18 Accelerate our local cyber industry, research and innovation The problem we face Australia’s cyber security industry supports our prosperity, generates new jobs and contributes over $2 billion to annual gross domestic product. However, the industry is hampered by challenges around workforce attraction and retention, translation of research and innovation into successful start-ups, and access to domestic and international markets. Consultation with industry highlighted the Government’s role as a potential customer to cyber security businesses and its ability to use its purchasing power to invest in new and innovative cyber products. Currently, a lack of home-grown capabilities deepens our dependence on offshore providers, undermining national sovereignty and stifling growth in this vital sector. Sovereign capabilities need to be cultivated in key areas of our cyber ecosystem by investing in training pathways, commercial opportunities and research programs. We need to maintain ongoing investment in research and development of the cyber technologies that will underpin Australia’s future digital economy. How the Government will take action The Australian Government will continue to identify and drive opportunities to grow the cyber security sector and invest in national cyber research programs. Under this initiative, the Government will: 1. Invest in domestic cyber industry growth We will promote the growth of innovative start-ups and small-to-medium enterprises by establishing a Cyber Security Challenge program, delivered through the existing Business Research and Innovation Initiative. This program will provide funding for cyber start-ups and small businesses to partner with government and develop innovative solutions to cyber security challenges facing Australia. This program will also support other key priorities outlined in this Strategy – such as developing cutting-edge technologies for threat sharing and blocking, or advancing post-quantum cryptographic techniques. The Government’s $15 billion National Reconstruction Fund (NRF) will also continue to support, diversify and transform Australia’s key industries. The NRF will target projects and investments that help Australia capture high-value market opportunities to help businesses grow and succeed. It will provide finance to drive investments that develop capability in priority areas, including advanced information communication technologies, critical technologies including AI and quantum, and others relevant to cyber security. 50 2023–2030 Australian Cyber Security Strategy