NSW is on the cusp of building a technology innovation precinct across Central to Eveleigh which has the potential to transform the national tech landscape. If we keep our sights aimed high, the precinct will be the centrepiece of a strategy that ensures Australia exports high-value goods to the world and elevates Sydney to a Top 10 global technology city. Throughout August-October 2018, TechSydney surveyed 150 tech companies in the city, representing 5,700 local jobs. We asked these companies what they wanted to see in a tech precinct. These are the results.

1. TechSydney
Technology & Innovation Precinct: Industry Survey Report
August – October, 2018

2. Executive summary
NSW has the opportunity to accelerate the value it derives from the tech industry by building a
tech and innovation precinct
• Analysis undertaken by the NSW Government demonstrates that innovation precincts create jobs
and improve the likelihood of delivering new-to-world innovation
• The government has identified 7 broad factors for success of an innovation precinct
In August – September 2018, TechSydney undertook a comprehensive and representative
survey of the local tech industry and its views on the development of a new precinct
• The 150 surveyed companies in this report represent the high-growth technology industry in more
than 18 industry verticals and account for 5,700 jobs and $1.2 billion in annual revenues
• These companies employ highly-skilled labor from diverse national backgrounds
The Industry is overwhelmingly positive about the precinct, but is concerned about risks in
development process and in the longer term
• Industry recognizes the precinct as “an opportunity to ensure Australia continues to punch above
its weight globally”
• But survey data showed consistent concern about diversity, governance, accessibility and zoning
Together, we can build a successful precinct by ensuring 4 key recommendations are met
1. Make it affordable, diverse and accessible
2. Enable independent management and deep industry engagement
3. Look beyond software
4. Make it a magnet for global talent and capital

3. NSW has opportunity to accelerate benefits it
derives from tech industry by building precinct
Our survey data aligns with 7 success
factors identified by NSW Gov report
Research by NSW Gov proves the
economic case for innovation precincts
Innovation precincts enhance
collaboration and commercialisation
• Biotechnology firms in the US and
Canada are 8x more innovative when
they are co-located1
• In Australia, co-location is associated
with a 70% increase in likelihood of
new-to-world innovation
Innovation precincts are also
demonstrated to deliver positive
knock-on effects
• Superior products and services
• Financial benefits, growth and
resilience
• Productivity gains
• Export growth
• Jobs growth and higher wages
• Social, cultural and environmental
benefits
Source: NSW Innovation and Productivity Council Precincts: Lessons from International Experience (link)
1. Market Drivers: Pressure to innovate;
access to skills and finance; IP and
legal framework
2. Competitive Advantage:
Specialization and branding to attract
top global talent and investment
3. Collaboration: Facilities and programs
to support collaboration amongst
diverse organisations and
serendipitous collisions
4. Infrastructure: physical, transport and
digital infrastructure that supports
research and commerce
5. Amenity: a place that attracts people
to work, live and play
6. Enterprise Culture: Culture of risk-
taking and collaboration
7. Leadership: Robust governance,
political commitment, shared vision

4. TechSydney undertook a representative survey
of companies in the NSW tech industry
Source: 1. Revenue estimate based on number of survey participants in each revenue bracket multiple by average value of revenue bracket
4,135
525
240125
285390
31-50 >10051-1001-10 11-20 21-30
78 19 5 6 7 12
134
600
300
60
3046
117111
$10m-$30m
$101k-$500k
$2m-$5m
$5m-$10m
$1m-$2m
<$100k
$500k-$1m
$30m-$80m
>$80m
Optout
14 30 9 7 13 4 3 5 6 16
# of Survey
Respondents per
category
Survey companies operate
in 18+ industry verticals…
…and over $1.2b in annual
revenues
…they contribute 5,700 jobs
to NSW economy…
How many people does your
company currently employ?
“What is your company’s
current revenue? ($m)1
“In which sector does your
company primarily operate?”
N=127
Other
Social Services
SaaS
Retail
Real Estate
Media
Martech
Human…
Health
Fitness
Fintech
Education
Design
AI & Big Data
Agriculture…
Aerospace
Advertising
Advanced…

