Veteran venture capitalist Bill Ferris will spearhead the Turnbull government's sweeping innovation agenda that will use tax breaks and greater co-operation between business and CSIRO to drive technology companies and start-ups.

As the innovation czar, Mr Ferris will advise Prime Minister Malcolm Turnbull, Treasurer Scott Morrison and Industry, Innovation and Science Minister Christopher Pyne on how to make technology, innovation and start-ups a new pillar of the economy.