appropriate consideration should be given to diversity and inclusion
during this process, with training provided to Committee members. We understand
the apprehension of some potential members to participate in this process, but
this is standard practice in venture capital and other funding environments. Any
potential Committee member will be aware of this dynamic while also being aware
of their conflict of interest and integrity responsibilities. The remuneration for the
Committee will reflect this level of commitment.

SHOULD IT BE NECESSARY THAT THE APPLICANT HAS THE LEGAL
OWNERSHIP, OR EFFECTIVE OWNERSHIP, OF THE KNOW-HOW,
INTELLECTUAL PROPERTY OR OTHER SIMILAR RESULTS ARISING FROM
THE PROJECT?
The question of ownership, particularly in the context of intellectual property and
other project outcomes, is critical in evaluating applicants for innovation grants. It
is indeed necessary for applicants to have effective ownership of their technology,
be it protected by intellectual property rights or otherwise. This ownership is
about having a legal claim over technology and demonstrating the applicants’
capacity to effectively manage and leverage their innovation and freedom to
operate.

Technology ownership brings control and accountability fundamental to
successful project execution. Without a degree of authority over their technology,
it becomes difficult for applicants to establish risk control measures. This is not
to suggest that all risk can or should be eliminated, but instead that an inherent
aspect of stewardship is the ability to manage, mitigate, and respond to the risks
associated with bringing new technology to market.

Moreover, protecting technology and embracing stewardship of technology is a
critical gatekeeper for many startups. For instance, the steps required to secure
intellectual property rights can demonstrate a startups commitment to innovation
and strategic thinking. Understanding and acting with this mindset protects the
startups interests and enables growth and more rapid scaling, ensuring that the
value created by the innovation remains within the company.

That being said, there are also potential roadblocks to this ideal scenario,
particularly in the context of Australian Universities and Research Organisations.
These entities have gained a reputation for fiercely protecting the IP created within
their institutions, to the point where the licensing process becomes so tricky
that it borders on futility. This restrictiveness is counterproductive to fostering
innovation and collaboration within the national ecosystem.

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The funding that these educational and research facilities receive should be
contingent on their willingness and ability to integrate and collaborate with
Australian industries and businesses. They should not focus on overseas or large
industrial partners as a first preference. We aim to cultivate an environment of
innovation that drives national growth. In that case, we must encourage and
facilitate the transfer of knowledge and technology from research institutions to
businesses that can commercialise them, creating jobs and economic value.

IS ‘NEED FOR FUNDING’ (I.E., WHY APPLICANTS CANNOT ACCESS
SUFFICIENT FUNDING FOR THE PROJECT FROM OTHER SOURCES) AN
APPLICABLE MERIT CRITERION FOR ASSESSING GRANT APPLICATIONS?
IF SO, HOW SHOULD THIS BE MEASURED?
The ‘need for funding’ is a significant and practical merit criterion when
assessing grant applications. This aspect highlights the reason for such grants:
to provide financial support where traditional or alternative funding sources
are insufficient or inaccessible. Unfortunately, in Australia, the local investor
ecosystem has developed a solid aversion to risks associated with manufacturing,
precisely the high capital expenditure that this sector often entails. This creates
a gap where innovation in manufacturing can be stifled due to a lack of financial
support, severely impacting our economic diversity.

However, more than merely establishing the ‘need for funding’ is needed. It is
essential to measure this need in a way that provides an accurate and objective
picture of an applicant’s financial situation, awareness of the demands for
future growth and ability to access other funding sources. A system needs to
be established to evaluate the need systematically, providing a quantitative and
qualitative understanding of the applicant’s situation.

One way to measure this could be by appointing an advisor who understands the
highs and lows of a high-turnover investment environment and acts as a devil’s
advocate. Advisors from funds that focus on software, where risk aversion is high
yet the rewards of successful startups are great, can bring a valuable perspective
to the table. This advisor could evaluate the company’s risk profile using a
5-point scale, with these 5 points contributing to 5% of the total grant application
assessment criteria.

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WHAT ARE THE POTENTIAL BARRIERS TO ACCESSING THE INDUSTRY
GROWTH PROGRAM?
Various potential barriers to accessing the IGP must be considered, reflecting
issues in the broader startup ecosystem. A significant barrier stems from
the prevalent misunderstanding within the startup community. Many startup
entrepreneurs of the current generation are under the impression that the role
of the Government in supporting their ventures is limited to providing small-
scale proof of concept grants under $100,000. This perspective can limit their
engagement with programs like the IGP, designed to provide more substantial
support to startups with high growth potential.

Further, representation and inclusivity remain considerable challenges in the
startup landscape, which may impede access to such programs. Women are
consistently underrepresented among startup founders, as are First Nations
peoples. This underrepresentation could result from systemic biases or a need for
tailored support for these groups in the startup ecosystem. We must adequately
address these issues to maintain valuable perspectives and innovations these
groups can bring. Therefore, the IGP must include strategies and mechanisms to
ensure greater inclusion and equity.

Another critical area of concern is the underrepresentation of regional areas
and founders. While there is a growing recognition of the potential in regional
Australia, regional founders still need to be represented in the startup space. This
could be due to various factors, including less access to resources, a need for
more awareness about opportunities, and challenges in building and maintaining
networks. Consequently, there needs to be an intentional focus on outreach and
support to founders in these areas.

It is critical to ensure that this IGP fosters an environment where every ambitious
and innovative individual, regardless of gender, background, or location, can
become aware of and access the support they need to succeed. Doing so will help
break down existing barriers and enable a more inclusive, innovative, and vibrant
startup ecosystem.

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HOW CAN WE HELP OVERCOME THESE BARRIERS TO EXPAND THE
REACH OF THE PROGRAM?
To effectively overcome the barriers and expand the reach of the IGP, several
measures can be implemented in line with the principles of Australia. Building
on the Minister’s engagement with universities and their startup programs, we
should expand these connections to include startup accelerators outside the
educational system. These accelerators often provide fertile grounds for innovation,
mentorship, and growth for early-stage startups. By establishing solid ties with
these accelerators, we can ensure that more potential applicants are aware of the
opportunities provided by the IGP.

The IGP must have specific initiatives to promote inclusion and diversity. This
means implementing tailored strategies to support women and First Nations
people who want to start their businesses. Such initiatives include providing
dedicated mentorship programs, facilitating access to networking events, and
creating safe spaces for knowledge exchange and collaboration. This approach
addresses the underrepresentation of these groups and enriches the startup
ecosystem with diverse perspectives and innovative ideas.

Finally, to better support founders from regional areas, we must invest in
infrastructure and resources that allow these entrepreneurs to connect with
the larger startup ecosystem. This can include setting up regional innovation
hubs, facilitating virtual networking events, and offering travel grants for regional
founders to participate in significant startup events. It’s also vital to showcase
successful regional startups to inspire and guide budding entrepreneurs in these
areas.

SHOULD THE PROGRAM CONSIDER MORE SPECIFIC MERIT CRITERIA
FOR TRADITIONALLY UNDERREPRESENTED GROUPS?
Given the recognised need for more representation from specific demographics
in the startup ecosystem, introducing tailored merit criteria could address this
imbalance and foster a more diverse and inclusive industry.

Convaim proposes to include a 10% diversity criterion for all social and economic
barriers. This criterion could encompass factors such as the gender, cultural
background, and geographic location of the company’s leadership, as well as its
strategies for promoting diversity and inclusion within its workforce. By factoring
these elements into the assessment of grant applications, we could incentivise
businesses to prioritise diversity and inclusion and actively work towards
correcting systemic imbalances.

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In addition, to ensure this criterion effectively serves its intended purpose, it
will be essential to provide clear guidelines and standards for what constitutes
‘diversity’ within this context. This could include, but not be limited to, fostering
gender equality, promoting the involvement of First Nations people, supporting
individuals from diverse cultural and linguistic backgrounds, supporting founders
with disabilities and encouraging participation from regional and rural areas.

