Incubator Support Program

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The Incubator Support Program was a federal government initiative in Australia that offered funding for incubators to deliver support services to innovative start-ups with a focus on international trade.
What are the main aims and objectives?

The Incubator Support Program primarily aimed to augment the growth capabilities of promising start-ups and burgeoning businesses. The program's key objectives were to bolster the prospects of these start-ups, enhance their market capabilities, and encourage free and open international trade in services. The program was also part of the broader Services Exports Action Plan. This plan seeks to promote free and open international trade in services and develop world-class skills and talent.

How does the program work?

The Incubator Support Program in Australia worked by providing financial assistance to new and existing incubators. The program, however, was not just about funding; it offered a comprehensive suite of advisory and facilitation services. These services supported business improvement and fostered innovation connections, thereby accelerating the growth of start-ups. The financial support provided ranges from AUD 13,000 (approx. $8,300) to AUD 250,000 (approx. $161,000), distributed over a period of 12 to 24 months. Funding covered eligible project value of up to 65% in regional areas or up to 50% in major cities.

It also provided incubators with access to top quality research, managerial and technical talent through incoming and outgoing secondments of national or international experts. Funding was provided through two funding components, AUD 250,000 grants for New and Existing Incubators (NEI) and AUD 100,000 (approx. $64,000) grants for Expert-in-Residence (EIR).

To qualify for this program applicants were required to either operate an existing incubator or propose establishing a new one. In addition to this they were required to demonstrate that they had accounts of over AUD 50,000 (approx. $32,000) in order to fund their share of the projects cost. The projects were required to be at least AUD 26,000 (approx. $16,700) in value in cities and AUD 20,000 (approx. $12,900) in rural areas.

What is the overall cost?

The Incubator Support Program received AUD 23 million (approx. $14.8 million) over its first four years.

How was it implemented?

The Incubator Support Program was launched on 20 September 2016 by the Ministry for Industry, Innovation and Science. The initiative formed part of the government's Entrepreneurs' Program, which is one of the measures funded under its AU 1.1 billion National Innovation and Science Agenda.

The program was expanded in 2020 to focus on developing the capabilities of first-generation migrants and refugee founders to help them realize their economic potential in international markets.

As part of the 2021-22 Federal Budget measures announced on 11 May 2021, the Australian Government advised that the ISI funding be reduced. The department closed applications on 12 May 2021.

What impact has been measured?

As of 22 July 2021:

  • 200 Incubator Support grants worth a total of more than AUD 29.5 million (approx. $19 million) had been approved
  • 71 projects worth over AUD 24 million (approx. $15.5 million) approved with New and Existing Incubator (NEI) Grants
  • NEI projects funded are estimated to support more than 1500 Australian startups.
  • 24 of the 71 NEI Projects are being delivered in regional Australia
  • 129 Expert in Residence applications have been approved worth over AUD 5 million (approx. 3.2 million)
  • More than 200 experts have been seconded into Australian Incubators

No further assessments of the impact of the Incubator Support Program are available, therefore we are unable to fully estimate the impact the program has had on the wider Australian economy.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom