impact review of the canberra innovation network …

2017

IMPACTREVIEWOFTHECANBERRA

INNOVATIONNETWORK(CBRIN)

AREPORTTOTHEACTGOVERNMENT

DRJOHNHHOWARD,HOWARDPARTNERS

ImpactReviewoftheCanberraInnovationNetwork(CBRIN)

ii

ContentsTheBrief..........................................................................................................................ivPurpose.................................................................................................................................................ivSpecificrequirements...........................................................................................................................ivApproach...............................................................................................................................................iv

ExecutiveSummary...........................................................................................................vFindings..................................................................................................................................................v

WhereCBRINhasbeensuccessful...............................................................................................vMattersrequiringattention.........................................................................................................vMattersthatrequireredress......................................................................................................vi

Recommendations................................................................................................................................vi

1 Overview..................................................................................................................11.1 TheACTGovernment’sExpectationsofCBRINintheFundingAgreement.................................11.2 CBRINandthe2015ACTGovernmentbusinessdevelopmentstrategy......................................21.3 Canberra:acreativecapital.........................................................................................................31.4 Funding........................................................................................................................................31.5 Incomeandexpenditureprofile..................................................................................................31.6 Governance..................................................................................................................................51.7 Staffing.........................................................................................................................................51.8 Financialposition.........................................................................................................................51.9 CBRINStrategicPlanandplanningframework............................................................................5

2 TheCBRINBusinessModel(the‘LinesofBusiness’)..................................................82.1 CBRINasanetworkfacilitator.....................................................................................................92.2 CBRINasamanagerofinnovationandentrepreneurshipprograms..........................................9

2.2.1 ProgramscurrentlydeliveredthroughCBRIN..................................................................102.2.2 CanberrainnovationfundingprogramsnotmanagedordeliveredthroughCBRIN.......10

2.3 CBRINasaninvestorinbuildingecosystemcapability..............................................................112.3.1 EcosystemcapabilitybuildingcurrentlysupportedthroughCBRIN................................112.3.2 EcosystemcapabilitycurrentlyfundedorsupportedoutsidetheCBRINorganisation...12

2.4 CBRINasaCanberrainnovationpromotioncentre...................................................................122.5 Conclusions................................................................................................................................13

3 TheeffectivenessofCBRINinmeetingobjectives...................................................143.1 Cost............................................................................................................................................143.2 Quantity.....................................................................................................................................143.3 Quality........................................................................................................................................153.4 Clientandstakeholdersatisfaction............................................................................................15

3.4.1 CBRINasanetworkthatlinksbusinessandentrepreneurs............................................153.4.2 Beingthe‘goto’pointforinnovation..............................................................................163.4.3 Developrelationships......................................................................................................163.4.4 Identifypotentialhighgrowthopportunities..................................................................173.4.5 Mentoring........................................................................................................................183.4.6 Connectionsandstart-uppreparationsupport...............................................................193.4.7 BusinessSkills..................................................................................................................193.4.8 RoutetoMarket..............................................................................................................203.4.9 Nationalandinternationalsupplychains........................................................................213.4.10Ecosystemintegration.....................................................................................................21

3.5 Conclusionsandrecommendations...........................................................................................22

4 Performancebenchmarkingframework.................................................................245 Risksandopportunities..........................................................................................285.1 Risks...........................................................................................................................................28

5.1.1 Governance......................................................................................................................285.1.2 Leadership.......................................................................................................................285.1.3 Funding............................................................................................................................285.1.4 Missioncreep...................................................................................................................29


iii

5.1.5 Capital..............................................................................................................................295.1.6 Competition.....................................................................................................................29

5.2 Opportunities.............................................................................................................................295.2.1 Continuingthemomentum.............................................................................................295.2.2 Promotionandawareness...............................................................................................305.2.3 NationalInnovationSummit............................................................................................305.2.4 SupportfortheSMEcommunity.....................................................................................305.2.5 Disciplineorientedhubs..................................................................................................305.2.6 VisibilityinSingapore.......................................................................................................305.2.7 Healthinnovation............................................................................................................305.2.8 Leveragingresources.......................................................................................................305.2.9 Film,TVandgames..........................................................................................................315.2.10PublicSectorinnovation..................................................................................................31

5.3 Growthandextension................................................................................................................315.4 Challenges..................................................................................................................................31

5.4.1 Financialpressures..........................................................................................................315.4.2 Space................................................................................................................................31

6 Mediumtolongertermsupportstrategy................................................................326.1 Phase1:Promotionandawareness...........................................................................................326.2 Phase2:Consolidationandinclusion.........................................................................................32

6.2.1 EngagetheFoundationMembers...................................................................................326.2.2 Matchingambitionwithcapability..................................................................................33

6.3 Phase3:Integration...................................................................................................................336.4 Conclusionandrecommendation..............................................................................................34

7 AttachmentA:ACTGovernmentCBRINGeneralprinciplesandServiceExpectations 35A:Generalprinciples............................................................................................................................35B.Servicesnecessarytoaccelerateinnovation....................................................................................35C.PhysicalInfrastructureServicestobedeliveredbytheCompany...................................................36

AttachmentB:InnovationprogramsprovidedoutsidetheCBRINorganisation...............37AttachmentC:CanberraInnovationEcosystemcapabilitycurrentlyfundedorsupportedthroughotherchannels...................................................................................................40AttachmentD:Peopleandorganisationsconsulted.........................................................43ListofFiguresFigure1:ACTGovernmentExpectationsofCBRIN.................................................................................1Figure2:CBRINPlanningFramework.....................................................................................................5Figure3:CBRINLinesofBusiness...........................................................................................................8Figure4:CBRINasanetworkthatlinksbusinessandentrepreneurs..................................................15Figure5:The‘goto’pointforCanberrainnovation.............................................................................16Figure6:Developrelationshipsintheecosystem................................................................................17Figure7:Identifyinghighpotentialgrowthopportunities...................................................................18Figure8:Mentoring..............................................................................................................................19Figure9:Start-uppreparationandsupport.........................................................................................19Figure10:BusinessSkills......................................................................................................................20Figure11:RoutetoMarket..................................................................................................................21Figure12:Nationalandinternationalsupplychains............................................................................21Figure13:Ecosystemintegration.........................................................................................................22Figure14:Annualnumberofpatentapplicantsper10,000inhabitantsaveragedbetween2008–2015

forGreaterCITYCapitalCityStatisticalArea................................................................................24Figure15:MeanannualR&Dexpenditureper10,000inhabitantsaveragedbetweenfinancialyears

endinginJune2008andJune2014forGreaterCapitalCityStatisticalAreas.............................25Figure16:Annualbusinessentriesper10,000inhabitantsaveragedoverfinancialyearsendingin

2009–2014forGreaterCapitalCityStatisticalAreas...................................................................25


iv

THEBRIEF

PurposeToreviewtheeconomicimpactandeffectivenessoftheCBRInnovationNetworkinmeetingitsstated

vision ‘a network linking businesses and entrepreneurs to accelerate innovation and growth to

maximisewealthcreation’andtoprovideevidencebasedrecommendationsonfuturedirectionsand

fundingrequirements.

SpecificrequirementsInnovateCanberrasetthefollowingspecificrequirements:

1. AssesstheeffectivenessoftheCBRInnovationNetworkinmeetingitsobjectivesasstatedin

theACTGovernmentFundingAgreement;

2. AdviceonaforwardperformancebenchmarkingframeworkbetweentheGovernmentand

theCBRInnovationNetworktounderpinfutureFundingAgreements;

3. Adviceonrisksandopportunitiesandhowtheycanbemitigatedandrealisedrespectively;

4. AdvicetoGovernmentonamediumtolongertermsupportstrategyfortheCBRInnovation

Network;and

ApproachTheReviewwasundertakenunderthefollowingphases.

1. SituationAnalysis,includingdiscussionwithinInnovateCanberra,reviewoffundingagreement,otherrelevantsubmissions,reports,andpapers.Referencematerialisalso

providedthroughhyperlinksthroughouttheReport

2. Undertakeresearch,includingestablishingframeworkforassessingeffectivenesscovering

activities,scopeofservices,andimpact(whathaschangedorwillchangebecauseoftheCBRIN

initiative),valuecreatedforstakeholdersandtheACT/regionaleconomy,overallcost,and

outputquality.

3. Consultationandinterview,coveringACTGovernment,FoundationMembers,thebusiness

community(includingbusinessandprofessionalassociations),technologyinvestors,andthe

start-upcommunity.PeopleandorganisationsconsultedareisprovidedatAttachmentE.

4. Analysisandreview,coveringsynthesisofinformationandknowledgegeneratedin(2)and(3)

above,nationalandinternationalbenchmarks,andcontributiontotheACTeconomyand

Australia’sNationalInnovationSystem.

5. Preparedraftandfinalreports,includingpreparationofworkingdraftsforcomment,a

penultimatedraftandfinalreporttopublicationstandard


v

EXECUTIVESUMMARYThefindingsandrecommendationsfromthereviewaresummarisedbelow.

Findings

WhereCBRINhasbeensuccessful1. CBRINhasbeenverysuccessfulatpositioningCanberraasaninnovationecosystem.The

profileofCanberraasaninnovationhubhasbeensubstantiallyenhanced.Thisroleisnot,

however,specificallyacknowledgedintheExpectationscontainedintheFundingAgreement.

2. CBRINisprincipallyanetwork,alsoengagedinthedeliveryofevents,mentoringand

matchmaking,andinnovationcapacitybuildingprogramsthroughitsownresourcesor

specificfundingfromGovernment.CBRINishighlyregardedintheseareas.

3. DeliveryontheGovernment’sExpectationshasbeenmetverywell,maybenotletterofthe

contract,buttheCanberraecosystemisverydifferentbecauseofCBRINactivityandwhatit

hasdone.

4. CBRINhasaroletomanagecontractsandprovide(‘manufacture’)overheadswithseparately

constitutedentities,includingGriffinAcceleratorandKILNIncubator.Itprovidesfreeco-

workingspaceforEntry29,whichmanagesentryandexistsofstart-upsintothespace.Entry

29ismanagedbyaseparateBoard.

5. CBRINdoesnothaveamandateforecosystemgovernancebeyondthenetworkwhichis

impliedintheFundingAgreement.Toreachoutithasdevelopeda‘hubandspoke’

arrangement(assetoutintheFundingAgreement)tolinktootherinnovationhubs,districts

andprecinctsinCanberraandbeyond.Thisistobecommended,butmoreworkneedstobe

done.

6. CBRINhasastrongICTfocus,whichencompassesarangeoffunctionalareas,including

health.Thisbuildscapability.However,engagementwiththecreativesectorshouldbe

addressed.

Mattersrequiringattention1. IntervieweescommentedthatCBRINhasnotfocussedenoughonthebuildingofinternal

networksandittendstoconcentrateonits‘ownpatch’ratherthanengagingwiththe

broaderinnovationcapacitybuildingprogramsdeliveredbyotherentities,andbytheprivate

sector.CBRINisinmanywaysastart-up,andhasaneedtofocusonestablishmentand

buildingcredibilitythroughtheseinitiatives.

2. ThepreviouspointismadeinacontextthattheCanberrainnovationecosystemhasbecome

moresophisticated,withmoreplayersdoingmorethings.Universitieshavebecomemore

activewiththeirowninitiatives.Thiscreatescomplexity,introducesadynamicinto

relationships,andanevengreaterchallengeforconnectivity.CBRINmustaddressthis

challenge.

3. CBRINmustfocusonitsmandateandconcentrateonbuildingcapacityasaCanberrabased

networkingorganisation,extendingintotheSouth-EastRegionofNSW.EncouragingLocal

GovernmenttocontributetotheCanberranetwork,ratherthansettinguptheirownsmall

scaleinitiativesshouldbeencouraged.Itisnotyetappropriatetoextenditsremitnationally.

Buildingconnectionsbetweenecosystemsistobesupportedintermsofcapacitybuilding.

4. SeveralFoundationMembersadviseofmodestreturnsonwhattheyseeastheirdirect

investment.ThiscanbeaddressedwithstrongerBoardgovernanceandcommitmenttoa

CanberraInnovationEcosystemStrategicPlandevelopedjointlybetweentheACT

GovernmentandtheBoardifCBRIN.

5. KPIsfocusheavilyonworkloadandactivities(processindicators),whichcreatesa‘tactical’

environment.KPIsmustreflectoutcomesandachievementagainstexpectations.Satisfactory

achievementagainst28activityareasand60KPIswithanestablishmentof6.1FTEis

unattainable.Thestrategicplanmustbesimplified,withaclearfocusonoutcomes.


vi

6. FoundationMembershaveaconcernabouthowCBRINiscreatingvalueintermsoflifting

collaborativeresearchopportunitiesandattractingstudents.Thismayrequirecloserworking

arrangementsbetweenCBRINstaffandtheFoundationMembersatalllevelsofthe

organisations.

Mattersthatrequireredress1. Ithastendedtomovefromthemarketfailureareaintocontestedspacespotentially

occupiedbycommerciallyorienteddeliveryorganisations–includingindustryassociations

andtheprivatesector.Thishascausedtension.

2. CBRINhastakenaroleasaprogramdeliveryorganisation,ratherthancontractingwiththird

partyorganisationsfordelivery.Buildingcapabilityinthisareamaybeexpensive.However,

programdeliveryinvolvementmakesCBRINcloserandmorecredibleintheinnovation

system.Anappropriatebalanceneedstobestruckbetweennetworkdevelopment,program

delivery,capacitybuilding,andpromotion.

3. CBRINhasmovedintoconsultancy,presumablytogenerateincomeandbecauseitis

perceivedasanentitythatcancontributeresolutionofarangeofissuesacrossthe

innovationsystem.WhilstCBRINdoesnotmarketitsconsultancyservices,itdoesreceive

invitationsandapproachestobeinvolved.Asconsultancycandivertresources,andlosses

canalsobehidden,thisarearequiresclosemonitoringbytheBoard.

RecommendationsTheReportmakesseveralspecificrecommendations,whicharelistedbelow,togetherwiththepage

numbersatwhichtheyoccur.

1. TheACTGovernmentandtheFoundationMembersworktoensurethatCBRIN'sstrategic

planningframeworkisstreamlinedandsimplified,reflectsaclosealignmentwithACT

GovernmentexpectationscontainedintheFundingAgreementandtheACTGovernment's

economicdevelopmentpolicydirectionsetoutinConfidentandBusinessReady;BuildingonOurStrengthsaswellastheexpectationsofFoundationMembers.Thismayinvolvesome

changestotheFundingAgreement.............................................................................................6

2. ACanberraInnovationEcosystemStrategyWorkingGroupbeestablished,comprisingtheACT

GovernmentandtheCBRINBoardtodevelopaCanberraInnovationEcosystemStrategicActionPlan...................................................................................................................................7

3. InrecruitingthenextCBRINCEO,skills,knowledgeandcapabilitiesinthefourCBRINLinesof

Businessbesought:NetworkFacilitatorandInnovationSystemintegration,Innovation

ProgramServiceDelivery,InvestorinInnovationcapability,andInnovationpromotion...........8

4. CBRINdevelopavaluepropositiontargetedtoestablishedsmalltomediumbusinesses,and

largerbusinessesinkeysectors,regardingtheopportunitiesforcollaborationandaccessto

researchcapabilityamongFoundationMembers.......................................................................9

5. TheBoardofCBRINseekstoensurethatprogramsandservicesoffereddonotcompetewith

programsandservicesprovidedbythecommerciallyorientedenterprisedevelopmentand

trainingsector............................................................................................................................11

6. CBRINshouldhaveamajorroleinpromotinginnovationinvestmentinCanberraand,in

associationwithGriffinAcceleratorandCapitalAngels,encouraginginterstateand

internationalinvestorstolocateinCanberra.Thisroleshouldbeacknowledgedinthe

ExpectationssetoutintheFundingAgreementandstrategicallylinkedtoACTGovernment

investmentandskillsattractioninitiatives................................................................................13

7. TheincomingCEOworkcloselywithFoundingMembers,thebroaderbusinesscommunity,

andotherearlystageenterprisedevelopmentorganisations,tostrengthenengagementinthe

ecosystemtoensurethatExpectationsintheFundingAgreementarebeingmet...................17

8. CBRINdevelopastrongernetworkingfocusonsmalltomediumenterpriseswithgrowth

potentialandlargerinnovativebusinessesintheecosystem...................................................18

9. TheincomingCBRINCEOgiveaveryhighprioritytodevelopingrelationships,interactions,

andconnectionsacrosstheexpandingCanberraInnovationEcosystemtoachievean


vii

integratedapproachtothedevelopmentanddeliveryofCanberra’sinnovationstrategy,programsandservices...............................................................................................................22

10. CBRINbetaskedtoprepareanAnnualACTInnovationReportdrawingonavailableinnovationdatafromtheABS,theOfficeofChiefEconomist,theDepartmentsofEducationandTraining,

theDepartmentofIndustry,InnovationandScience,andlocalsources..................................26

11. TheopinionsurveyusedinthisReportbefurtherdevelopedasaperformanceevaluation

instrumentandabasisforconsideringongoingperformanceimprovementandfutureFunding

Agreements................................................................................................................................27

12. TheBoardappointworkingsub-committeesintheareasofStrategy,Finance,andEcosystem

Engagement.Considerationbegiventoappointsub-committeemembersfromwithinthe

ecosystemwithacknowledgedexpertiseintheseareas...........................................................28

13. CBRINshouldbesupportedinextendingactivitiesintothedefinedCanberraregion.They

shouldnotextendbeyondthis..................................................................................................31

14. FundsgeneratedbyCBRINshouldbeallocatedtothegreatestextentpossibletothedelivery

oftheCBRINproductsandservices.ProfitrationsshouldreflectNGObenchmarks.Thelevelof

reservesshouldbesetatwhatisfinanciallyprudentbytheBoard,onadviceofthecompany’s

Auditors......................................................................................................................................33

15. TheACTGovernmentandCBRINBoardagreetodevelopaThreePhaseStrategicPlanfor

CBRINthatcoversthefollowingKeyResultAreas(KRAs):Promotion,Consolidationand

Inclusion,andSystemIntegration.EachPhaseshouldaddressshort,mediumandlongterm

initiativesandidentifytheoutcomesandresultstobeachieved.............................................34


HowardPartners CommercialinConfidence 1

1 OVERVIEW

1.1 TheACTGovernment’sExpectationsofCBRINintheFundingAgreementTheACTGovernment’sexpectationsofCBRINaresetoutintheFundingAgreementandsubsequentVariations.TheVariationagreedon16August2016identifiedafinallistofExpectations.Theseare

listedinsummaryforminFigure1.

