Where Do The Funds Go: Analysis Of The AEA Grant Program And Its Distribution To Universities
Australia's Economic Accelerator (AEA) grant program means $1.6b worth of grant over a 10-year period starting from 2023. It is a pivotal initiative designed to boost the translation and commercialisation of university research into viable, market-ready products and services.
As with any government grant, it is useful to know where the AEA directs funds and for what purposes, to help understand what other projects it will be interested in supporting.
Launched by the Australian Government, the AEA aims to bridge the gap between research and innovation, thereby fostering economic growth and enhancing national competitiveness. The program provides substantial funding to support projects that align with key national priorities, including renewable energy, medical science, advanced manufacturing, and agriculture.
A Major New, $5 Million Per Project, Grant Stream
The AEA grant has two primary programs: the Ignite program (up to $0.5 million per project) and the Innovate program (up to $5 million per project), totalling $180m for the current financial year FY2024-25. These two programs follow different grant processes.
Notably, 2024 is the first year the Innovate stream is open, with the deadline to submit Expressions of Interest (EOI) by 28th August 2024. While industry partners are encouraged but not required for the Ignite stream, they are mandatory for the Innovate stream. The AEA uses Technology Readiness Levels (TRL) as a framework to assess eligibility of projects for each grant stream. Thus, having a defendable TRL claim is critical, especially if the project is within TRL 4-5 range.
AEA website
Benefits for Universities and Industry Partners
For universities, the AEA’s grants offer a significant opportunity to scale more projects towards commercialisation:
Increased Grant Funding: One of the major income streams for Australian universities is government grant funding. The AEA grant provides an additional funding stream that may be available to support university research.
Enhanced Research Commercialisation: The AEA grant offers significant financial support that allows universities to transform research into commercially viable products and services, increasing their impact on industry and society. This funding boosts the university's research capabilities and overall competitiveness.
Strengthened Industry Collaboration: By encouraging partnerships between universities and industry, the AEA grant fosters collaboration that enhances the relevance and applicability of academic research. These collaborations not only bring additional resources and expertise to university projects but also create opportunities for future joint ventures and long-term partnerships.
Competency Building: The grant accommodates activities centreed around training, which is key to building research commercialisation competency in the university sector. Universities have the opportunity to use part of the grant funding to become proficient in TRL assessment and maturation.
Meanwhile, from the industry perspective, the AEA’s grants are significant enough to be able to support better business sustainability:
Reduced Research and Development Costs: The financial support provided by the AEA grant helps offset the costs associated with research and development. Industries can benefit from shared resources and expertise, reducing their investment risk and allowing them to allocate their own funds more efficiently towards other strategic initiatives and business growth opportunities.
De-risking Innovation: By partnering with universities through the AEA grant scheme, industries can de-risk the development and commercialisation of innovative solutions. Although this collaboration does not particularly shorten the time to market compared to other available pathways, it financially de-risks the technical side of innovation for industry partners.
Easier Access to Cutting-Edge Research: The AEA grant facilitates collaboration between industries and universities, giving companies direct access to the latest research and technological advancements. This access helps industries stay at the forefront of innovation, ensuring they can leverage new discoveries to improve their products, services, and processes.
Competency Building: As with the university sector, the grant accommodates activities centered around training, which is essential for building research commercialisation competency in the university sector. Industry partners have the opportunity to use part of the grant funding to become proficient in TRL and Commercial Readiness Level (CRL) assessment and maturation.
So where the funds go?
The below graphics include some insights data in that regard.
Notably, the University of Queensland is an outperformer (12 awards) with Quensland being the leading state (16 awards), followed by South Australia.
Both NSW and Victoria underperform given the population and university county. And, overall, just 11 universities were given grants - this is just a little more than ¼ of the total number of universities in the country (42).
Furthermore, no university from WA, NT, or Tasmania got any awards. A look into the grants priority area managers, who are the representative of AEA grant shows those states do not have a representative at this stage.
AEA awarded funds by university - as you can see, the University of Queensland has been most successful at attracting AEA funding.
AEA awarded funds by state - Unsurprisingly, given the disproportionate funding the University of Queensland gets, the state also receives the most funding. Both NSW and Victoria underperform given the population and university county.
| Industry Sector | Number of Projects |
|---|---|
| Renewables and Low Emission Technologies | 11 |
| Value-Add in Resources | 11 |
| Medical Science | 10 |
| Value-Add in Agriculture | 9 |
AEA awarded funds by industry vertical - Funds are directed to a balance across all the key areas of AEA focus.
