Territory Innovation Challenges Program NT

Purpose and Program Overview

The Territory Innovation Challenges Program NT provides businesses, research organisations and other eligible organisations with an opportunity to develop solutions to challenges identified by the Northern Territory Government. The programme is designed to use government procurement to support the development, testing and commercialisation of innovative products and services within the Northern Territory. Successful applicants can negotiate a procurement contract with the NT Government and receive $100,000 in seed funding once the procurement contract has been finalised.

The programme supports the Northern Territory’s broader innovation strategy by encouraging collaboration between Territory businesses and research and development organisations, developing scalable and exportable innovations, strengthening local workforce capability and creating opportunities for private-sector investment. The programme terms state an objective of developing a $4 billion Territory innovation ecosystem to support a $40 billion economy in the Territory by 2030.

The programme does not operate as a conventional grant round with a single fixed application deadline. Instead, the NT Government publishes individual challenges, each with its own problem statement, timeframe, application requirements and judging criteria.

Key Grant Details

• Grant amount: $100,000 in seed funding for the successful Innovation Cluster after a procurement contract is finalised. Additional payments for the development and procurement of the solution may be negotiated under the agreement.
• Application opening date: The overall programme opened on 24 January 2021; individual challenges have their own opening dates.
• Application closing date: Varies according to the individual challenge. Applicants must follow the deadline published for the relevant challenge.
• Eligible applicants: NT enterprises and organisations that are, or can form, an Innovation Cluster meeting the programme requirements.
• Cluster requirement: An Innovation Cluster must include at least two Territory enterprises and one research organisation, which may be public or private.
• ABN requirement: Applicants must have a registered Australian Business Number (ABN).
• Co-contribution: No standard co-contribution percentage or dollar contribution is specified in the programme information. However, the individual agreement may identify further investment required to meet performance criteria or milestones.
• Location: The programme applies to the Northern Territory, with participating cluster members required to be physically co-located in the NT for the required period under the programme terms.
• Grant provider: Northern Territory Government, through the Department of Industry, Tourism and Trade.

Priority Sectors

The programme does not specify one permanent list of priority sectors across all challenges. Instead, priority areas are determined by the individual challenges established by the Northern Territory Government and its agencies.

Past challenges have included areas such as drone technology, digital games and esports, and investment networks, demonstrating that the programme can apply across different technology, industry and innovation areas. Each applicant should therefore assess the requirements and strategic priorities of the specific challenge before preparing a submission.

Funding Scope

The Territory Innovation Challenges Program has a distinctive funding and procurement structure rather than multiple standard grant streams.

• Seed funding: $100,000 is provided after the successful Innovation Cluster and the NT Government finalise and execute the relevant procurement agreement.
• Project funding: The agreement can provide for an additional amount of funding determined by the Territory for carrying out the project, including the timing and stages for releasing that funding.
• Procurement payments: The agreement establishes the commercial arrangements for the eventual procurement of the developed solution, including the price or mechanism used to calculate the price.
• Project activities: Funding and procurement arrangements are linked to developing the proposed idea into a tested, developed solution that satisfies agreed performance criteria.
• Project duration: There is no single programme-wide project duration stated. The timeframe and milestones are established for each individual challenge and set out in the relevant agreement.
• Testing: Successful solutions must be demonstrated in a test-bed environment agreed with the Challenge Sponsor.

Eligibility Criteria

Applicants must meet the programme’s cluster and participation requirements. Key criteria include:

• Be, or have the ability to form, an Innovation Cluster.
• Hold a registered ABN.
• Include participants located in the Northern Territory who will actively participate in the project.
• Include two or more Territory enterprises within the Innovation Cluster.
• Include at least one research organisation, which can be public or private.
• Ensure Innovation Cluster members are physically co-located in the Northern Territory for the required period, including until relevant agreements and obligations have been completed.
• Provide evidence of the legal arrangements between cluster members, including a shareholders’ agreement or joint venture agreement, or appropriate details of the proposed arrangement.
• Provide declarations concerning intellectual property and confidentiality rights.
• Provide evidence of the solvency and financial capacity of participating cluster members, including relevant financial statements.
• Maintain appropriate insurance covering risks associated with the solution throughout participation and until relevant funding has been acquitted.
• Remain solvent during participation in the programme.
• Comply with applicable Australian and Northern Territory laws and government requirements.