Figure1:ACTGovernmentExpectationsofCBRIN

Vision

Anetwork(CBRIN)linkingbusinessesandentrepreneurstoaccelerateinnovationandgrowthtomaximize

wealthcreation.ToachievethisvisiontheCompanyistaskedto:

§ Developstronglinkagesacrosstheinnovationecosystem,identifygapsintheinnovationecosystem

anddevelopstrategiesforaddressingthesegaps.

§ Manageseverallegacyactivities-theCanberraBusinessPointserviceandmayachievethisby

contractingtheprovisionoftheseservicestootherserviceproviders1.

§ Deliverthephysicalinfrastructurenecessarytocreatecompanygrowth-inparticular,theKILN

incubator,asharedworkingspaceandahomefortheGriffinAccelerator2.

TheCompanywillneedtodeterminehowtoensuretheseservicesaremadeavailableacrosstheACT.

Positioning

The ACTGovernment expects that CBRINwill develop a reputation as the principal proponent of a new

approachtoacceleratinginnovationintheACT.Specially,itexpectsthatCBRINwill:

§ Bethe'goto'pointfordevelopingtheinnovationecosystemintheACT.Theabilitytohelpshape

theGovernment'sinnovationagendaandtherelationshipwiththeDigitalCanberraActionPlan,will

beanearlykeypolicyoutcomefortheCompany.

§ Positionitselftoclearlyarticulatetogovernmentnewanddifferentapproachestodevelopingthe

ACT'sinnovationecosystem.Thiswillbebroaderthansimplyadvisingonprogramdeliveryoptions.

§ SynthesiseandregionalisenationalandinternationalthinkingoninnovationissuesfromanACT

perspective

§ ProvidewelldevelopedandintellectuallythoughtfuladvicetotheGovernment-notonlyonthe

broadpolicydirectionsbutalsoonthehowandwhatofimplementation.

§ Developstrongrelationshipswithkeyindividuals,organisations,companiesandprecinctsintheACT

andaddressareasofneedidentifiedbyawidevarietyofsources.

Serviceprovision

TheCompanywillhaveresponsibilityforserviceprovisiontotheACTinnovationcommunityinaccordance

withtheprinciplesandservicessetoutintheFundingAgreement.Thesearesummarisedbelow:

1. Createanetworkthatlinksbusinessandentrepreneurs

2. Bethego-topointfordevelopingtheinvocationecosystemintheACT

3. Developstrongrelationshipswithindividuals,organisations,companiesandprecinctsintheACT

4. IdentifypotentialhighgrowthopportunitiesthroughlinkageswithANU,CSIRO,Universityof

Canberra,IndustryprecinctsandsectorbodiessuchasCollabITandScreenACT

5. Mentoringaccesstosuccessfulentrepreneurs

6. Connectionsandstart-uppreparationsupport

7. Identifyandaddressbusinessskillneeds

8. Adviceandlinkagestoassistclientsdevelop‘routetomarket’

9. Adviceandlinkagestonationalandinternationalsupplychains

10. Ecosystemintegration

The more detailed General principles, Services necessary to accelerate innovation, and Physicalinfrastructureservicestobedeliveredbythecompany,aresetoutinAttachmentAtothisReport.

SinceitsformationCBRINhasalsobeenthe‘goto’organisationfortheACTGovernmenttoaddress

many business policy development challenges in areas such as indigenous business development,

womeninbusiness,youthinentrepreneurship,keycapabilityareadevelopment,commercialisation

1 In the medium to longer term the Company may review the mix of services and the delivery of them to maximise the growth of

entrepreneurialwealthcreatingcompanies2TheGovernmenthasmadeavailablepremisesat1MooreStreetforthispurpose.TheCompanywillleasethesepremisesfromtheACT

Governmentatpeppercornrentalfortwoyearsinitiallyandrentalcostsafterthisperiodwillbesubjecttoreview.



policyandsupport.ThesepolicyareasarecontainedintheGovernment’s2015businessdevelopment

strategyConfidentandBusinessReady:BuildingonOurStrengths.

1.2 CBRINandthe2015ACTGovernmentbusinessdevelopmentstrategyTheACTGovernment’sBusinessDevelopmentStrategyConfidentandBusinessReady,May2015,set

outavisionfortheACTeconomyandtheroleofCBRINindeliveryofthevision:

Thelong-termvisionistodevelopavibrantinnovationecosystemthatbuildsonexistingactivityandthedepthofcapabilityoftheFoundationMembers3.

Itwillattractentrepreneurs,graduates,investorsandlargeandsmallcompanies.Itwillbewellknownandrespectedinternationally.Intwoyears,theCBRInnovationNetworkwillbeathrivingphysicalhubofentrepreneurship,having supported thedevelopmentofan incubatorand seensignificantgrowthofbothEntry29andtheGRIFFINacceleratorsuchthatnewlargerpremiseswillberequired.

TheGovernment, through the fundingarrangement,hasasked theCBR InnovationNetwork toidentifygapsintheinnovationecosystemand,inpartnershipwiththeinnovationcommunityandserviceproviders,putinplacestrategiestoensurethatservicesnecessarytoaccelerateinnovationareavailableandaccessibleforstart-upentrepreneursandexistingbusinesseswishingtogrowanddevelop.

TheCBR InnovationNetworkwill developonahuband spokemodel toensure its servicesareavailabletoallentrepreneursandpotentialhighgrowthbusinesseswherevertheyarelocatedintheACT.

Itwillalsoplayacrucialroleinsupportingtheentrepreneursandbusinessesassociatedwiththeemerging key capability areas. It will provide programs that connect businesses to the keycapability areas, including ‘sandpit’ programs to enable these organisations to test ideaswithentrepreneurial companiesand tocollaboratewitheachother.The targetswillbe largerSMEsalready well-established on their innovation path, Canberra and region companies (using theCanberra Business Chamber to promote the service) and multinational corporations with aninnovationcapabilityinCanberra.

IntheStrategy,theGovernmentcommittedtoprovideadditionalfundingof$300,000perannumfor

CBRINfor2015–16and2016–17,inadditionto$800,000perannumcommittedthroughtoJune2019.

ThisfundingwasforaddressinggapsintheACT’sinnovationecosystemandcreatinganenvironment

supportiveofgrowingbusinesseswithinnovativeideas.TheGovernmentforeshadoweditwouldwork

withCBRINtodevelopbusinessoutcomesassociatedwiththekeycapabilityareasithasidentifiedfor

growth.Theseareidentifiedbelow

ACTEconomy:DevelopmentofKeyCapabilityareas

Canberra’s higher education and research institutions are looking to translate their specialist knowledge into

commercialisationopportunitiesandtopositionCanberraasaworld-leaderinthefieldsofspaceinnovation,agricultureandenvironmentalsciencesresearch,sportstechnologyandhealthinnovation,cybersecurityinnovation,andICTande-Governmentinnovation.

OutoftheseconcentrationsofknowledgethatexistinCanberra’sinstitutions,anumberofcuttingedgeprecinctsand

clustersofexpertiseinparticularfieldshavebeguntoemerge.

TheACTGovernmentwillworkwithourinstitutionstomaximiseeconomicdevelopmentandbusinessoutcomesfrom

theseinvestments.ThisisauniqueopportunityfortheGovernmenttopartnerwithourinstitutionstogrowimportant

keycapabilityareas.

http://www.business.act.gov.au/resources_and_networks/business_development_strategy/confident-and-business-

ready#Key

TheGovernmentenvisagedthatthroughCBRINitwillassistACTbusinessestoscale-upandconnect

intosupplychains,enablingmorelocalbusinessestobereadytoselltogovernmentbothlocallyand

globally.

These capability areas provide CBRIN with a strong mandate to engage in the scientific and

technological aspects of the ecosystem in addition to the creative sector as a target for growth.

Canberra has capability in areas around film, television, games production, fashion and industrial

design. Canberra has also, inmany contexts, been identified as a creative capital. However, the

3TheAustralianNationalUniversity,UniversityofCanberra,UniversityofNSW,CanberraInstituteofTechnology,Data61andCSIRO-ON



connections between creative industries and ICT are becoming stronger – reflecting the historical

connectionbetweentechnologyandcreativepractice.

1.3 Canberra:acreativecapitalCanberrahasbeenpositioningasa‘creativecapital’formanyyears.Recently,inthecontextofthe

‘sistercityrelationshipwithWellington,theChiefMinisterobserved:

Young, vibrant, smart and innovative are all well-used descriptors of Canberra. But they alsoperfectlydescribeWellington,ourcoolcapitalsistercityfromacrosstheditch.

CanberraandWellingtonhavemuch incommon.Weare twoof themost liveablecities in theOECD, both cities leverage business opportunities that extend from the seat of our respectiveFederalGovernmentsandbothcitieshavelargeknowledge-basedeconomiesthatattractsmartandtalentedpeoplefromacrosstheworld.

TherearealreadysignificantculturalandeconomictiesbetweenAustraliaandNewZealandandIampassionateinwantingtoextendtheselinksandpromoteCanberratotheworld.B2BMagazine,Issue122,December2016

In a global context innovation ecosystems in Berlin, London and New York align strongly with

creativity.

TherearecreativestrengthsinCanberraattheCIT,theAcademyforInteractiveEntertainment,the

CanberraTechnologyParkatWatson,andseveralArtsHubslocatedaroundthecity.Canberraisalso

thebaseformanyofthenation’sculturalinstitutions.Thereisscopeforstrengtheningrelationships

betweentheseinstitutionsandtheinnovationecosystem.

1.4 FundingThe Funding Agreement covers the five-year period 1 July 2014 to 30 June 2019. Total ACTGovernment fundingwillamount to$6,267mover theperiod

4.The fiveFoundationMember (FM)

organisationscontribute$50,000eachincashandinkindannually($1.25movertheperiod).

1.5 IncomeandexpenditureprofileThesourcesofCBRINincomeforthesevenmonthsJuly2016toFebruary2017areidentifiedinTable

1below5.TheprofileindicatesthattheACTGovernmentcontributed38.5percentofincomeoverthe

period6,theFoundationPartners17.5percentandprogramincome23.8percent.Programexpenses

accountedfor25.7percentofincome.

Table1:CBRINIncomeandGrossProfit:July2016-February2017 Actual Proportion Budget Variation

$ % $ $GeneralIncome CanberraInnovationDevelopmentFund 25,200 1.8% - 25,200

FoundingPartnerincome 250,000 17.5% 250,000 -

Reimbursements 13,212 0.9% - 13,212

EventsServices 11,312 0.8% 2,250 9,062

KILNLeanStart-upWorkshop 103,678 7.3% 23,331 80,347

403,402 28.2% 275,581 127,821Fundingandprogramincome

BaseFunding 550,000 38.5% 590,000 -40,000

CollaborativeInnovationLab[42053] 123,245 8.6% 90,000 33,245

InspiringAus-DptofInd&Sc - 105,000 -105,000

InspiringAustralia-ACTGov 63,238 4.4% 80,000 -16,762

KILNIncubator 104,000 7.3% 90,000 14,000

MSECProgram 50,000 3.5% - 50,000

Sponsorship-IndigenousInnov - 5,000 -5,000

890,484 62.3% 960,000 -69,516Innovationincome

Innovationconsultancy 47,500 3.3% 40,000 7,500

Innovationpartnerships 56,876 4.0% 50,000 6,876

104,376 7.3% 90,000 14,376Otherincome

OperationalIncome 61 0.0% - 61

4AssetoutinvariationtotheFundingAgreement,16August20165AfullyearestimatewithprojectionstoJune2017wouldcompletethispicture6Therewasapaymentdueof$40,000duefromtheACTGovernmentpriorto31January



Actual Proportion Budget Variation $ % $ $OtherIncome 1,000 0.1% - 1,000

1,061 0.1% - 1,061TenancyIncome

DeskLicences 20,470 1.4% 21,000 -530

TenancyIncome-Entry29 8,631 0.6% 20,419 -11,788

29,101 2.0% 41,419 -12,318TotalIncome 1,428,424 100.0% 1,367,000 61,424LessCostofSales

CollaborativeInnovationLab[56055] 3,836 0.3% 64,162 -60,326

Events 19,339 1.4% 5,000 14,339

GriffinAccelerator 72,914 5.1% 67,081 5,833

Innovationconsultancyexpenses 1,381 0.1% - 1,381

Innovationpartnershipexpenses 6,207 0.4% - 6,207

InspiringAustralia 112,648 7.9% 128,331 -15,683

KILNIncubator[56050] 29,055 2.0% 43,750 -14,695

KILNLeanStart-upWorkshop[55025] 47,198 3.3% 17,500 29,698

MSECProgramcosts 23,861 1.7% - 23,861

NationalPractitionersWorkshop 634 0.0% - 634

Program-Indigenous 10,158 0.7% - 10,158

Program-SMEGrants 1,164 0.1% - 1,164

Program-YouthBusinessConn[51050] 30,500 2.1% 40,831 -10,331

Showcase 8,683 0.6% - 8,683

SMEGrants[57050] 200 0.0% - 200

UCSatelliteSupport - 13,200 -13,200

Workshops 37 0.0% - 37

CostofSales 367,815 25.7% 379,855 -12,040GrossProfit 1,060,609 74.3% 987,145 73,464

Source:PWC.MonthlyFinancialAccountsandReport,January2017.

ThefinancialinformationindicatesthatCBRINgeneratedagrossprofitof$1.06minthefirstseven

monthsofthefinancialyear–aheadofbudgetby$73,464.Theinformationalsoindicatesthatthe

direct cost of delivering services amounted to $0.37m, or 25.7 percent of income. This does not

includestaffsalaries,whichtotal$0.58mintotal.

Financial informationalso indicates thatduring the first sevenmonthsof2016-17,CBRIN incurred

expensesof$0.81m,andanoperatingprofitof$0.25m.Thisisconsiderablyaheadofbudget,andis

reflectedinTable2below.

Table2:CBRINExpensesandNetProfit:July2016-February2017 Actual Proportion Budget Variation

Compliance,marketing,businessdevelopment 70,273 8.6% 62,170 8,103

Employeeexpenses 581,041 71.4% 648,419 -67,378

ITexpenses 50,024 6.1% 70,419 -20,395

Officesupplies,printingandpostageexpenses 8,594 1.1% 3,800 4,794

TenancyExpenses 48,086 5.9% 43,750 4,336

Travelandrelatedexpenses 35,964 4.4% 43,169 -7,205

OperatingExpenses 814,343 100.0% 892,646 -78,303

OperatingProfit 246,437 30.3% 94,499 151,938Source:PWC.MonthlyFinancialAccountsandReport,January2017.

Thelargestcomponentofexpensesreportedisemployeecosts,at71.4percentofthetotal.

ThefiguresinTable2donotincludethe‘in-kind’costofsharedworkingspace,incubatorservices,andacceleratorprograms,providedforundertheFundingAgreement.Thecommercialcostofthespace,

reportedinthe2015-16CBRINAuditedFinancialStatementsis$0.61mannually.Onthatbasis,over

thefirstsevenmonthsof2016-17,thein-kindvalueoftheACTGovernmentsubsidyforrentwould

amountto$0.36m7.

Itis,however,commonpracticeforGovernmentsandotherstoprovidesubsidisedco-workingspaces

invacantorunusedofficebuildings,formerwarehouses,andstoragefacilities.Commerciallyprovided

co-workingspacesarerarelyviableunlessthereissignificantcommercialsubsidy8.Atthesametime,

itwas reported during consultations that tenantsmight be prepared to pay a premium for a co-

workingspacetosecureaccessandcontactforcollaborationandnetworking.

7TenancyexpensesreportedinTable2coverfitoutcostsandgeneraloutgoings8Forexample,“StartupincubatorPollenizertoclosedownafter10yearsinbusiness”,StartupSmart,DinushiDias,1March2017

http://www.startupsmart.com.au/news-analysis/pollenizer-to-close-down-in-wake-of-tenth-birthday/



1.6 GovernanceCBRIN is governedby a Board consisting of the FoundationMembers (ANU, Canberra Institute of

Technology,Data61,CSIRO,UniversityofCanberraandUNSWCanberra), and theDirectorof the

Company.An independentChair isnominatedby theMinister.TheACTGovernmenthasobserver

status.

1.7 StaffingBasedoninformationprovidedintheAnnualWorkPlan,currentstaffinglevelsareasfollows.

Table3:StaffingFunction Staffing(FTE)1. CEO 1.0

2. KILNIncubator 0.6

3. Programs–SMEScaleup,CollaborativeInnovationLab,LeanStart-upWorkshop,Other(incl.

YouthSocial,StudentNetwork,etc.)1.7

4. OfficeandEvents 1.0

5. Communication 0.8

6. AdminSupport 1.0

6.1

1.8 FinancialpositionFinancialinformationindicatesthatCBRINIsinastrongfinancialposition.At31January2016CBRIN

managementaccountsreportednetassetsof$0.93m.Retainedearningsamountedto$0.69m.Assets

arerepresentedprincipallybycashatbank,termdeposits,andtradedebtors.

