Labor Party commits to $40M NIF Renewal

Background

After lobbying from StartupWA about the expiration of the New Industries Fund, a future Cook Government has committed to a $40M renewal of the fund.

Although this is less than the $100M advocated for by Startup WA, this is, nonetheless, welcome. While no other party is talking about innovation or making any promises or mention in this area, it looks like the ‘NIF’ will have a life beyond its current expiry date (June 2025), with more funds than previously, should Cook’s Labor Government win re-election on 8 March.

Making up part of Labor’s Made In WA Plan, the commitment includes increasing the New Industries Fund with $40 million to boost the development and acceleration of innovation-based technologies, and $50 million to support the co-location of world-leading medical manufacturers at Perth’s newly established Biomedical Precinct.

“It is good to see the Cook Government promising the renewal and further extension of the ever-popular New Industries Fund and its highly over-subscribed programs. It is now eight years old, and this announcement promises another 4 years of life,” StartupWA Chair Charlie Gunningham said.

This commitment will see annual levels of support increase to $10M a year from $8.5M last year and $4.175M per year in 2017. However, the sector has grown almost 15-fold since the inception of the NIF. According to independently collected Dealroom data, the sector is made up of more than 1,000 companies collectively valued at $12 billion — up from $820M in 2017 and employing almost 10,000 people.

NIF programs remain extremely popular and are well over-subscribed. The Innovation Booster Grant, for example, can be more than 20 times over-subscribed, meaning 95% of applicants receive nothing. It’s highly competitive, and deserves more funding.

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