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Feature article: Grants and Concessions – Australian State and Territory Governments

In brief: Patent Attorney and Lawyer Dr Rob Silberstein provides an outline of some of the available grants and concessions offered and/or supported by Australian State and Territory governments.

In our 6 September 2006 edition of Biotech News, we provided an overview of some of the financial and related contributions that the Australian Federal Government seeks to make to the research and development (R&D) community. In this article, we focus on such contributions offered and/or supported by Australian state and territory governments.

We remind our readers that this is only an overview. It is by no means exhaustive, and we encourage our readers to look into the kinds of grants for which they may be eligible to gain a thorough understanding of the eligibility requirements, currency of and commercial issues derived from, such grants.

New South Wales
Queensland
South Australia
Tasmania
Victoria
Western Australia
Australia Capital Territory
Northern Territory

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New South Wales

BioBusiness Program

The objectives of this program are to help develop world-class export-oriented products, services and businesses; support the biotech technology pipeline to take basic research through development to commercialisation; and promote leadership and training. Businesses that meet the participation criteria may be provided with dollar-for-dollar funding.

For non-research establishment costs and high-growth business programs, funding is limited to a maximum combined total of $75,000, per individual firm, or group of associated businesses. There are a number of activities that are not funded, including research costs, proof of concept, prototyping, product design and testing, clinical and field trials; staff salaries, capital expenditure, and the cost of website establishment.

To meet the core criteria for BioBusiness programs, companies must be: New South Wales based; operate as a for-profit company with significant private ownership; operate in a biotechnology sector as defined by the BioFirst strategy; and be already in the market, or have a product/project being developed for commercialisation, or be involved in basic, strategic or applied research with demonstrable commercial potential.

There are a number of components to the BioBusiness programs, with each component providing funding (and/or other forms of assistance) to be applied to different aspects of an eligible company's business activities. Some of these components have the following titles: Non-Research Establishment Costs, High Growth BioBusiness, Proof of Concept, Professional Leadership and Development, Fostering connections between Investors and Biotechnology Sector, and BioFirst Biotechnology Precinct.

New Export Opportunities Program (Department of State and Regional Development)

This program targets high potential and emerging markets for New South Wales goods and services. It typically assists trade missions and market visits overseas. Assistance can be tailored to focus on the special needs and interests of biotechnology and medical devices firms. Assistance can come in a range of forms, including business matching, appointments and other in-market services, preparation of pre-approved specialised marketing materials, freight on non-commercial quantities of samples, and interpreter services.

Technology Diffusion Program (Department of State and Regional Development)

This program assists small and medium firms to accelerate their adoption of appropriate new technologies. The program supports New South Wales businesses with their technology needs by organising and funding a range of activities under the following titles: Technology Awareness Groups, Systems and Technologies Diagnostics, Design Diagnostics, Cleaner Production, Benchmarking, Technology Implementation Groups, Technology Awareness Events, and Self-Help Tools.

BioBusiness BioLink Program

This program assists biotech research institutions with IP mining, commercialisation, entrepreneurship and the attraction of venture capital. Biolink was created through a partnership of medical research organisations to provide world's best practice business development services to more than 1200 researchers in Sydney and throughout NSW.

BioLink benefits industry by establish a 'one stop shop' for surveying and accessing well-characterised and protected technology, as well as providing professional business interface negotiations. It benefits researchers through its pro-active program for IP audits, IP protection, strategic international marketing and new business creations. BioLink is designed as an inclusive framework and all life science research entities in the state are eligible to join.

Small Business Expansion Program (Department of State and Regional Development)

This program assists business owners to grow their business by providing a range of services, including free business development consultations, seminars and workshops, group programs and one-on-one consultancies.

A one-on-one group consultancy may provide eligible businesses with a subsidy to offset the cost of employing private sector consultants to establish a growth path for the businesses.

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Queensland

BioStart Fund (VC funding) (Department of Innovation and Information Economy)

This initiative aims to stimulate the growth of the Queensland biotechnology industry. It is designed to encourage and support young start-up companies by providing them with early stage funds to progress their research to a proof of concept level. BioStart will provide funding to research projects, which are at the 'proof of concept' stage of developing commercially valuable technologies.

Applicants must be able to demonstrate that: the proposed project in is the field of biotechnology; it is at the 'proof of concept' stage; the applicant has the ability to own or control IP relevant to the proposed project; the applicant has, or is prepared to, incorporate a company; and the applicant has, or is planning to, establish its principle place of business in Queensland.

Innovation Start-up Scheme (Department of Innovation and Information Economy)

This program assists highly innovative, early-stage technology companies to commercialise their newly developed products. The Queensland Government provides up to $80,000 (including GST) to successful applicants via a competitive, rounds-based grounds program. Applicants are required to match funding on a 80:20 basis (government:private). An additional $5000 is available on the same basis to recipients who complete all milestones successfully and within the agreed timeframe, to assist in the preparation of applications for Commonwealth grants or private venture capital.

Queensland Industry Development Scheme (Department of State Development)

This scheme aims to help establish companies to innovate, expand and employ more people. It assists companies that wish to: be competitive globally, develop export markets, attract investment, adopt new technology, develop innovative products and services, or develop environmental management plans.

Assistance is provided on a dollar-for-dollar basis, for a minimum of $5000 to maximum of $50,000 per project. Assistance over $50,000 will be considered on a case-by-case basis.

Queensland BioCapital Fund (VC Funding)

This is a $100 million dollar venture capital fund specialising in biotechnology. It will be managed by the Queensland Government's fund management arm, the Queensland Investment Corporation. The fund will be a closed-end fund with a life of 10 years.

Smart State Fellowships (to be incorporated into the Innovation Skills Fund)

These Fellowships support the Queensland Government's investment in leading edge research facilities by funding talented early career researchers, working in leading Queensland-based research teams. This program is designed, among other things, to: retain the talents of promising early career researchers in Queensland; attract outstanding researchers nationally and internationally; grow mutually beneficial linkages between research and industry; and support research which will benefit the future economic and social development of Queensland.

The Queensland Government is providing up to $150,000 in grant funding per Fellowship, which is been matched by research organisations and industry cosponsors, totalling $300,000 over three years per Fellowship.

Smart State Health and Medical Research Fund

The fund provides Queensland hospitals, health services and independent medical research institutes with the support needed to continue with the world-class research they are undertaking.

The fund comprises two streams:

Operational Support Program
Funding support is provided for the operational costs of research undertaken by Queensland independent health and medical research institutes on a competitive basis, between 10 cents and 25 cents per dollar received elsewhere by the applicant organisation.
Queensland Clinical Research Fellowship Program
Funding provides fellowships for early-career and experienced clinical researchers to be employed in Queensland hospitals and health services. Four fellowships will be appointed each year. Funding is matched from other industry, Commonwealth and overseas sources.

teQstart Investment Fund

teQstart is managed by a Queensland Government-owned company, teQstart Pty Ltd, through an independent board of directors. It funds technology research projects at the 'proof-of-concept' stage so that developed intellectual property can reach an investment ready position. Successful applicants receive the necessary investment to move to the next stage of commercialisation.

Queensland Entrepreneurs (Department of Innovation and Information Economy)

Queensland Entrepreneurs provides mentoring to aspiring entrepreneurs as they journey toward commercial success. It facilitates networking, mentoring and investment through access to business executives, 'angels' and services provides, as well as successful entrepreneurs.

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South Australia

Bio-Arc Program (BioInnovation SA)

This program enables emerging and established South Australian biotech companies to become industry partners in Australian Research Council (ARC) linkage grants. Bio-Arc will provide up to $25,000 cash per year for two years to biotech companies that would be unable to participate in the Linkage project without financial support. Companies can apply to Bio-Arc to provide financial assistance for projects that will achieve key milestones and contribute to the growth of the company and/or assist with the commercialisation of biotechnology by that company.