Duringconsultations,aFoundationMemberquestionedwhetheritwasnecessarytohavesuchahigh

levelofretainedearnings,suggestingthatmorefundsshouldbeallocatedtoservicesduringtheyear.

ThismatteristakenupagainlaterintheReport.

1.9 CBRINStrategicPlanandplanningframeworkCBRINhasacomprehensivestrategicplanningframeworkanddetailedstrategicplan.ThePlanning

FrameworkthatCBRINgasadoptedisrepresentedinthefollowinggraphic.

Figure2:CBRINPlanningFramework

TheDraftAnnualWorkPlan2016-17identifiesfivestrategicobjectives:



1. Collaboration,Community,Culture,ConnectivityandCommunicating

2. CapitalisingInnovationopportunities3. DevelopingEntrepreneurs4. ActivatingNationalandGlobalGrowth5. CBRINSustainableGrowth

Theseobjectivesareonly loosely connectedtotheACTGovernment’sexpectationssetout in the

FundingAgreementandtheACTGovernment’s2015BusinessDevelopmentStrategyConfidentandBusinessReady.Concernswereraisedduringconsultationsabouttherelativepriorityamongstrategic

objectives,particularlyinrelationtoanationalandglobalfocuscomparedtodevelopingtheCanberra

innovationecosystem.

Each strategic objective encompasses five to seven activity areas, and numerous KPIs. These are

reportedinthe2016-17AnnualWorkPlanasfollows.

Table4:CBRINObjectives,ActivitiesandKPIsObjective Activityareas(Number) KPIs(number)1. Collaboration,Community,Culture,ConnectivityandCommunicating 5 12

2. CatalysingInnovationOpportunities 5 11

3. DevelopingEntrepreneurs 5 14

4. ActivatingNationalandGlobalGrowth 6 14

5. CBRINSustainableGrowth 7 9

28 60

The Work Plan sets a very ambitious agenda. It places a very high expectation on a staffing

establishmentof6.1FTEstoworkacross28activityareasand60KPIs.However,theKPIsarelargely

measuresofprocessand‘busyness’thatarereportedregularlyforaccountabilitypurposes.Theyare

essentiallymeasuresofwork‘output’ratherthan‘outcomes’inrelationtothePrinciplesandService

ExpectationsintheFundingAgreement,andthemandatesintheBusinessDevelopmentStrategy.

Section4ofthisReportprovidesinformation,basedonanextensiveconsultationsprogram,backed

upbyasurveyinstrument,abouttheextenttowhichCBRINhasbeeneffectiveinmeetingspecific

expectationsintheFundingAgreement.ItindicatesthatCBRINhasbeenveryeffectiveintheareasof:

§ Creatinganetworkthatlinksbusinessandentrepreneurs

§ Beingthe‘go-to’pointforinnovationinCanberra

§ Mentoring,creatingconnectionsandstart-uppreparation.

Respondentsconsideredthatmoreworkneededtobedoneintheareasof:

§ Identifyinghighpotentialgrowthopportunities–particularlyamongestablishedSMEs

§ Developingbusinessskills,routetomarketstrategies,linkagetonationalandinternational

supplychains

§ Ecosystemintegration

Withlimitedresources,itisimportantthattheworkofCBRINisfocussedonoutcomes,buildsonthe

capabilitiesofallinvolvedinthenetwork,andstrengthenscooperationandcollaborationacrossall

organisations involved in the ecosystem. Theremay also be areas in theFundingAgreement thatrequire review concerning CBRIN capacity to deliver, having regard to priorities and resources

available.

Recommendation

1. TheACTGovernmentandtheFoundationMembersworktoensurethatCBRIN'sstrategicplanning framework is streamlined and simplified, reflects a close alignmentwith ACTGovernmentexpectationscontainedintheFundingAgreementandtheACTGovernment'seconomicdevelopmentpolicydirectionsetoutinConfidentandBusinessReady;BuildingonOurStrengths,aswellastheexpectationsofFoundationMembers.ThismayinvolvesomechangestotheFundingAgreement.

It is important to acknowledge that both the ACT Government and Foundation Members have

developed and implemented many innovation initiatives outside the CBRIN remit. Foundation

Membershaveputinplaceinnovationstrategiesthatreflecttheprioritiesoftheirowninstitutions

and have allocated significant investments in developing their capability. However, FoundationMembers indicated during the Review that they alsowish to have a strong engagementwith thebroaderCanberraInnovationEcosystem.



Inthisregard,itisimportantthattheACTGovernmentandFoundationMemberscollaboratethrough

whatmaybetermedanInnovationEcosystemStrategyWorkingGrouptobuildcollaboration,developanagreedEcosystemStrategicActionPlan,andprovideareferencepointforCBRINindeliveringitsprogramsandservices.

Recommendation

2. ACanberraInnovationEcosystemStrategyWorkingGroupbeestablished,comprisingtheACT Government and the CBRIN Board to develop a Canberra Innovation EcosystemStrategicActionPlan

Developmentof theEcosystemStrategicActionPlan should takeaccountof theotherapproachesbeingadoptedregionalinnovationsystems,includingSmartSpecialisationStrategiesinEuropeand

theUK9.ThePlanwouldreflectthesignificantfinancialcontributionthattheACTGovernmentmakes

toCBRIN

9See,forexample,FORAYD.,GODDARDJ.,BELDARRAINX.G.,LANDABASOM.,MCCANNP.,MORGANK.,NAUWELAERSC.andORTEGA-

ARGILESR.(2012)Guidetoresearchandinnovation:strategiesforsmartspecialisation.EuropeanCommission,Brussels.

FORAYD.(2015)Smartspecialisation:opportunitiesandchallengesforregionalinnovationpolicy.Routledge,Abingdon,Oxon;NewYork.



2 THECBRINBUSINESSMODEL(THE‘LINESOFBUSINESS’)Basedondiscussionininterviews,andanalysisofCBRINactivities,fourdistinct‘linesofbusiness’have

beenidentified.ThesearedescribedinFigure3.

Figure3:CBRINLinesofBusiness Network Programdelivery Investor InnovationPromotion

CentreNatureoftheBusiness

Makingconnections

withkeyplayersand

stakeholdersinthe

innovationecosystem

tobuild‘collaborative

capital’.

Managingfundingfor

thedeliveryof

innovationcapacity

buildingprograms

Deliveryofprograms

onitsownbehalf

Investorininnovation

initiativestogrowan

innovationclusterand

positionCanberraas

anInnovationDistrict

andecosystem.

Publicrelations,

communication,

marketing

Keyresultsareas

Connectionsmade,

interactionsand

relationshipsamong

ecosystemparticipants

sustained

Programefficiency,

effectivenessand

impactandvalue

creation.

Returnoninvestment

Creationofvaluefor

businessesandthe

broadersystem

Awarenessandaction

amongtarget

audiences

Productsandservicesprovided

Informationand

knowledgesharing,

buildingconnections

andcollaboration,

networkingevents,

visinglectures

international

innovationleaders

Website,appsand

socialmedia.

Throughitsown

programsorselling

overheadstoprograms

locatedintheCBRIN

co-workingspace:

Entry29,KILNand

Griffin.Theseprogramsmayoperatefromothersitesinthesystemundera‘hub

andspoke’

arrangement

Investmentsin

innovationinitiatives

withintheinnovation

ecosystem.

Mayactasaninvestor

onbehalfof

Governmentorother

stakeholders.

Attractresourcesfor

investmentthrough

sponsorship.

Presentationand

promotionpackages

Appearancesat

conferencesand

eventsoutsideCBRIN–

nationallyand

internationally

Supportingscreen

basedpromotional

material

Skillsandcapabilitiesrequired

Abilitytobuildtrust

basedrelationships

withFoundation

Members,Government

andthebroader

innovationecosystem

Excellentunder–

standingofthe

academicculture.

Capacitytolistenand

respondtosubtle

messaging.

Strongserviceculture

andfocusonend

users.

Financialandprogram

management,

monitoringandreview.

Designofeffective

management

informationand

reportingsystems.

Relationship

marketing.

Investmentappraisal,

duediligence.

Capacitytodevelop

deeptrustbased

relationships,convey

authenticityand

credibility.

Capacityforhighlevel

negotiationand‘deal

making’with

government,business

andresearch

community.

Highleveland

relationalskills.

Abilitytopenetrate

externalnetworks.

Deepknowledgeofthe

capabilitiesof

institutions,

organisationsand

networkswithinthe

innovationecosystem.

Abilitytomake

connectionstopeople.

Opportunities Substantial

opportunitiestobuild

closerlinksand

interactionswith

innovationcapability

acrosstheinnovation

ecosystemandcloser

integrationwith

initiativesof

FoundationMembers

Toaddressskills

deficitsinveryearly

stagebusinesses.

Builda‘progression

stream’withprograms

offeredbyFoundation

Partners.

Toidentify,evaluate,

andsupportemergent

ideasthroughasimple

andstraightforward

process.

PotentialtouseCBRIN

reserves(currently

almost$700kfor

investment.

TolinkCanberra’s

innovationcapability,

acrosstechnologyand

creativedomains,with

skillsattraction

investmentand

tourismpromotion.

Risks TheCBRIN

organisationis

perceivedas‘thenetwork’ratherthanafacilitatorofabroader

innovationsystem

networkactingon

behalfofabroader

stakeholdergroup.

Serviceprovidersmove

tootherlocations–

e.g.universities,other

co-workingspaces.

Competition-

commercialproviders-

CBC,Lighthouse,

universityshort

courses,RTOs.

Conflictsofinterestif

CBRINistheinvestorin

itsownprograms.

Theinnovation

imperativebecomes

lostinotherinitiatives.

Recommendation

3. InrecruitingthenextCBRINCEO,skills,knowledgeandcapabilitiesinthefourCBRINLinesofBusinessbesought:NetworkFacilitatorandInnovationSystemintegration,InnovationProgramServiceDelivery,InvestorinInnovationcapability,andInnovationpromotion.



Commentsoneachof theseareas,andCBRINperformance,opportunitiesandrisksarecanvassed

below

2.1 CBRINasanetworkfacilitatorCBRIN has performedwell as a network facilitator, and there is an opportunity to domore. The

followingpointsweremadeintheconsultations:

§ CanberraismuchmoreconnectedthanSydneyandMelbourne.Itissmallenoughnotto

havesilosthatemergeinbiggersystems,whichthenbecomecompetitivewheretheyshould

becooperative

§ InSydneyandMelbourne,theinnovationspacehasbeenturnedintosomethingmuchmore

ofanimmediatemoney-makingoperation,thatismuchmoreprofit-oriented

§ TheACTgovernmenthascrystallisedtheopportunitybyestablishingCBRINasapoint-to

agencycanbringthemstakeholderstogether.CBRINistaskedtostimulateconnections.

§ TheACTgovernmentdoesnothavethemoneyto‘throwatthings’,butcancontributeby

supportinganetwork.

§ Thesedaysinnovationisallaboutnetworks.‘Ifyou’renotinanetworkbusiness,youjust

don’thavethereach,andyoudon’thavetheabilitytohaveanyeffect’.

§ Thenetworkorganisationcan,probablybetterthananyothers,evangelisetheactivitiesof

whatthemembersaredoing.

Therewerereservations:

§ TheCBRINorganisationisbeingseentobepromotingitselfasthenetwork,ratherthanthebroaderinnovationsystemnetwork.TherewasaviewthatCBRINisseekingtobethe

network‘owner’.CBRINneedstobeseenasafacilitator,notaplace.

§ Thereisanoverconcentrationonearlystage;theneedtoworkwithexistingpotentialhigh

growthcompaniesasoutlinedinConfidentandBusinessReady.

§ CBRINhasastrongfocusontechnologybasedstart-ups,buthaslimitedconnectionsinother

areas,suchaswithdefencetechnologiesandthebroaderdefenceindustry.Thedefence

industryisregardedasakeyopportunityofCanberra.ConsiderationshouldbegiventoinvitingDefenceScienceandTechnology(DST)tojoinCBRINasaFoundationMember10.

Inaddition,smalltomediuminnovativebusinessesarenotseentobewellengagedandconnected

across thenetworkand interviewssuggestedthat there is scope forgreater involvementof larger

businesses,inboththepublicandprivatesector.OneintervieweenotedthatCanberraisthebasefor

threeofAustralia’slargestbusinessesthatareinurgentneedofinnovationconnections.

This issue is best addressed by demonstrating a value proposition to businesses in terms of

opportunitiesforcooperationcollaborationandaccesstoresearchcapabilitythatcanoccurthrough

CBRIN. Thismay requireCBRIN todevelopprogramsand relationshipstrategiesdirectedat these

groups.

Recommendation

4. CBRINdevelopavaluepropositiontargetedtoestablishedsmalltomediumbusinesses,and larger businesses in key sectors, regarding the opportunities for collaboration andaccesstoresearchcapabilityamongFoundationMembers.

2.2 CBRINasamanagerofinnovationandentrepreneurshipprogramsCBRINwasestablishedtocoordinateandfundthedeliveryofinnovationcapacitybuildingprograms

eitherdirectlyorthroughcontractarrangementswiththirdpartyproviders.CBRINbroughtunderone

umbrellaseveralprograms,andrequestsforprograms,previouslyconsideredseparately.CBRINwas

10DiscussionwitharepresentativefromDSTindicatedthatthiswouldbeapossibility.



alsotaskedtoidentifygapsintheinnovationprogramareaandworkwithACTGovernmentandother

providerstofillgapsidentified.CBINwasnotexpectedtofillallgaps.

2.2.1 ProgramscurrentlydeliveredthroughCBRINProgramscurrentlydeliveredthroughCBRINinclude:

LeanStart-upWorkshopSeries.CBRIN, incollaborationwith theGriffinAccelerator, runaseriesofmonthlyworkshops instart-up

methodologiesandbestpractices.Theworkshopscoverallaspectsofstart-upmethodologies,from

customervalidationthroughtomarketvalidationandbusinessmodelgeneration

SMEGrowthProgramAnACTGovernment initiativeaimedatdrivingsmallbusinessgrowthandcompetitiveness. Itwill

provide skilled support for business improvement and promoting opportunities and innovation

through collaborative opportunities, connections with research institutions and developing and

commercialisingnewideas.

InspiringtheACT.Part of the national Inspiring Australia strategy to help build connections between scientists,

organisations,businesses,andstudents,tofosterpublicparticipationinSTEM(science,technology,

engineeringandmathematics)andinnovation.InspiringAustraliaACTisthelocalactiontohelpbring

thenationalstrategytolife.

OtherprogramsCBRIN has been involved in delivery of programs for youth andwomen. But it is not involved in

programsforindigenousanddisabledentrepreneurs.Butthereseveralotherorganisationsdelivering

these types of programs. There is scope for building greater connections from an innovation

ecosystemperspective.

2.2.2 CanberrainnovationfundingprogramsnotmanagedordeliveredthroughCBRINCanberrahasarichdiversityofinnovationprograms,deliveredbyavarietyofpublicorganisations,

industryassociations,non-governmentorganisations,andcommerciallybasedbusinesses.Programs

deliveredoutsidethespecificCBRINremitinclude:

§ AcceleratorPOD

§ ACTMicrocreditprogram

§ ANUEntrepreneurs

§ BizSpark(aMicrosoftinitiative)

§ CapitalAngels

§ CanberraBusinessPoint(CanberraBusinessChamber)

§ CanberraInnovationDevelopmentFundCompetitiveGrants

§ CollabIT

§ DiscoveryTranslationFund(ANU)

§ EntrepreneurshipUC

§ ICON

§ InnovationACT(ANU)

§ LighthouseInnovations

§ ScreenProductionFund

§ SeedInvestmentFund

§ TradeConnect

§ UNSWSandpitprogram

Information about the operation of these programs is provided in Attachment C.Many of these

programshaveastrongrelationshipwithCBRIN,andinseveralinstances,havepeoplebasedinthe

CBRINco-workingspace. Theconnectionsalsowork informally, forexamplewithAcceleratorPod

(NickMcNaughton),CapitalAngels(MicheleTroniandAnneMariePerret).ACTGovernmentprograms

alsohavestrongpeoplelinks.



TheUCSocialEnterpriseHub,TechLauncher,CSIROaccelerator,allhavegoodCBRINlinks.

OtherinnovationinitiativesdeliveredbyresearchandteachingorganisationsinCanberrainclude:

§ AIEBachelorofGamesandVirtualWorldsDegreecoursesinpartnershipwithCIT

§ AIE,ANU,CITUC,andUNSW,certificateandshortcoursesininnovationand

entrepreneurship.Somecoursesareofferedincollaborationwithexternalproviders,that

canmigrateintoqualifications

Thereisalsoabroadrangeofenterprisedevelopmentcoursesandprogramsofferedbybusinessand

professionalassociationsandRegisteredTrainingOrganisations.

During interviews,concernwasexpressedbymanagersofcommerciallydrivenprogramsthatthey

havebeenexperiencingpricecompetitionfromCBRINprogramsandservices.Itfollowsthatcaremust

betakenbyCBRIN,seenasaGovernmentfundedorganisation,nottobeencroachingonthedomains

ofbusinesses,trainingandconsultancyorganisationswhichprovidetheseservicescommerciallyina

highly-contestedmarket.

