Report from Australia recommends Demandside Innovation policy

Why $30b in business innovation support is not working?

This is addressed in the report. 

Recommendations and policy considerations 

Demand-side drivers and the need to innovate 

1. Effectively identify businesses with the need to innovate and focus interventions on the barriers specific to that sector. Actions could include: 

1.1 Selectively support businesses with the need and risk appetite to innovate to deliver novel products and/or services for growing domestic and international markets. 

1.2 Design incentive programs that target businesses and industries critical to Australia’s industry policy objectives and align business and funding risk-taking in both direction and magnitude. For example, design funds and guidelines to filter applications based on business motivation and ambition, and provide advice, connections and resources specific to their needs to de-risk their opportunity. 

1.3 Focus government interventions on businesses seeking to service growing export market opportunities and transitioning internal markets with innovative new-to-market products or services that over time will contribute to improving Australia’s economic complexity. 

1.4 Effectively aggregate demand for innovation through coordination of whole-of-government policies, such as the transition to a net-zero economy, and the development of sovereign advanced manufacturing capabilities required to meet domestic and global needs. This will create competitive, dynamic markets for innovation in priority areas.

Further reading on Demand side innovation policy: