Support for Service and Product Development

21. This covers funding to support innovative initiatives on the part of individual institutions or groups of institutions (e.g. in consortia). It is to directly support the development of innovative education services and physical products. This can also encompass the development of new markets and the establishment of strategic alliances and consortia.

22. As there will be a mix of direct commercial benefit to the institution(s) and wider industry benefits, funding will be available on a co-contribution basis, with 50% contribution from the EEIP. Co-payment funding from the EEIP would be subject to a limit of $125,000 (GST incl) per project. EEIP funding will only match eligible costs.

23. As there will be an element of commercial sensitivity to some aspects of these projects, some of the information generated would not be widely available throughout the industry, or would be subject to appropriate time restraints on disclosure. However it is expected that reports on these projects and sharing of general information and lessons, would be made available to the industry.

24. Funding would be available for activities such as:

a) Studies on specific market opportunities and/or risks and obstacles to particular innovative activities.

b) Studies into whether an institution or group should undertake a proposed activity - e.g. establish a specific joint venture overseas. This would not cover basic strategy and planning for an organisation, or initial feasibility work (i.e. solid homework would have to be done before an application could be made).

c) Latter stage development of business/marketing plans for the development and distribution of innovative products/programmes. Assistance would be targeted towards finalising plans and assisting in filling gaps in expertise, rather than at the early stages of plan development - which the organisation will need to complete in order to put forward a robust proposal for funding.

d) Accessing expert advice and assistance in the latter-stage development of overseas partnerships.

e) Development of pilot projects/prototypes.

25. The activity would have to be additional to current activity - not already scheduled and resourced "business as usual", and as such funding could not simply be used to subsidise the salaries of current staff. Funding could be used to contract in specific expertise, or to second staff onto a project as long as their regular role was filled. Some funding would be available for travel where required. Funding would be available for the early and developmental stages of initiatives (however there is the expectation that reasonable research and investigation would have already been undertaken by the organisation), but would not be available to help fund or underwrite full implementation or ongoing operation. Funding would be for operational expenses only - not for capital contributions or investment.