The NSW Labor government has released a policy document – NSW Innovation Blueprint 2035 – which lays out objectives it plans to follow to retain the state’s leading position in the technology start-up sector.
The document follows the state government commissioning former chief executive of the Tech Council of Australia, Kate Pounder, to assess the NSW innovation ecosystem and identify challenges and opportunities. Ms Pounder’s report was released alongside the innovation policy document.
NSW Innovation Blueprint 2035 highlights four key actions which the government believes should be supported over the next ten years:
- A strategic approach to funding: Ensure existing and future programs are easy to navigate, more equitable, and support key industries.
- World class places: Enhance access and use of NSW’s world-class facilities and continue to develop Tech Central as a flagship innovation district.
- Talent development: Support people in the ecosystem through increasing collaboration and enhancing innovation hubs, including supporting founders from diverse backgrounds, Western Sydney, and rural and regional areas.
- Global attraction: Explore launching an annual Tech Week and engage with global and local investors to bolster international venture capital investment into NSW.
The blueprint notes that although NSW accounted for 65% of Australia’s venture capital investment in 2024 and is the home state of five out of eight of the nation’s unicorns (young technology companies valued at over $1 billion) this leading position cannot be taken for granted; there is national, and global competition for talent and investment.
The document sets a government target of generating an additional $27 billion in additional investment into the NSW economy and adding close to 100,000 jobs by developing innovation-based enterprises.
Ms Pounder’s report found that, although NSW benefits immensely from its current advantages in innovation, it is facing fierce competition domestically and internationally for key industries and jobs.
She found that existing NSW government support was not always targeted at the most pressing needs or gaps in the innovation ecosystem.
NSW minster for innovation science and technology Anoulack Chanthivong said the key to achieving the aims set out in the blueprint would be to focus on the state’s most important resource – its people.
“By addressing inequities and fostering inclusivity, we’re ensuring every talented entrepreneur and innovator in NSW has the chance to thrive,” he said.
“But this is about more than just tech – we are supporting innovation across all industries, to make a more productive economy and help build a better New South Wales.”
Pounder said committing to a strategic vision through the blueprint was a huge step forward in ensuring NSW maintained its position as a world leader in the tech sector.
Current Technology Council of Australia chief executive Damian Kassabgi added: “NSW is the largest contributor to Australia’s innovation economy and a clear path forward for the tech sector’s growth is long-awaited and welcome.”
The report states that private investment alone is insufficient to fully support innovation, particularly where the spillover benefits are greatest and markets face information barriers or are shallow. In these areas, government investment is especially needed to supplement private efforts and maximise spillover benefits. Importantly, government investment and actions should complement – and not compete with – private investment.
The government said that, prior to engaging Pounder to carry out her independent review, it sought input through 2024 from representatives of industry bodies, businesses, universities, thinktanks, start-ups, scale-ups, venture capital fund managers and angel investors. Altogether, more than 370 stakeholders engaged through eight roundtables and an innovation summit at NSW Parliament House hosted by the minster for innovation.
Image: NSW minster for innovation science and technology Anoulack Chanthivong.