CBRIN has a role, however, to point to those programs in its role of network facilitator in the

InnovationEcosystem.Intervieweesadvisedthatthisthe‘networking’aspectofCBRINhasbeenlost

attimes.

Recommendation5. TheBoardofCBRINseekstoensurethatprogramsandservicesoffereddonotcompete

with programs and services provided by the commercially oriented enterprisedevelopmentandtrainingsector.

2.3 CBRINasaninvestorinbuildingecosystemcapabilityCBRINperformsaroleasinvestorininnovationinitiativestogrowtheinnovationsystemandposition

Canberraasan innovation leader.Therearealsoseveralother,complementary investmentsbeing

madeininnovationcapacitybuilding.

2.3.1 EcosystemcapabilitybuildingcurrentlysupportedthroughCBRINWith ACT Government funding and investments from FoundationMembers, CBRIN coordinates a

smallnumberofinnovationprograms.

Entry29Entry29 is a co-working space for start-upsandentrepreneurs inCanberra. Itwas foundedbyaanumberofstart-upenthusiastsinCanberraandhasgrownintoalargerecosystemofentrepreneurs.

Entry 29 aims to be ‘a passionate and connected community of entrepreneurs, innovators and

mentorsreadytohelpgrowstart-ups’.

Entry29offersavarietyofmembershipoptions.Therearecurrently94membersand44companies

linkedtoEntry29.DirectorsareRoryFord,AnnaPinoandNickMcNaughton.

GriffinAcceleratorGriffin Accelerator consists of a group of Canberra entrepreneurs who invest in, host, guide and

partnerwiththefoundersofselectedinnovativestart-ups.Itoffersathree-monthintensiveprogram

togetstart-upsmovingfastandachievinginitialbusinesssuccess.

Griffin’svisionisto:

… change the world by making Australian innovations successful and to change Canberra bycontributingtothevibrantnetworkofinnovationandstart-upactivityhere.Wegetresearchoutofthe lab,weenablefounderswithdeepexpertiseandpassiontomakeadifference.WeworkwiththebestentrepreneursfromCanberraorwillingtoworkhere.

Griffinhasan impressiveportfolioofsuccessfulbusinesspeopleasmentors, includingCraigDavis,

Nick McNaughton, Sylvia Tulloch, Murray Rankin, Uwe Boettcher, Lyndal Thorburn, Anne-Marie

Perret,MarcusDawe,TonyHenshaw,HamishHawthorne,MilesJakeman,HarryHoang,BrandHoff,

JoshuaTeo,BenWright,andHughChalmers.



KILNIncubatorKILN is a Canberra based business incubator assisting early stage start-ups, investors and small

businessesinthescaling-upstage.ThepurposeofKILNistosupportfoundersofhigh-growthpotential

entrepreneurialventuresandownersandoperatorsofhighgrowthpotentialSMEsintheACTthrough

provisionofhighlycustomisedbusinessincubationservices.

ThereareisarangeofinnovationcapabilityfundedorsupportedinCanberrabytheACTGovernment

outsidetheCBRINorganisation.There is, inaddition,capabilityfundedbytheCommonwealthand

privatesectororganisations.Thiscapabilityisoutlinedbelow.

2.3.2 EcosystemcapabilitycurrentlyfundedorsupportedoutsidetheCBRINorganisationOver the last two years the ACT Government has made a substantial commitment to building

ecosystemcapabilityinseveralclusters(orprecincts).Thisbuildsonseveralongoingcommitments.Inaddition,otherorganisationshavesetupcapabilityinCanberra.Capabilityincludes:

§ ACTSpaceInnovationCluster

§ CanberraBusinessChamber,particularlythroughitsTaskForcesandevents.

§ CanberraTechnologyPark

§ CyberSecurityInnovationCluster

§ Data61(formerlyNICTAandnowpartofCSIRO)

§ TheFilmDistillery(atCanberraTechnologyPark)

§ HealthInnovationCluster

§ ICTande-GovernmentInnovationCluster

§ KingstonCreativeInnovationHubandotherartsprecincts

§ ONInnovation(CSIRO)

§ NationalAgriculturalandEnvironmentalSciencesPrecinct(NAESP)

§ PhillipBusinessCommunity

§ RenewableInnovationHub

§ SmallBusinessInnovationPartnerships

§ SportsTechnologyCluster

§ UniversityofCanberraInnovationDistrict

FurtherinformationoncapabilityintheseareasisprovidedinAttachmentD

Theextent towhich this capability is connected into theoverall innovationecosystemvaries. The

overall view in consultations that there would be benefit in strengthening relationships and

interactions. There would also be an opportunity for CBRIN to report outputs in these areas to

complementthereportingoninnovationactivitybytheorganisationsthatfallundertheCBRINBrand.

This is addressed later in theReport aboutCBRINhavinga task toprepareaCanberra InnovationSystemReport.

2.4 CBRINasaCanberrainnovationpromotioncentreExternalpromotionisnotactuallyspecifiedintheExpectationsofCBRINintheFundingAgreement,althoughitiscoveredintheBusinessDevelopmentStrategy.However,therewasviewputforward

onmanyoccasionsduringtheconsultationsthatCanberrashouldbeastrongplayerinthenational

innovationsystem.BradHoffobserved:

Thebigproblem…youmustgotoSydneyandyoushouldgotoMelbourne.Theyhaveverystrongnetworksofpeopleuptherethatwillinvestincompaniesthatgraduatetothatlevel.

ThereisaviewthatlocalfollowupcapitalisdryingupinCanberra.ItisapparentthatearlystageVC

funds like Blackbird and Slingshot invest nationally. Fund managers should be aware of the

opportunitiesinCanberraandtheregion.

AFoundingMemberobserved:

TheprofileoftheACT,intermsofaninnovationecosystem,isveryhighandthat’sallcredittotheCanberra InnovationNetworkandtheirstaff.Thenetworking, thenationalnetworkingandtheexposurethatthestaffhaveachievedforthenetworkisverygood,sointermsofprofile,lobbyingnetworkforthecityofCanberra,Ithinkthey’vedoneawonderfuljob



Duringconsultations,therewasastrongviewthatCBRINcanraiseprofileofCanberraasaplaceto

investinearlystagebusinesses,andinbusinessopportunitiesmoregenerally.ThecurrentCEOhas

been quite active in promoting CBRIN externally. This initiative should be liked to other ACT

Governmentinitiativesininvestmentandskillsattraction

Recommendation

6. CBRINshouldhaveamajorroleinpromotinginnovationinvestmentinCanberraand,inassociation with Griffin Accelerator and Capital Angels, encouraging interstate andinternational investors to locate in Canberra. This role should be acknowledged in theexpectationssetoutintheFundingAgreementandstrategicallylinkedtoACTGovernmentinvestmentandskillsattractioninitiatives.

2.5 ConclusionsCBRINhasperformedahighlyregardedandacclaimedroleinbuildingconnectionsandbeingafocus

forinnovationinCanberra.Ithasalsoprovidedaco-workingspace(forEntry29)andpromotedthe

workundertakenbyorganisationsthatfallundertheCBRINbrand,andreportedactivitiesofthese

entities.Ithasalsodevelopedacapabilityforrunningeventsaroundstart-upsandveryearlyideas

basedbusinesses.

Itisacknowledgedthatinnovationandentrepreneurshipprogramsmakeanimportantcontribution

to thegrowthandsustainabilityof theecosystem.Governmentsupportedprogramsaddressboth

marketandinnovationsystemfailures.CBRINhasanimportantrole,butisnottheonlyplayer,inthis

domain.

Reporting only on programs under the CBRIN umbrella significantly understates the amount of

innovationactivityoccurringinCanberraandtheregion.Inthisregard,CBRINshouldbelessvisibleas

an organisation and seen more as a resource for Foundation Members and other innovation

stakeholderstobuildinnovationcapability.

Program administration and delivery is resource intensive. CBRIN should resist involvement in

unfundedprogramdelivery,leavingthoseinitiativestoFoundingMembers,otherhubsandclusters,

andthebusinesscommunity.CBRINshouldtakeanintegratingroleinrelationtoinnovationsupportactivityandinitiativesacrosstheecosystem.

CBRIN should concentrate network and strengthening connections across all elements in the

ecosystem.Thefeedbackfromtheconsultationssupportsthisview.



3 THEEFFECTIVENESSOFCBRININMEETINGOBJECTIVESThisSectionreportsspecificallyontherequirementintheprojectbriefto:

AssesstheEffectivenessoftheCBRInnovationNetworkinmeetingitsobjectivesasstatedintheACTGovernmentFundingAgreement.

Thereareseveralaccepteddimensionsforassessingtheeffectivenessoforganisations,programs,and

projects.Theseessentiallyreflectvalueformoneyconsiderations,whichare,inbroadterms:

• Overallcost:howmuchitcosttooperateanorganisationinrelationtotheactivitiesand

resultsexpected.

§ Quantityofoutputs:whatandhowmuchisproduced

§ Qualityofoutputs:thequalityofoutputsinrelationtostandards

§ Client/stakeholdersatisfaction:theextenttowhichstakeholdersaresatisfiedwith

performanceinrelationtopurpose,objectivesandexpectations

3.1 CostThe2015-16CBRINAuditedFinancialStatementsreportanannualcost,intermsofexpensesincurred,

of$2.54m.Thiscompareswith$1.58minthepreviousyear.Thecostwasmetthrough$1.65m(65.0

percent)ingrantfunding,$0.61minanin-kindgovernmentrentsubsidy(24.1%),and$0.20m(7.9

percent)fromFoundingMemberscashcontributions.

AlthoughthecontributionsfromFoundationMembers isrelativelysmall, intervieweespointedout

that inauniversitysettingnearlyall resourcesareconsumed inthecoremissionsof teachingand

research and findingdiscretionary funding is veryhard. There is very little ‘freemoney’ available,

unlessthereareclearreturns,benefitsandoutcomesrelatedtoachievingthosemissions.

TheUniversityFoundingMembersarenotconvincedthatreturnsarebeingachievedinrelationtothe

cost of their contribution. However, there is scope for greater engagement between Founding

MembersandCBRINbyensuringthatmoreofitsactivities,programsandservicesoccuroncampus

(as anticipated in the hub and spoke model), and in collaboration with university research and

teachingprogramsandinitiatives.

3.2 QuantityThequantityofCBRINoutputs(services)isreportedonaregularbasis,andisimpressive.KPIslisted

intheWorkPlanaresummarizedinTable4.

Table5:CBRNProcessandOutputIndicatorsActivity MeasureNumberofvisitorsovertheyear >10,000

NumberofEventsHeldatCBRINorFMsites >50

NumberofPeopleintheInnovationEcosystem >5000

CapitalraisedbyCBRIN&GRIFFINprogramparticipants >$1M

%femaleparticipantsinprograms >40%

Numberof internshipssupported/contributedtobyCBRINTeam >50

NumberofSTIRstart-upideassubmittedtoonlineplatform >50

Numberofcollaborativeinnovationworkshops >10

NumberofparticipantsinLeanStart-upworkshops >150

NumberofSMEsengagedinGrowthprogram 10

NumberofactivefinancialmembersofEntry29 100

Numberofstart-upinKILNprogram,andpipeline 3and6

Numberofcoordinatedinnovationstoriesgenerated >6

Numberofsatellitesites ≥2

TheCEOreportson theseKPIs inquarterly reports to theBoardand inpromotionalmaterial. It is

important,howeverthatthewayinwhichtheactivitiesreportedfeedintoachievementofthefull

rangeofFundingAgreementExpectationsiscleartotheACTGovernment,FoundingMembersand

otherkeystakeholders.



3.3 QualityFeedbackonqualityofCBRINactivityandservicesisgenerallyhigh.Consultationindicated:

§ CanberraandtheACTInnovationEcosystemhasbeenwellpromotedandpublicised

throughoutAustraliaandinternationally.

§ ThequalityoftheworkoftheGriffinAccelerator,KILNIncubator,andEntry29isveryhighly

regarded.

§ KILNprogramsarehighlyacclaimedinCanberraandwhendeliveredinregionallocations.

§ ThequalityofpresentationsaboutCBRINandtheCanberraRegionalInnovationEcosystemis

highlyregarded.

As mentioned, there is scope for improvement in the quality of interactions with the Founding

Membersandthebroaderbusinesscommunity.SeveralintervieweesraisedconcernsabouttheCBD

concertationofactivities,andafocusontechnologyandhealth.

3.4 ClientandstakeholdersatisfactionThemain consideration concerning effectiveness relates to a question about the extent towhichclients and stakeholders are satisfied with the way in which Expectations set out in the FundingAgreementwiththeACTGovernmentarebeingmet.

TheReviewapproachedthis issuethroughanextensiveconsultationprogram, involving interviews

with35people, followedbyanopinion surveyofpeople interviewedand fiveothers close to the

Networkwhowerenotabletobeintervieweddirectly.Theopinionsurveyfocussedontheservice

expectationssetoutintheAgreement.PeopleconsultedarelistedinAttachmentF.

The survey asked respondents to rate CBRIN achievement in relation to Funding Agreement

Expectationsonthefollowingscale.

Rating Criterion Interpretation

5 Benchmark Exceptionalachievement:Sustainedleadership.Wellregardedforservicequalityandcapability.

4 Strong Noteworthyachievement:Abletosetandsustainnewservicedirectionsandcapability.

3 Favourable Needsmorework:Abletomaintainagoodstandardofservicedeliveryandcapability.

2 Tenable Modestimpact,shouldconsiderreview

1 Weak Littleornoimpactinmeetingexpectation

Atotalof28responseswerereceived(responserate70percent).Theresultsoftheconsultations

andopinionsurveyarereportedbelow.

3.4.1 CBRINasanetworkthatlinksbusinessandentrepreneursThe Funding Agreement requires that CBRIN should create a network that links businesses and

entrepreneurstoaccelerateinnovationandgrowthtomaximizewealthcreationforexamplethrough

eventsandprograms.

Figure4:CBRINasanetworkthatlinksbusinessandentrepreneurs



The survey indicated that 36 per cent of respondents considered this aspect of CBRIN activity as

‘benchmark’ and further 25 per cent saw achievement as noteworthy. However, 21.4 per cent

considered that more work should be done to build linkages, and 14.3 per cent considered

achievementhadbeenmodestorhadnoimpact.

Several interviewees say this as themajor focusandachievementofCBRINactivity.A leader in a

prominentCanberrabusinesscommented:

FrommyperspectiveCBRINisprobablyoneofthebestprogramsthattheACTgovernmenthasfunded,fosteredandputtogetherwiththeuniversities.…WhenIlookattheamountofimpactthatthey’vehadintheshortperiodthatthey’vebeenoperating,specificallytargetingthestart-upphaseorthestart-upecosystem…IthinkwhatCBRINhasreallydoneandSarahinparticularhasformalisedandboughtthenetworkswithinthenetworkstogether.…Ithinkthey’vedoneasuperjobofthat.

ThisobservationflowsintothenextExpectation.

3.4.2 Beingthe‘goto’pointforinnovationTheFundingAgreementrequiresthatCBRINshouldbethe‘goto’pointfordevelopingtheinnovation

ecosystem in the ACT, including synthesise and regionalise national and international thinking on

innovationissuesfromanACTperspective.

Figure5:The‘goto’pointforCanberrainnovation

Atotalof71.4percentofrespondentsconsideredachievementtobe‘benchmark’oranoteworthy

achievement. This is reflective of views expressed in consultations. It must be acknowledged,

however,thatthisfeedbackcomesmainlyfrompeoplewhohavecloseconnectionswithCBRIN.

Inconsultations,therewasinterestinhowCBRINfollowsupandfacilitatesconnectivitythroughthe

ecosystem.Forexample,anintervieweecommented:

…IthinkCBRINhasdoneanabsolutelyimmaculatejobofcentralisingthemarketingcomponentandtheawareness-buildingandthebringingtogetherofdifferentgroups,butwhenitcomestothemactuallyprovidingpathways into the furtherecosystem, I think that’swhereCBRINreallyneedsadditionalsupport,oradditionalencouragementtospreadout

ThisleadsintothenextExpectationaboutrelationshipdevelopment.

3.4.3 DeveloprelationshipsTheFundingAgreementrequiresthatCBRINshoulddevelopstrongrelationshipswithkeyindividuals,

organisations,companiesandprecinctsintheACTandaddressareasofneedidentifiedbyavariety

ofsources.SurveyresponsesaresummarisedinFigure6.



Figure6:Developrelationshipsintheecosystem

Thesurveyresultsreflectviewsexpressedduringconsultations. While40percentofrespondents

considerachievementtobeexceptionalornoteworthy,51.8percentconsiderthatmoreworkneeds

tobedoneortheapproachbeingfollowedshouldbereviewed.

Ininterview,severaluniversityFoundationMembersquestionedwhattheyaregettingoutoftheir

involvementintheNetwork.Theyalsoexpressedconcernabouttheirlevelofengagementoutside

theformalboardmeetings.ThereisalsoaconcernthatwhileCBRINisworkingwellwithstart-ups,

the levelofengagementwith largerbusinesses in theNetworkcouldbe improved,andthatmore

couldbedonetoengagewithestablishedbusinessesthatarepursuinginnovationchallenges.

Other Foundation Members saw the Network as an important way to tap into the innovation

communitytobuildtheirownprograminitiatives.Forexample,CSIRO-ONplacesgreatvalueonits

participation…

WhenateamishavinganONexperience,weencouragethemtoworkinCBRINsotheyinteractwiththecommunitythatCBRINhasbuiltupandenablesstructuredormanufacturedcollisions.ThingslikethefirstWednesdayConnectsessionsareagreatopportunityforourteamstogetupandpitchwhatthey'redoing,howthey'retryingtochangetheworldandconnectwithpeoplewhocanplayaroleinmakingthatinventionorideareal.

Inotherwords,CBRINisperformingaroleinlinkingtosomeFoundationMemberstoentrepreneurial

capability.

Severalearlystageinnovationcapacitybuildingserviceprovidersalsoexpressedconcernabouttheir

engagementwithCBRIN.

Recommendation

7. TheincomingCEOworkcloselywithFoundingMembers,thebroaderbusinesscommunity,andotherearlystageenterprisedevelopmentorganisations,tostrengthenengagementintheecosystemtoensurethatExpectationsintheFundingAgreementarebeingmet.

3.4.4 IdentifypotentialhighgrowthopportunitiesThe FundingAgreement requires CBRIN should establish strong organisational linkages across the

Canberra innovation ecosystem, including ANU, CSIRO, Data 61, UC, industry precincts, business

organisations, and sectorbodies suchasCollabIT andScreenACT. Survey results are indicated in

Figure7.



Figure7:Identifyinghighpotentialgrowthopportunities

The Survey indicates that 35.6 per cent of respondents considered CBRIN performance to be

benchmarkornoteworthy.However,almostathird(32.1percent)consideredthatwhileCBRINhad

madegoodprogressinthisarea,moreworkwasneeded.Aquarter(25.0percent)consideredimpact

tobemodestornon-existent.Theweightedaverageratingis2.9.

During consultations, there was a view that CBRIN had an overemphasis on start-ups, and the

networking events were not sufficiently attractive to high growth potential small to medium

businesses.NetworkingandcollaborationarrangementsareimportantforhighgrowthSMEstobuild

connectionsandcollaborativebusinessopportunities.

Generally,CBRINisnotseentobeengagingeffectivelywiththemanylargerbusinessesimportantto

ACT economic development – ICT companies, defence contractors, and government agencies.

Consultationsandinterviewsindicatedthatthebroaderbusinesscommunitywouldliketobepartof

astronginnovationnetwork.

DevelopmentofrelationshipswiththeNationalCulturalandCollectingInstitutionswasnotexplored

in consultations. ScreenACTadvised,however that it has a closeworking relationshipwith Screen

Australia.

Recommendation8. CBRINdevelopastrongernetworkingfocusonsmalltomediumenterpriseswithgrowth

potentialandlargerinnovativebusinessesintheecosystem.

This recommendation should be implemented in collaboration with the other key players in the

businesscommunity.

3.4.5 MentoringTheFundingAgreementrequiresCBRINtoprovidementoringaccesstosuccessfulentrepreneurswho

wishtobepartofthegrowthofnewbusinesses.SurveyresultsareprovidedinFigure8.



Figure8:Mentoring

TheworkofCBRINinthisareaishighlyregarded,with50percentofrespondentsreportingeither

exceptionalornoteworthyachievement.Theweightedaveragerating is3.1. Moreeffortmaybe

required to include start-up businesses not located in or around the CBRIN physical space. This

observationiscoveredinrecommendation4above.

Severalhighprofileandsuccessfulentrepreneursaremakingtheirtimeavailable inCBRINtowork

withstart-upsanddevelopagrowthtrajectory.Mentorsmayalsoinvestincompanies.

3.4.6 Connectionsandstart-uppreparationsupportTheFundingAgreementrequiresCBRINtoprovideconnectionsandpreparationsupport(egscrubbing

ofpitches)inrelationtofinance,equityandgrants:forexample-ANUInnovationFund;CBDF/ACVL,

CapitalAngels,HighNetWorthIndividuals,ICON,DTF,EntrepreneursProgram,Institutionalinvestors,

AccountingandAdvisorygroups

Figure9:Start-uppreparationandsupport

Consultations, supported by the Survey responses, support the view that CBRIN has worked

reasonablywellinthisarea,butthereissomescopeorimprovement.Theweightedaverageratingis

2.96.

3.4.7 BusinessSkillsThe Funding Agreement requires that CBRIN should Identify key business skill needs (eg.,

administration,governance,training)andprovidetheservicestoaddressthoseneeds.



Figure10:BusinessSkills

The Survey responses suggest that CBRIN has not performed well in developing business skills,

particularlyinearlystagebusinesses.Thereisaview,however,thattheseskillscanbeprovidedby

commerciallyorientedtrainingorganisationsthatCBRINshouldnotbecompetingintisdomain–for

examplewiththeCanberraBusinessChamber(BusinessPoint),andthemanyRTOsandsmallbusiness

consultantsinCanberra.

TheroleofCBRINinservicedeliverywasaddressedinSection3,under‘LinesofBusiness’andseveral

issues were identified. CBRIN’s strength and opportunity is in facilitating networking events and

connectionswhereuniversitiesandprofessionaladviserscandevelopcontactswithpotentiallyhigh

growthSMEs.

There isalsoscopetocreatebetter linkages to thebusinessschoolsandenterprisesdevelopment

programs run at the universities and CIT. The universities offer a range of undergraduate, post

graduateandshortcourseprograms.CBRINcouldconsidermakingavailablean inventoryofthose

programsonitswebsite.

TheANUBusinessSchoolisparticularlypro-activeandtherearesomehighlyregardedpeopledriving

it.UNSWisalsoveryproactive,andkeentoseetheuniversityaspartoftheinnovationcommunity.

UCalsooffershighlyregardedentrepreneurialcoursesandprogramsforitsstudents.

3.4.8 RoutetoMarketThe Funding Agreement requires that CBRIN should provide advice and linkages to assist clients

develop'routetomarket'strategies.SurveyresponsesareprovidedinFigure11.



Figure11:RoutetoMarket

A third of survey respondents (32.1 per cent) reported exceptional or noteworthy achievement.

However,halfoftherespondentsindicatedthatmoreworkneedstobedoneandtheapproachshould

bereviewed.TheresponsesreinforceaperceptionthatthefocusofCBRINisheavilyorientedtowards

veryearlystagebusinessideasandstart-upsthataretooearlyintheirdevelopmenttorequirethis

service..

3.4.9 NationalandinternationalsupplychainsThe Funding Agreement requires that CBRIN should provide advice and linkages to national and

internationalsupplychains.

Figure12:Nationalandinternationalsupplychains

ThisisanareawhereSurveyrespondentsconsiderthatCBRINcouldmakesignificantimprovementor

rethinktheapproachbeingtaken.Theweightedaverageratingis2.07.CBRINcouldaddressthisby

building interactions and connections across the ecosystem, including with business services

organisations,tocreateawarenessofcapabilityinthisarea.

3.4.10 EcosystemintegrationThe FundingAgreement requires thatCBRIN shouldbuildon theexistingCanberraBusinessPoint

intellectualproperty,toprovideaservicetoassistallintendersandstart-ups.



Inconsultations,thisExpectationwasinterpretedmorebroadlyastheextenttowhichCBRINhadbuilt

relationshipsandservicedeliveryinthemanyinnovationhubsandprecinctsacrosstheACT.Itwas

alsotheareaofmostconcerninconsultations.

Figure13:Ecosystemintegration

Overall,46.5percentofSurveyrespondentsconsiderCBRINhashadamodestornoimpactinbuilding

relationshipsamonginnovationhubs,clustersorprecincts.Afurther25percentconsideredthatthey

werenotabletoascertain,whichsuggeststheremaybeashortageof informationabouthowthe

ecosystemworks.Theweightedaverageofresponsesis1.86.

Thismatter will require attentionwith the emergence of new hubs across the ecosystemwith a

disciplinaryfocus.ItisanareawherethenewCEOshouldgiveahighpriority.

Recommendation9. TheincomingCBRINCEOgiveaveryhighprioritytodevelopingrelationships,interactions,

and connections across the expanding Canberra Innovation Ecosystem to achieve anintegratedapproachtothedevelopmentanddeliveryofCanberra’sinnovationstrategy,programsandservices.

ThisrecommendationfocusesontheneedforCBRINtotakearoleofa‘systemintegrator’.Thefocus

mustbeontheexistingandgrowingnumberofparticipantsandstakeholders,andensuringthatto

the greatest extent possible goals are aligned to achieve innovation outcomes for the Canberra

InnovationEcosystemasawhole.ThiswouldrequiretheCEOtobeengagedinconstantinteraction

withparticipantsand stakeholdersandensuring thatpromotions, events, andactivitieswere fully

inclusive.

This coverage includes the organisations that are currently affiliatedwith the CBRIN brand (KILN,

GriffinandEntry29)aswell asprogramsundertaken inuniversitiesand teaching institutions,and

businessesandserviceproviderswhoareactive in the innovationspace. Operatorsof innovation

programs and capability development organisations listed in Attachments B and C should also be

include.Inaddition,coverageshouldalsoalignwithotherACTinitiativesaroundtheCanberraBrand,

inwardinvestment,tourism,internationalstudents,andglobalconnections.

Duringconsultationssuggestionsemergedforthedevelopmentofalong-termCanberraInnovation

System Strategic Plan that focussed on strategic priorities for the development of the Canberra

InnovationEcosystem.

3.5 ConclusionsandrecommendationsTheconsultationsandinterviewspointedtoseveralmattersthatrequireattentioninconsideringthe

futureroleanddevelopmentofCBRIN

• Buildingonthesuccessinthepublicityandpromotionofthenetworkexternally,andin

incubatorandacceleratorinitiatives



• EngagingmoreeffectivelywiththeFoundationMembersandworkingcollaborativelyto

achieveecosystemoutcomes

• Ensuringthatthereisaportfolioofeventsaroundinnovation,includingpitchingevents(First

WednesdayConnect),presentationsandinclusiveroundtableswithvisitinginnovation

executives,successfulentrepreneurs,andinternationallyrecognisedresearchersand

advisers.

• Supportingtheextensionandlinkingofco-workingspacesacrosstheCityandimmediate

region

• Movingbeyondafocusonstartupsandpromotingandsupportinginnovationinsmallto

mediumsizebusinesses

• Developingcomplementaryrelationshipswithserviceprovidersacrossthecityandregion

• Ensuringthatinnovationisnotseenasonlythepreserveoftechnologystart-ups,butalso

coversthecreativesectors

• MoreeffectiveengagementwiththeCanberrabusinesscommunity



4 PERFORMANCEBENCHMARKINGFRAMEWORKThisSectionreportsspecificallyontherequirementintheprojectbriefto:

AdviseonaforwardbenchmarkingframeworkbetweentheGovernmentandtheCBRInnovationNetworktounderpinfuturefundingAgreements

CBRINisgenerallyconsideredtobeperformingwellincomparisonwithothernetworksinthescience

andtechnologyspace.

Duringconsultations, therewasnoshortageofanecdotal informationabout theeffectivenessand

impactoftheACTInnovationEcosystem.AFoundationMembercommentedindiscussionthat, in

relationtootherinnovationecosystemsaroundthecountry,CBRINwouldbe‘absolutelybestofclass

inthecountry’.Headded…

…thebenefitthatwehaveinthatACTInnovationSystemisthatwe’reasmallenoughterritoryforus to be all still talking to each other. If you look at the larger metropolises of Sydney andMelbourne they have such a fragmented eco system; there are countless co working spaces,countlessaccelerators,countlessincubatorsanditisimpossibleforthemalltobecoordinatedandaligned with them, their vision and ambition. So we benefit from being a small territory andbecauseof thatwehavebeenable toholdeverybodytogetherandalignthembehindasinglevision,soI…theanswertothatquestionisunequivocallyitisbestofclassinthecountry.

Therewasaviewexpressedinconsultationsthat inSydneythereisagreatdealgoingon,but it is

nowherenearasconnectedasCanberra.‘ThereisabuzzinSydneybutithappensbecauseofitsscale

orsizewhichcanneverachievebeachievedonthatscaleinCanberra’.Inthatrespect,Canberrahas

doneaphenomenaljobmorethanI’veseenanywhereelse.

CBRIN produces a large volume of activity and output/service information. However, there is no

standardisedbasisforcomparisonofperformancewithotherinnovationecosystems.Asindicated

earlier,theseindicatorsrelatetoprogramsandorganisationsthatfallundertheCBRINumbrella. It

doesnotcoveroutput informationfromotherorganisations inthenetwork, includinguniversities,

researchorganisationsandotherclustersandhubsinthenetwork.Thedatadoesnotreportimpact.

TheOfficeoftheChiefEconomistintheDepartmentofIndustry,InnovationandSciencereportofthe

Geography of Innovation and Entrepreneurship explores the patterns of innovation and

entrepreneurshipacrossinAustralia.AnOCE2015researchpaperincludesprofilesofresearchand

development(R&D),patentingandtrademarkactivity,andbusinessactivityacrossvariousregionsof

Australia.Forexample,informationonpatentapplicationsper10,000inhabitantsreproducedinTable

14.

Figure 14: Annual number of patent applicants per 10,000 inhabitantsaveragedbetween2008–2015forGreaterCITYCapitalCityStatisticalArea

Sources: Intellectual Property Government Open Data (2016), viewed 24th May 2016,

https://data.gov.au/dataset/intellectual-property-government-open-data; Australian Bureau of

Statistics (2016) Estimated Resident Population by Region, ABS.Stat, viewed 11th July 2016,

http://stat.abs.gov.au/



ThedataindicatesthattheACThasthehighestlevelofpatentingactivityinAustralia.However,Figure

15indicatesthattheACTrecordsthelowestlevelofannulR&Dexpenditureofcapitalcities.

Figure15:MeanannualR&Dexpenditureper10,000inhabitantsaveragedbetween financial years ending in June2008and June2014 forGreaterCapitalCityStatisticalAreas

Sources: Australian Bureau of Statistics (2016) Estimated Resident Population by Region, ABS.Stat,

viewed11thJuly2016,http://stat.abs.gov.au/,Selectedexamplesofregionsaggregatedingreaterstate

orterritoryareashavebeenshown;R&DTaxIncentiveProgramme.Viewed7January2016.

ThedatainFigures14and15pointtoamismatchbetweenpatentingandR&Dexpenditureinthe

ACT.

The research paper also includes data on new businesses as a proxymeasure of entrepreneurial

activity.ComparativeinformationisreproducedinTable16.

Figure16:Annualbusinessentriesper10,000inhabitantsaveragedoverfinancialyearsendingin2009–2014forGreaterCapitalCityStatisticalAreas

Sources:AustralianBureauofStatistics(2015)CountsofAustralianBusinesses2008–2015,datacube:

Excel spreadsheet, cat. no. 8165.0 (data available on request). Australian Bureau of Statistics (2016)

Estimated Resident Population by Region, ABS.Stat, viewed 11th July 2016, http://stat.abs.gov.au/,

http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/3235.02011

Thisdataprovidesonlyone,albeitimportant,perspectiveoninnovationperformance.TheABSand

OCE database could be the source of more information on innovation performance for the ACT

throughspecialrequestandinterrogationofthedatabase.CBRINshouldhavearoleinassembling

andpublishingthisinnovationdatafortheACT.



AgreatdealofinteresthasbeengiventoinnovationdistrictssincethepublicationoftheBrookings

InstitutionPaperTheRiseof InnovationDistricts:ANewGeographyof Innovation inAmerica.The

paper provides a great deal of information on district characteristics and strategies, but does not

addressmattersrelatedtoperformance.

ArecentlypublishedreportfromOptusandBMI,InnovationDistricts:AModelforaThrivingNationalInnovation Ecosystem, identified severalmeasures that are often used to ‘benchmark’ innovation

districts.Theyobserve,however:

Ultimately,the‘success’ofanydistrictwillbecontingentontheclarityofitspurpose,goalsandambitions.This is the responsibilityof thedistrictplanninggroup,andcouldbesupportedatanationaleconomiclevelbyanindependentthirdpartysupportorganisation.Weseeuniversityandindustryresearchcollaborationasanecessarypartofthecollaborativearchitectureofadistrict,thusameasureof researchactivityandspendingoncollaborativeR&Dwouldalsobeuseful indeterminingprogressofadistrict.

InnovationDistrictsshouldalsoencouragethedevelopmentofenterprisingskills.Theirorganisingcollectives should be vocal advocates for entrepreneurship and support both individuals and‘intrapreneurs’intheireffortstodevelopnewvaluethroughnewenterprise.

The Brookings Institution is currently advising the AustralianGovernment on precincts policy and

strategy,andsomeoftheseobservationsmadeabovemaybepickedupinrelationtoinitiativesat

thenationallevel.

These observations also point to an input (spending) and output measures of research activity

(patents,technologytransfer,commissionedresearchandcontracts)refereedtoabove.Thisdatacan

be supplemented with data collected in the National Survey of Research Commercialisation for

researchorganisationsanduniversitiesbasedintheACT(ANUandCanberra)andspecialreturnsin

relation to UNSW, CSIRO and Data 61 activities undertaken in Canberra. Research expenditure

reportedintheHigherEducationResearchDataCollectioncanbeaccessed,aswellasotherresearch

outputandoutcomepublicationsproducedbytheDepartmentofEducationandTraining,theARC

andtheNH&MRC11.

Recommendation10. CBRIN be tasked to prepare an Annual ACT Innovation Report drawing on available

innovation data from the ABS, the Office of Chief Economist, the Departments ofEducation andTraining, theDepartmentof Industry, Innovation and Science, and localsources.

ItisunderstoodthatCBRINhasbeenconsideringworkingwithRegionalInnovationSystemLeadersin

Australiatoidentifyasetofstandardsforinformationcollectionandpublicationregardinginnovation

districts. Considerationmight also be given to adopting and adaptingmethodologies for regional

benchmarking developedby the EU Joint ResearchCentre in relation to smart specialisation. This

approachwastakenasbackgroundfortheHunterRegionalInnovationSmartSpecialisationStrategy.

