government funding for development and commercialisation of technology products david sajfar...
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![Page 1: Government funding for Development and Commercialisation of Technology products David Sajfar Microsoft) Dennis Alemis IMC Brian CookOBS](https://reader035.vdocuments.site/reader035/viewer/2022081519/56649e625503460f94b5ea4c/html5/thumbnails/1.jpg)
Government funding for Development and Commercialisation of Technology products
David Sajfar Microsoft)
Dennis Alemis IMC
Brian Cook OBS
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IMC has helped over 100 companies to access approx $150M from Government & Private Equity to support projects valued at $328M
Dennis Alemis - Director Innovation Innovation Management Consultants Pty Ltd
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Some of Key Government Funding sources for ICT based companies
• R&D Tax Concession for ongoing R&D work • Commercialisation Institute (New), Retooling for
Climate Change, Green Building Fund – Federal• Market Validation Program (Vic) & Smart Fund
(QLD)• Export Market Development Grants• Comet & State Govt for Business Planning
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Approach to Government Funding
• Develop your Business/Strategic Plan & identify Growth Opportunities & Funding needs
• Prepare a Business case seeking funding as you would for private investors
• View the Government as a potential investor – seeking a return on their investment but with additional national benefit requirements
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Where do you start? • Undertake a review of current operations &
identify major new product opportunities
• Identify issues which may affect ability to attract funding i.e Structure, IP ownership, Trading history
• Identify appropriate government funding & liaise with them to establish the application processes- they all tend to vary
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Strategic Approach to Govt FundsTimeline Year 1 Year 2 Year 3 Year 4 Year 5
$
Company Growth Lifecycle Key Company Growth Stages: 1. R&D
2. Ongoing product development3. Sales & marketing
Type of Government Assistance of Timing R&D Tax Concession Scheme
Business/Project Planning (State Govt/COMET)Grants: Research & Development Projects
Export Market Grants - Federal & State
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1.1 APPLYING FOR GRANTS• Develop Project Plan outlining what the project
sets out to achieve and how it fits with the company strategy;
• Outline its Key technical risks, innovations and competitive advantages;
• Develop the IP protection strategy;• Undertake a review management & technical
capabilities;
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1.2 Commercialisation • Detail your Commercialisation strategy including:
Track record in commercialisationMarket potential and target marketsCompetitor comparison – products and company
specificCompetitive advantagesShare of potential market and forecast returnsManufacturing, selling and distribution and pricingBarriers to market entry
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1.3 Project Costs• Identify Project costs including:
Salary and wages of key technical staffContractors to provide critical expertisePlant and equipment required IP protectionOther costs such as consumables, travel and auditCashflow throughout project period (need for funding
important)
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1.4 Community Benefits & Need for Funding
• Overview and specific measurables including: Increased international competitivenessProductivity enhancement and growth ie, creation of
jobsCollaboration & Industry and flow-on benefitsEnvironmental, health, safety and community benefitsDetail why you need Government assistance & how
you will fund your share
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• Provides ability to claim eligible expenditure at 125% rather than 100% - (From 2010 it will be a Tax Credit with an effective deduction rate of 150% for companies with a T/O less than $20M)
• Ability to access Tax Offset / Cash Rebate for expenditure in certain circumstances
• At the start of the financial year must set out an R&D Plan for the year
2. R&D Tax Concession
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What is R&D?• How does it differ from industry practice?
• How is the product/process new, novel or innovative?
• Would industry peers consider it R&D?
• What were the main technical challenges?
• How does it compare to the ‘state of the art’?
• Can the results be patented?
2. R&D Tax Concession
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• Throughout financial year identify and record direct costs incurred in completing activities:
– Salaries – record time spent on R&D projects
– Contractors- identify contractor costs
– Plant & Equipment- track use of any P&E used
– Other Direct costs- identify direct costs covering: travel, training, consumables etc;
– Overhead- apportion some overhead costs ie rent & telephone
2. R&D Tax Concession
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• Require $10k expenditure on export marketing activities
• Grants of 50% of expenditure over $10K & up to $415K
• Grants capped at maximum of $200K p.a. • Applicants taxable income must be below $50M • Can claim grants under the scheme for 8 years
3. Export Market Development Grants
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• Overseas Representatives• Marketing Consultants• Marketing Visits• Intellectual Property Rights• Trade Fairs and Promotional Events• Promotional Literature and Advertising• Overseas Buyers• Free Samples• Communications
3. Export Market Development GrantsEligible Expenditure
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Application Process• Applications must be lodged within 5 months of the end of
the financial year• Following lodgement Austrade will audit claimed
expenditure • Payments are then made within approx 2 weeks
3. Export Market Development Grants
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4. Other Funding• Other funding sources to be considered are:
COMET- Funding of up to $75K per round State Government business / project planning subsidies State Government project grants for specific industries/sectors
where they think they have an economic advantage - between $50K to $1M
State Government Export market assistance - between $3K to $100K
Green Building Fund & Retooling grants- assistance for energy-efficient retro-fitting of existing buildings – max of $0.5M
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Next Steps
1. Review your product development pipeline & identify those projects that may be suitable for Government Funding assistance
2. Feel free to chat with me after this session; or
3. Call IMC for a no charge full assessment of the potential options open to your company
IMC Contact details: Gary Twomey or Dennis Alemis
Phone: 03 90774853
EMAIL: [email protected]