A new direction for its relationship with industry will see the Victorian government focus on emerging technologies such as AI and quantum, and developing skills across the economy.
Victorian Minister for Industry and Advanced Manufacturing Colin Brooks launched the Victorian Industry Policy last week, a framework to “grow local industries, back cutting-edge technologies and build on” the state’s strengths.
The policy flags a new direction with how the state government works with industry, shaped by competitiveness, productivity and economic resilience.
It replaces the Future Industries Strategy, which was released by the Victorian government nearly a decade ago.
It comes after the release of the state government’s Economic Growth Statement, which zeroed in on five areas of advantage: advanced manufacturing and defence, health technologies and medical research, clean and circular economy, digital technologies and agribusiness.
“This policy builds on the Economic Growth Statement to grow the industries that will power Victoria’s future - and making sure Victorians are the ones who benefit from it,” Brooks said.
“We’re backing the people and businesses who drive our economy – with secure jobs, stronger local supply chains, and a more self-reliant economy that benefits all Victorians.”
A framework for the future
The document is light on new policies and strategies but lays out a framework that the state government will use to turbocharge local industry.
The policy is based around four core principles: aligning skills to the needs of industry, growing the state’s industrial base, capturing opportunities in emerging and nascent industries, and ensuring energy security as Victoria transitions.
It aims to set out how government, industry and researchers can work together to capitalise on the state’s skilled workers, research institutions and established businesses.
“In the era of rapid change and shifting global dynamics, we need to keep pushing forward; we need a strategic plan that leverages our existing strengths and capitalises on emerging opportunities, nurturing and growing Victorian industry to keep Victoria an economic powerhouse,” the policy said.
“By empowering our industries to innovate and grow, we can generate wide-reaching benefits for our state, creating opportunities and improving people’s lives.”
Backing AI
The policy places emerging and advanced technologies such as artificial intelligence and quantum technology at the centre of these plans.
“Adopting advanced technologies, supporting skills development and encouraging innovation are crucial to driving productivity gains so industry can effectively support our growing population and compete in global markets,” it said.
It nominates four “focus for impact” segments, including skills development, modernising Victorian industry through tech adoption and innovation, manufacturing and assessing the potential of enabling technologies such as AI, quantum and agtech.
“Victoria is well-placed to be a leader in artificial intelligence, quantum technologies, additive manufacturing, carbon capture and storage, and agtech,” the policy said.
It also points to a number of existing policies as being central to achieving its aims.
These include the $150 million Victorian Investment Fund, which was announced in the recent state budget and will “provide domestic and international investors support to secure business investment”.
The state budget also signalled a $3 million pilot program to test the use of AI to improve the recognition of prior learning, in partnership with the TAFE network and led by Bendigo Kangan Institute.
The new industry policy comes just days after Melbourne was ranked as the 32nd best startup ecosystem in the world, according to Startup Genome’s Global Startup Ecosystem Report 2025, behind only Sydney in the Oceania region.
A number of state governments have recently announced revamped plans to build local industry and support the tech sector.
Last month the NSW government unveiled a 20-year R&D Roadmap with an aim to reverse the slump in research and development.
The roadmap outlines a plan to double down on artificial intelligence, quantum computing and nanotechnology.
