$150 million fund to target the gap between NSW research and industry
NSW public universities will help shape the first stage of a new $150 million science and innovation fund designed to move research towards commercial use, as the state strengthens links between researchers, industry and investors.
The NSW Government will establish a $150 million science and innovation fund aimed at helping research make the difficult transition from the laboratory into commercial products and businesses.
Announced on 10 September, the fund will initially co-invest with NSW public universities before expanding to support other organisations across the state's innovation ecosystem.
Exactly how that co-investment model will work has not yet been announced. The Government has not specified whether universities will be required to provide matching funding, how investments will be structured, or which projects and sectors will be eligible.
Those details will be developed ahead of the fund's commencement on 1 July 2027.
NSW Treasury, Investment NSW and the NSW Chief Scientist and Engineer will work with NSW public universities to develop the fund and its governance settings before an initial investment round in 2027.
Closing the research-to-market gap
The fund forms part of a research innovation framework developed in response to the independent Pounder Review of the NSW technology and innovation ecosystem.
While the review found NSW attracted 57 per cent of Australia's venture capital investment between 2000 and 2024, it also identified an opportunity to improve the commercialisation pipeline for research, particularly in deep technology, biomedical science and environmental science.
The Government said the fund would bring universities, researchers, government and investors together to help promising programs progress from research towards the market.
NSW Minister for Skills, TAFE and Tertiary Education Steve Whan said the fund was intended to address the difficult stage between a research breakthrough and a market-ready product.
“This will make it easier for universities to work with government, partner with industry and connect promising ideas with the investment they need.”
Energy transition among NSW industry priorities
The initiative sits within a wider NSW innovation policy framework connected to the state's industry priorities.
The NSW Innovation Blueprint 2035 sets out a 10-year approach to innovation and complements the NSW Industry Policy, which is organised around three connected missions including Net Zero & Energy Transition.
Under that mission, the Government identifies clean energy, critical minerals and green technologies as areas of opportunity for NSW.
Technologies identified by Investment NSW include battery storage, energy efficiency, smart grids, hydrogen and electric vehicles. The Government also identifies research and commercialisation as part of its approach to developing clean technologies in NSW.
The state's critical minerals policy covers exploration, mining, processing and recycling, while its energy priorities include Renewable Energy Zones, renewable-energy manufacturing and renewable fuels.
Universities involved in fund design
NSW public universities will have two distinct roles in the fund's initial phase.
First, the Government says the fund will co-invest with public universities, although the financial and investment arrangements underpinning that model are yet to be released.
Second, the universities will work with NSW Treasury, Investment NSW and the NSW Chief Scientist and Engineer as the fund and its governance arrangements are developed.
Minister for Innovation, Science and Technology Anoulack Chanthivong said the research innovation framework was intended to help more research move into commercial applications.
“The NSW Innovation Blueprint set out our long-term vision to make NSW the best place to innovate, and the Research Innovation Framework is a key step in delivering that vision by helping more research move from the laboratory to the marketplace.”
The Government says the fund will subsequently expand to support other organisations across the NSW innovation ecosystem.
Further details on eligibility, co-investment arrangements and the initial investment round are expected ahead of the fund commencing on 1 July 2027.
