Bridging the Innovation Gap: How Breakthrough Victoria's UIP and Fellowship Programs Can Power Australia's Productivity Future
Australia stands at a pivotal juncture in its economic evolution. As Assistant Minister for Competition, Charities, Treasury and Employment Andrew Leigh recently articulated , boosting national productivity requires more than just policy tweaks—it demands systemic change.
Central to this transformation is the effective translation of research into real-world applications, a challenge that Breakthrough Victoria's University Innovation Platform (UIP) and the Breakthrough Fellowship Program are strategically positioned to address.
The UIP is a partnership with 7 leading Victorian Universities. Deakin University, La Trobe University, University of Melbourne, Monash University, and Swinburne University have each contributed $9 million, RMIT has contributed $7.5 million, and Australian Catholic University $7 million in funding; each matched by Breakthrough Victoria to create new partnership agreements to drive the commercialisation of their research. By collaborating directly with universities, we aim to cultivate an ecosystem where research-driven startups can thrive, ultimately benefiting both the economy and society.
Strategic Partnerships with Universities - From Research to Revenue: Addressing the 'Valley of Death'
One of the most formidable barriers to innovation is the so-called "valley of death," where promising research fails to progress due to a lack of early-stage funding and support. Breakthrough Victoria's UIP directly confronts this issue by providing pre-seed investments, typically around $500,000 from BV matched by one of our seven university partners, to nurture startups emerging from university research.
This financial backing is crucial in helping researchers and entrepreneurs achieve key milestones that make their ventures attractive to subsequent investors.
The UIP’s strength lies in it’s University partnerships, which are designed for pre-seed co-investment opportunities, ensuring that breakthrough research transitions effectively from the lab to the market. Each university partnership is operated under its specific business plan based on that university’s needs as well as entrepreneurial ecosystem maturity. By aligning university research capabilities with commercial investment strategies, the UIP creates a cohesive ecosystem that nurtures innovation.
Cultivating Entrepreneurial Talent: The Breakthrough Fellowship Program
Beyond funding, the UIP emphasises the development of entrepreneurial talent within the academic community. Recognising that many PhD graduates often leave academia without avenues to commercialise their research, the program offers support to transform these individuals into research entrepreneurs. This approach not only retains intellectual capital within Victoria but also fosters a culture of innovation and enterprise.
Complementing the UIP, the Breakthrough Fellowship Program is a $7.5 million initiative aimed at fostering research entrepreneurship among recent graduates. Each fellowship provides up to $150,000 in pre-seed funding, allowing Fellows to draw a salary between $60,000 and $90,000, ensuring financial stability during their entrepreneurial journey. The remaining funds support additional hiring or product development. This program is projected to establish up to 50 new companies and create at least 50 jobs, thereby nurturing entrepreneurial talent and enhancing future investment pipelines.
Driving Economic Growth and Job Creation
The impact of these programs extends beyond academia and into the broader economy. By facilitating the commercialisation of research, they aim to establish new companies and create jobs, thereby enhancing Victoria's innovation landscape and contributing to economic growth. This aligns with national objectives to boost productivity through innovation-led development.
Attracting Investment and Enhancing Global Competitiveness
Over the life of the fund Breakthrough Victoria has attracted over $1 billion in co-investment, and programs like the BVUIP and Fellowship program play a pivotal role in further attracting both domestic and international investment. By demonstrating a robust pipeline of innovative startups, they position Victoria as a competitive destination for venture capital, further amplifying its economic impact and reinforcing Australia's standing in the global innovation arena.
Breakthrough Victoria's University Innovation Platform and Breakthrough Fellowship Program embody a strategic approach to bridging the gap between research and commercialisation. By addressing critical funding challenges, cultivating entrepreneurial talent, and fostering university-industry partnerships, these programs serve as catalysts for economic productivity and innovation. In alignment with national productivity goals, such initiatives are essential in transforming Australia's research excellence into tangible economic outcomes.
Dr Olga Hogan is an ex-founder and BV’s Senior Director of Pre Seed, University Innovation Platform.