{"id":45408,"date":"2023-10-20T15:43:24","date_gmt":"2023-10-20T15:43:24","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/federal-government-plans-innovation-fund-to-give-mid-market-businesses-a-boost-innovation-is-not-just-about-tech-startups-startupsmart\/"},"modified":"2023-10-20T15:43:24","modified_gmt":"2023-10-20T15:43:24","slug":"federal-government-plans-innovation-fund-to-give-mid-market-businesses-a-boost-innovation-is-not-just-about-tech-startups-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/federal-government-plans-innovation-fund-to-give-mid-market-businesses-a-boost-innovation-is-not-just-about-tech-startups-startupsmart\/","title":{"rendered":"Federal government plans innovation fund to give mid-market businesses a boost: \u201cInnovation is not just about tech startups\u201d – StartupSmart"},"content":{"rendered":"
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The Federal Government is moving away from its focus on startups in the latest phase of its \u201cInnovation Nation\u201d plans by looking to fill the funding gap for mid-size companies.<\/p>\n

In an opinion piece in the Australian Financial Review today Minister of Industry, Innovation and Science Greg Hunt argues \u201cinnovation is not just about tech startups or IT. It\u2019s also about established businesses doing things better.\u201d<\/p>\n

Hunt revealed the government will explore establishing a broader National Innovation Fund, targeting businesses valued between $20 million and $200 million. This expands on the government\u2019s previous messaging about the role of new technology-driven startups in the future of Australia\u2019s economy.<\/p>\n

Australian Small Business and Family Enterprise Ombudsman Kate Carnell told SmartCompany<\/em> the shift in focus is a great thing for Australian business.<\/p>\n

\u201cWe\u2019re seeing significant employment growth in those larger businesses, and it would be a tragedy if these kinds of companies were left out of the mix,\u201d she says.<\/p>\n

\u201cThere are lots of businesses that are not necessarily tech focused but do use innovation to link people with the services they need \u2013 people running dog-sitting operations to people working to support others to stay living in their own homes \u2013 there\u2019s a lot of interesting changes happening in those spaces.\u201d<\/p>\n

Peter Strong, chief executive of the Council of Small Business Australia, says the expanded focus is just what Australians needs.<\/p>\n

\u201cIt\u2019s fantastic to see that [Minister Hunt] gets it,\u201d he says.<\/p>\n

\u201cThe non-technology side of things has been ignored \u2013 think about things like an owner-operator truck driver who comes up with better processes, or the chance to develop better operations in a business \u2013 this kind of innovation does not always have to do with tech or startups,\u201d Strong says.<\/p>\n

\u201cSafety processes are also a major part of innovation, but they\u2019re not always tied to technology.\u201d<\/p>\n

The first key area of Prime Minister Malcolm Turnbull\u2019s National Innovation and Science Agenda, launched in December 2015, was \u201cCulture and Capital\u201d, which focusing on incentives for early stage startups.<\/p>\n

\u201cEven if [these] businesses don\u2019t succeed, we all benefit,\u201d the Prime Minister said in the launch speech. Then Minister for Industry, Innovation and Science Christopher Pyne said that the platform\u2019s policies were designed \u201cto bring together all those in Australia who recognise that the future for our economy is in high-tech advanced manufacturing.\u201d<\/p>\n

However, Minister Hunt\u2019s comments today give a greater focus to operations sitting beyond those startups, noting that innovation applies to \u201cold and new businesses alike\u201d.<\/p>\n

The Australian Private Equity and Venture Capital Association (AVCAL) have been campaigning for the expansion of innovation grants to companies that are in periods of accelerated growth \u2013 often those that are established and looking to expand further.<\/p>\n

\u201cBusiness owners consistently point to challenges stemming from the lack of capital available to support that growth, coupled with access to the skills and expertise,\u201d says AVCAL chief executive Yasser El-Ansary.<\/p>\n

But researchers into innovation and business growth are keen to remind the community that \u201cinnovation\u201d can include small acts of good planning.<\/p>\n

\u201cWhat we know about effective innovation is constantly expanding,\u201d says senior researcher and the Australian Innovation Research Centre, Kieran O\u2019Brien.<\/p>\n

\u201cSmall innovation often has really big impacts, and research and development and grants are important, but also remember that innovation does not have to be completely new, it can just be new for your business.\u201d<\/p>\n

\u201cThe majority of innovation that occurs is low level stuff \u2013 say an accounting firm adopts a new cloud software, so they search for the options out there, find the best one and implement it \u2013 that\u2019s innovation.\u201d<\/p>\n

Minister Hunt also highlighted this morning that he is focused on the \u201csecond and third\u201d waves of the National Innovation and Science Agenda, including removing red tape and duplication of services, working towards a single entry point for businesses to make applications to governments. The hope is these changes will \u201cimprove the business environment\u201d.<\/p>\n

SmartCompany<\/em> contacted Minister Hunt\u2019s office for further information about the proposed innovation fund and did not receive comment prior to publication.<\/p>\n

This article was first published on SmartCompany.<\/em><\/p>\n

Follow StartupSmart on<\/em> Facebook,<\/em> Twitter, LinkedIn and SoundCloud.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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