NEW SOUTH WALES: FOSTERING BUSINESS OPPORTUNITY

1 Why entrepreneurs and businesses choose Sydney and New South Wales for ICT

2 Snapshot of NSW

3 NSW the premier state for ICT 3.1 NSW is where technology companies thrive 3.2 A research and development hub

3.3 Leading infrastructure

3.4 A highly skilled workforce

4 Australia’s economic powerhouse

5 Sydney Australia’s multinational HQ

5.1 Sydney’s technopolis

6 How the NSW Government can help your tech business 6.1 Jobs for NSW 6.2 The Sydney Startup Hub

7 More information

CONTENTS

Cover image © Destination NSW

© State of New South Wales through Department of Industry 2018. You may copy, distribute and otherwise freely deal with this publication for any purpose, provided that you attribute the Department of Industry as the owner. PUB18/230

The information contained in this publication is based on knowledge and understanding at the time of writing (April 2018) and may not be accurate, current or complete. The State of New South Wales (including the NSW Department of Industry), the author and the publisher take no responsibility, and will accept no liability, for the accuracy, currency, reliability or correctness of any information included in the document (including material provided by third parties). Readers should make their own inquiries and rely on their own advice when making decisions related to material contained in this publication.

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1 WHY ENTREPRENEURS AND BUSINESSES CHOOSE SYDNEY AND NEW SOUTH WALES FOR ICT

Sydney, the capital of New South Wales (NSW), is a global cultural hub that is renowned for one of the highest standards of living of any major Australian city. The NSW economy is a regional powerhouse in one of the most stable political and regulatory environments in the world.

The state of NSW boasts world-leading infrastructure, cost competitiveness, government support, a diversity of sectors and skills, and has been recognised with AAA sovereign credit ratings from global agencies Standard & Poor’s and Moody’s. This attractive and robust business climate creates opportunities for a range of businesses.

The NSW Government provides information and assistance to help businesses establish themselves in the right location—be it Sydney or the vast, resource-rich areas within regional NSW—and grow their investment.

2SNAPSHOT OF NSW

27 years of uninterrupted economic growth

information, media and telecommunications industry

of Australia’s ICT businesses

44% of Australia’s startup founders

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3 NSW THE PREMIER STATE FOR ICT

The state produces 58% of Australia’s computer, information and telecommunications services exports, valued at close to A$1.9 billion annually in 2015–16, and is home to 40% of the country’s ICT businesses. As of 2016, NSW had a $19 billion information, media and telecommunications industry—the largest of any Australian state.

3.1 NSW IS WHERE TECHNOLOGY COMPANIES THRIVEIt’s not just startups that are benefitting from NSW’s ICT advantages. Sydney’s iconic Martin Place district in the centre of the city is becoming the blue-ribbon destination for ICT companies in Australia. Household names such as LinkedIn, Dropbox, Booking.com and Apple have based themselves in the traditional financial heart of Sydney’s central business district.

Outside the city, regional NSW is home to world-class research and innovation centres specialising in agricultural technology, defence and advanced manufacturing.

Local expertise can help business and industry develop commercially viable innovations and technologies, and a strong regional network of tertiary education and technical training institutions ensures a ready supply of innovative graduates.

3.2 A RESEARCH AND DEVELOPMENT HUBThe NSW Data Analytics Centre has established a boutique scholars’ program for data science and analytics, the only one of its kind in Australia. The centre facilitates government collaboration with the private sector and research institutions to work on complex issues facing the people of NSW.

The NSW Government’s Knowledge Hubs Program has established industry-led collaborative partnerships centred around key NSW industry sectors: energy and resources, financial services, digital creative, medical technology, and transport and logistics. These partnerships bring together businesses, research organisations and industry associations to share information and direct research through collaborative projects.

The fintech hub Stone & Chalk, established as a Financial Services Knowledge Hub project, has supported the development of more than 98 startups and attracted more than $212 million in investment since its launch in 2015.

Local businesses invest more in research and development (R&D) as a percentage of GDP than the UK, Canada, and the rest of Australia (2009–14). NSW also outperforms the OECD average for higher education investment in R&D at $3.2 billion.

Three of NSW’s 11 public universities ranked in the world’s top 200 for 2016, and the state’s universities are global research leaders in subject areas including cryptography and network security.

NSW is also the headquarters of Data61, Australia’s leading digital research network, as well as Australian centres of excellence in photonics, electromaterials and quantum computing.

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3.3 LEADING INFRASTRUCTURENSW has leading telecommunications infrastructure, including nine landings

of international high-capacity fibre optic cables that link the state to Asia, Europe and the United States.

The state is also home to global data centres. Global Switch, the leading wholesale data centre provider in Europe and the Asia–Pacific region,

has a base in NSW, as do Alibaba Cloud, Rackspace, Amazon Web Services, Dimension Data and Vocus Communications.

3.4 A HIGHLY SKILLED WORKFORCE With a higher percentage of tertiary-educated workers than

the US, the UK, Singapore, Germany and the OECD average, NSW offers a highly educated workforce. The state also has

Australia’s largest pool of skilled ICT workers, with 107,600 people working as ICT managers or ICT professionals

in 2015–16.