Proceedingdownthesetrackswouldberesourceintensiveandwouldnotnecessarilydeliveroutcomeandimpactresults.

In terms of narrative, reference is often made to well-known innovation hubs and districts

internationally includingBarcelona,Berlin, London,NewYork,Singapore,andSiliconValley.These

have theirownhistoryand setsof circumstances thathave led to their iconicposition.Many city

centredhubsandprecinctsareoftenknownfortheircontributioninartsanddesign-London,Berlin,

NewYork, forexample.Others, likeBostonandSiliconValleyhaveuniversities thatareknownfor

theirstrongengagementwithindustry.

There are other comparators of cities of similar size to Canberra. Reference was made during

consultationstocitieslikeSanAntonioandStLouisthathaveachievedsuccess.Animportantaspect

ofthat isthat is integratingwiththe localuniversities.Thesecitiesalsodonothavehorrifictraffic

problemsofthelargercitiesthatinhibitcollaborationTheymanagetocreateworkspaceswhichare

attractivetostart-upsthatwillpayapremiumontherentbecauseit'sworththeirwhiletobethere.

11ThisapproachwastakenintheStudyoftheACTInnovationSystemin2008:SeeHOWARDPARTNERS(2008)Innovation,creativityand

leadership:reportofastudyoftheACTInnovationSystem.AustralianCapitalTerritoryGovernment,Canberra.

http://www.howardpartners.com.au/work-in-progress/Innovation__Creativity_and_Leadership.pdf



Canberracanmakeitsownwayinbecomingarobustinnovationecosystem.Aspiringtotheoutcomes

ofotherplacesoftenoverlookstheuniquesituations,circumstances,strategies,andpracticesthat

lead to their growth. Canberra has its ownunique circumstances that can form thebase for the

developmentofworldleadinginnovationecosystem.

ThisReporthasproducedimpactinformationintermsoftheeffectivenessofthenetworkinachieving

resultssetoutuntheACTGovernmentFundingAgreementbasedonopinionsofkeystakeholdersinthesystem.TheresultspointtowhereCBRINhasbeendoingwell,andwhereimprovementscanbe

made.Thesurveycouldbedevelopedintoaregulardatacollectiontounderpinaperformancebase

forfutureFundingAgreements.

Recommendation

11. TheopinionsurveyusedinthisReportbefurtherdevelopedasaperformanceevaluationinstrument and a basis for considering ongoing performance improvement and futureFundingAgreements.

.



5 RISKSANDOPPORTUNITIESThisSectionoftheReportaddressestherequirementintheprojectbriefto

Adviseonrisksandopportunitiesandhowtheymightbemitigatedandrealised.

TheSectionalsoreportsonchallengesandconstraints.

5.1 RisksSeveralriskshavebeenidentifiedinconsultationandinterview.

5.1.1 GovernanceSeveralFoundationMemberscommentedthatthewayCBRINhasdevelopedisnotwellalignedwith

whatthetheyhadoriginallyintended.Theywereofaviewthatunlessthisisaddressedtheycould

pulloutofthearrangement.ArguablythiswouldseverelyconstrainthecapacitytopromoteCanberra

asavibrantandintegratedinnovationecosystem.Itwouldworkagainstachievingwhatwasoriginally

intendedasaninterconnectedcommunityleveragingoffthesignificantbaseofresearchthatgoeson

inthecity.

Notwithstanding this view,whichwas put rather stridently during consultations, responsibility for

settingthedirectionforCBRINisamatterfortheBoardonwhicheachFoundationMemberhasa

seat.Concernsaboutthecurrentstrategicplan,withitsfocusonprocessesandactivitiesratherthan

outcomesandresults,wasraisedearlierinthisReport–seeSection1.9,CBRINStrategicPlanand

planningframeworkonpage5above.

Moreover,inacorporategovernancesensethemostimportantroleofroleofaBoardistoappointa

ChiefExecutiveOfficerandholdthatpersonresponsibleandaccountableforperformance.TheBoard

mustbe involvedwithsetting, reviewing,andregularlyupdatingstrategicdirections,andensuring

that processes and activities are directed towards achieving outcomes set out in the Funding

Agreementwhichtheyarepartiesto. Boardsshouldnotallowthemselvestobecomeabsorbedin

administrativedetailand reviewofprocess. It isalso important that sufficient time isallocated to

reviewofmonthlymanagementaccounts.

ThiscanbeaddressedbyFoundationMembersthoroughlyworkingthroughhowtheirExpectations

willbemetandputting inplacearrangements toensureeffectiveoversightofCBRINorganisation

activities. This may involve appointment of Board sub-committees, including strategy, financial

management,andecosystemengagement.As indicated inSection1.9, commitment toaStrategicPlan Action Plan prepared by Foundation Members and the ACT Government would assist in

strengtheningtherelationshipamongBoardmembersandtheCBRINorganisation.

Recommendation12. The Board appoint working sub-committees in the areas of Strategy, Finance, and

EcosystemEngagement.Considerationbegiventoappointsub-committeemembersfromwithintheecosystemwithacknowledgedexpertiseintheseareas.

5.1.2 LeadershipLeadership isalwaysabigrisk inasmallorganisation.Asone intervieweecommented: ‘aCEOcan

makeCBRINflyevenfurther,oritcanmakeitcrashandburndependingontheirpersonalitysothat’s

oneoftherisksthatwe’vegot’.

ThisriskcanbemitigatedbyacarefulselectionofthenewCEOandhavingconfidencethattheCEO

has the knowledge, skills and experience to meet ACT Government and Foundation Member

expectations, including the capabilities identified in the Business Model and ‘Lines of Business’

identifiedatthebeginningofSection3.

5.1.3 FundingCBRINisreliantongovernmentforfundingandspace.ThenotionthatCBRINcouldbeself-sustaining

throughprofitmakingactivitiescouldcreatesomethingthatwouldgetintocompetitionwithother

innovationserviceproviders,andpotentiallyturnCBRINintoaconsultingbusiness.



It is important therefore, that the ACT Government and the Foundation Members retain their

commitmentandcontinuetobeengaged.Inaddition,thescopeforengagingmorewithbusinesses

mustbeexplored,andparticularlybusinessesthatseevalueintheirengagement,sponsorshipand

support.

5.1.4 MissioncreepCBRIN is responsible for facilitating and promoting the development of the Canberra Innovation

Ecosystem.FoundationMemberswereofaview thatactivities thatareoutside that remit,orare

questionableinrelationtoExpectations,shouldnotbeundertaken.Therewasconcernininterviews

thatprojectsoutsidetheremit,suchasconsultancy,alsogenerateopportunitycostbecausetheytake

valuablestaffoutoftheecosystem.

SeveralFoundationMembersareconcernedthatsomeoftheactivitiesthattookplacelastyear,did

notdeliveranybenefitstothecity,includingtheDisneycontractandtheconsultancyprojectforthe

UniversityofNewcastle.Bycontrast,therewasalsoaviewthattheDisneycontractdiddeliverbenefit

intermsofraisingprofileinthefilmindustry.TherewerealsoconcernsaboutCBRINpursinganational

agendawhichdoesnotnecessarilybenefittheACTecosystem.

TheriskcanbemitigatedbyensuringthatallactivitiesundertakenareconsistentwithExpectations

andagreedstrategies.

5.1.5 CapitalInterviewees pointed out that there is a shortage of capital to invest in start-up companies. ANU

Connect Ventures and the Hindmarsh Australian Capital Ventures have come to an end. An

intervieweeobserved‘ifwedon’thavefundshere,there’llbeadriftawaytootherlocations…capital

makesitstickyforthemtostaywhichiswhatthegovernmentwants’.

TherewasaviewfromintervieweesthattheACTGovernmentcouldconsider,notnecessarilythrough

CBRIN, to be looking at investing in venture capital in someway. The ACT Government, with an

obligation (and expectation) to deliver a broad range of education, health, justice, andmunicipal

services,hasaclear‘nocapitalinvestmentpolicy’butwillassistwithscaleissues.

5.1.6 CompetitionItwasobservedthatCBRIN,andEntry29inparticular,couldbesubjecttocompetitionfrominterstate

co-workingoperators,suchasFishburners.

ThisriskcanbemitigatedbyensuringthatCBRIN,andtheorganisationsunderitsumbrella,andother

capabilityintheecosystemdeliversvalueandiswellconnected.

5.2 Opportunities

5.2.1 ContinuingthemomentumMostpeople indicated in interviewthat theywerecomfortablewith theearlyperformanceof the

network,andweresurprisedbyhowrapidlyithaddeveloped.Buttheyaddedthatthereisalotmore

that can be done. There are several initiatives on table around coworking spaces and discipline

orientedclusters.

Expandingcoworkingandexpandingbylocationreferredtoasahubandspokemodel,issupported

by many. Griffin Accelerator has expanded beyond tech and a screen accelerator has opened in

collaborationwithScreenACT.Ithasbeenhugelysuccessful.Asocialenterpriseacceleratorprogram

hasopenedincollaborationwiththeUniversityofCanberra.

In these important respects, CBRIN has created the building blocks of co-working, acceleration,

incubationand it is now seeing theopportunity to go further. It is importanthowever, thatnew

initiativesaresupportedonan integratedbasis,avoidingthebuild-upofseparatefundingpotsfor

smallscaleinitiatives.



5.2.2 PromotionandawarenessCBRINhasbeensuccessfulinpromotionCanberraasaninnovationdistrictexternally.Itcanbuildon

this by doing more to promote Canberra as a place to invest in innovation. This may involve

redesigning the website, strategic communication through social media, a Canberra Innovation

Journal,greaterinvolvementofleadingbusinesspeopleinthepromotioneffort,andpreparationofa

CanberraInnovationSystemStrategicPlan.

5.2.3 NationalInnovationSummitDuringconsultationstheopportunityforCBRINtohostaNationalInnovationConferenceinCanberra

wascanvassed.Itcouldbeashowcase,andtieinwithscienceweek,asatwoorthree-dayinnovation

eventthatbringstogetherallthethreadsofinnovationthathavebeendevelopingacrossthecity.

5.2.4 SupportfortheSMEcommunityCBRINhassupportedthestart-upcommunityanditisnowopportunetosupporttheSMEcommunity

to grow by facilitating connections between them and the institutions teaching and research

institutions.InCanberra,thereisaverylargenumberofSMEsandtheinstitutionsthemselvescannot

allgointothisareaeasily.

ThereisanopportunityforCBRINtohelpSMEsgrowmorequickly.ItisanareawhereCBRIN,withits

connectionsintotheresearchsystem,canalsoworkwiththeCanberrabusinesscommunitytobuild

thiscapabilitycollaborationwithseveralotherorganisationsthatareworkinginthisspace12.

5.2.5 DisciplineorientedhubsAnintervieweecommentedthatCBRINshouldgobacktotheoriginalplanwhichinvolvedworking

with discipline oriented hubs and clusters across the city. It was observed during consultations

discipline orientated hubs are starting to pop up and there is an opportunity to build better

connections,buildcapability,andavoidpotentialduplication.

ThewaythismightworkisanopportunityforthethatthenewCEOshouldaddress.

5.2.6 VisibilityinSingaporeAn intervieweecommented thatwith theACTGovernment takingan interest inSingapore,CBRIN

shouldhavesomevisibility inSingaporewhichsupportsthat.Totheextentthatthereisabroader

activitythatthegovernmentisdoinginSingapore,CBRINcanbeverysupportiveintermsofhelping

tobuildtherelationshipwiththetertiaryresearchandteachingorganisations,andschools,thathave

anexportorientation.

5.2.7 HealthinnovationCanberrahasasolidbaseinhealthinnovationwithtworecentstart-upsaredoingwell.MarcusDawe,

EntrepreneurinResidenceatCBRIN,hasahighly-regardedtrackrecordinhealth.

5.2.8 LeveragingresourcesAlltheresearchandteachinginstitutionsinCanberraaresmallcomparedtothebiggercities,with

limited resources. Canberra in termsof students, is not as large asMonashUniversity. Resources

availablearescarceandopportunitiestoleveragethoseresourcesmustbeconsidered.

Anetwork,whereparticipantsarewellintegratedaroundpurposesandresults,canleveragethose

resourcesmoreeffectivelythroughpeoplewhohaveconnectionsthatothersdonothave.Thisisa

definiteopportunityforCanberra.

As indicated earlier, CBRIN must think about itself more as a network integrator, as well as an

organisation and service provider. CBRIN must have a physical location, together with affiliated

organisationsthatworkunderabrand,buttheopportunityisaboutintegratingthebroadernetwork

intoasystemwithhubs,nodes,andcapabilities.

12See,forexample,http://www.okrdy.com/



5.2.9 Film,TVandgamesCBRINcouldbelookingseriouslyatthenewtechnologiesemerginginthescreenarea.Augmented

Reality(AR)andvirtualreality,accordingtoScreenWellington,aregoingtobea$250billionindustry.

ThereisacompanyinWellington,MagicLeap,thathasattracted$1.5billionofinwardinvestment

duetotheirtechnology.

STEM is also verymuch embedded in the arts. Thosewhowrite the code are not necessarily the

creatives,generatinganeedtobringpeopletogether.AIEhasaproposaltoinvest$100minscreen.

CRRINmayhavearoletoadvocate,onbehalfoftheinnovationcommunity,supportforthese,and

similarinnovationinvestmentsthatarebeingconsideredbyexternalpartiesforlocationintheACT.

5.2.10 PublicSectorinnovationCBRINhasanopportunitytobecomemoreinvolvedinpromotingpublicsectorinnovationthatwould

directlyhelptheACTgovernment.TheCommonwealthGovernmentisahugeuntappedmarketand

it'sinCanberra.ThreeofAustralia’slargestbusinesses–Defence,theATO,CentreLink,arebasedin

Canberra.Buildingconnectionswiththeseagenciesinaninnovationcontextisamajoropportunity.

5.3 GrowthandextensionSeveralpeoplewithinCBRINhaveadvocatedmakingthenetworkmorenationalandinternational.

ThereisastrongviewwithintheACTGovernmentandFoundationMembersthatCBRINwassetup

towork inCanberraand the immediateCanberra region,and therewere insufficient resources to

extendbeyondthatmandate.

Anintervieweecommented:

I do hope the next CEO that they recruit really focuses on the Canberra Innovation Ecosystembecausewestillhavesomuchmoretodohere,andgoingfurthercanbedistracting.Itreallycan,withlimitedresource,itcanbeverydistracting

TherearealreadystrongconnectionsinWaggaWaggaandWollongong,andtheseshouldcontinue

andbenurturedinthecontextofCanberra’sroleasa‘SouthEastRegion’hub.Butextendingbeyond

thiscarriesaveryhighleveloffinancial,capacity,andreputationalrisk.

Recommendation

13. CBRINshouldbesupportedinextendingactivitiesintothedefinedCanberraregion.Theyshouldnotextendbeyondthis.

5.4 Challenges

5.4.1 FinancialpressuresInafinancialsense,CBRINisacostcentreandtheBoardandtheCEOareunderpressuretoencourage

commercialactivitytobringinrevenuetoclosethegapbetweenoperatingrevenueandexpenses.It

is important that CBRIN manage its activities within the financial constraints. Requirements for

additionalfundingshouldbeaddressedonabusinesscasebasisputtotheACTGovernmentandthe

FoundationMembersandpotentialbusinesspartners.

5.4.2 SpaceManydiscoveriesandinventionscomingoutoftheresearchinstitutionshaveahightechorientation

thatrequirethreetofiveyearstoincubate–evententotwelveyears.Theyneedlabspacewhich

requiresacollaborativemodelbetweenwhatcanbeofferedinCBRINandwhattheuniversitiesdoto

tryandhelpincubatemoreofthesehigh-techstart-ups.Thiswasaddressedinaninterviewwiththe

co-foundersofPixelatedInduction.

High-techcoveringinstrumentation,med-devices,andsportsdevices,requiresphysicalresources–

asdistinctfromwritingsoftwareandApps.Thisisabigareathatneedstobeaddressedandthereis

greatpotential,butCBRINisnotwellequippedtocaptureit.CBRINcouldbeexpandingintothisarea

by building strong linkages with the Foundation Members in terms of access to facilities and

equipment.



6 MEDIUMTOLONGERTERMSUPPORTSTRATEGYThisSectionoftheReportaddressestherequirementintheprojectbriefto

AdvisetheGovernmentonamediumtermtolongertermsupportstrategyfortheCBRInnovationNetwork.onrisksandopportunitiesandhowtheymightbemitigatedandrealised

Amediumtolonger-termsupportstrategyshouldbebasedonCBRINbeingabletoimplementathree-

prongedplan:

1. Promotionandawareness–essentiallycompleted,excepttotheextentthatpromotionmust

focusontheecosystem,andallitscomponents,notjustoneorganisation.

2. Consolidationandinclusion–ensuringthattheexpectationsofGovernmentandthe

FoundationMembersareaddressed.

3. Integration–ensuringthatthemainplayersintheecosystemareworkingtothe

achievementthestrategicvisioninacollaborativeway.

Eachoftheseisconsideredinturn.

