Prime Minister Scott Morrison has announced the Federal Government will fund a 10-year $1.6b competitive program called the Australia’s Economic Accelerator (AEA) as part of a a $2.2b Research Commercialisation Action Plan in a bid to bring Australia’s brightest and best minds together.
The AEA will focus on six manufacturing priority areas, dubbed the “valley of death” areas due to the high level risk and uncertainty they possess, which are:
- resources and critical minerals,
- food and beverage,
- medical products,
- recycling and clean energy,
- defence, and
- space.
In his press conference at the National Press Club on 31 January 2022, the Prime Minister says that the AEA is “designed to attract projects at proof-of-concept or proof-of-scale level of commercial readiness”.
The fund will allow Australian innovators to access funding opportunities for each stage of their project – provided they can continue to prove project viability and commercial potential.
Industry involvement and engagement is required at every stage.
Prime Minister Scott Morrison
This is welcomed news by prospective applicants from the priority areas, with Research Australia CEO Nadia Levin calling the funding a “step forward in addressing the well-known problem of the ‘valley of death’”.
Sustainable government funding like this moves us that bit closer towards developing a thriving research commercialisation and manufacturing ecosystem that benefits our health and economy.
Stronger connections between industry and research development along with encouraging mutually beneficial commercialisation partnerships between Australian universities, industry, and funders, can bring significant value for our innovation and export capabilities, and government plays a huge role in facilitating this.
Nadia Levin
Together with a new $150m expansion of CSIRO’s Main Sequence Ventures (venture fund), the AEA will look to “reshape research funding” and emphasise projects with “high potential for commercialisation”.
CSIRO Chief Executive Dr Larry Marshall says that “connecting great research across all Australia’s universities with real world problems in industry, is the key to translating science into real world solutions”.
More on AEA Grants
Grants under the AEA program are available in two stages.
Stage 1 grants are for proof-of-concept (Technology Readiness Level 3-5) projects. According to the Prime Minister, Stage 1 involves 96 grants of up to $500,000 is available per project, which is unusual as in-kind support is not usually allowed in grant funding and accelerator programs.
Applications must include projects that are completed between three months to a year from the project’s commencement and must demonstrate some industry engagement, which may include matched funding or in-kind support. Projects with commercial investment partners will be prioritised at this stage.
Up to 96 Stage 1 grants will be available per year from 1 July 2022.
Stage 2 grants are for proof-of-scale (Technology Readiness Level 5-7) projects, which must be completed between three months to two years from the project’s commencement and must be able to demonstrate a formal partnership and committed co-investment from an industry partner.
Only 36 recipients will be awarded a Stage 2 grant of up to $5m per financial year from 1 July 2023.
The Prime Minister had also mention that there is a Stage 3 grant that is given through the Main Sequence Venture, where the government will provide $150m in two successive co-investment funds.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said the grants were an investment in Australia’s future industries and smart manufacturing.
By working with industry and researchers, the government is helping to ensure our economy benefits from our world-class research, both now and well into the future,
Minister for Industry, Energy and Emissions Reduction Angus Taylor
To find out more information about the AEA and the selection process, visit their FAQ page.
