Entrepreneurs’ Infrastructure Programme – Discussion Paper

The Australian Academy of Technological Sciences and Engineering (ATSE) welcomes the opportunity to provide comment on the Australian Government’s Entrepreneurs’ Infrastructure Programme (EIP).

The proposed structure of the EIP as outlined in the Discussion Paper preserves some elements of recently terminated programs (e.g. Enterprise Connect and Commercialisation Australia). However, the EIP Discussion Paper appears to offer no options for new approaches and reads as a fait accompli. ATSE therefore provides some general comments on the programme and suggests an alternate approach.

The Discussion Paper lacks information on how the $484.2 million commitment will be allocated over four years and raises some concern for ATSE. Given the amount per annum is not large it will be important to appropriately distribute the funding across the programme elements discussed in the discussion paper.

1. BUSINESS MANAGEMENT

   ATSE believes that the Business Management component should not be the core component of the programme, rather as a later element that offers business advice to innovative organisations and companies that have been successful in receiving government funding. This will better benefit innovative companies at crucial points in the research translation-innovation-commercialisation continuum.

   From ATSE’s work and experience with CAESIE it is our view that business management support does not work through a website, rather it is optimally delivered by direct contact with experts.

   ATSE is concerned on the reliance of advisers to provide advice on business matters.

2. COMMERCIALISING IDEAS

   Presumably this service would provide introductions, advisors to help businesses evaluate their programs, and a website to link markets to investors. ATSE notes that much of this information is already readily available to businesses large and small, through private sector consultants, and though a plethora of publicly available databases.

3. RESEARCH CONNECTIONS

   ATSE welcomes the creation of this element as financing is a major stumbling block for innovation success and driving business productivity in Australia.

   However, ATSE suggests that the grants, at $50,000 each, are much too small to change the investment or development plans of a company, even a small one, especially if it requires matching funding. There are examples where a small grant scheme can be effective but these are at the pre-competitive stage of commercialisation.

The eligibility criteria, such as the requirement to at least match funding and be operating for more than 3 years, specifically exclude innovative start-ups that might indeed benefit from small grants and basic advice. Contrary to the intention of the EIP, the companies that meet the eligibility criteria in the EIP Discussion Paper will not be constructively influenced by the proposed money and advice available. Given this, ATSE questions the use of the term entrepreneurship in the title of the programme.

ATSE considers that a fresh approach to the EIP is ideal; however, noting the 1 July 2014 deadline for announcing the scheme, ATSE offers a refocus of the EIP elements as outlined in Appendix 1. The ATSE proposal integrates proven commercialisation funding grants and contracts (outlined in Appendix 2); provides flexible options; maximises success by providing business support to successful grantees and reduces administrative overheads.

Discussion Paper Questions

ATSE believes that the questions raised in the Entrepreneurs’ Infrastructure Programme Discussion Paper are substantially addressed in the recent report by the Australian Council of Learned Academies (ACOLA) The role of science research and technology in liftingAustralian productivity. The ACOLA Report, commissioned by the Chief Scientist for the Prime Minister’s Science, Engineering and Innovation Council (PMSEIC), has three major conclusions:

Building Australia’s future industries will depend on adopting technological innovation to develop high-value products and services for a global market.

Improving collaboration in Australia, between businesses and between business and publicly funded research, will significantly enhance innovation. International collaboration is also critically important. Both domestic and international collaboration improves the productivity and competitiveness of Australian technology-based firms.

An innovative workforce that combines technical and non-technical disciplines, and enables good business management, is essential to underpin the competitive advantage of Australian industries and realise opportunities to lift productivity

Further information on the ACOLA report is provided in Appendix 3.