AusIndustry outlines Commercial Ready criteria

The federal government is gearing up to distribute more than AUD$200 million per year as part of its revised and re-badged grant scheme, Commercial Ready.

Grants of between $50,000 and $5 million -- which can be doled out over up to three years -- are available under the new umbrella grants system, which replaces the Biotechnology Innovation Fund (BIF) and R&D Start grants and the competitive elements of the Innovation Access Program.

Companies must have the means to fund the other 50 per cent of the cost of a project.

Eligible activities for a grant include research and development, proof of concept and early-stage commercialisation. The BIF cap of $250,000 for proof-of-concept activities no longer exists.

The ambit of early-stage commercialisation grants has been broadened and will aim to propel companies further towards a stage where they are ready to undertake initial production.

Merit criteria are similar to R&D Start grants, and are based on a business plan and commercialisation plan which should cover management capabilities, commercial potential, technical and marketing capabilities and details of how a project will provide a national benefit to Australia.

Companies must be able to demonstrate they have access to any intellectual property needed to carry out the project. On the other hand, support now extends beyond the range of R&D Start grants, being available for technology acquisition and adaptation. This will include audit fees, expert advice, license fees and the actual costs of purchasing IP.

The lesser of 10 per cent of the total project costs or $100,000 may be claimed for gaining access to intellectual property.

Graduate salaries can also funded -- including salaries of graduates with business and marketing skills. Additional incentives to hire graduates include a 20 per cent subsidy of the supervisor's salary, and 30 per cent of both on-costs and administrative overheads.

Funding is also available to assist with identifying, establishing and maintaining collaborations -- costs which can be claimed include negotiation costs, fees for expert advice and travel costs.

The upper limit for Commercial Ready grants is lower than it was for R&D Start grants, which was $15 million over three years. Under R&D Start, an extension of two years was possible, but under Commercial Ready the maximum extension will be 6 months.

Projects are assessed continuously and AusIndustry's service level target for providing a decision is 75 days -- although it has warned that grants of more than $3 million may take longer to assess.

AusIndustry recommends companies sound out the details of a project with the agency before applying, to gain advice whether a project is eligible and competitive.