Patterns and Insights from AEA Grant Awards
Based on the data there are several insights regarding the AEA grants process:
Universities with Multiple Winners:
The University of Queensland and The University of Adelaide have multiple projects funded, indicating strong research capabilities in areas aligned with the grant's priorities.
Queensland University of Technology and The University of New South Wales also have significant funding across multiple projects.
Geographic Distribution:
Queensland received the highest total funding, indicating a strong presence in research and innovation.
South Australia, particularly The University of Adelaide and the University of South Australia, received substantial funding, reflecting a focus on sectors like agriculture and resources.
Victoria's Monash and RMIT are notable recipients, highlighting strengths in advanced manufacturing and medical science.
Research Areas:
Renewables and Low Emission Technologies: Projects focus on sustainable energy solutions, such as lithium-ion battery recycling, hydrogen production, and low-emission concrete technologies.
Medical Science: Projects aimed at improving medical diagnostics and treatments, including diabetes treatment, cancer immunotherapy, and anti-fertility vaccines.
Value-Add in Resources and Agriculture: Innovations in agricultural practices and resource management, such as sustainable crop production, livestock management, mine-site restoration, and mineral waste reduction.
Funding Amounts:
Projects generally received funding amounts ranging from around $150,000 to nearly $500,000, with many clustered around the $200,000 to $300,000 range.
Larger grants (closer to $500,000) are often associated with projects that have substantial industry collaboration or significant commercialisation potential.
Project Collaboration and Impact:
Many funded projects involve collaborations between universities and industry partners, demonstrating a focus on practical applications and commercialization.
Projects often address critical gaps in existing technologies or aim to develop innovative solutions with significant economic and societal benefits.
Key Information for AEA Grant Applications
The AEA funding is a grant opportunity that shouldn’t be overlooked, but as with all grants it needs to be earned in a competitive arena. To enhance the chances of securing AEA funding, applications should include:
Project Alignment with Priority Areas: The proposed project should align with the priority areas identified by the National Reconstruction Fund, such as renewables and low emission technology, medical science, value-add in resources, and value-add in agriculture, forestry, and fisheries sectors.
Commercialisation Potential: The application must demonstrate the project's potential for commercialisation, showing how it will translate research into practical, marketable products or services that can generate economic benefits.
Technology Readiness Level (TRL): Projects should be in the TRL range of 3 to 5 (or 5 to 7 for the Innovate stream), indicating that the research is at the experimental development stage where proof-of-concept is being validated.
Industry Collaboration: Applications should include evidence of collaboration with industry partners, demonstrated through letters of support, matched funding, or in-kind contributions from industry partners, highlighting their commitment to the project.
Project Feasibility and Implementation Plan: A detailed project plan outlining objectives, methodologies, timelines, and expected outcomes is essential, including a clear explanation of how the grant funds will be used effectively to achieve the project goals.
Impact and Benefits: The application should clearly articulate the anticipated impact of the project, including economic, environmental, and societal benefits, and describe how the project supports national priorities and addresses existing market gaps.
Qualifications of the Project Team: Highlight the expertise and track record of the project team, demonstrating their capability to execute the project successfully.
If you are thinking about applying for either the Ignite or Innovate programs, our team at Scimita can help you with:
Identifying and validating the commercial potential of your research.
TRL assessment and validation, including a letter specifying the current TRL and the anticipated TRL by the end of the project.
Identifying tier 1 domestic and international industry partners and securing their interest in your project.
Developing grant milestones consistent with the TRL framework requirements.
Identifying technical and business project risks and developing appropriate mitigation strategies.
We can also assist with:
Joining the grant and providing world-class technology maturation and commercialization qualifications to your grant application.
Identifying other critical gaps that are impeding the technical maturation and commercialization of your technology.
Training you and/or your application partners around the technology readiness framework.
Defining TRL 9 technology status.
Developing a functional block flow diagram of your technology at TRL 9 and associating technology readiness exit criteria for all lower TRLs.
By following these guidelines and leveraging the support of Scimita to maximise the opportunities provided by the AEA grant program, universities and industry partners can drive significant advancements in technology, create new opportunities for investment and job creation, and contribute to Australia's economic growth and national competitiveness.