Carbonix founder questions government support for innovation

The founder of the Australian drone company Carbonix, Dario Valenza, has expressed concern over the government's approach to supporting innovation and growth in the advanced manufacturing and technology sectors. Valenza, who started Carbonix in 2012, has seen the company evolve from producing high-end composite structures for championship-winning sailboats to manufacturing lightweight, robust drones with extensive capabilities. His insights come at a critical time as the industry faces several challenges.

Valenza's remarks follow the government's review of policies around manufacturing and the administration of grants. “The Government's comprehensive review of policies around manufacturing and the administration of grants has inadvertently frozen crucial programs aimed at fostering innovation and growth in advanced manufacturing and technology sectors,” he said.

According to Valenza, the sluggish implementation of new initiatives is also a significant problem. “Despite announcing new initiatives like the Industry Growth Program and National Reconstruction Fund, the Government's implementation has been sluggish, with no funds disbursed to date, significantly hampering progress and creating uncertainty,” he stated.

The delays are not limited to new initiatives. Even existing grant programs have seen significant disruptions. Valenza pointed out that the "delay in processing grants, such as the Emerging Aviation Technologies Partnership, which has been pushed back by a year, underscores the inefficiencies and slow response times within the system." This delay impacts companies like Carbonix, which rely on timely funding to drive innovation and growth.

Valenza also highlighted a lack of policy consistency and the absence of concrete support. “There is a prevailing sense of inconsistency and lack of concrete support among participants in advanced manufacturing and technology sectors, compounded by a noticeable lack of responsiveness at the ministerial level,” he said. This lack of clarity is creating an atmosphere of uncertainty, making it hard for businesses to plan their next steps.

The mixed signals from the government further exacerbate the situation. “While there have been headline announcements, particularly around Defence-related spending, the actual implementation of these initiatives has been painfully slow, sending mixed signals about our strategic direction,” added Valenza.

The competition for skilled talent is another pressing issue that Valenza addressed. “The Government's competition with industry in hiring talent for manufacturing initiatives further complicates the landscape, creating a tug-of-war for skilled professionals," he noted. This competition makes it difficult for companies in the private sector to attract and retain the talent necessary for innovation and growth.

Finally, Valenza mentioned the hesitancy observed at the state level. “State governments are in a holding pattern, hesitant to set their policies while they await direction from the Federal Government, which has yet to clearly define its stance,” he explained. This uncertainty is causing delays in the formulation and implementation of local policies that could otherwise support the industry.