Bio Innovation SA Grants

Bio Innovation SA operates a number of key fund initiatives, including:

Commercial Development Initiative
This initiative assists commercialisation of South Australian bioscience technologies originating from public sector organisations, including universities, hospitals and research institutes. Applications can be submitted at any time. Grants of up to $50,000 can be used for such activities as proof-of-concept research, IP advice and market research.
Business Development Initiative
This initiative assists South Australian bioscience companies to develop their businesses. Grants of up to $50,000 can be used for a range of activities. The initiative is open to start-up and early-stage South Australian biotechnology companies. Applications can be submitted year-round and are reviewed according to merit criteria, which include the feasibility and commercial viability of the activities in the commercial expertise and skill of the management team.
Commercial Infrastructure Fund
This fund provides a maximum of $250,000 to help South Australian bioscience companies to buy equipment that has the potential to assist them with generating revenues and attracting investment.
Research Infrastructure Fund
This fund is designed to facilitate the establishment of research service facilities/organisations to serve the needs of the bioscience community. Service providers should be located within publicly funded research organisations, however commercially operated organisations and privately funded research organisations are considered on a case-by-case basis. The program provides funding for staff positions within the facilities or for the purchase of major pieces of bioscience equipment that could benefit both bioscience research and industry sectors.
Commercial Management Grant
This grant provides funding of up to $150,000 to support the employment of commercial managers within the eligible organisations, hospitals and universities. It is provided on a dollar-for-dollar matching basis.
Entrepreneur-in-Residence Program
This program assists companies with product development, corporate strategies and capital raisings.

Business Development Initiative (BioInnovation SA)

The purpose of this initiative is to assist groups that wish to form biotechnology companies meet the costs of company formation and business planning for their company. Maximum funding available is $30,000.

AIB Labs Infrastructure Fund (BioInnovation SA)

This is an initiative between BioInnovation SA, South Australia's three universities and key bioscience research institutes. The key objectives of the project include: increasing the impact of research and development by facilitating access to leading edge technology expertise and major equipment infrastructure; maximising funding for current and future strategic infrastructure investments; and implementing and supporting effective management and an accredited quality systems at AIB Labs facilities and other key technical service facilities.

Funding for the AIB labs is provided by BioInnovation SA through its Research Infrastructure Fund (discussed above).

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Tasmania

Enterprise Growth Program

This program provides grants to eligible Tasmanian companies to overcome impediments to business growth by assisting with, for example, improving processes and systems, managing the introduction of new technology and human resources, accessing market opportunities, identifying and resolving supply change issues, or undertaking market planning.

Grants of up to $10,000 are available, generally on a dollar-for-dollar basis. Payment is made in arrears based on pre-approval and the satisfactory completion of the project.

Research Partnerships Program

This program supports collaboration projects between Tasmanian-based enterprises and local and other research institutes. It aims to support the development of innovative products, processes or services that have the potential to be commercialised. It will also support the adoption of a new technology by industry. Grants of up to $150,000 are obtainable, based on legibility. If interested in submitting an expression of interest for further rounds of this program (not yet committed) contact should be made with the Research Partnerships Program Project Officer.

Tasmanian Innovations Program

A range of financial assistance is provided to help commercialise innovative products, processes and services. These include:

Early Stage Commercialisation Assistance
Up to $20,000 is available on a two-for-one dollar basis for direct costs incurred in commercialising a product.
Mentoring Assistance
Up to $20,000 is available on a three-for-one dollar basis to engage an appropriate mentor or coach to provide guidance and advice, or business and human development activities to further commercialise a new product.
Commercialisation Assistance
Up to $150,000 is available on a two-for-one dollar basis for direct costs incurred in commercialising a product.

