The city of Adelaide’s ascension into the top five Oceania by startup performance, has been highlighted in the 2023 Global Startup Ecosystem Report (GSER), is not only a testament to its dynamic entrepreneurial landscape but also underscores the role of incentives like the R&D Tax Incentive in fostering innovation and supporting startups.
Over the past five years, the city has seen a remarkable 49 per cent growth in ecosystem value, solidifying its reputation as a thriving hub for innovators, entrepreneurs and industry disruptors. Startup performance measures the size and performance of an ecosystem, based on the accumulated tech startup value created from exits and funding.
Adelaide’s innovation districts, such as Lot Fourteen, Tonsley and Adelaide BioMed City, coupled with hyperconnectivity and a high quality of life, are key factors drawing startups to the city. The report identifies sub-sector strengths, including life sciences, space technology, artificial intelligence and data analytics, showcasing Adelaide’s diverse and thriving startup ecosystem.
The GSER, recognised as the world’s most comprehensive startup research, draws data from 3.5 million companies across 290 entrepreneurial innovation ecosystems. Key findings reveal Adelaide’s remarkable ascent in the past year, moving up 33 ranks to secure the 163rd spot in 2023, compared to 196th in 2022. The ecosystem value has surged by an impressive 347 per cent, reaching $1.56 billion in 2023 from $348 million in 2020.
Notably, the R&D Tax Incentive plays a crucial role in furthering innovation and fuelling startup growth. The R&D Tax Incentive, supported by the Australian government, provides financial support to companies engaged in research and development activities, offers a competitive edge to startups in Adelaide through its R&D Tax Offsets allowing companies to reinvest in their R&D. It encourages businesses to invest in ground-breaking projects, fostering a culture of innovation and contributing to the city’s impressive startup performance.
In this landscape of growth and innovation, the R&D Tax Incentive is a critical factor helping propel Adelaide’s startups onto the global stage, reinforcing the city’s position as a beacon for innovative companies.