NSW’s ICT sector benefits from a highly skilled workforce of software engineers, computer scientists

and programmers; exceptional universities that attract foreign students; and active industry

associations such as the Australian Computer Society, the Australian Information Industry Association and the Australian Industry Group.

The first of its kind in Australia, the Sydney Startup Hub, located in the Sydney CBD, has a starting line-up of residents including leading incubator

and accelerator Tank Stream Labs.

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4 AUSTRALIA’S ECONOMIC POWERHOUSE

There has never been a better time to live and do business in NSW.

As Australia’s economic powerhouse, NSW boasts a staggering 27 years of uninterrupted growth and a AAA credit rating from global agencies Standard & Poor’s and Moody’s. The state is also an international leader for annual GDP growth, ranking higher than Singapore, the US, the UK and Canada.

The NSW economy—valued at more than half a trillion dollars—is larger than that of Hong Kong, Malaysia or Singapore, and this prosperity is backed by one of the world’s most stable political and regulatory environments.

NSW has the fastest rate of economic growth in the country. Between 2016 and 2017, more than 26,000 businesses were created in NSW, the second largest increase across Australia.Startups and other companies operating in NSW and looking for support or venture capital are on the doorstep of Australia’s largest financial services industry.

5 SYDNEY AUSTRALIA’S MULTINATIONAL HQ

Sydney, NSW’s harbour capital, is the international gateway to the Asia–Pacific region and is ideally situated to service fast-growing Asian markets. With such economic clout, a large talent pool and a strategically advantageous location, it is little wonder that NSW and Sydney are the Australian headquarters for multinationals including Amazon Web Services, Apple, Dropbox, Google, IBM, LinkedIn, Microsoft, Rackspace, Sony and Twitter.

5.1 SYDNEY’S AEROTROPOLISSydney is primed for even greater economic and technological growth, as the Australian and NSW Governments are investing in a high-tech precinct to be located near a new international airport in Sydney’s west. The precinct in Western Sydney will focus on ICT, data analytics, electronics, cyber security, advanced manufacturing, aerospace, defence industries and other future-oriented capabilities. Industry, R&D institutions and the education sector will collaborate at the precinct to commercialise ingenuity and drive economic growth.

The precinct, backed by a record-breaking level of infrastructure investment in Western Sydney, will be underpinned by a commitment of federal, state and local governments to work together in the largest planning, investment and delivery partnership in Australia’s history.

American companies see Sydney as an excellent location to launch their businesses into Asia Pacific.Bill McMurray, Managing Director Asia Pacific and Japan, Qualtrics

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6 HOW THE NSW GOVERNMENT CAN HELP YOUR TECH BUSINESS

The NSW Government is committed to helping businesses move to and grow in our state. To enable this, we fund initiatives such as Jobs for NSW, Boosting Business Innovation, the Breakthrough Research Fund and the Sydney Startup Hub. The government also brings industry and research organisations together for collaborative projects through its Knowledge Hubs Program.

The NSW Government can supply information on site selection, assistance programs, doing business in our state, potential customer bases, tailored research and the state economy. We have an export capability building program to get NSW businesses export ready, as well as business development experts—including six regional advisers—who can provide valuable introductions and connections to:

• local partners, industry specialistsand networks

• funding bodies

• key government agencies

• NSW Government international offices in 10 priority markets, as well as regional offices and Sydney-based ICT industry experts.

6.1 JOBS FOR NSWJobs for NSW provides financial support to startups and emerging and fast-growth small to medium-sized enterprises (SMEs) to scale and grow new jobs in NSW.

With a $190 million fund to invest over four years, Jobs for NSW offers a suite of financial products including grants, loans, loan guarantees and equity funding to support businesses that generate sustainable jobs across the state.

6.2 THE SYDNEY STARTUP HUBIn February 2018, the Sydney Startup Hub opened its doors, with Microsoft announcing it will run its world-renowned accelerator program for technology startups from the space.

Located in the heart of Sydney’s central business district, the Sydney Startup Hub is the first of its kind in Australia and the largest startup destination in the southern hemisphere. With space for up to 2,500 residents across 11 floors, it welcomes thousands more via its community and event spaces, collaborative workspaces and a Regional Landing Pad— a dedicated area enabling regional entrepreneurs to access mentoring and funding opportunities, and promote connections with the metro startup community.

Our starting line-up of residents includes leading incubators and accelerators such as Fishburners, Stone & Chalk, Tank Stream Labs and The Studio.

The Innovation NSW office is also situated at the Sydney Startup Hub. The role of the office is to drive innovation across the NSW public sector by partnering with government agencies and the private sector to solve complex economic, environmental and social challenges.

Our aim is to be the ‘glue’ that connects the startup ecosystem in Australia. Being part of the Sydney Startup Hub enables us to realise that ambition.Steve Worrall, Managing Director, Microsoft Australia

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START, GROW AND THRIVE IN SYDNEY AND NEW SOUTH WALESVisit industry.nsw.gov.au/cebit to find out how your business, startup, incubator or accelerator can benefit from NSW’s ICT capabilities.

Visit jobsfornsw.com.au to see how your entrepreneurial business can benefit from NSW Government support.