Research conducted by the University of Exeter Business School in the United Kingdom shows that that the Australian government’s Innovation Investment Fund allows start-up companies more scope for follow-on investments and has significantly contributed towards the supply of high-potential businesses.


The research is the product of three academics being contracted by the Federal Government to conduct an in-depth analysis of the Innovation Investment Fund (IFF).


The authors found that without the IFF, which was introduced in 1998, it is likely that fewer businesses would have started while those that did would have had significantly reduced scope for success and access to funds.


The IFF was conceieved to provide equity and capital into “new knowledge-based firms”


The program to date has committed $524 million in government and private capital as well as licencing 13 new venture capital innovation funds, positively boosting an estimated 100 businesses commercialize their research.