WHAT CORE CAPABILITIES AND RESOURCES WOULD BE MOST
HELPFUL FROM INDUSTRY PARTNER ORGANISATIONS TO IMPROVE
COMMERCIALISATION AND EARLY-STAGE GROWTH PERFORMANCE FOR
PARTICIPANTS OF THIS PROGRAM?
The availability of the right resources and partnerships can drastically enhance
the potential for commercialisation and early-stage growth for participants of
the IGP. Such collaborations can play a critical role in bridging the gap between
innovation and implementation, especially for startups in the manufacturing sector.

Given the complex technical challenges often encountered by startups in this
space, one core capability that should be prioritised is engineering services. It is
here where industry partners like Bosch Australia Manufacturing Solutions (BAMS)
can bring immense value. Born out of the closure of a Bosch manufacturing facility
in Victoria, BAMS has proven its ability to support Australian startups with their
bespoke engineering needs. Their work with solar startup 5B serves as a testament
to the potential of this model. Their engineering services can be leveraged to help
startups navigate through technical obstacles and accelerate their route to market.

Moreover, the BAMS model is now being replicated globally, signalling its
effectiveness. The IGP could seize this opportunity to incorporate this Australian
innovation into its framework. By doing so, the program can better equip startups
with the technical resources needed for scaling their operations.

Additionally, drawing insights from functional models of manufacturing hubs
in Australia, such as the Western Sydney Aerotropolis and CSIRO outreach
projects, could be beneficial. These initiatives have shown success in fostering
innovation and facilitating commercialisation. The program can gain insight into
the equipment and resources that most benefit startups by collaborating with
hubs and engineering partners like BAMS. This could further assist in tailoring the
support offered to the unique needs of each participant.

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WHAT SERVICES AND SUPPORT SHOULD INDUSTRY PARTNER
ORGANISATIONS PROVIDE TO PARTICIPANTS?
The opportunity to partner with organisations like Bosch Australia Manufacturing
Solutions (BAMS), which provides specialised services such as the Design for
Manufacturing Workshop, can significantly enhance the success of startups
engaged in the IGP. This is a prime example of how collaboration with industry
partners can be instrumental in shaping a startups manufacturing plan, setting the
stage for its further development and growth.

The NRF could play a pivotal role in fostering innovation and promoting
commercialisation. A mentor responsibility could be implemented as part of
NRF funding. The NRF would be a critical catalyst for accelerating technology
development by establishing manufacturing centres for industry coordination.
Drawing from the extensive literature on technology clusters, the benefits of
hosting multiple technology-related activities within a defined geographic area are
abundantly clear.

Such a setup would facilitate resource sharing, skill development, and knowledge
transfer, thereby enhancing the overall productivity and competitiveness of the
participating entities. Furthermore, the ‘hub and spoke’ model, a time-tested
strategy in traditional manufacturing, could provide a highly effective operational
framework. In this model, a central hub coordinates and distributes resources and
production to smaller satellite facilities or “spokes”, creating a coordinated and
efficient production centres network.

In addition, establishing a supplementary Cooperative Research Centre (CRC)
for scaleup manufacturing would bring significant added value to this program.
CRCs could provide a platform for collaboration among key stakeholders, including
industry, researchers, and the Government. This would ensure an integrated
approach to research and development that addresses the specific priorities set
out by the IGP. The recently shut down IMCRC (Innovative Manufacturing CRC)
established a proven methodology for fostering manufacturing innovation and
could serve as a model for a next-generation Manufacturing CRC.

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ARE THERE OTHER SKILLS AND EXPERTISE THAT SHOULD BE
REPRESENTED ON THE COMMITTEE?
The committee’s composition governing the IGP should reflect various skills
and expertise to ensure the program’s objectives are effectively achieved. The
Committee should include founders and angel investors. Notably, including
members with expertise in engineering and scale manufacturing is essential. These
individuals bring invaluable technical knowledge and insights about the realities
of the manufacturing sector, its potential, challenges, and the opportunities
that could be leveraged for maximum benefit. Their expertise will provide a solid
technical backbone for the committee, allowing for a more nuanced understanding
of the projects the program supports and the needs of the startups that run them.

