The Victorian Government has released a new manufacturing strategy which includes a number of initiatives to stimulate research and innovation in the manufacturing sector.


The strategy sets the direction for five priority areas to lift the productivity and competitiveness of Victoria's manufacturing sector:


  1. A world-class specialist manufacturing service
    Manufacturing Solutions Victoria (MSV) will support manufacturers in identifying practical solutions to drive productivity and to get products into new markets.
  2. Productivity and innovation networks
    Manufacturers will be supported to strengthen existing co-operation between business and research institutions to facilitate supply chain integration and partnership to support innovation and technology diffusion.
  3. Investing in technology
    Manufacturers will be supported to introduce leading-edge technology with high growth potential.
  4. Support for small manufacturers
    Manufacturers will be able to access specialised workshops to ensure small business manufacturers can stay up-to-speed on latest trends in areas such as lean manufacturing, access to information on government tenders, and commercialisation.
  5. Niche and specialist skills
    Manufacturers will be supported with a systematic and structured approach to identifying and addressing priority specialist skill needs for key trades and other occupations critical for the future manufacturing workforce.



The strategy was informed by the Victorian Competition and Efficiency Commission (VCEC) inquiry into the manufacturing sector. It picks up a number of initiatives recommended by the inquiry including:


  • Partner with Deakin University and Geelong Manufacturing Council to undertake a pilot to link university research with manufacturing establishments;
  • Fund the Victorian Centre for Advanced Materials Manufacturing to spur new opportunities for innovation research.
  • Establish a textile clothing and footwear precinct;


The strategy also overhauls the state’s business assistance system, reducing the number of industry programs that support manufacturing from 32 to  the five policy priorities listed above.


A new specialist manufacturing service, Manufacturing Solutions Victoria (MSV), will aim to overcome market failures and barriers inhibiting firms to lift productivity and competitiveness. Services facilitated by MSV will include a number targeted at innovation including: Innovation and design – innovative systems, business model innovation, market design, branding and marketing; and research and development – facilitating access to public and private research institutions.


The strategy will be guided by a new Victorian Manufacturing Council for which the government has called for expressions of interest.


The Victorian Government manufacturing strategy: A more competitive manufacturing industry can be viewed at


The Victorian Competition and Efficiency Commission final report: Victorian Manufacturing Meeting the Challenges and the Victorian Government's response can be viewed at