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BRINGING
BIG IDEAS
TO LIFE
NSW INNOVATION STRATEGY

innovation.nsw.gov.au
 MINISTERIAL
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INTRODUCTION

The NSW Innovation Strategy presents the NSW Government’s vision

to boost innovation in NSW, in the government and non-government
sectors for the betterment of our State. We believe that this will help us to
tackle complex economic, environmental and social challenges, stimulate
economic activity and drive shared prosperity for the people of NSW.
The Strategy will help ensure that NSW remains Australia’s economic and
innovation powerhouse.

We know that the capacity for innovation-led growth is not just in the
hands of the government, it also rests with businesses, non-government
organisations (NGOs), education and research institutions, communities
Hon Victor Dominello MP and individuals. Through consultation, you told us:
Minister for Innovation — Businesses and universities are eager to collaborate with government to
& Better Regulation solve challenges facing our state. We must foster a culture of innovation
in government to test new ideas and be prepared to learn from failure.
— Great ideas are not enough to generate commercial success, and
researchers and innovators need assistance to translate their ideas into
successful products and services. This should include new forms of
public investment.
— Employers and entrepreneurs need access to talent with skills in high end
technology. Our priorities should be investing in education, supporting
jobs-rich emerging industries, and improving access to new markets.
— NSW already leads on job creation, business investment, and tech sector
maturity – but we need to leverage local networks and international
opportunities to maintain this leadership. We also need to recognise
the real potential of the State’s regions.

The NSW Government has already shifted its approach to support a

culture of innovation. Service NSW is making government services easier
to access – a model now being replicated by state governments across
the country. The NSW Data Analytics Centre, the first of its kind in
Hon Anthony Roberts MP Australia, facilitates better linkages across government and collaborates
Minister for Industry with the private sector and research institutions to work on complex
Resources and Energy issues facing the people of NSW. We are driving a digital government
agenda to streamline government processes and provide consumers
with greater access to information, for example through FuelCheck NSW.
Through Jobs for NSW, we are leveraging the expertise of some of the
best business minds in the nation to drive investment and continue to
create jobs.
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Our industry-led Knowledge Hubs are finding solutions to hard

problems in sectors like financial services, energy, and transport and
logistics, co-created between businesses, research organisations and
industry associations. Through the Sydney School of Entrepreneurship,
we will provide high achieving students with opportunities to learn
entrepreneurial skills in partnership with universities and TAFE. The
Social Innovation Council has been established as a genuine partnership
between government and NGOs, to achieve better social outcomes for
the people of NSW.

Building on this base, the NSW Innovation Strategy focuses on four

areas of action:
— Government as an innovation leader.
— Fostering and leveraging research and development.
— Skills for the future.
— A home for entrepreneurs.

A Ministerial Innovation Committee will monitor the implementation

of the NSW Innovation Strategy and ensure that NSW Government
departments are open to the adoption of new ideas and innovations.

A world class innovation ecosystem demands that we proactively search

for opportunities to improve and leverage our strengths. This strategy will
help to increase NSW’s productivity and position our state as a leader
for the future.
 OVERVIEW
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Innovation is a process of trying things in new and different ways, often

through the application of new technology and improved connections
and collaboration, to derive value by meeting community, industry
and consumer needs.

Governments around the world are directing their energies to promoting

innovation because it is important to their core objectives of increasing
income growth, creating jobs, raising the standard of living, and providing
quality services to the community.

Innovation has a place within every government department. The role of

government is to also encourage and facilitate innovation in the broader
economy. In doing so, governments should consider where it can make
the biggest difference and concentrate its efforts accordingly. In terms
of influencing innovation, the NSW Government can:
— Clear the path to allow new products and processes to flourish – such
as removing unnecessary regulatory barriers to the use of technologies,
which disrupt existing business practices and markets.
— Make purchasing decisions that drive change.
— Address market failures that prevent or slow innovation – for example,
by helping to broker connections between the producers of research and
those that could apply it in their businesses.
— Make policy decisions to help foster innovation.
— Highlight ground breaking research, innovative ideas and solutions being
generated in NSW, including promoting NSW as the innovation
capital of Australia.
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In the context of these levers, and drawing on the feedback from

business and the community, this strategy has identified four primary
areas for action:
1. Making the NSW Government a leader in innovation, by being more open
to external ideas and new approaches to the delivery of services.
2. Helping NSW research bodies capitalise on research and development
to drive social and economic value.
3. Ensuring the right skills are developed, attracted and retained in NSW,
equipping our current and future labour force to create their own jobs and
technologies of the future, and meet technological advances and changing
business and workplace models.
4. Building on the strong position of NSW as the national leader in innovation,
and Sydney as the startup capital of Australia, to benefit the greater NSW
regions and become a globally recognised centre of entrepreneurship. This
includes promoting opportunities and success stories, to attract businesses
and individuals to NSW.

