The federal government has pushed to get research translation at the centre of industry policy, but policy debate has shifted from funding to finding organisations willing to become first customers for Australian technology.
Government procurement is a powerful lever Australian governments can pull to help deep tech companies cross the “missing middle” between promising technology and a scalable business, according to Cicada Innovations’ chief executive Liza Noonan.
Ms Noonan recently heard founders in defence and critical minerals – both areas central to Australia’s sovereign capability – describe visits to the United States, where government agencies and businesses were keen to buy their technology.
In the same breath, both groups of founders said it remained difficult to secure early meetings and pathways into procurement programs at home.
“Maybe it’s the risk appetite,” said Ms Noonan. “Where are the deep tech customers in Australia?”
“I see procurement as a really important lever to fixing the challenges founders experience when trying to scale and giving them an important reference for further customer traction.”
Ms Noonan took the helm of the 26-year-old deep tech incubator last November after serving as Investment NSW’s executive director of innovation.
On this episode of Commercial Disco(very), she discusses the customer and infrastructure gaps confronting Australian deep tech ventures, and what her experience running innovation precincts has taught her about turning proximity into productive collaboration
Australia has built a range of initiatives, like the NSW Small Business Innovation and Research program, to help researchers and founders at the start of the commercialisation journey. But the path becomes less clear once a company has developed a prototype and needs its first substantial customers.
Cicada helps on both sides of that equation: “We can show government that local deep tech companies already have solutions to its procurement needs and help address its risks and concerns – while preparing founders to navigate procurement programs.”
While proximity can generate knowledge spillovers between researchers, founders and institutions, she said a precinct can’t succeed simply by assembling organisations in the same postcode.
The strongest precincts combine anchor institutions such as universities, research institutes and hospitals with affordable space for entrepreneurs, then provide nearby industrial capacity where companies can manufacture, scale and reinvest in local research and talent.
“It’s not enough just to have a cluster of conveniently located institutions. There needs to be incentives and frameworks that give participants reasons to work together,” Ms Noonan said.
She sees strong foundations in NSW, including Tech Central’s concentration of universities, research institutes and startups, the health and manufacturing infrastructure emerging at Westmead, and Macquarie Park’s growing RNA ecosystem.
The next opportunity is to make shared facilities and collaboration more accessible to young companies, while bringing potential industry customers into the model.
For Tech Central, that could include accessible clean rooms and precision manufacturing equipment that multiple founders can use to develop and scale products.
Larger businesses could help set research priorities and give startups a route into their supply chains, blending public investment in infrastructure with private sector demand.
On national policy, Ms Noonan welcomed the Ambitious Australia report’s focus on fragmentation and its vision of a self-reinforcing innovation ‘flywheel’.
But she echoed the review panel’s warning against incremental implementation, arguing that government needs to provide a clear blueprint across future budgets rather than repeatedly stopping and starting initiatives.
Cicada’s objective is to give promising ventures the infrastructure, connections and early customers needed to leave and grow.
“Sometimes they leave us, but part of the incubator experience is celebrating their graduations,” Ms Noonan said. “That’s what we’re here to support.”
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