COMET closes its doors

The highly successful COMET program will be shut to new applicants within days as the Federal Government continues to make drastic changes to innovation funding and programs.

COMET supported early-growth stage and spin-off companies to successfully commercialise their innovations. It was a popular program with innovators and entrepreneurs and provided a pipeline of well-prepared companies to private equity investors and venture capitalists for further funding and development.

However, the Federal Government says it will accept no new applications from January 1, 2010 and funding will cease from June 30, 2011.

After the Government dumped Commercial Ready in 2008, COMET was the major source of assistance for early stage entrepreneurs. While Commercial Ready was run by bureaucrats, COMET used contractors with commercial experience. The program in federal budget papers had funding of $107.9 million from 2001-2002 until 2010-2011.

Companies that want to commercialise their research will now need to go to Commercialisation Australia which the Government describes as its “radical new approach” to commercialising research.

This new program will receive $196 million of funds over four years. “Commercialisation Australia has launched a range of new online and telephone resources as it gears up to receive applications from early January,” said Senator Kim Carr, Minister for Innovation, Industry, Science and Research.

Commercialisation Australia will offer a range of tailored assistance measures including specialist advice and services, financial support to engage experienced executives, and grants for proof of concept and early stage commercialisation activities.

The Federal Government also last week released the draft legislation to the $1.4 billion R&D tax concession program that raised concerns that the change in the eligibility criteria would create difficulties for SMEs wishing to apply for the program.