Published on the 08/12/2015 | Written by Beverley Head

In a bid to kick start Australia’s innovation engine the Government has unveiled its $1.1 billion Innovation and Science Agenda, replete with 24 separate measures…

The Agenda features a slew of wide ranging initiatives, including tax breaks for angel investors, a relaxation of some of Australia’s bankruptcy laws – edging it closer to the US style Chapter 11 regime, a push for more industry collaboration from universities seeking grants, and investment to encourage greater gender equality in the STEM (science, technology, engineering and maths) fields.

The Government has also put money back into the nation’s peak research body, CSIRO (after the previous Abbott Government slashed its funding) and announced it would inject $75 million into Data61, the ICT focused love-child of NICTA and CSIRO.

According to Prime Minister, Malcolm Turnbull, the upshot of the Agenda is that: “There has never been a more exciting time to be an Australian business.”

He said that companies that embraced innovation and were agile would be more competitive, grow market share and be more likely to increase employment. Meanwhile the Agenda package would support students seeking to develop the skills they needed to find high waged, rewarding jobs, by promoting coding in schools, encouraging problem solving and developing critical reasoning skills.

While Australia could not, nor should it attempt to, “future proof ourselves for change” it should develop a more risk accepting and innovating approach according to the Prime Minister.

Among the initiatives are $106 million in tax incentives for early start ups angel investors through tax offsets and a 10 year capital gains exemption if investments were held for three years.

To encourage more small businesses to buy from local suppliers the Government will also ask the Digital Transformation Office to set up an online marketplace that public servants can shop from.

Meanwhile a new uncapped entrepreneur’s visa will be introduced in 2016. According to Turnbull; “The more high quality effective productive enterprising entrepreneurs we can attract the better – entrepreneurs create jobs.”

And those that fail will face a more forgiving system, with the Minister for Industry, Innovation and Science, Christopher Pyne detailing insolvency reforms which he said; “Will drive economic activity and keep businesses in business that should be in business over the medium term.”

The package of measures has already received widespread support, but also tacit warning that this is only the first step in a long journey.

Alex Scandurra, CEO of fintech hub Stone & Chalk, said that the Agenda: “Lays the foundation for the next 25 years for an ideas boom. It is an excellent down-payment and a welcome first installment.”

SAP ANZ MD John Ruthven emphasised that education, large enterprises and government must be closely coordinated. “The tax reforms are essential for job creation, talent retention and growth.” He added that the focus on talent and skills is crucial. “There is a paradox within Australian society – while youth unemployment rises, so does demand for ICT skills. It’s become critical that we work to address our nation’s ICT skills shortage.”

Robert Wickham, Regional Vice President for Innovation and Digital Transformation, for Salesforce APAC also broadly supported the intent to transition from a resources led economy to an innovation led economy.

But he warned that; “One of the most important critical success factors of this bold initiative by the Government is the cultural shift that must come with it. The national shift away from ‘fear of failure’ to a ‘spirit of innovation’ will require significant changes in behaviour and mindset. This requires time, perseverance, and ongoing investment by all parts of the industry.”