Victoria’s $2b innovation fund is drifting without clear direction
Breakthrough Victoria is meant to fuel innovation, yet its scattergun strategy leaves taxpayers footing the bill for unclear and shifting priorities.
Victoria's innovation ecosystem needs support, and the government has a role to play. But when the state is carrying over $170 billion in debt, a $2 billion taxpayer-funded investment vehicle requires crystal-clear objectives, robust accountability measures and a well-defined mandate.
As a young Victorian who believes deeply in innovation and entrepreneurship, I’m not troubled by the existence of Breakthrough Victoria. I’m concerned by its lack of strategic focus. We need effective innovation policy that delivers measurable outcomes for taxpayers.
I look to Sydney with envy. Its state government is investing in grassroots support through the transition from the Sydney Startup Hub into Tech Central. While the closure of the Startup Hub is painful for those who need to move, the long-term plan — investing in the density of human capital, venture capital and universities — is sound.
The problem is that no one can clearly articulate what Breakthrough Victoria is actually for. One week, the fund issues a small cheque to a startup. The next, it makes a massive $37 million investment into a balloon company, followed by fund-of-fund investments into fund managers and accelerators.
