The federal government is increasing its support for the defence industry innovation sector by providing an additional $32 million for investment through the Defence Innovation Hub over the next two years.
This investment, which is part of the government’s Defence COVID-19 investment initiatives, will increase cash flow to Australian small and medium-sized businesses that are developing innovations with the potential to enhance Defence capability.
Minister for Defence, Linda Reynolds said the additional funding will provide innovative Australian small businesses with greater opportunities to develop technologies for high priority Defence capabilities.
“COVID-19 has presented our defence industrial base with unprecedented challenges,” Reynolds said.
“Australian small businesses are a critical part of this sector and we are expanding the funding available to help them develop their technologies and grow their businesses.
‘The 2020 Force Structure Plan is strengthening the link between the Defence Industry Capability Plan and industry policy initiatives, bringing together industry, Defence and technical experts to support the development of innovative ideas and shape future capability.”
Since 2016, the Defence Innovation Hub has awarded more than $265 million in innovation contracts, with more than 83 per cent of this investment going to Australian small and medium-sized businesses.
More than 100 Australian small and medium sized businesses have benefited from Hub funding, growing their businesses, attracting new investment and customers, and employing new staff.
Minister for Defence Industry Melissa Price said investment through the Defence Innovation Hub had already created more than 600 jobs for the economy.
“This additional funding will support further jobs growth in the sector at a critical time for the nation and our economy,” Minister Price.
“It will strengthen the ability of our local defence industry to continue developing cutting-edge technologies as they navigate the challenges posed by the COVID-19 pandemic.
“It is further evidence of the Morrison Government’s commitment to growing our sovereign capability.”