This document highlights headline initiatives only. There are a number

of supporting initiatives that can be viewed at www.innovation.nsw.gov.au.

This approach complements the Australian Government’s National

Innovation and Science Agenda which focuses on collaboration between
researchers and industry, building talent and skills, and government
leading by example.
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GOVERNMENT AS
AN INNOVATION
LEADER

Government can play a key role in creating an enabling environment for

innovation. The NSW Government employs over eight per cent of the
state’s workforce and delivers a budget valued at 14 per cent of the state’s
economy. The government is also a major customer for businesses, NGOs
and other providers, purchasing almost $25 billion in goods and services
each year.

With rapid improvements to services, products and systems throughout

the economy, customers and businesses increasingly expect that these
are mirrored through streamlined access to government and improved
government services. This means adopting a greater ‘user-centric’
approach;providing more efficient channels of engagement that deliver
better information, faster; making it easier to do business with government;
and importantly, developing smarter, fit-for-purpose regulation.

The NSW Government will create an environment within the public sector
that encourages risk taking, to explore innovative ideas in government
and encourage partnerships with the private sector; including market
leaders, startups, entrepreneurs, NGOs, and universities to drive
improved social, environmental and economic outcomes.

We will harness data, digital technologies, diverse skills and expertise

to co-design solutions around need, and provide clearer access points to
government decision making. Through a digital government agenda, we
will embed a culture of ‘digital by default’ to help streamline government
processes and encourage the release of open data where appropriate.
Where possible, we will collaborate across all levels of government to
reduce regulatory hurdles for businesses. We will simplify our procurement
guidelines, make regulators and regulation more responsive to customer
requirements, and focus our efforts on making NSW the easiest state to
start and grow a business.
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HEADLINE INITIATIVES:
We will:
— Launch the NSW Innovation Concierge (NIC) service which includes the
digital interface ‘Ask NIC’, to help navigate and get access to the right
information and people in government. It will operate as a ‘front door’
for innovative ideas that align with State Priorities and have multiple
touchpoints within government. NIC will operate in conjunction with
the new Ministerial Innovation Committee, to ensure that opportunities
are considered by subject matter experts and decision-makers across
government. It will ensure that government agencies are leveraging
innovative solutions and drive implementation of Innovation
Strategy initiatives.
— Create Regulatory Sandboxes where products, services and business
models can be tested while maintaining existing protections.
The introduction of Regulatory Sandboxes will encourage more
experimentation and allow businesses to accelerate the development
of innovative solutions in NSW.

Social Innovation Council

The Social Innovation Council is a strategic partnership between NSW
Government and NGOs to help foster innovation in the way human services
are developed, delivered and measured. The objective of the Social
Innovation Council is to improve human services outcomes by:
— the use of technology and collaborative work practices to optimise
service delivery
— improving the quality and accessibility of human services data for
government and NGOs
— driving more strategic engagement of the NGO sector
— making it easier for NGOs and government to do business together.
More information at: innovation.nsw.gov.au/social-innovation/social­
innovation-council
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FOSTERING AND
LEVERAGING R&D

Investment in research and development is critical for generating

new knowledge required to create or improve products, services
and processes.

NSW has world class research institutions. The research undertaken in

NSW has already translated into enormous economic opportunities and
has transformed people’s lives. Turning research into tangible outcomes
is a major priority for research bodies, and for our growing economy and
population.

While Australia performs well in terms of private sector investment in

research and development, there are some clear gaps. Government has
a role to play as both a facilitator of investment and as an investor in
early-stage technologies with significant growth potential.

The NSW Government wants to deepen the links between research

and the broader economy. In many cases, researchers are not sure
who in industry could make use of their work, and businesses are often
unaware of what opportunities might be created through engagement
with researchers and their facilities. Government can help broker these
connections.

In particular, the NSW Government needs to play a role in fostering

collaboration and creating an environment in which universities, industry
and government can work together to solve business and service
delivery problems.
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The NSW Government will make this happen in many ways, such as

94%
GROWTH
being smarter in utilising its significant research spend and encouraging
research initiatives to involve multiple universities, the private sector and
NGO participation.

It will also provide direct incentives to industry and universities to work

together. For example, through providing ‘technology vouchers’ that
firms can redeem via partnerships with research bodies to develop
2015 specific solutions for their businesses.

2006
HEADLINE INITIATIVES:
We will:
— Expand the successful TechVoucher scheme through the Boosting
Business Innovation Program to drive in-depth industry and research
collaboration. The program will be delivered through universities and
IN NSW PRIVATE SECTOR the CSIRO.
EXPENDITURE ON R&D
— Establish Universities Connect to build more strategic relationships
between the university sector and the NSW Government. This relationship
management function will proactively encourage dialogue to help with
problem solving and collaboration, link institutions with government for
partnerships to try and solve problems.
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SKILLS FOR
THE FUTURE

Forty per cent of today’s jobs will not exist in 10 to 15 years, and 60
per cent of the best jobs in the next 10 years have yet to be invented.
The World Economic Forum predicts jobs growth in industries such
as arts, engineering, artificial intelligence, robotics, nanotechnology,
3D printing, genetics and biotechnology. We can also build on our
competitive strengths in quantum computing, big robotics, fintech
and agtech.