©-STAR Award

This award recognises a Tasmanian science and technology company or individual for its preliminary success in commercialising a science and technology product, process or service. Judges look for entries that demonstrate technologies with a clear commercial potential and are particularly interested in contestants who can demonstrate that some progress has already been made towards commercialisation, although this is not essential. The winner receives a specialised trophy and $5000. Five finalists will each receive a specialised certificate.

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Victoria

Export and Innovation Programs – Agenda for New Manufacturing (Department of Innovation, Industry and Regional Development)

The Agenda identifies export growth as a key factor in Victoria's future prosperity. Another recognised key success factor is accelerated innovation. Export Programs are provided to encourage more manufacturing companies to export, grow and facilitate collaborative export initiatives. Innovation Programs are provided to encourage manufacturers to evaluate new technology options and demonstrate new technologies to other Victorian manufacturers.

Export Program 1: First Step Exporter
This program helps export capable manufacturers research new market possibilities and support them in their efforts to explore offshore opportunities. Funding support of up to $10,000 (50 per cent subsidy) is available to be used against associated expenditures. Subsidies are limited to eligible expenses, including commissioned market research, economy class travel, promotional material, and trade fair participation.
Export Program 2: Going Global
This comprises a business review to help new exporters accommodate the rapid changes required to their business as a result of rapid export growth, or to support initiatives for significant growth in their current exports. Funding support of up to $15,000 (50 per cent subsidy) is available to be used against expenditures associated with a consultancy or short-term resourcing support.
Export program 3: Collaborative Export Marketing
This program seeks to explore new models for groups of firms (minimum three) including industry associations, supply chains sets, and project-based networks to participate in international activities, such as group marketing approaches and group technology marketing applications. The program supports work on joint export initiatives and bidding for major international projects. Funding support of up $30,000 (50 per cent subsidy) is available to be used against expenditures associated with a consultancy or short-term resourcing to develop and/or implement a group export marketing strategy. Subsidies are limited to eligible expenses, including, consultant services, professional services, commissioned market research, economy class travel, and preparation of promotional material.
Innovation Program 1: Technology Evaluation
This program aims to encourage high growth potential companies or industry groups to identify and fast track the evaluation of technology for advancement. Funding support of up to $20,000 (50 per cent subsidy) is available to be used against associated expenditures. Indicative costs include: third party research, training, plant preparation and trials, and implementation report development.
Innovation Program 2: Technology Demonstration
This program supports the costs of developing awareness activities which showcase how new technologies have been successfully implemented. Funding support of up to $20,000 (50 per cent subsidy) is available to be used against expenditures associated with demonstrating the process of implementing a new technology. Indicative costs include: installation, training, technical assistance, and marketing or publicity costs associated with the uptake or demonstration of the technology.

Grow your Business Program (Department of Innovation, Industry and Regional Development)

This program is a flexible new funding and support program that provides advice, referral and assistance to innovative Victorian companies. The model typically begins with the provision of information and referral services at the direct request of a business. The need of further assistance is identified, and eligible businesses can apply for a grant to engage the services of an independent specialist to undertake a Business Strategic Review and/or create a Business Development Plan. For the Business Strategic Review, a grant of 75 per cent up to a maximum of $4000 is available. For the Business Development Plan, a grant of 50 per cent up to a maximum of $7,00 is available. Also available are group/networking/supply chain program grants of 75 per cent up to a maximum of $15,000.

Technology Commercialisation Program (Department of Innovation, Industry and Regional Development)

This program aims to increase the rate of commercialisation of science and technology ideas and supports the growth of new high-technology businesses, products and services in Victoria. The Victorian Government has contracted 12 private sector service providers to provide high quality, professional business support and tailored development services to start-up technology companies.

