As we ushered in the new year last month, it was no ordinary milestone. The arrival of 2020 was not only the start of another year, but the dawn of a new decade. If you wondered how technology would bound forward over the next 10 years, you weren’t alone. But if you also wondered how your business might form part of that story, read our analysis and tips for businesses with an innovation focus.
The story so far…
The Federal Government publication, Australia 2030: prosperity through innovation, found two major trends dominated the first two decades of the 21st century:
- The rise of firms from emerging markets, such as China and India.
- The shift to technology-driven businesses, for example digital disruption.
What’s next and how can we achieve it?
As we advance towards 2030, Australian businesses will need to scale, innovate and become more productive to thrive. To help make this happen the Federal Government’s vision is public and private sectors working together to develop novel ways of financing innovation and managing risk. While R&D advances are an excellent example of this vision in action, what else can Australian businesses do to make innovating, scaling and thriving their reality?
It’s all about the money, money, money…
Or more accurately, access to capital and cash flow – the fuel that drives your research activities. Without consistent cash flow and capital, even programs supporting the most promising and important innovations will stall.
Depending on your business type or industry, you may have an array of research and development (R&D) grants and incentives to choose from. The downside of grant funding is it can be a lottery and it’s intermittent, which could mean a long-time between drinks for your research program.
The Federal Government’s R&D tax incentive scheme on the other hand is the single largest program supporting Australian R&D regardless of sector. Australian businesses of all shapes and sizes are investing in R&D – an estimated $34 billion last financial year. But only around 13,000 businesses are claiming the R&D refund and just 27.6% of start-ups according to Startup Muster.
Must-haves for R&D in 2020
Here are our five simple tips to maximise your R&D and innovation strategy in 2020 and keep that all-important cash flow flowing.