As we’ve heard, key to giving industry certainty is giving them clarity about our state’s future direction.
It’s why as part of this Statement, and in partnership with business, the Government has identified the priority sectors that will be the beating heart of our economy.
From advanced manufacturing and digital technology, to health sciences, renewable energy and food and fibre, these sectors represent the backbone of our current economy – and the engines of our future growth.
Each of these priority sectors have been chosen to align with the four key actions that underpin the Economic Growth Statement.
By opening the door to investment and innovation, cutting red tape, building new skills and reaching every corner of Victoria – we will turn the dial up on these high-potential sectors.
Our priority sectors are:
Advanced manufacturing and defence
Manufacturing is a cornerstone of Victoria’s economy – and key to sharpening our state’s competitive advantage.
As a powerhouse of manufacturing, we are home to a $39.2 billion sector supporting more than 275,000 jobs, and exporting goods worth $11.2 billion.
This has been further amplified thanks to the Government’s investments in new infrastructure and new trains and trams – made for Victoria, built in Victoria – supporting more than 10,000 jobs across the industry.
Advanced manufacturing has an important role to play in maintaining high living standards for all Victorians, contributing to important infrastructure and renewable energy projects and safeguarding the supply chains of essential goods in an increasingly uncertain global environment.
Advanced manufacturing technologies also offer solutions across the economy. For instance, modern methods of construction, such as prefabricated and modular construction, enable more efficient and cost-effective delivery of homes and infrastructure. These methods harness the power of automation and innovative technologies, boosting productivity and capability.
Victoria’s highly skilled workforce and advanced engineering, design and manufacturing capability also means we are well positioned to secure opportunities arising from the Commonwealth Government’s investment in manufacturing and defence, including through the Australia-UK-US Agreement (AUKUS).
Already home to Australia’s highest value defence armoured vehicle procurements, capturing defence investment will accelerate advanced technologies and innovation to foster dual sector applications in areas like renewables, transport and Advanced Air Mobility.
Health technologies and medical research
Victoria is a global leader in health technologies and medical research, hosting 40% of ASX-listed medical technology and pharmaceutical companies – alongside world-renowned universities and institutes.
Victorian firms produce 54% of the nation’s pharmaceutical exports, driving economic growth for our state and delivering improved health outcomes for our nation.
This success is underpinned by world-class facilities including the National Drug Discovery Centre, the Aikenhead Centre for Medical Discovery, the Moderna mRNA Vaccine Manufacturing Facility, and delivery of BioNTech’s mRNA research and clinical manufacturing facility and CSL Seqirus’ vaccine and anti-venom manufacturing facility.
With both Moderna and BioNTech establishing major hubs in the state, Victoria is the only place in the world where both mRNA leaders host research and development, and manufacturing operations.
We’re also a national hub for clinical trials, covering a full spectrum of diseases and advanced health technologies. This end-to-end capability – from research to testing to production – positions us strongly to further grow the sector.
Our future focus is on developing this capability, as well as continuing to attract global industry and investment for research and development, product development, manufacturing and commercialisation in Victoria.
Circular economy
With the transition to net zero emissions by 2045, Victoria is primed to be a global leader for low carbon production.
Victoria is leveraging its existing industrial capabilities, resource endowments, highly skilled workforce and low carbon research clusters to expand our capabilities, and develop new products and technologies.
The significant national funding available for the energy transition, including the $22.7 billion Future Made in Australia and $15 billion National Reconstruction Fund, creates strong opportunities for Victorian businesses to become part of national renewable energy supply chains. Developing Victoria’s circular economy is also critical to achieving our net zero emissions targets and future-proofing our state in a rapidly decarbonising world.
Critical mineral processing and battery production will be a focus for the future. Victoria’s critical minerals endowments provide extraction and downstream processing opportunities, including energy storage product design, production and recycling for local and export markets.
Offshore and onshore wind, solar and storage will also be a continuing focus for growth, facilitating private investment to ensure long-term job and economic opportunities that align with Victoria’s world-class renewable resources and advanced skills base.
The Victorian Government established Resources Victoria to help unlock sustainable minerals development and create a roadmap to support this new industry. This roadmap will present a plan for attracting world-class minerals development and investors to Victoria, while maintaining strong environmental standards and empowering local communities through greater consultation.
Digital technologies
Victoria’s digital technology sector contributed $35.6 billion to the state’s economy in 2023 – and employs 30% of the national digital technology workforce.
Not only is Victoria’s digital technology sector a direct contributor, it’s also an enabler of economic growth in the state – strengthening digitalisation and productivity across all sectors of our economy.
To remain globally competitive, Victoria must continue to develop a highly skilled workforce, support firms to adopt new technologies, and build capabilities in emerging areas such as artificial intelligence and quantum technologies.
Victorian universities have deep and broad research capabilities in these emerging technologies, but there remains significant opportunity to translate these research strengths into commercial advantage across Victoria’s key sectors.
Future focus areas include research commercialisation, artificial intelligence, machine learning and quantum technology applications.
Agribusiness
Victoria is ranked number one in Australia for total agribusiness exports, making up almost half of Victoria’s total goods exports and valued at over $15 billion annually.
Victoria also has strengths in food innovation and research and development, including at the CSIRO’s National Food Innovation Centre, Monash Food Innovation Centre and the AgriBio Centre for AgriBiosciences in Bundoora.
Our world-class research and innovation, excellent connections to local and international markets, reputation for food safety and quality produce, skilled workforce and innovative technology means Victoria’s food and fibre processing sectors will continue to lead the nation in capturing new and diverse markets.
The future focus for Victorian agribusiness will include new and existing export markets with new products, growing value-added food production and manufacturing, and creating more opportunities for agribusinesses to innovate and commercialise.
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