There are three Defence industry and innovation programs:

Together these programs represent a $1.6 billion investment in Defence capability through growth in Australian defence industry and innovation. They are initiatives of the 2016 Defence Industry Policy Statement.

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Annual report

The Defence Industry and Innovation programs annual report reports on the progress of the Centre for Defence Industry Capability, the Defence Innovation Hub and the Next Generation Technologies Fund.

If you are unable to access the PDF report using the links below, email cdic@business.gov.au to request the information in a different format.

Centre for Defence Industry Capability


The Centre for Defence Industry Capability (CDIC) supports Australian small and medium sized businesses entering or working in the defence industry.

The CDIC has a national network of defence industry facilitators and business advisers. The CDIC:

  • helps businesses navigate the defence market
  • facilitates connections with other businesses and Defence
  • advises on improving competitiveness and accessing global markets
  • provides grants to help businesses invest in their defence-related capabilities
  • links Australian innovators and researchers to the Defence Innovation Hub and the Next Generation Technologies Fund

The CDIC was established to transform the relationship between the Department of Defence and defence industry. Its mission is to work with industry and Defence to build a world-class, globally competitive and sustainable Australian industry as a Fundamental Input to Defence Capability. To achieve this, the CDIC partners with industry, Defence, and state and territory governments.

The CDIC is guided by an Advisory Board of defence industry leaders. The board is co-chaired by an industry representative and Defence representative.

Defence Industry and Innovation

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Next Generation Technologies Fund


The Next Gen Tech Fund is a forward-looking program focusing on research in emerging and future technologies, including technologies that may deliver on a time horizon greater than ten years. Innovative technologies and concepts researched under the Next Gen Tech Fund could be further developed and realised into capability through the Defence Innovation Hub.

The Next Gen Tech Fund will invest $730 million over the decade to 2026. The program is managed by Defence Science and Technology Group, Department of Defence.

Next Gen Tech Fund application booster

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Dr Karen O’Connor and Dr Dan Billing, of Defence Science and Technology, give an overview of the Next Gen Tech Fund.

Defence Innovation Hub


The Defence Innovation Hub provides opportunities for academia, research organisations and Australian businesses of all sizes to put forward innovative proposals that can enhance Defence capability. It accepts proposals that are ready to enter different stages of the innovation process, from concept exploration, to technology development, to prototyping, to demonstration and evaluation. The Hub will invest $640 million by the end of 2025/26 to mature and develop innovative technologies that can enhance Defence capability.

The Defence Innovation Hub’s competitive procurement process seeks to maximise the capability value of investments and provide opportunities for innovative Australian companies, by stimulating innovation through competition.

Open to all Australian businesses at all times, the Defence Innovation Hub applies transparent decision-making criteria to proposals, and maintains a strong focus on capability need.

What are the benefits of partnering with the Defence Innovation Hub?


The benefits of partnering with the Defence Innovation Hub are:

  • Companies can develop their ideas, and in the vast majority of cases entities retain their key Intellectual Property rights.
  • Through the award of an innovation contract with the Hub industry partners can enhance their business credentials with other potential investors and customers.
  • The Hub can facilitate the close engagement with Defence capability managers and build and organisation’s understanding of Defence capability requirements.
  • In some cases industry can gain access to Defence scientists and specialist Defence facilities, equipment and training areas.
  • Industry partners also have the opportunity to learn from Defence’s project management expertise.