5. Tech industry contributes high-skilled jobs and
attracts talent from all over the world to NSW
Company founder
country of birth (%)
Key functions of
employees holding visas (%)1
Source: Startup Muster 2017 Data, 1: Answers may not sum to 100%, respondents may select multiple functions in survey
10
1718
26
10101012
55
DataScience/Analysis
ProductManagement
OtherEngineering
GeneralBusinessOperations
Sales/BuinessDevelopment
Marketing
UXDesign
Strategy
SoftwreDevelopment
64.7
35.3 ROW
Australia
Tech migrants enter
high-value, high-skill jobs
>35% of founders are born
outside of Australia

6. The industry is overwhelmingly positive about
the precinct, but identified 4 key risks
Round-table sessions identified a
number of strategies to mitigate risks
Survey respondents consistently
identified 4 major risks to the project
“It MUST NOT be dominated by fake tech companies (i.e. Big Banks and
Telcos). It MUST NOT be dominated by residential buildings.”
8
15
21
26
30 Other
Insufficient diversity
Insufficient community
engagement/cooperation
Not easily accessible
Too much Residential
“What are the biggest risks?”
N=127 (%)
Create a diverse community from the outset
• Craft incentive structure to attract
“middle layer” companies to the precinct
• Provide sufficient space and access for
pre-revenue / smaller companies
Deep engagement with industry and enable
independent management with a financial
mandate
Continuously build and increase transport
access, including by bike and bus
Implement strong planning controls
• Put a low cap on the percentage of
residential property on the site
• Stop excessive presence of corporates,
especially back-office functions
Note: “Other” combines a diverse range of other commentary on this issue, there are no issues contained in this category that are larger than the listed groups

7. We can build a successful precinct by ensuring
4 key recommendations are met
The precinct must be accessible by a diverse ecosystem from
pre-revenue startups to larger players
• Mandate affordable rents to accommodate variety of companies
• Expand rail, bus, bike and air links to Central
Make it affordable,
diverse and
accessible
1
An independent body should be established to govern, it should
have a mix of stakeholders, predominantly from industry
• Develop clear, independent governance with a financial mandate
• Create a mechanism to engage industry on an ongoing basis
Enable independent
management & deep
industry engagement
2
The precinct needs to accommodate a diverse range of
businesses and provide relevant infrastructure to support them
• Engage independent team to define and manage infrastructure
• Flexible facilities to support range e.g hardware, deep tech,AR/VR
Look beyond
software
3
Precinct strategy must look beyond infrastructure and pull other
policy levers that will ensure Sydney is globally renowned
• Create a SEZ with compelling tax, regulatory, IP, and visa settings
• Become the Gateway to and from Asia
Make it a magnet for
global talent and
capital
4

8. A successful ecosystem will be underpinned
by affordability, accessibility and diversity
“What is a reasonable rent / m2?”
(% of respondents, N=61)
~40% of industry call for an
open, diverse precinct
Affordable rents will help
foster diverse environment
It must be easily accessible
to local and foreign travel
“What is a reasonable rent?
(Cost / Desk / Month) (%) N=38
“How should Sydney
build a successful innovation
precinct?” N=68 (%)
13
18
20
21
29
Easy Accessibility
Flexible Space/
Rental Options
Independent Governance/
Industry Engagement
Diverse Companies
& Rents
Other
5
2
7
15
33
39
$400-
450
$500-
$550
>$700$600-
$650
$550-
$600
$350-
$400
25
8
25
21
8
4
8
400-
450
350-
400
450-
500
600-
700
500-
600
300-
350
>700
1
Accessibility described as a
top priority by 66% of survey
respondents
Develop an accessibility
strategy even though the
precinct is likely located near
central
• Effective bike-lane linkages
with other parts of city
• Increased bus services
• Consider possibilities to
maximise pedestrian access
and thoroughfares
On-site migration office and
customs clearance to improve
accessibility for foreign
travelers
Note: “Other” combines a diverse range of other commentary on this issue, there are no issues contained in this category that are larger than the listed groups

