Industry Growth Program Commercialisation and Growth

Purpose and Program Overview

Industry Growth Program Commercialisation and Growth stream is designed to assist and empower Australian innovative small and medium-sized enterprises (SMEs) and startups. This program recognises your potential to commercialise your innovative products, processes, or services and scale your operations. The grant aims to support businesses that have progressed beyond the early-stage commercialisation phase and are now ready to grow and expand into national and international markets.

This program is strategically aligned with the priority areas of the Australian Government’s National Reconstruction Fund (NRF), helping to strengthen Australia’s manufacturing capabilities and foster economic growth. By focusing on these priority areas, we aim to enhance commercialisation and growth capabilities, increase trade, and position businesses for future investment opportunities, including those facilitated by the NRF. Your projects are not only innovative, but they are also contributing to the nation’s strategic goals.

The broader Industry Growth Program has up to $287 million available over four years for grant opportunities, with this stream specifically targeting more advanced commercialisation and growth efforts.

Key Grant Details

• Grant Amount or Funding Range: Grants range from $100,000 to $5 million.
• Application Open and Close Dates: Applications are open and accepted at any time.
• Eligible Industries or Business Types: Innovative SMEs and startups undertaking commercialisation and/or growth projects in National Reconstruction Fund (NRF) priority areas.
• Required Co-contributions: A 50% co-contribution is needed from the applicant.
• Location/State/Territory Applicability: Australia-wide.

Priority Sectors

The grant explicitly targets projects within the National Reconstruction Fund (NRF) priority areas. These sectors include:

• Value-add in resources
• Value-add in agriculture, forestry, and fisheries
• Transport
• Medical science
• Renewables and low emissions technologies
• Defence capability
• Enabling capabilities

Funding Scope

This stream of Industry Growth Program provides funding for projects focused on commercialisation and growth:

• Minimum and Maximum Amounts per Stream: The minimum grant amount is $100,000, with a maximum of $5,000,000.
• Categories or Streams of Funding: The grant supports full-spectrum development, from early prototyping through to market readiness and scaling. It targets projects typically at Technology Readiness Levels (TRL) 4 to TRL 9, encompassing activities to improve commercialisation capabilities and increase trade in national and/or international markets.
• Project Timeline or Eligible Funding Duration: Projects must have a minimum duration of 12 months and a maximum duration of 24 months. The minimum total eligible project expenditure is $200,000.

Eligibility Criteria

Key eligibility requirements for applicants include:

• Business Structure: Must be a company incorporated in Australia, a co-operative, or an incorporated trustee applying on behalf of a trust.
• ABN/GST Status: Must have an Australian Business Number (ABN) and be registered for Goods and Services Tax (GST).
• Tax Status: Must not be exempt from paying income tax.
• Turnover Threshold: Must have a combined annual turnover of less than $20 million for each of the three financial years before applying.
• Advisory Service Requirement: Must have received a report through the program’s Advisory Service.
• Innovation: Must have an innovative product, process, or service that is being commercialised and/or grown in one or more NRF priority areas.
• Intellectual Property (IP): Must own or have access to any Intellectual Property (IP) needed for the project and own or have exclusive rights to commercialise any IP generated from it.
• Financial Capacity: Must provide evidence of the ability to fund at least their share of eligible project expenditure.

Eligible Activities and Expenses

Grant funding supports activities aimed at commercialisation and growth, including:

• Scaling up into national and international markets.
• Developing market entry strategies.
• Prototyping, validation, and trials.
• Securing intellectual property.
• Refining industrial design and manufacturing processes.
• Conducting user trials and market testing.
• Expenditure on labour (with on-costs limited to 30% of total eligible labour expenditure).
• Contract expenditure (with overheads for contractors working more than 35 hours/week, limited to 20%).
• Capitalised spending for plant and equipment (up to 25% of total eligible expenditure for production/full run rate plant and equipment).
• Travel costs (overseas travel limited to 10% of total eligible expenditure).
• Other eligible expenditure.

Assessment Process

The Industry Growth Program Commercialisation and Growth grant is a competitive program.

Applications are assessed based on a weighting given to each criterion and must score at least 50% against each criterion to be considered for funding. Key evaluation criteria include

• Alignment of project with grant opportunity objectives and outcomes (20 points): Demonstrating how the project contributes to the program’s objectives, aligns with NRF priority areas, is transformational, and enhances competitiveness in national and/or international markets.
• Capacity, capability, and resources to carry out the project (40 points): Detailing the leadership team’s commitment, track record in delivering similar projects, access to expertise, and a comprehensive plan to manage the project, including risks, execution, and operational aspects.
• Market Opportunity (20 points): Explaining how the product/service is innovative, solving a customer problem, identifying the target market, pricing strategy, market position, and forecasting return on investment. A strong case for innovation is crucial.
• Benefits to be provided by the grant (20 points): Detailing the positive impact on project size, scale, or timing; on the business (jobs, turnover); and on broader industry, social, environmental, or economic outcomes.

Recent Updates of IGP Commercialisation and Growth

The Industry Growth Program, including its Commercialisation and Growth stream, commenced on 27 November 2023, replacing the Entrepreneurs’ Program. The program has up to $287 million available over four years for grant opportunities. This iteration is more targeted towards innovative SMEs within the National Reconstruction Fund priority areas. Importantly, the application process is ongoing, allowing submissions at any time, so don’t delay in applying.

Application Tips

• Ensure you have received a report through the program’s Advisory Service before applying, as this is a mandatory eligibility requirement.
• Demonstrate how your project aligns with one or more of the National Reconstruction Fund priority areas.
• Provide a detailed project plan including scope, timelines, key management staff, governance structure, and a risk management plan.
• Prepare robust evidence of your funding strategy, demonstrating your ability to meet the 50% co-contribution.
• Showcase your organisation’s track record and capacity to deliver the proposed project, including expertise and experience.

Where to Get Help

Consider consulting with a professional grant specialist, such as Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit relevant government websites for application templates and further guidance.

Other Streams of Industry Growth Program

Industry Growth Program – Early-Stage Commercialisation