NSW Govt to launch science and innovation fund

The NSW Government will soon launch a science and innovation fund to coordinate strategic investments, deliver on government priorities and turn the state’s research strengths into new businesses.

Announced by Treasurer Daniel Mookhey at the Sydney Investment Summit earlier this month, the fund will bring together government, universities, researchers and investors as part of a coordinated growth agenda.

The $150 million fund will co-invest with NSW public universities before expanding to support other organisations across the innovation ecosystem, helping promising programs make the leap from the laboratory to the market. It will begin operating on 1 July 2027.

A new research innovation framework will also:

• coordinate NSW Government equity holdings to ensure investments are managed strategically;
• strengthen capability within NSW Health, to develop innovative practices to support an effective and efficient health system; and
• bring together the wider health and medical research ecosystem, including independent, privately and charitably funded institutes, to share expertise and infrastructure and better coordinate research effort.
   

The establishment of the framework responds to the independent Pounder Review of the state’s technology and innovation ecosystem, which found NSW has an opportunity to improve the commercialisation pipeline of research strengths — particularly in deep tech, bio medical science and environmental science.

In response to the review, the government developed the NSW Innovation Blueprint 2035 — a 10-year plan to help cement NSW’s position as Australia’s innovation powerhouse. A key action of the blueprint was a new strategic approach to funding, exploring ways to support innovators at all stages of growth — including through co-investment opportunities.

The new fund and framework should enable the creation of stronger connections between researchers, government, industry and investors. NSW Treasury, Investment NSW and the NSW Chief Scientist and Engineer will together work with NSW public universities to develop the fund and governance settings before launching an initial investment round in 2027.

“Four years of budget discipline have strengthened the state’s capacity to make strategic investments in the industries that will drive our future economy,” Mookhey said.

“For generations, people have come to NSW with an idea, an ambition and the determination to build something better.

“Today, those people are working in our universities, hospitals, laboratories and startups. They are developing new treatments, new technologies and new solutions to challenges faced around the world.

“The research innovation framework will bring those strengths together so more NSW ideas become growing businesses, better services and well-paid jobs.”

Minister for Innovation, Science and Technology Anoulack Chanthivong added, “The Pounder Review confirmed that NSW punches well above its economic weight in innovation, research and venture capital.

“The NSW Innovation Blueprint set out our long-term vision to make NSW the best place to innovate, and the Research Innovation Framework is a key step in delivering that vision by helping more research move from the laboratory to the marketplace.”

Minister for Skills, TAFE and Tertiary Education Steve Whan concluded, “The innovation fund will help researchers bridge the difficult gap between a breakthrough in the laboratory and a product ready for the market.

“When NSW researchers change the world, we want the resulting companies, jobs and manufacturing opportunities to be created here, enabling new opportunities for people to upskill and build rewarding careers in emerging industries.

“This will make it easier for universities to work with government, partner with industry and connect promising ideas with the investment they need.”

Image credit: iStock.com/Sergey Khakimullin