9. The precinct should be run by an independent
body, guided by deep industry engagement
Establish clear governance principals
and retain close industry involvement
Should be governed by an independent
body of diverse stakeholders
Develop an independent board comprised of
relevant stakeholders from industry and
government
• Provide board with an independent financial
mandate
• Develop clear KPIs and governance
principles for the assets (e.g. mandated
sub-market rents for early stage start-ups)
• Maintain majority composition by industry
representatives
The wider industry must have an ongoing
role advising and defining governance
• Create a feedback mechanism to ensure
precinct evolves with industry trends
• Ensure ongoing commitment to industry
diversity: respondents were “concerned that
diversity could be compromised by financial
imperatives”
33.0
15.9
22.7
13.6
11.4
3.4
Independently but governed
by a board of shareholders
& stakeholders
A mix of government &
industry management
Fully independent
management - along
commercial lines
I don’t have a view
By a community manager
Other
2
“How should the precinct by governed?”
N=68 (%)
Source: Quote taken from Roundtable 1
Note: “Other” combines a diverse range of other commentary on this issue, there are no issues contained in this category that are larger than the listed groups

10. Infrastructure, programing and management
must look beyond software companies
“Do not just build buildings for software
companies - we need cheap, accessible facilities
and equipment for the folks building the
technologies of tomorrow in quantum, synthetic
biology, chip technology etc.”
Precinct planners should understand
ecosystem requirements prior to investing
• Ensure cross-section of industry
representation on management board
• Develop a mixture of private and public
facilities with formal management,
maintenance and training in place
Develop a strategy to address infrastructure
requirements and demand
• Provide combination of shared equipment &
storage space specialist/private equipment
• Complement on-site infrastructure by
aggregating demand within the ecosystem
and using off-site facilities (e.g. combining
all printed circuit board orders on a weekly
basis and sending abroad for fabrication
with guaranteed lead-times and pricing)
Infrastructure and programing must
accommodate diverse company types
Planning must look beyond
software to ensure long term success
10
12
42
36
Effective ancillary &
Corporate services
Flexible work spaces
Other
Look beyond software
3
“What future technology considerations
should planners consider?” N=58 (%)
Source: Quote taken from Roundtable 1

11. We must make the precinct a magnet for
international talent and finance
The industry recognizes the development of the precinct as a pivotal opportunity
• Attract widespread attention to the local technology scene
• Create better leverage for local companies to attract top talent
• Improve access to global financial flows
• Position Sydney as the gateway to burgeoning Asian markets
Participants identified 6 must-have features to underpin precinct’s global success
1. Easy visa and immigration facilities with migration officers on-site
2. Successful global branding campaign to attract talent and finance
3. Tax incentives for companies and individuals
4. Rental subsidies to engender diversity
5. Revised legal framework to support collaboration with universities, protect IP, and
streamline other legal processes
6. Shared vision and collaboration across industry, universities and government
They identified a number of precincts that have successfully built international
positioning and brand
• Station F
• Shenzen Special Economic Zone
• DMCC
4

12. Next steps
1. Develop overarching precinct strategy
• Define how Central/Eveleigh fits within broader NSW innovation strategy
• Consider successful overseas examples and import best-practice
• Determine “brand positioning” of Central/Eveleigh within a global context
• Engage with community and industry to ensure alignment to long-term goals
2. Establish a governance structure for the precinct
• Create a draft operating and governance model and seek industry input
• Appoint ongoing advisory board with cross-section of industry
representatives
3. Articulate precinct development principals
• Develop principals that will guide the development of the site, accounting for
issues such as zoning, diversity, affordability, industry clusters, and
infrastructure
• Pursue consultation with relevant industry representatives to ensure
widespread alignment with principals