Furthermore, as we move into the second industrial revolution, it’s crucial to
include union representation on the committee. Unions play a significant role in
shaping labour policies and protecting workers’ rights. They can offer valuable
insights into workforce needs, training requirements, and fair work practices,
ensuring the program promotes projects that contribute to sustainable job
creation and support proper working conditions. Their inclusion in the committee
would be a firm nod to the program’s commitment to uphold and promote labour
rights and inclusive workforce practices.

Finally, having an advisor with experience in high-risk, high-reward investment
environments, such as software-focused VC funds, is highly recommended. This
advisor would serve as a devil’s advocate, critically evaluating the program’s risk
profile and, conversely, guiding decisions toward less secure outcomes.

WHAT OTHER DESIGN ELEMENTS COULD BE CONSIDERED TO ENSURE A
QUALITY, POSITIVE BUSINESS EXPERIENCE AND OUTCOMES?
The design of the IGP should be created with a holistic view, considering not
only the immediate practical needs of the business but also the broader user
experience and outcomes. An essential design element to ensure a quality
business experience is to have a well-established support network involving
consultants and public servants. Expert consultants bring industry insights,
strategic guidance, and external perspectives that can help businesses innovate
and grow. Simultaneously, having a public servant counterpart allows companies
to receive advice grounded in public policy and the broader socio-economic
context. Public servants can provide businesses with insights about government
regulations, policy shifts, and funding opportunities, offering ‘frank and fearless’
advice that reinforces the value of our public service workforce.

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Moreover, these advisors, both from the public sector and the consultancy world,
would assist in streamlining the businesses’ interactions with the Government,
helping them navigate bureaucratic procedures more effectively and ensuring they
know all the support avenues available. It is imperative that a consultant is not
contracted when there is no government employee to counterbalance their input.

To facilitate positive outcomes, creating direct pathways for grant recipients
to apply for the NRF funding would be beneficial. By providing these natural
pathways, the program can encourage continuous growth and development
for businesses, ensuring they have the resources necessary to realise their full
potential. Moreover, the linkage between the IGP and the NRF would create a
growth pipeline for businesses contributing to Australia’s research and innovation
landscape. This synergistic relationship would benefit individual companies and
boost Australia’s innovation ecosystem.

ARE THE PROPOSED PROJECT PERIODS (UP TO 24 MONTHS)
REASONABLE?
The proposed project period of up to 24 months is reasonable and strategic
when viewed within business scaleup and growth. This time frame aligns with
the typically accelerated pace of business development and innovation within
the startup ecosystem. Businesses and innovators must perceive this period
as a concentrated time for scaling up and propelling their ideas to the next
level of growth rather than an extended phase for prolonged development or
experimentation.

In a rapidly evolving global business landscape, Australian enterprises must act
swiftly and decisively to close the industrial gap caused by a decade of neglect
and mismanagement. This window of 24 months offers businesses a focused and
intensive period to consolidate their operations, refine their market strategies, and
scale their products or services. It is long enough to allow for substantial progress
yet short enough to maintain momentum and a sense of urgency.

Further, this proposed project period aligns with the Government’s commitment
to expedite industrial growth and innovation, positioning Australian businesses at
the forefront of their respective fields. The program aims to foster an aggressive
approach to bridging the industrial gap, stimulating rapid growth, and promoting
competitive advantage. Therefore, any founder applying to this program should
have a robust and ambitious plan for maximising these two years. They must
demonstrate an understanding of the urgency of the task at hand and have
strategies in place to capitalise on the opportunity provided by the program within
the proposed timeframe.

