Innovation Investment Fund program (Additional Function of the IR&D Board) Direction No. 1 of 1998

Overview

The Innovation Investment Fund Program (Additional Function of the IR&D Board) Direction No. 1 of 1998 was issued under the authority of the Industry Research and Development Act 1986. The legislation was enacted to foster research and development within the Australian industry, aiming to bridge gaps in innovation and economic growth. This specific direction, issued by the Minister for Industry, Science and Tourism, John Colintoin Moore, on August 10, 1998, designates an additional function for the Industry Research and Development Board, namely the administration of the Innovation Investment Fund program. This program is intended to facilitate investment and financial support for eligible companies through managed funds, thereby promoting broader innovation and investment in research and development across the industry sector. The policy objective underlying this direction is to enhance Australia’s competitive edge and innovation capacity by providing structured financial assistance to eligible companies.

Scope and Application

The Industry Research and Development Act 1986 applies to the Industry Research and Development Board (IR&D Board) and its functions in relation to industry research and development in Australia. The Innovation Investment Fund program (Additional Function of the IR&D Board) Direction No. 1 of 1998, issued under the authority of the Minister for Industry, Science and Tourism, extends the functions of the IR&D Board to include administering the Innovation Investment Fund program. This program involves investment in, or the provision of finance to, managed funds which, in turn, invest in or provide finance to companies that meet the eligibility criteria as defined in the IIF Program, Policies and Practices Direction No. 1 of 1997, as amended. The Direction applies nationally and is effective from the date of its publication in the Gazette. The scope of the Direction is limited to the additional function assigned to the IR&D Board and does not extend beyond the specified investment activities within the Innovation Investment Fund program.

Key Provisions

The main operative sections of this Direction, numbered as 1 to 3, establish the Innovation Investment Fund program (Additional Function of the IR&D Board) Direction No. 1 of 1998 (section 1). It specifies that this Direction comes into effect on the day it is published in the Gazette (section 2). Section 3 outlines the additional function of the Industry Research and Development Board (IR&D Board) to administer the Innovation Investment Fund program, which includes investment or provision of finance to managed funds for eligible investee companies as defined in the IIF Program, Policies and Practices Direction No. 1 of 1997, as amended from time to time (section 3). The Innovation Investment Fund program imposes specific obligations on the IR&D Board. Under section 3, the Board is mandated to administer the Innovation Investment Fund program, which includes the responsibility of investing in, or providing finance to, managed funds. These managed funds, in turn, are to invest in, or provide finance to, companies that meet the criteria for eligibility as investee companies. This eligibility is defined in the IIF Program, Policies and Practices Direction No. 1 of 1997, and any subsequent amendments to this direction. The Board must ensure compliance with these criteria and the overarching policies and practices as they evolve over time. There are no specific offences, penalties, or civil/criminal consequences outlined in this Direction. However, non-compliance with the defined eligibility criteria for investee companies, as outlined in the IIF Program, Policies and Practices Direction No. 1 of 1997, could potentially lead to administrative or financial repercussions for the IR&D Board. This may include corrective actions, financial penalties, or other measures as deemed necessary by the relevant authorities to ensure adherence to the established guidelines and policies. The exact consequences would depend on the specific nature of the non-compliance and the relevant legislative or regulatory frameworks in place at the time.