13. Additional Analysis and Observations

14. The precinct will provide a predictable, long-
term solution for industry’s space concerns
More than 25% worry about the
impact of moving on their business
Almost 90% of the industry
must move in the next 5 years
113
14
No
Yes 9
17
30
28
17
Unsure
Very Easy
Complex and/or drawn out
Achievable without
susbstantial difficulty
It presents a significant
business risk
“Do you have rental, leasing or office
arrangements that extend beyond 5 years?”
N=127 (#)
“How difficult do you expect it to be to find
appropriate office space when you move?”
N=127 (#)

15. The precinct must have “Green” credentials and
high-speed internet
Precinct must deliver green spaces
and strong sustainability credentials
~90% of the industry identify
high-speed internet as a top priority
“Environmentally sustainable and ethical standards
are key to setting the standard for such a space”
86
10
Important
Top Priority
Access to reliable and
affordable high speed internet
Low1
“Which "working" features are essential in a
functioning precinct?” N=99 (%)
Which "living" features are essential in a
functioning innovation precinct? N=99 (%)
66
24
8
Important
Top Priority
Green spaces
Low

16. Report represents data from 150 companies &
18+ verticals, generating ~$1.2b ARR, 5700 jobs
>150 companies accounting for $1.2b
in revenue participated in this report
Report draws from survey data and
in-field round tables and interviews
Additional support
and data kindly provided by
Conducted online survey open to all tech
companies located in NSW
• Survey filled by 127 companies from more
than 18 different industry verticals
• Survey open online from 24 August – 20
September 2018
Conducted industry round tables open to all
tech companies located in NSW
• Industry roundtables comprising 33
companies
• Events conducts on 3, 14, 17 and 19
September
25Fifteen
Academy Xi
ACE Teknologi
AirTree Ventures
Allen Legal
Altium Limited
Ansarada
AsiaRecon
Aten Systems
Billy
BIRDI
Blackbird Ventures
Bronzecode
Canva
Ceeder
Co-Enterprise
Considered
Creator Tech P/L
Digital Maas
Disruptors Handbook
Energx t/a DiversityX Pty Ltd
FlatWorld Integration Pty Ltd.
FluroSat
Fusesport
FuzzyLogic Labs
Galileo
General Thinking
gethomii.com.au
Grad Connection
Grade Proof
Guests4dinner.com
Gyrix TechnoLabs
hackmygrowth.com.au
Haymarket HQ.
Heyyou
HotelsCombined
Icehouse Corp
IconPark
ICT Strategic Consulting Pty Ltd
Incubate
Indigitek Limited
Innovation Bay
(plus Jelix Ventures)
intersective
Juggle Street
Kitfit
Knose Care Pty Ltd.
Knose.com.au
KoalaSafe
Learnosity
Liveable
Location Connections
Louder
Main Sequence Ventures
Mediamath
mobilelearning.io
Nabo
Nature Talk Pty Ltd
New Craze Technologies
NextRep health
OFX
OneSaas Integrations Pty Ltd
Onset Group
PiCoLabs
Popdot Media
Prismatik Pty Ltd
Pureprofile
PwC
QBL Media
Qwilr.
Radiant
Ramen Life
Smartstatements
Social Status
Sourcr
Spare Workspace
Spark Festival
Startup Muster
Staybil
Streethawk/Pointzi
Stropro Technologies Pty Ltd
Supply Chain Robotics
Taking Over the World
The Orange Bicycle Company
The Studio Limited
Tomw Communications
TquilaAnz
UTS
Verge:VT
Wattcost
WHEREFIT
WORKetc
Xceptional
Zenda Life Foods Pty Ltd
Name not recorded (58)