TCA welcomes NSW's innovation blueprint commitment

The Tech Council of Australia (TCA) has welcomed the NSW Government’s commitment to developing an innovation blueprint aimed at ensuring the state remains competitive as a tech startup destination.

The commitment, which has been included in the new state budget despite the government scaling back or discontinuing some programs supporting innovative businesses, is a demonstration that the government understands the importance of developing a sustainable funding model, TCA CEO Kate Pounder said.

“We appreciate that the budget situation is tight and some tough choices have to be made. However, to get the budget back on track, it will be vital to grow investment and jobs in new industries, and to develop technologies that help lift productivity. That is the only sustainable way to get inflation down and ease cost of living pressures,” she said.

“We welcome the Innovation Blueprint process as it provides the opportunity to develop a sustainable future funding model. Speed is of the essence in ensuring that a funding gap doesn’t open up for innovative businesses in NSW.”

But she added that the decision to cut back funding on some programs will make it harder in the short term for NSW businesses to access funding compared with other states.

“We recommend that the government work with the industry to quickly clarify what grant funding is available, and how companies can apply for it, to minimise the impact of the changes on the industry to provide certainty for businesses accessing funding,” Pounder said.

“It is important the government works with the industry as a priority to look at funding models in NSW, and how it can remain competitive versus other states. This should include exploring VC-style funding models — in addition to grants programs — as pioneered by Victoria and Queensland.”

The TCA noted that the NSW tech sector currently generates 342,000 jobs, and there is potential to increase this to 500,000 by 2030. The sector also contributes $67 billion to the state’s economy.

“NSW has an incredible opportunity to lead Australia when it comes to developing new companies and jobs in tech. But it will require ongoing investment to retain that position,” Pounder said.

“We want to work with the NSW Government to advocate for Australia’s tech future, and will push even harder for further efforts to future-proof the state economy.”

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