6.1 Phase1:PromotionandawarenessConsultationsandthesurveyindicatedthatCBRINhadperformedstronglyintheareasof:

• Creatinganetworkthatlinksbusinessesandentrepreneurstoaccelerateinnovationand

growthtomaximizewealthcreationforexamplethrougheventsandprograms

• Beingthe‘goto’pointfordevelopingtheinnovationecosystemintheACT,including

synthesiseandregionalisenationalandinternationalthinkingoninnovationissuesfroman

ACTperspective

• Providingconnectionsandpreparationsupport(egscrubbingofpitches)inrelationto

finance,equityandgrants:forexample-ANUInnovationFund;CBDF/ACVL,CapitalAngels,

HighNetWorthIndividuals,ICON,DTF,EntrepreneursProgram,Institutionalinvestors,

AccountingandAdvisorygroups

Anintervieweecommented:

MyviewisthatCBRIN’scorevalue…isthemuchbroaderthingthatit’sdoneaboutawarenessbuilding and in some cases a focus on aligning itself with, particularly STEM and particularlyWomen in STEM, Women in Innovation and things like that which are really core things toimprovingthediversityofourecosystem

During consultations, therewas a view that CBRIN should probably focus on awareness building,

networkingeventsandcommunity-buildingintheverybroadersenseoftheterm,and‘…thatshould

bewhereeverybodycomestopotentiallyenterasetofprogramsthatprovideasetofpathwaysinto

thebroaderinnovationecosystem’.

IntervieweesindicatedthatCBRINshouldcontinuewiththis,buttheremustbemore.Theremustbe

outcomes for the ACT Innovation Ecosystem, and not just for CBRIN. One Foundation Member

commented:

…I’masupporteroftheCBRINidea,abigsupporteroftheidea,andIthinkitcouldbemadetowork,ifwhoevercomesinandleadsitnextisawareofsomeoftheseissuesandsomeofthesethingsthatneed–whatphasetwois,ratherthanphaseone.Phaseoneiskindofdone,what’sphasetwo?Andwhatdoesitentail?

TherewasaviewputbyaFoundationMemberthat‘…wehavehashadPhaseOneofestablishment,

andCBRINhasapresence,areputationforsomeofthethingsthatitdoesorfacilitates.Phase2is

aboutreallydeepeninglinkagesandengagement’.

6.2 Phase2:ConsolidationandinclusionThefollowingmatterscamethroughfromconsultationsaboutCBRINPhase2.

6.2.1 EngagetheFoundationMembersA strong view emerging from consultations that CBRINmust better engage, both collectively and

individually,withtheFoundationMembersdirectlyoutsidetheroleorindividualsontheboard.This

coversbuildingtrustwiththeFoundationMembers,thebusinesscommunity,andwithdrawingfrom



competitive and contested service delivery activities. Some areas where engagement can be

enhancedcover:

RoundtableswithvisitingBusinessExecutives,MinistersandDiplomaticpersonnelAFoundationMemberobserved…‘whenprominentbusinesspeoplecometovisitCanberra,CBRIN

should set up roundtable meetings to bring key people from the institutions together, to make

contacts,toengage.Todate…that’sbeenalostopportunity’:

There isaneed tomeetwithbusinessandgovernment leaderswith the rightpeople from thefounding institutions.Somethingmightcomeof it, somethingmightnot,butoneconnection isbetterthannone.Thisisthekindofthing,Ithink,attheverybasic,attheveryminimum,needstobedone.

UnderstandingsystemcapacityandcapabilityThereisaviewthatthepersonrunningCBRINshouldbevisitingtheinstitutionsregularlyandaftera

periodoftimeshouldhavedeepknowledgeofwhatthecorestrengthsoftheinstitutionsare,where

the opportunities are, and make connections along the lines “I know that ANU/CIT/UC/UNSW is

interestedinthisactivity,andI’vemetsomebodyfromhere,andI’mgoingtoputthemtogether”.

ThatkindofbroadernetworkingwasoneoftheideasoftheinitialideasforCBRIN,andwouldneedtohappeninthefutureifCBRINistobevaluabletothefoundinginstitutions.Thereisalsoscopetoincludeotherinstitutionsinthis, includingtheAcademyofInteractiveEntertainmentandthecapabilityinfilm,videoandgames.

CBRIN should also be developing strong connections with government and business in areas like

investmentattraction,particularlywhereeducationandresourcearepartofadecisioncriterion.

FinancialmanagementAt30June2016CBRINhadnetassetsamountingto$0.93m,andat31Januaryreportedalevelof

retainedearningsof$0.93m.

For the firstsevenmonthsof2016-17,CBRINgrossprofit ratio (gross incometothedirectcostof

generatingthatincome)stoodat25.7percent.Theoperatingprofitratio(profitafterpayingdirectandvariablecosts,includingwagesandmaterials)stoodat17.3percent.Whilstthesedonotinclude

non-cash items such as depreciation and provisions, the ratios point to CBRIN as being a very

profitableenterprise.ThelevelofreservesatJanuary31,2017representedapproximatelyeighttimes

monthlysalary. It is importantthat fundsavailableareallocatedtothegreatestextentpossibleto

CBRINservices.

Financialtargets,includingprofits,andthelevelofreservesshouldbecloselyalignedtothedelivery

ofCBRINservicesandspecificinvestmentsidentifiedintheStrategicPlan.Thelevelofreservesshould

reflectwhatisfinancialprudent.

Recommendation

14. Funds generated by CBRIN should be allocated to the greatest extent possible to thedeliveryoftheCBRINproductsandservices.ProfitratiosshouldreflectNGObenchmarks.ThelevelofreservesshouldbesetatwhatisfinanciallyprudentbytheBoard,onadviceofthecompany’sAuditors.

6.2.2 MatchingambitionwithcapabilityThere is aneed tomatchambition todogreat thingswith the capability.CBRINcan callmoreon

FoundationMemberstoassist in theworkof theorganisation. Thiscould involveappointmentof

BoardCommittees,whichisundercurrentconsideration.

6.3 Phase3:IntegrationA third phase would seek to build an integrated innovation system involving all participants and

innovationstakeholders inCanberra. Itwouldseektobuildgenuinecollaborationandconnectivity

withthesystemworkingandappearingasone.



Systemintegrationwillrequirethewillingcommitmentandsupportofallparticipantstoachievean

outcomeforthesystemasawhole,whichappearsasanintegratedentity,andatthesametimeseeing

‘what’s in it for them’. Itcalls forauniqueroleofsystem leadership -onethatcandrawout the

uniquecapabilitiesofparticipantsinawaythatcontributestotheresult.

Aninnovationsystemcannotbemanagedorcontrolled.Moreover,thesystemmayinvolvemorethan

oneformofcollaborativearrangement,dependingonthetasktobedone.Aboveallleadershipmust

beopen,transparent,consistentwithmandate,andfreefromconflictsofinterest.

6.4 ConclusionandrecommendationCBRINhasabrightfutureasan integratorfortheCanberraInnovationEcosystem. Thatcallsfora

strategicandinclusiveapproachtobuildsystemcapability–andensuringthattheSystemasawhole

looksbiggerandmorerobustthanthesumofitsindividualcomponents.

Recommendation15. TheACTGovernmentandCBRINBoardagreetodevelopaThreePhaseStrategicPlanfor

CBRINthatcoversthefollowingKeyResultAreas(KRAs):Promotion,ConsolidationandInclusion, and System Integration. Each Phase should address short,medium and longterminitiativesandidentifytheoutcomesandresultstobeachieved.



7 ATTACHMENTA:ACTGOVERNMENTCBRINGENERALPRINCIPLESANDSERVICEEXPECTATIONS

A:Generalprinciples1. TheCompany'sserviceprovisionwillbeACTwideandwillincludeallkeyplayersand

precinctsacrossvariouscampusesandactivitycentrelocationsincludingtheDigitalHubin

GaremaPlace

2. TheCompany'sserviceswilladdvaluetoservicesthatalreadyexistinthewiderinnovation

networkorcomplementexistingservices.TheroleoftheCompanywillbetoensurethatthe

servicesnecessarytoaccelerateinnovationareavailableandaccessiblebystart-up

entrepreneursandexistingbusinesseswishingtogrowanddevelop.

3. TheCompanywillhavebothaphysicalandvirtualpresenceandbrandingthatmakesit

recognisableasthe'goto'pointforbusinessinnovationsuppo1iandadviceintheACT.Over

timethatbrandingwillextendandresonatenationallyandinternationally;

4. TheCompanywillbalancetheadvantagesofastrongvirtualpresenceanddeliverymethods

withtheneedtomaintainpersontopersonchannelsofcontact;

5. TheCompanywillprovidea'triage'styleofserviceforallentitiesthatcontactit.Itwillassess

andhelpdirectnewentrantstothebest-valueaspectsofthenetworkaccordingtotheir

specificneedsatthetime.Itwillprovideservicesthatengagedeliberatelyandeffectively

withpotentialhighgrowthbusinesses;

6. TheCompanywilladoptthe'MinimumViableProposition'approachanda'fastfailure'

approachwhereparticipantswillbeencouragedtominimisetheinvestmentoftimeand

capitalforfastandquantitativemarkettestingandfeedbackofideasandearlyprototypes

anddirectefforttothosewithbestlikelihoodofsuccess;

7. TheCompanywillembraceandmakeconnectionstoawideandvariedrangeofmentoring.It

willbemadeavailabletoallpotentialhighgrowthcompanies,notjustcompaniesspunoutof

researchinstitutionsorACTcompanies.Itwillprovidestronglinkageswithmentors,training,

eventsandotherservicestobridgethegapbetweeninstitutionalR&Dandexperienced

commercialisationskills.

8. TheCompanywillseekprivatesectorsponsorshipandinvolvementanddeveloprelationships

withlike-mindedorganisationsandentitiesindensermarketssuchasotherAustraliancapital

citiesorprogressiveregions.

9. TheCompanywilldeveloplinkagestopositionhighgrowthpotentialcompaniesintonational

andinternationalsupplychains.

B.ServicesnecessarytoaccelerateinnovationThefollowingrangeofservicesarespecifiedintheFundingAgreementincludebutarenotlimitedto:

Expectation RationaleIdentificationof

potentialhigh

growth

opportunities

NeedforstronglinkagesacrosstheACTinnovationecosystem,includingANU,CSIRO,

NICTA[Data61],UniversityofCanberra,industryprecincts(e.g.,SpaceandSpatial;

Sports;HealthandDigital),businessorganisations,Entry29,GriffinAccelerator,

CapitalAngelsandsectorbodies(e.g.Collab!T,ScreenACT)andacrosstheACT.

Mentoring Providingaccesstosuccessfulentrepreneurswhowishtobepartofthegrowthof

newbusinessesandpossibleestablishmentofaformalisedcompanymentorservice.

Thispoolisdynamicandconstantlyneedsnurturingandexpanding.TheEntry29

firesidechatseriesisaverygoodtalentidentificationprogram

Scrubbing Developingpitchandpresentationskillstoreadyhighgrowthpotentialcompanies

forstructuredinvestment.

Providing

connectionsto

finance,equityand

grants

§ ANUInnovationFund

§ CBDF/ACVL

§ CapitalAngels

§ HighNetWorthIndividuals

§ ICON

§ DTF

§ CommercialisationAustralia

§ InstitutionalinvestorsincludingVCsinotherlocations

§ AccountingandAdviso1ygroups(PwC,EY,KPMG,DixonAdvisoryetc)



Expectation RationaleManagerialSkills Identificationofmanagerialskillneedsandtheprovisionofservices(eitherdirectly

orthroughlinkages)toaddresstheseneeds,recognisingthelowdensityofthese

skillssetsintheACT

TrainingNeeds Identificationoftrainingneedsandtheprovisionofservices(eitherdirectlyor

throughlinkages)toaddresstheseneeds

RoutetoMarket Providingadviceandlinkagestoassistclientsdevelopa'routetomarket'strategies,

recognisingthelowdensityoftheseskillssetsintheACT

Nationaland

internationalsupply

chains

Providingadviceandlinkagestonationalandinternationalsupplychains.National

footprintofCSIRO&NICTAimportant;linkswithATPInnovations

Partners/’spokes’ BuildontheexistingCanberraBusinessPointintellectualproperty,includingtheweb

site,toprovideaservicetoassistallintendersandstartups,suppliedbytelephone

andemailserviceandlinkagestootherassistanceandprograms

C.PhysicalInfrastructureServicestobedeliveredbytheCompanySharedworking

space

Provisionofaco-workingspacefor"entrepreneurshipfocused'graduatesandother

buddingentrepreneurs;

HomeforEntry29

Provisionofsharedworkingspaceforex-publicservantsandyoungentrepreneurs

resultingfromACTGovernment2014Budgetinitiatives

Incubatorservices Provisionofapotentialhighgrowthbusinessincubatorfocussedongrowthand

incubatorexit.

Accelerator

programs

ProvisionofspaceandsupportfortheGriffinAcceleratorprogramandother

potentialacceleratorprograms



ATTACHMENT B: INNOVATION PROGRAMS PROVIDED OUTSIDE THE CBRINORGANISATION

AcceleratorPODAcceleratorPODisa4-monthprogramdeliveredbytheACTScreenIndustryAssociationinpartnership

withCVS(CanberraVirtualStudio)attheAcademyforInteractiveEntertainment(AIE).Itbringsthe

market to the forefront of the film development process, offering participants a structured and

supportive environment to develop smart, original, genre projects that can connect with global

audiences.Accelerator PODwill feed amuch largerACT initiative that aims toproduce4-6 genre

feature films per year through the newly formed, Canberra-based production studio The Film

Distillery.

AcceleratorPOFgivesparticipantsacommercialfocustoscreenwritingwithstrongmarketinputand

great tools. It focuses on developing and producing commercially viable low- budget ($800k –

$1.5million)genrefeaturefilmsinamarket-focused,risk-managedprocess.

Odin’sEyeInternationalguidesandselectscommercial,sellableprojectsthattheybelievehavethe

bestchanceofsuccessintheinternationalmarketplace.

ACTMicrocreditProgramTheACTMicrocreditLoanProgramprovidesalimitednumberoflowinterestandfee-freeloansfrom

Westpac for eligible low-income earners who wish to start or expand an existing business. The

programprovidesloanrecipientswithbusinessskillsdevelopment,individualmentoring,peersupport

andaccesstonetworkingevents.

TheprogramismanagedbyLighthouseinnovations.

ANUEntrepreneursANUEntrepreneursaimstoprovidememberswiththeskillsnecessarytostarttheirownbusiness,

growbusinessesandcreateinnovativeproductsthroughourguestspeakerandworkshopsessions.It

also enablesmembers to network with prominent entrepreneurs from the local area and across

Australiainanon-academicenvironmentthroughnetworkingsessions,competitionsandfieldtrips.

BizSparkMicrosoft BizSpark is a global program that helps startups succeed by giving them free access to

MicrosoftAzurecloudservices, software,andsupport.BizSpark startups receive fiveVisual Studio

EnterprisewithMSDNsubscriptions,eachwitha$150monthlyAzurecredit.Thistotals$750/month

acrossallfivedeveloperstospendonAzureservices.Thesebenefitsareavailableforoneyear.

TheprogramoperatesinCanberra

CapitalAngelsCapital Angels is a private investor network that provides anopportunity for investors to support

entrepreneursfromCanberraandtheregion.CapitalAngelsinvestincompanieswiththepotential

forhighgrowth,astrongmarketpositionandasustainableadvantage.Theprogramiscoordinated

byLighthouseinnovations.

CanberraBusinessPointCanberraBusinessPoint(CBP)hasbeenestablishedbyCanberraBusinessChambertobefirstpointof

callforpracticalbusinesssupportandadviceforbothexistingbusinessesandthoseintendingtostart

abusinessinCanberraandthesurroundingregion.

CanberraBusinessPointtapsintothecollectiveknowledgeandexperiencesoftheCanberrabusiness

community, to provideworkshops that build strong foundations and encourage growth.Monthly

networkingeventshelptocreateopportunitiesforbusinessestolearnandgrowwiththeirpeers.



CanberraInnovationDevelopmentFundCompetitiveGrantsTheCBR InnovationDevelopmentFundprovidesgrants,determinedacompetitivebasis,aimedat

supportingarangeofinitiativesthatdevelopthecapabilityandinvestmentintheACT’sinnovation

ecosystemaswellasenhancingcollaborationandbroadeningaccesstoservicesandresourcesinthe

ecosystem.

In2016-17theFundinvested$1.45minthefollowinginnovationserviceproviders13:

§ AIIA:CollabIT($100,000)

§ ANU:FromSensorstoSolutions($200,000);MDBox($100,000);MeriSTEM($50,000);Techbroker,to

stimulateaccesstoANUandUCassets($150,000)

§ NICTA(Data61):ACTStudentExchange($75,000)

§ ScreenACT:Annualfunding($250,000)

§ SignificantCapitalVentures:NewVentureFund($50,000)

§ UniversityofCanberra:AsocialenterprisehubforCanberra($72,000);Canberra

CollaborationInnovationVouchers($150,000)

For2015-16theFundmadethefollowingallocations14:

§ ANU:ANUSpaceResearchInnovationHub($50,000)

§ EIVentures:AnewVentureFundfortheACT($50,000)

§ HospitalIntellectualPropertyACTLtd:REALISE–integratedhealthinnovationecosystemfortheACT

($50,000)

§ UniversityofCanberra:CBRSportTekLab($150,000);Using“bigdatadriven”approachesfor

improvedpopulationhealth($150,000)

§ YWCA:EnhancingthesustainabilityandscalabilityoftheYWCAComputerclubhouse($50,000)

CollabITCollabIT is anengagement andbusinessdevelopment initiative that links small andmedium sized

companies(SMEs)withmultinationalcorporationsandotherstakeholders intheICTsector. It isa

jointinitiativeoftheACTGovernmentandtheAustralianInformationIndustryAssociation(AIIA)and

isdeliveredundercontractbytheAIIA.

DiscoveryTranslationFundANUConnectVenturesmanagestheDiscoveryTranslationFundto invest inpromisingcommercial

opportunitiesarisingoutoftheANUresearch,otherACT-basedresearchinstitutionsandlocalR&D

companies.Grantstypicallyrangefrom$25,000to$50,000.Theydonotrequirematchedfundingand

arenon-repayable.

EntrepreneurshipUCEntrepreneurship UC seeks to develop and encourage entrepreneurship and innovation within

Canberraanditssurrounds.Itisn’tjustforthosewithcurrentbusinessideasbutalsoforthosewho

haveadesiretolearnmoreaboutbusinessandthosewhowishtobepartofsomethingbiggerthan

themselves.

It is positioned as a community which is led by students who believe in the importance of

entrepreneurshipandinnovation.This issupportedbythecreationof ideas,servicesandproducts

throughinnovationthatvalueaddstooursociety.

ICONThe ACT Government’s Innovation Connect grant program is designed to help Canberra-based

businessesdevelopinnovativeproductsandservices.ItisdeliveredbytheACTGovernment.During

consultations,intervieweesheldtheprograminveryhighregard–seeLachlanBlackhall’scomment.

13TheFundalsoallocated$200,000toCBRINfortheKILNIncubatorforhighgrowthinnovativebusinesses;CollaborativeInnovationLab

($200,000),andtoCBRIN/InspiringAustralia:MtStromloSpaceandSTEMEducationCentre($50,000).14TheFundalsoallocated$200,000toCBRINfortheKILNIncubatorforhighgrowthinnovativebusinessesandCollaborativeInnovationLab.



InnovationACTInnovationACT is Canberra's largest innovation program, providing the necessary skills, tools and

networks to those looking to begin their entrepreneurial journey. It is an initiative of the ANU

TechnologyTransferOfficeandissupportedbymanyplayersinCanberra'sinnovationecosystem.

Theprogramisopentostudents,staffandgraduatesofCanberra’smajortertiaryinstitutions,andis

aimed at individuals an innovative idea, those with an early stage startup looking to refine their

business model, or even those who are interested in getting involved in the local innovation

ecosystem.

https://services.anu.edu.au/training/innovationact

LighthouseInnovationsLighthouseBusinessInnovationCentre(Lighthouse)isaninnovationconsultancyfoundedin2008to

workwithpeoplewhohaveideas-entrepreneurs,inventors,researchersandscientistsandleaders

steeringtheirorganisationsthroughperiodsofmajorchange-toturntheirideasintoreality,build

capabilityandexpertiseandgrowsustainablebusinesses.

ScreenProductionFundTheScreenProductionFundco-fundstheproductionofhighqualityfeaturefilms,televisionseries

and other screen projects from ACT or interstate practitioners undertaken in the ACT; that have

significant Canberra elements and benefit; and can reach local and international audiences and

deliveringcommercialsuccess.

ScreenACT,theofficeofFilm,TelevisionandDigitalMedia,assiststheACTGovernmentdeliverthe

Fund.

SeedInvestmentFundANU Connect Ventures manages the Seed Investment Fund on behalf of the ANU-MTAA Super

Venture Capital Partnership to invest in early-stage commercial opportunities developed out of

researchattheANU,otherACT-basedresearchinstitutionsandlocalR&Dcompanies.Fundingofup

to$500,000perenterpriseisconsidered.

TradeConnectAninitiativeoftheCBRTradeandInvestmentDevelopmentFund,designedtohelpCanberrabased

businesses with a range of export market development activities. Applicants are encouraged to

becomemembersoftheACTExporter’sNetwork,andifsuccessfulinduecourse,considerapplying

foranACTChiefMinister’sExportAward.

The Network actively works to build awareness amongst local ACT businesses of globalopportunitiesandthebenefitsofmovingintoexportmarketsthroughnetworkingandmentoringeventsthatfacilitateexportknowledgeandexperiencesharing.

The ExportersNetwork ismanagedby the Canberra Business Chamber. It is not clear howCBRIN

relatestotheExportersNetwork.



ATTACHMENTC:CANBERRAINNOVATIONECOSYSTEMCAPABILITYCURRENTLYFUNDEDORSUPPORTEDTHROUGHOTHERCHANNELS

ACTSpaceInnovationClusterIncollaborationwithANUAdvancedInstrumentationandTechnologyCentre(AITC)atMtStromlo,

UNSWCanberra has committed $10million over five years to develop the team and capacity for

sustainableandaffordablein-orbitspaceresearchandtechnologydevelopment.

UNSWCanberra’sspaceflightmissions,performedinpartnershipwithANUandotherkeydomestic

andinternationalplayers,willenablethedevelopmentofinnovativenewtechnologiesforspacecraft

andnewopportunitiesforindustry.

CanberraBusinessChamberThe Canberra Business Chamber supports business growth by connecting, advising and educating

members and advocating for policy and investment decisions that will facilitate economic

developmentintheCanberraregion.

CanberraTechnologyParkCanberra Technology Park is the location for Location for several innovative companies, including

Academy for Interactive Entertainment (AIE) and other enterprises around video, film and

entertainment – Screen ACT, Dreamgate Studios, Silversun Pictures, Wildgrass Games, JJ Apps,

Ausdance.Itisalsohometoseveraltrainingorganisations.

TheCanberraCyberSecurityInnovationClusterTheUNSWCanberra’sAustralianCentreforCyberSecurity(ACCS)exploresandcreates integrated,

world-leading approaches to these challenges while educating the next generation of Australian

leaders incybersecurity.TheCentre leveragesUNSW’sresearchstrengths,aswellas industryand

governmentrelationships,todriveresearch.

CreativeInnovationHubCreative innovation hub Located at Fyshwickwith an exclusive focus onmanufacturing. The new

Fyshwickpremiseswillbehometotheirownhugelysuccessfulphotoboothmanufacturingbusiness

-RedRobotIndustries-butalsoacentralplaceforpeoplewithbigideastoaccessarangeof"design"

professionalsunderoneroof.

TheFilmDistilleryThe Film Distillery is a Canberra-based film production studio with an innovative development,

productionandsalesstrategythat,togetherwithkey industrypartners,willestablishtheACTasa

renownedproducerofcommerciallysuccessfulfilmedentertainmentandcontent.

FilmmakerswithinTheDistilleryprocessaregiventheopportunitytobringtheirstorytolife.Theyare

guidedthroughavigorousdevelopmentperiodwheretheywillworkwithestablishedscripteditors

andreceivecrucialmarketplaceassessmentfrominternationalsalesagents.

TheFilmDistillerypartnerswiththefilmmakingteamtoproducetheirfilm,offeringatotalscript-to-

screensolutionincludingthedevelopmentofafinanceplan,offeringexpertiseincasting,production

schedulesandkeycrewattachments.

TheDistilleryhasaplantoproduce4-6featurefilmsperyear,withsystemsandoversightappliedto

theproductionprocessensuringqualitycontentandmaximisecommercialpotential.

Data61(formerlyNICTA)Data61 currentlyworkswith 29Australianuniversities andhas close links tootherworld-leading

internationaluniversities.

Data 61 is currently developing a start-up program. It is being developed in consultation with

incubatorsandstart-upsthemselves.Weexpectittorampupduringthesecondhalfof2017.Start-

upswillbeprovidedwithopportunitiestolicensebeneficialIPsuchastechnologyandsoftware.



HealthInnovationClusterThe Health Innovation Cluster aims to change the health landscape by providing a platform for

innovations thataddress thehealthandhealthcarechallengesof the future.By facilitatingtheco-

locationofhealthinnovators,theClusterwillenablefasterknowledgetranslationandexchange–a

keytobetterhealthandwellbeingacrossthelifecycle.

ItisexpectedthattheHealthInnovationClusterwillprovidesignificantcommercialvaluefortheACT.

ICTande-GovernmentInnovationClusterCISIRO’s Data 61 Canberra Research Laboratory is at the centre of a rapidly emerging ecosystem

aroundICTanditstransformativeimpactontheeconomy.NICTAwasanexampleoftheinnovation

engine at work, with new entrepreneurs and companies emerging and taking advantage of the

researchbaseandnationallinkagesofferedbyNICTAanditsuniversitypartners.

KingstonArtsPrecinctTheACTGovernmentisconsideringinvestmentintheKingstonArtsPrecinctthatwillincludestudios,

workshops,galleries,retail,sharedandindividualofficeandadministrationenvironments,education

andtrainingspace,meetingroomsandaccommodationforvisitingartists.

TheKingstonForeshoreareaisalreadyhometotheCanberraGlassworksandMegaloPrintStudio+

Gallery, and the Old Bus Depot Markets and the Fitters’ Workshop. There have been many

representationstosupportinvestmentincreativehubsandprecinctsinCanberra.

AbroaderInnerSouthArtsHubhasbeenformedthatincludestheGlassworks,MegaloandtheGallery

ofAustralianDesigninKingston,M16ArtspaceinGriffith,andPhotoAccess,CanberraContemporary

ArtSpace,ArtsoundandBilkGalleryinManuka,thehubhasbeenformedinresponsetoagrowing

demandforamorededicatedartstrailforvisitors.

ManyinCanberramakeclaimsthattheCityisa‘CreativeCapital’anda‘CityofDesign’.Aroundthe

world,manyinnovationecosystemscoverthecreativeindustries.TheseincludeLondon,Berlin,New

York.

NationalAgriculturalandEnvironmentalSciencesPrecinct(NAESP)The CSIRO andANU areworkingwith partners to createNational Agricultural and Environmental

SciencesPrecinct(NAESP)-agloballysignificantresearchandinnovationscienceszoneinCanberra.

This precinct will foster research and innovation essential to food security and environmental

stewardshipinachangingworld.

NAESPalignswithmajorinfrastructuredevelopmentsattheCSIROandANU.TheACTGovernment

hassupportedthedevelopmentoftheNAESPthroughco-fundingaplanninganddiscoveryprocessto

mapoutthescopeandfutureoftheprecinctintheformofasharedvision.

ONCSIROON is Australia's sci-tech innovation accelerator dedicated to unearthing amazing research and

steeringittowardshighpotentialinnovativeventures.EstablishedbyCSIROin2015,ONspecialisesin

assisting researchers from the fieldsof science and technologyworkingonprojects that have the

potentialtoshapeAustralia'sfuture.

ONisinterestedindiscoveringinnovativeresearchin'deep'scienceandtechnology,particularlyin

innovative research in the areas of food and agriculture, advanced manufacturing, medical

technologies,cybersecurity,miningtechnologyandenergy.

ONwasestablishedtohelpboostAustralia’sperformanceintheinnovationspace.Itoffersarangeof

accelerator services to research teams at different stages of the innovation lifecycle.ONPrime is

targetedatpromisingresearchwithapotentialrealworldapplication.ONAccelerateisdesignedfor

researchthathasbeenvalidatedresearchersareseekingtotakeittothenextlevel.

PhillipBusinessCommunityThePhillipBusinessCommunitywasestablishedbyBusinessOperatorsandEmployeesofbusinesses

tradinginthePhillipBusinessDistrictboundedbyHindmarsh,AthlonandMelroseDrives,Phillip.The



Communityaimstoprovideaforumforlocalbusinessowners,managers’andkeystafftoconnect

andbuildbeneficialrelationships.TheCommunityhassoughttobuildaconnectionwithCBRIN.

RenewableInnovationHubTheRenewables InnovationHub is a flexible, collaborative co-workingandoffice space. It aims to

bringtogetherinnovativestartupsandpioneeringorganisationsfromAustraliaandfromaroundthe

worldtodeveloptheACT’svibrantrenewableenergyandcleantechsectors.MattStimpson

SmallBusinessInnovationPartnershipsTheSBIPProgramaims toconnect theACTGovernmentwithsmall-mediumenterprises (SMEs) to

deliver innovative solutions to complex government problems, and at the same time providing

opportunities forbusinesses todevelopand showcase their IP. Eachprojectbeginswithaproject

ownerwithingovernmentwithaproblemtosolve,whoisopentoconsideringarangeofpotential

solutions,andhasfundingtoenablethedevelopmentofatleastaprototypesolution.

SportsTechnologyClusterTheSportsTechnologyClusterwillsupporttheUniversityofCanberra’sgoalofbecomingAustralia’s

leading university for sport education and research and achieving international recognition for its

collaborations,innovationandtechnologythatenhancesportperformanceandactiveliving.

LocatingtheSportsTechnologyClusterclosetotheAustralianSportCommissionandtheAustralian

InstituteofSportwillprovideadvantages,opportunitiesandfocusforthedirectionandpurposeof

growingthesocialandeconomicbenefitsofsportinCanberra.

UniversityofCanberraInnovationDistrictTheACTGovernmenthasaninterestinthedevelopmentoftheInterestattheUniversityofCanberra

innovationdistrictandprecincts–announcedinACTGovernment’sInnovationStatement,Confident

andBusinessReady



ATTACHMENTD:PEOPLEANDORGANISATIONSCONSULTEDThefollowingstakeholderswereinterviewedandaskedtoparticipateintheSurveyLastName FirstName Role Email LinkedInprofileAdamek Petr ActingCEO,CBRInnovationNetwork [email protected] https://www.linkedin.com/in/petradamek/Batainah Hala FederalDirector,Microsoft [email protected] https://www.linkedin.com/in/halabatainah/

Blackhall Lachlan Co-founderandCTO@RepositPower [email protected] https://www.linkedin.com/in/lachlanblackhall/

Bullock Matt Spinify,CEO/Founder-Entrepreneur [email protected] https://www.linkedin.com/in/mrmattbullock/Cardew-Hall Mick Pro-ViceChancellor(Innovation),ANU [email protected] https://www.linkedin.com/in/prof-michael-cardew-hall-54696b23/

Cover Leanne CEO,CanberraInstituteofTechnology [email protected] ..

Davies Craig GriffinAccelerator [email protected] ..Dawe Marcus CEO,Carbon&HealthEntrepreneur,InformaticsSpecialist [email protected] https://www.linkedin.com/in/marcusdawe/

Deamer James Co-FounderatGardenSpace [email protected] https://www.linkedin.com/in/james-leonard-deamer-2b855061/

DeMargheriti John Entrepreneur [email protected] https://www.linkedin.com/in/johnd21/Edye Candice DirectoratLighthouseBusinessInnovationCentre [email protected] https://www.linkedin.com/in/candice-edye-0612b23/

Frater Michael Rector,UNSWCanberraattheAustralianDefenceForceAcademy [email protected] https://www.linkedin.com/in/michael-frater-b711171a/

Hendry Robyn CEOCanberraBusinessChamber [email protected] https://www.linkedin.com/in/robynhendry/Henshaw Tony IndependentBoardMemberandStrategicAdvisor;Chair,CBRIN [email protected] https://www.linkedin.com/in/tony-henshaw-38504521/

Hoff Brand CompanyDirectorandInvestor [email protected] https://www.linkedin.com/in/brand-hoff-05ab623a/

Ireland David Entrepreneur,angelinvestor,andinnovationconsultant [email protected] https://www.linkedin.com/in/david-ireland-0038484/Issell Robert CEO;PropertyWealthCoach,InvestmentAdviser,Developer [email protected] https://www.linkedin.com/in/robertissell/

Klat-Smith, Alex PartneratPwC'sTheDifference [email protected] https://www.linkedin.com/in/alexklatsmith/

Keys Glen Co-ChairatAspenMedicalandOwner,AspenMedical [email protected] https://www.linkedin.com/in/glenn-keys-36b8491/Kennedy Sam DirectorPublicSectorStrategy&Innovation,OptusBusiness [email protected] https://www.linkedin.com/in/samantha-kennedy-7b86ba3/

Mansell Todd ChiefJointandOperationsAnalysisDivisionatDSTO [email protected] https://www.linkedin.com/in/dr-todd-mansell-35743b6/

Masters David CorporateAffairsManager,Microsoft [email protected] https://www.linkedin.com/in/david-masters-977a74b/McMenamin Thomas Co-FounderPixelatedInductionPty.Ltd.,StudentatTheANU [email protected] https://www.linkedin.com/in/thomas-mcmenamin-493491107/

McNaughton Nick CEOatANUConnectVentures [email protected] https://www.linkedin.com/in/nickmcnaughton/

Melbourne Michelle Co-FounderIntelledox [email protected] https://www.linkedin.com/in/chellemelbourne/Noonan Liza ExecutiveManager,InnovationandDirectorON,CSIRO [email protected] https://www.linkedin.com/in/lizanoonan/

Pantano Victor UniversityofCanberra [email protected] https://www.linkedin.com/in/victor-pantano-029850a/

Pearson Sarah FounderandCEOofCBRInnovationNetwork [email protected] https://www.linkedin.com/in/sarahpearsoninnovation/Penders Monica CEOatACTScreenIndustryAssociationLtd [email protected] https://www.linkedin.com/in/monicapenders/

Pino Anna DirectoratLighthouseBusinessInnovationCentre [email protected] https://www.linkedin.com/in/anna-pino-650b8115/

Piper Zoe PartnershipProgramsLead,Data61 [email protected] https://www.linkedin.com/in/zoepiper/Schneider Bennett Co-founderatPixelatedInduction [email protected] https://www.linkedin.com/in/bennett-schneider-369362121/

Shannon Frances DVCResearch,UniversityofCanberra [email protected] https://www.linkedin.com/in/frances-shannon-805b813b/

Snell Andrew FounderandPrincipal,TheCoasterGroupPtyLyd [email protected] https://www.linkedin.com/in/andrewdsnell/

Somerville Dianna Founder,RegionalPitchfest [email protected] https://www.linkedin.com/in/diannasomerville/Tulloch Sylvia Entrepreneur,AngelInvestor;ChairRenewableEnergyInnovationFund [email protected] https://www.linkedin.com/in/sylvia-tulloch-a2ab6b10/

impact review of the canberra innovation network …

Documents