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HOW SHOULD WE MEASURE THE SUCCESS OF THE INDUSTRY GROWTH
PROGRAM FOR THE ECONOMY AND PARTICIPATING BUSINESSES?
One of the primary measures of success should be the number of successful
recipients of NRF funding from IGP Grant Recipients. This criterion directly
links the IGP to its broader objective of fostering innovation and research
while highlighting its role as a conduit to further opportunities and growth for
participating businesses.

Secondly, acknowledging that traditional metrics may need to catch up in
capturing the holistic impact of the IGP, a shift towards alternative measurements
is warranted. The program’s success should also be gauged by its ability to create
quality Australian jobs. In this light, the IGP’s reporting should include an analysis
of the proportion of median disposable income for jobs created by the fund as
a category in its investment returns. This will enable a deeper understanding of
the program’s contribution to improving living standards and reducing income
inequality.

Moreover, the program’s success should also be evaluated by its influence on
regional areas, particularly those undergoing workforce shifts due to market
forces or energy transition. Here, case studies could highlight how the program
has facilitated the modernisation and diversification of workforces, thereby
bolstering local economies and diverting tertiary-educated individuals away from
overcrowded cities.

Further measures should be drawn from CSIRO, DFAT, and ABS data to assess
the program’s effect on quality, reputation, workforce participation, and household
spending. These metrics provide a more comprehensive picture of the program’s
success by capturing its broader influence on the Australian industry’s economy,
society, and international standing.

Ultimately, the success of the IGP should be measured in terms of its capacity
to foster innovation, enhance the competitiveness of Australian businesses, and
create sustainable, quality jobs that contribute to overall economic prosperity and
social well-being. This involves a nuanced understanding of success that extends
beyond traditional financial indicators to encompass the program’s broader societal
and economic impact.

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WHAT INFORMATION WOULD BE ESSENTIAL TO SEEK DURING THE
FOLLOW-UP (POST-GRANT OR POST-ADVICE) PERIOD?
The follow-up phase of the IGP presents a crucial opportunity to gather
meaningful information to assess the program’s success, impact on businesses,
and the broader implications for Australia’s socio-economic landscape. Collecting
data from various sources will help shape a nuanced understanding of the
program’s outcomes.

Quality is a critical factor that directly speaks to the success of an enterprise.
Data from the Commonwealth Scientific and Industrial Research Organisation
(CSIRO) can provide insights into the quality of products, processes, or services
developed or improved due to the grant funding. This could encompass various
dimensions, such as reliability, performance, and customer satisfaction.

Reputation is another critical factor, as assessed through data from the
Department of Foreign Affairs and Trade (DFAT). DFAT’s assessment could reveal
how the company is perceived internationally, the success of its foreign relations
and its ability to project a positive image of Australian industry overseas. These
insights can have far-reaching implications for Australia’s international standing
and the global competitiveness of our industries.

Labour market indicators, such as workforce participation and household
spending data, which can be sourced from the Australian Bureau of Statistics
(ABS), will offer valuable insights into the program’s impact on job creation and
economic stimulation. This data will show Increases in workforce participation and
household spending, in turn, signals of job growth and improved living standards.

In terms of income, examining median disposable income and over-award wage
differences can provide insights into whether the program contributes to creating
quality, well-paying jobs. This aligns with the Government’s commitment to
enhancing living standards and reducing income inequality.

Furthermore, surveys of new employees can yield rich, qualitative insights.
Information regarding whether they relocated for the job, their commute time,
workplace satisfaction, remuneration satisfaction, and housing status can help
paint a vivid picture of the real-life implications of the IGP.

Finally, keeping track of new Intellectual Property (IP) lodgements can offer a
concrete metric for the innovative output spurred by the program. A rise in IP
lodgements can suggest that the program fosters innovation and develops new
technologies, processes, or services.

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OVER WHAT TIMEFRAME SHOULD THE PROGRAM FOLLOW UP WITH
GRANTEES AND ADVISE RECIPIENTS TO COLLECT DATA ON THEIR
BUSINESS?
The follow-up period and data collection timeline are essential factors
in assessing the success and long-term impact of the IGP on participating
businesses. It’s crucial to have a practical data collection framework that captures
the program’s immediate and long-term outcomes.