To meet the future needs of industry we must ensure the right mix
of talent, with skills in diverse fields such as critical and experimental
thinking, creative problem solving, managed risk-taking, management
and entrepreneurship, along with science, technology, engineering
and mathematics (STEM).

We will work with industry, education providers, communities and

the Australian Government to actively build the skills needed for
future diverse high-value jobs; by growing and re-skilling talent,
encouraging business opportunities and attracting the best and
brightest talent internationally.
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20% HEADLINE INITIATIVES:

PROJECTED
GROWTH We will:
— Work closely with industry and education providers to develop programs
that attract more diverse high-potential students into STEM higher and
vocational education, and retain high-performing students in NSW STEM
2020
industries. This will be done through a suite of initiatives across NSW
2015 Government, including the establishment of a NSW STEM Foundation to
support excellence, diversity and retention in STEM.
— Develop NSW Future Skills. This body of work will address the
preparedness of NSW students for changing economic and workforce
IN NSW PROFESSIONAL, needs and technological changes. A scoping exercise is currently
SCIENTIFIC AND underway and will identify opportunities to increase participation in STEM
TECHNICAL SERVICES subjects and support students studying Asian languages. It will also scope
SECTOR EMPLOYMENT opportunities to better develop entrepreneurship and better understand
how we can achieve improved outcomes.
— Implement the Jobs for the Future strategy, including initiatives
for meeting the skills need for tomorrow.
— Implement Jobs for NSW, a $190 million investment to drive the
Premier’s number one priority, creating jobs.
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A HOME FOR
ENTREPRENEURS

As the national economy transitions towards greater digitisation, NSW

has led the way as Australia’s largest exporter of Information and
Communications Technology (ICT) services, and holds the country’s largest
concentration of ICT professionals. Almost half of all Australian technology
startups are based in Sydney, as are the regional headquarters of world-
leading ICT multinationals.

From this base, government can play a unique role in retaining NSW’s
global competitiveness. Through its high profile international engagement
strategy, government can promote the state’s strengths, draw in overseas
talent and investment, and nurture cooperation with international firms
and policy-makers at innovation’s leading edge. Already in NSW, areas
such as fintech and agtech are attracting international attention and
investment and new sectors such as cyber-security are emerging.

In cities and regions across the world collaborative work spaces,

precincts, and adoption of new technologies, such as Internet of Things
sensor technology, have created opportunities to ignite significant
innovation-led growth, leading to new ideas, products and services.

The NSW Government is fostering international competitiveness through

initiatives such as the redevelopment of the White Bay power station, and
through fostering the growth of other innovation precincts in NSW.

Sydney is the innovation entry point for entrepreneurs and startups to

access opportunities across NSW. It is also the landing pad for essential
foreign investment, technology and talent. Sydney ranks in the top three
startup ecosystems in Asia – a sector worth A$70 billion to the
NSW economy.
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62%
The government is committed to putting Sydney in the top ten startup
ecosystems in the world. To get there we will build on our existing
GROWTH network of incubators, accelerators and knowledge hubs. We will also
work more closely with the City of Sydney and other local governments
to build Sydney and NSW’s international profile, attract entrepreneurs
and funds and bring world-leading innovators to NSW.
2015

2014 HEADLINE INITIATIVES:

We will:
— Form Strategic Partnerships with local governments, starting with

the City of Sydney. The Sydney CBD has a significant concentration of

$870m $1.41bn innovative firms and is a global competitor for attraction and retention

of entrepreneurs. This partnership will include an International Visiting

NSW EXPORTS OF Entrepreneur’s Program and a commitment to continue collaborating

COMPUTER AND to unlock innovative solutions to harness economic and social outcomes.
INFORMATION SERVICES
— Jobs for NSW will assist startup companies to flourish into the gazelles
of tomorrow by setting aside $10 million to grow the state’s network of
incubators and accelerators, and $3 million in 2016-17 for direct grants
to startups.
— Launch the innovation.nsw.gov.au website (which includes the Ask
NIC digital interface for entrepreneurs to access the NSW Innovation
Concierge) which will provide information on the Innovation Strategy and
supporting initiatives. It will also promote innovation in NSW more broadly.
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INNOVATION.NSW.GOV.AU

© State of New South Wales (Department of Finance, Services and Innovation) 2015.

For current information go to www.lsb.justice.nsw.gov.au/lsb/nswcopyright.html. This work

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Attribution 4.0 licence. See http://creativecommons.org/licenses/by/4.0/ for details.