Program cut leaves firms out of pocket
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The Canberra Business Council (CBC) says the Federal Government's decision to scrap the innovation grants program has left many local companies in financial limbo.
The grants program provided funding to businesses with new products which were ready to be commercialised.
CBC CEO Chris Faulks says when the program was scrapped, more than 70 companies in the final stages of the application process became ineligible.
Ms Faulks says some of those had invested hundreds of hours in their applications and secured private equity funds as required by the grants process and were just days away from a decision.
"When the announcement was made on budget night that this program was closed, all of those people who had put a lot of time into the applications were told that their applications would no longer be considered," she said.
"What we're asking is Federal Government to do is to complete the process for those companies that had already put in an application."
Canberra software development company Intelledox invested 1,000 hours and $200,000 in its application.
General manager Michelle Melbourne says the business environment in Australia was different from overseas and the Government needed to assist companies.
"Our compatriots if you like in Silicon Valley, or indeed in like up in places like Seattle, have a vibrant and extremely supportive and wealthy venture capital community, so private money, successful entrepreneurs who are prepared to back industry," she said.
"We don't have that luxury in Australia so the Government has a key role to play in triggering and nurturing the innovation process."
She expects some companies will now take their projects overseas.
