StartupAUS’s Alex McCauley says Adelaide could become a hub for global space and defence startups

Adelaide has the potential to become a global hub for defence and space startups, according to the head of StartupAUS, who says the state should focus on its economic strengths as part of its innovation drive.

Artist impression of the Lot Fourteen innovation precinct at the site of the old Royal Adelaide Hospital.

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Adelaide has the potential to become a global hub for defence and space startups, according to the head of StartupAUS, who says the state should focus on its economic strengths as part of its innovation drive.

Speaking at the SouthStart conference in Adelaide today, StartupAUS chief executive Alex McCauley identified the two industries as the key areas where the state had a competitive advantage, and where the State Government and startup community should focus its short-term efforts.

“You have a bunch of companies now in South Australia that are really looking to build global businesses and you’ve got a State Government that’s saying, actually we don’t just want be Sydney, we don’t just want to be Melbourne - we want to find a way that we can play on a global level right form the get go,” he said.

“Part of the really exciting thing about the South Australian model is that it’s a strategic approach - the idea is to find a really identifiable strength and then have the benefits flow onto the rest of the ecosystem. Obviously in South Australia you have a huge strength in defence.

“The push in South Australia and the early successes in building a defence and space centre of gravity are pretty strong.”

StartupAUS represents the startup community, lobbying for regulatory changes and policies aimed at supporting growth of the national startup community.

The group today launched a report, South Australia - Crossroads Spotlight, identifying Lot Fourteen as having the potential to attract global interest in the state’s burgeoning startup sector. Local satellite communications startup Myriota is already a tenant at the innovation precinct.

“It’s a 23,000sqm innovation precinct,” Mr McCauley said.

“In context the Sydney Startup Hub, which is one of the biggest startup hubs in the southern hemisphere, is 17,000 sqm. Station F in Paris, which is one of the biggest startup hubs in the world, is 36,000sqm - so it’s genuinely a world scale precinct.”

The Crossroads report welcomed the pilot of an entrepreneur visa in South Australia, saying it was a good first step towards attracting foreign entrepreneurs.

“Adelaide offers excellent lifestyle and affordability, but while these elements are important they are neither necessary nor sufficient to attract a thriving innovation scene,” the report says.

“Instead South Australia needs to build on these strengths while showing that it is able to nurture businesses that are scaling rapidly, that it can compete globally for talent and customers, and to convince globally relevant businesses they need to have a presence in South Australia in order to tap into what’s happening on the ground.”