A data collection process should occur immediately at the project’s conclusion,
preferably as part of the company’s annual report as required by incorporation.
This early assessment would help capture immediate outcomes, such as the
project’s success in achieving its stated objectives, direct job creation, and the
development of new products or services. It would also allow for a swift response
in case any issues arose during the project implementation, such as unforeseen
challenges or bottlenecks, which could then be addressed promptly.

Following this immediate follow-up, additional assessments should be made
in yearly increments for at least three years. These yearly check-ins allow the
program to monitor the funded projects’ longer-term effects and ongoing success.
These follow-ups would capture data on sustained job creation, financial growth,
changes in company reputation, and market penetration of new products or
services, among other factors.

Furthermore, drawing upon established business growth models, which often
examine five years, a timeframe generally recognised for gauging business
investment, growth, and eventual plateau, might be beneficial. While this model is
usually applied to more established corporations, it could still provide a valuable
framework for smaller businesses and startups involved in the IGP.

A five-year follow-up would give the program a comprehensive understanding of
the grant’s impact, tracking businesses as they grow, scale up, and stabilise. The
data collected over this extended period would provide invaluable insights into the
program’s long-term effects on the Australian industry and economy. It also offers
the opportunity to learn and adapt the program over time, ensuring its continued
relevance and effectiveness.

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HOW CAN THE REPORTING BURDEN BE KEPT TO THE MINIMUM
REQUIRED TO SUPPORT FUTURE PROGRAM EVALUATION BEST?
Maintaining a balance between comprehensive program evaluation and
minimising the reporting burden on grantees is crucial for the success of the IGP.
The goal should be to create a system that effectively captures the necessary
information without imposing an excessive administrative load on participating
businesses, which can potentially hinder their growth and productivity.

The reporting requirements can be integrated into the application process
to achieve this. By aligning the data needed for program evaluation with the
information required for the application, businesses can avoid unnecessary
duplication of efforts. The application could include specific questions or prompts
to gather relevant data for future evaluation, thereby streamlining the data
collection process.

Moreover, there’s tremendous potential in leveraging existing government services
and databases to reduce the reporting burden on grantees. For instance, data from
the ATO can be used to monitor the financial growth of participating businesses,
reducing the need for firms to submit detailed financial reports themselves.
With the consent of the grantees, these data sources can provide a wealth of
information on business revenues, job creation, and other critical metrics that can
inform the evaluation of the program.

Additionally, technology can be utilised to facilitate efficient data collection
and reporting. Online portals and digital platforms make submitting reports more
straightforward and less time-consuming. They can also allow for real-time data
collection, easing the reporting process and enabling more timely and accurate
program evaluation.

Finally, providing clear guidelines about the reporting requirements and offering
support to businesses in meeting these requirements can also minimise the
reporting burden. This can include workshops, webinars, or one-on-one sessions
to guide companies through the reporting process and address any challenges they
may face.

WHAT OTHER OPPORTUNITIES (INCLUDING THOSE BEYOND DATA)
COULD BE EXPLORED DURING THE POST-GRANT PERIOD?
There’s a broad spectrum of opportunities that could be harnessed during the
post-grant period, and indeed, it is crucial to consider these opportunities as they
can generate long-term positive impacts. Broadly, an Alumni association similar
to that of universities could be established, with conferences held to foster
collaboration and network building among participants.
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participants. Entrepreneurship is inevitably fraught with risks and failures, and
it’s essential to develop a perspective that views these not as roadblocks but
as learning opportunities. The IGP can take strides to alter the current cultural
aversion to failure, adopting a more American mindset where the journey of
starting a business, even if it fails, is highly valued for the lessons it provides.