The Venture Capital Access Program (Department of Innovation, Industry and Regional Development)

This program helps start-up technology companies commercialise their operations and grow. It is funded by the Department of Innovation, Industry and Regional Development and administered by the Victorian Employers Chamber of Commerce and Industry. Twice a year, a limited number of Victorian companies are selected to receive up to $50,000 worth of business mentoring, completed over 12 months, in addition to training at a leading US or European business university. Eligible businesses must have been trading for less than three years, have developed a product which has global application, and own the intellectual property in the product.

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Western Australia

Western Australian Government Centres of Excellence Scheme

The Centres of Excellence in Science and Innovation Program aims to encourage, catalyse or leverage opportunities to expand and enhance Western Australia's science and innovation capability and performance. Investment from this program is available to support and facilitate research excellence in existing and proposed scientific endeavour, with a significant base in Western Australia.

It is intended that once established, Centres become powerful attractors of further investment from both the private and public sectors and function as nationally and/or internationally competitive centres of research excellence.

Western Australia currently invests in some 40 centres. Co-investment of net cash by proponents is a requirement. Additional commitments by proponents of existing (in-kind) resources are also valued and necessary in establishing an appropriate scale for a viable Centre. Moreover, a minimum level of combined net cash and in-kind co-investment of $3 for every $1 of State investment is required and all co-investment items proposed maybe subjected to independent audit.

Business Innovation Development Scheme (Small Business Development Corporation, Western Australia)

This scheme supports eligible Western Australian small businesses wishing to commercialise an invention or new technology, to access private-sector advice and expertise. Support is only provided to projects where the product or process is in the pre-commercialisation stage. The following specific assistance is provided to successful applicants:

Stage 1: Initial Assistance
Up to 20 hours of consulting to evaluate the commercial potential idea and develop an action plan detailing what private sector advice and expertise will be required to assist in the commercialisation process.
Stage 2: Consulting
If the applicant is recommended for further assistance after stage 1, a contribution of up to $5000 is available towards the costs of engaging external expertise to commercialise the invention/technology.
Stage 3: Mentoring
Optional free follow-up mentoring is provided through the Business Enterprise Centres upon completion of the financial contribution for 12 months.

Export Ready (Small Business Development Corporation, Western Australia)

This program supports eligible small businesses and individuals to qualify for state and Commonwealth export assistance programs. It provides an evaluation of the commercial potential of the business; a basis for business growth; access to free private sector advice; and an evaluation of the export potential of the business; determination of the critical success factors for exports; and the basis for a project brief to engage an export planning consultants.

Market Access Program – Indian Ocean Region (Department of Industry and Resources)

This program is designed to assist non-government Western Australian businesses to embark on initial entry into the markets of the Indian Ocean Region. Services provided typically include (but not be restricted to) introductions to, and qualifications of, buyers, market research, visit program arrangements, advice on market selection, strategic business advice and follow-up services.

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Australia Capital Territory

Canberra Business Development Fund

This fund is to designed to provide eligible businesses located in the Canberra region with a source of capital funds through equity investments. It typically invests in early-stage companies that require capital to expand their business operations. Monies invested are intended to assist the companies to accelerate their expansion strategy by providing working capital for a combination of activities, such as expanding sales in current or new markets; increasing production capacity; or undertaking further product development.

The fund is a joint venture between the ACT Government and Australian Capital Ventures Limited. Companies seeking investment capital are encouraged to contact the Fund Manager, Australian Capital Ventures Limited, to discuss eligibility and other requirements.

All business proposals must meet the following criteria: the business must be located in or have a reasonable business connection with the Canberra region; the proposal must be for an existing business that has reported sales or, alternatively, has developed a proven prototype that is being trialled for commercialisation; and there must be a sound plan for business expansion growth.

Companies that meet the elegibility criteria will be assessed against a wide range of evaluation criteria depending on the nature of the proposal, including, product differentiation, market attractiveness, barriers to market entry, management capabilities, and potential exit strategies and retinal investment.