The programme information does not state a general minimum or maximum turnover requirement, nor does it specify a general GST-registration requirement. Applicants should therefore rely on the requirements of the specific challenge and the programme terms rather than assume that standard grant turnover thresholds apply.

Eligible Activities and Expenses

Eligible activities are determined through the individual challenge and subsequent agreement. The programme can support activities associated with:

• Developing an innovative product or service to address a defined government challenge.
• Developing and refining a proposed solution into a developed solution.
• Research, development and technical activities required to deliver the solution.
• Test-bedding and demonstrating the solution against agreed performance criteria.
• Mobilising and establishing the Innovation Cluster.
• Developing a detailed Challenge Business Plan.
• Activities required to meet agreed project milestones and performance criteria.
• Sourcing materials and labour in accordance with the Buy Local Plan.
• Commercialisation and subsequent procurement of the developed solution.

The programme should not be treated as a general-purpose business grant for unrestricted operating expenditure. Expenditure and payments are governed by the relevant challenge and formal agreement.

Assessment Process

The Territory Innovation Challenges Program is competitive, rather than an entitlement-based grant. Applications are initially reviewed by the Department, including due diligence of the proposed Innovation Cluster, before eligible submissions are referred to the assessment panel.

The programme terms identify several assessment considerations:

• Collaboration: The level of collaboration with Territory enterprises, research and development organisations and other relevant entities.
• Solution: The merit and feasibility of the proposed solution in addressing the challenge.
• Capacity to deliver: The cluster’s capability, planning, corporate stability, qualifications and experience.
• Scalability: The potential to commercialise and export the developed solution.
• Value for the Territory: Potential benefits including job creation, investment attraction, local production and workforce development.
• Price: The proposed commercial terms and price associated with undertaking the project and procuring the solution.

Each challenge may also introduce additional or more specific judging criteria that applicants must address.

Recent Program Updates

The programme terms and conditions were updated in February 2024 to reflect the Territory Business Innovation Strategy 2.0.

The programme remains listed as open, with deadlines determined by individual challenges rather than one programme-wide closing date. The current business.gov.au listing confirms that applications are subject to challenge-specific deadlines.

Applicants should check the latest challenge published on the NT Innovation website because challenge requirements, dates, judging criteria and other programme information may change.

Application Tips

Applicants considering the Territory Innovation Challenges Program should:

• Confirm that the proposed solution directly addresses the problem statement and requirements of the selected challenge.
• Establish the required Innovation Cluster early, including at least two Territory enterprises and one research organisation.
• Clearly define the role, capability and contribution of each cluster member.
• Prepare evidence of financial capacity and solvency for participating organisations.
• Document ownership, confidentiality and intellectual property arrangements before submission.
• Demonstrate how the proposed solution can be developed, tested and delivered within the specified timeframe.
• Address collaboration, feasibility, scalability, value for the Territory and commercial value in the proposal.
• Demonstrate how the solution can create jobs, investment, local production, workforce capability or other benefits for the Northern Territory.
• Review the specific challenge’s judging criteria and submission requirements before finalising the application.
• Consider the Buy Local Plan and other Northern Territory Government compliance obligations when developing the project.
• Prepare a realistic commercial model and evidence of the cluster’s capacity to deliver the proposed solution.

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact Pattens Group today and get connected with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate.

For official guidelines, application details, challenge-specific requirements, templates and further information, applicants should review the Territory Innovation Challenges Program information published by the Northern Territory Government and business.gov.au.