Source: Cicada Innovations
They believe that this figure makes investment in deep tech a “no-brainer” for stimulating Australia’s economic recovery from Covid and for creating long-term economic growth and jobs, and that the commitment to long-term planning over short-term wins is to be commended.
Sally-Ann Williams, CEO of Cicada Innovations, said: “Leveraging science-based engineering and advanced manufacturing in areas that Australia has a competitive advantage is the best chance we have of turning Australia into a global economic powerhouse.
“For this reason, we applaud the federal government’s commitment of $1.5 billion to support the future of Australian manufacturing, which we see as great news for every one of our the deep technology companies, who all employ advanced manufacturing in some capacity in building their world-changing innovations.
“What’s especially pleasing is that the government is taking a long-term approach to measuring success, with a plan to assess jobs created and levels of R&D and investment over a 10-year period. But we would encourage the government to expand this timeframe even further, given the time it takes these companies to truly achieve success and benefit broader society.
“Deep tech companies that have the ability to change or create whole industries don’t become multi-billion dollar contributors to the economy overnight: Cochlear, as an example, took over 40 years to grow from initial ideation to its current global success.”
David Thodey AO, said: “Australia must continue to develop a strong and dynamic technology sector based on great science and innovation. Cicada Innovations plays a critically important part in this strategy.
“Cicada’s research shows that deep tech companies are able to create $3 of value for broader society for every $1 of revenue generated, which demonstrates how powerful they will be in driving our economic recovery. Combined with the Modern Manufacturing initiative announced by the Government, these initiatives can drive long term value for our nation.
“It is encouraging that the Government is supporting innovative SMBs as outlined in the Digital Economy announcement. We must continue to use technology and science to drive economic growth, and leverage our investment in research translation funds.”
Modelling on six Cicada Innovations companies producing $378m in combined economic value showed that the highest beneficiary of this created value was wider society at $109m (29%), business customers at $104m (28%), the startups themselves at $99m (26%), and consumers at $66m (17%).
The value spillover is due to the transformative nature of the companies’ innovations and the resulting positive social outcomes, such as reduced healthcare burden and lower environmental impact.
Using these figures, if governments made a combined direct investment into just three new Cicada Innovations operations, $1.1 billion of combined economic value could be created for Australia and an additional $1.35 billion in investment could be raised for deep tech companies in just 15 years.
Sally-Ann Williams and David Thodey AO are available for comment.
Please contact Erika Streegan (Erika@ThirdHemisphere.com.au or 0401 788 399) to arrange.
Cicada Innovations (www.cicadainnovations.com.au) is Australia’s pioneer deep tech incubator, on a mission to catalyse and grow the ecosystem by connecting entrepreneurs, researchers, investors, and mentors to solve the world’s biggest problems.
It supports a community of innovators and high-growth emerging deep tech companies, who are building the industries and jobs of the future, by providing investment; commercialisation and acceleration programs; rich research partnerships; networks of domain experts; and specialist deep tech infrastructure through its four top Australian university shareholders, ANU, USYD, UNSW, and UTS.
Since launching in 2000, Cicada has assisted 300+ companies raise $350m+ in venture capital and government grants, file 500+ patents and trademarks, and bring 700+ deep technology innovations to market globally. It has been awarded “Top Incubator in the World” twice by the international peak body for business incubation and entrepreneurship, the International Business Innovation Association (InBIA).