Other sources of funding in the ACT

Research into funding opportunities available to research and development businesses in the Canberra region appears to direct enquiries to various Commonwealth Government-funded grants, such as for example the 'Commercial Ready Program'. Readers are encouraged to contact appropriate sources in the Australian Capital Territory and/or Commonwealth Governments for clarification on issues regarding possible funding for research and development businesses in the ACT. We also refer readers to our earlier published article on Commonwealth Grants and Concessions (6 September 2006).

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Northern Territory

Regional Economic Development Fund

The purpose of this fund is to assist with the development of business and capabilities in all regions of the Northern Territory. All funding is subject to approval of the Minister for Regional Development. Preference is given to applications where 50 per cent of the funding is provided by cash or in-kind support provided by the applicant or by other sources, such as the Commonwealth Government, private enterprise or philanthropic organisations.

Grants of up to $25,000 may be available and variations may be negotiated. However, there may be occasions where funding offers are less than was requested, and funding will not be recurrent unless at the Minister's discretion.

Grants will be available to bring regional economic development concepts to the 'ready for business' stage. All applications that are designed to deliver positive regional economic development outcomes will be considered. Applications should be aligned with Northern Territory Government priorities.

Funding can be applied to: the total cost of the project (subject to there being 50 per cent financial and/or in-kind support from the applicant or from other funding partners); recurring maintenance or operational costs of facilities (eg rent, services charges, and administration); projects that have already been completed and/or have outstanding debts; fund-raising, promotional or charitable events; projects that may have a negative impact on existing businesses or may compete with other commercial activities in the local area; wages and salaries; and assets.

Incorporated bodies and/or legal entities may apply for this funding. Applications will be accepted from not-for-profit community organisations/groups based in the Northern Territory. Applications involving private enterprise organisations will be considered where it can be clearly demonstrated that benefits will accrue to the wider community.

To apply, potential applicants should contact the Program Manager by phone on (08) 8999 5133.

Other sources of funding in the NT

Research into funding opportunities available to research and development businesses in the NT region appears to direct enquiries to various Commonwealth Government-funded grants, such as the 'Commercial Ready Program'. Readers are encouraged to contact appropriate sources in the Northern Territory and/or Commonwealth Governments for clarification on issues regarding possible funding for research and development businesses in the NT. We also refer readers to our earlier published article on Commonwealth Grants and Concessions (6 September 2006).

For further information please contact Dr Trevor Davies on +61 2 9230 4007.

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Company news

In brief: Regular news from the biotech industry.

Apollo's diabetes breakthrough
AstraZeneca opens two major scientific laboratories
EvoGenix successfully tests osteoporosis treatment
Glivec® receives additional EU approvals
GSK invest in French vaccine manufacturing facility
GSK licences flu treatment to Chinese company
Mayne Pharma to be acquired by Hospira
New epilepsy indication for Lamictal®
New initiative to improve access to anti-malarial drug
Pfizer's Anti-Smoking pill Champix® approved in Europe
Pfizer commits funds to address gaps in clinical treatment of malaria
Pfizer enter licensing agreement with Quark Biotech
Sanofi pasteur begins bird flu trial
Serono SA acquired by Merck KGaA
Xyzal® co-promotion agreement between Sanofi-Aventis and UCB

Apollo's diabetes breakthrough

25 September – Apollo Life Sciences announced that it has successfully lowered blood glucose levels in diabetic rats with oral insulin, using its proprietary oral delivery technology, Oradel^TM. Oral feeding of diabetic rats with Oradel^TM insulin resulted in reduction in blood glucose levels in responder animals of up to 80 per cent which persisted for longer than 6 hours. Generally the stomach's digestive acids usually destroy insulin before it can be absorbed by the body. However, Apollo's formula overcomes this problem with a protective coating. Currently diabetes patients require up to 1500 insulin injections a year to manage their conditions, but these findings suggest that needle-free insulin for diabetes treatment may be a reality in the near future.