In this context, those who’ve experienced failed operations could be encouraged
to serve as mentors for new participants. Rather than shunning these individuals
or casting them as ineligible for future funding, their wealth of experience should
be utilised as an asset. They could provide invaluable insights and guidance, having
firsthand knowledge of the challenges and pitfalls that startups may encounter.
It’s not about romanticising failure but about learning from it, taking the valuable
lessons it offers, and applying them in new contexts.

Similarly, a synergy between the IGP and the NRF could be fostered. The
relationship between the two could be formalised such that grant recipients are
encouraged, or even required, to submit an NRF proposal. This process could be
facilitated by assigning a dedicated public servant to each grant recipient. Their
role could involve assisting the businesses in preparing their proposals, navigating
the submission process, and providing feedback and support as necessary.

This approach provides a clear progression pathway for grant recipients. It
promotes an integrated innovation ecosystem where research, entrepreneurship,
and government support interact synergistically. The interplay between these
elements can catalyse the creation of innovative solutions, promote economic
growth, and contribute to the broader societal well-being, aligning with the vision
of a progressive and inclusive Australia.

HOW CAN THE PROGRAM COMPLEMENT OTHER UNIVERSITY, INDUSTRY
AND GOVERNMENT INITIATIVES?
The IGP presents unique opportunities to foster new entrepreneurial initiatives
and complement and synergise with existing university, industry, and government
initiatives. It has the potential to build a bridge between diverse sectors and create
an ecosystem conducive to innovation, economic growth, and job creation.

The program could align with university and industry initiatives by establishing

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a supplementary CRC for scaleup manufacturing. CRCs are known for their
ability to bring together industry, researchers, and the government to collaborate
and address specific research and development needs. In this context, a CRC
focused on scaleup manufacturing could work with the IGP to identify and
deliver on priorities essential to the industry’s growth. This would reinforce the
interconnectedness of the sectors involved and underscore the importance of a
collaborative approach to problem-solving.

In addition, the IGP could help bridge the gap between academia and
entrepreneurship by advocating for creating an ombudsperson within IP Australia.
This ombudsman could support students who wish to claim licensing rights
over their academic work for entrepreneurial purposes. By doing so, the program
could incentivise universities to support student entrepreneurship and avoid
negative community backlash, thus reinforcing a culture of innovation and
entrepreneurialism within academic institutions.

The program also has the potential to harmonise with government initiatives,
particularly regarding tax system reform. For instance, simplifying the
equity component of the tax system could make startup remuneration more
straightforward. By proposing a cap on remuneration, such as the $20m suggested
in the consultation paper, the IGP could help ensure a more equitable distribution
of wealth and contribute to a fairer economic system.

All of these elements underscore the multifaceted ways in which the IGP can
complement and enhance other initiatives. By building on these synergies, the
program can strengthen the ties between universities, industry, and government,
ultimately fostering a robust and dynamic ecosystem that spurs innovation and
growth.

HOW COULD THE PROGRAM SUPPORT BETTER CONNECTIONS FROM
INDUSTRY TO UNIVERSITIES AND ENTREPRENEURIAL STUDENTS?
The IGP could be pivotal in fostering more robust connections between industry,
universities, and entrepreneurial students. This would help nurture an ecosystem
of innovation and entrepreneurial growth in Australia, simultaneously addressing
the pressing needs of the labour and union movements.

The program could enhance these connections by linking universities’ research

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to IGP merit criterion. This approach would encourage universities to focus
their research efforts on areas of high national interest, providing incentives for
collaborations with the industry. It would also help entrepreneurial students
leverage these research initiatives to innovate and contribute to Australia’s growth
sectors.

Lastly, the IGP could support connections by working within the existing
models of universities that have successfully fostered industry relationships. For
instance, the University of Technology Sydney (UTS) Startups program provides
free access to facilities and desk space to startups while encouraging interactions
with students. Models like this foster a symbiotic relationship between industry
and academia, enabling the practical application of academic knowledge while
providing students with real-world entrepreneurial experience. In effect, such an
approach creates a powerful interlink between industry, educational institutions,
and entrepreneurial students.

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