Premier Mike Baird will announce during a visit to Newcastle on Monday that his government will invest $9.8 million on what’s been dubbed the Hunter Innovation Project, a plan to turn Newcastle into a city known for “cutting-edge research and innovation”.

“The Hunter Innovation Project will provide a significant boost for Newcastle and capitalise on its strong education and research sectors, the region’s highly skilled workforce and diverse range of industries,” Mr Baird said. 

“We want to ensure we are doing all we can to attract and retain the best and brightest minds in Newcastle, which is why this investment is so crucial.”

The government’s commitment to the project – which Mr Baird will formally announce at a speech at the University of Newcastle on Monday – will come out of funds remaining in the recently shuttered Hunter Infrastructure and Investment Fund. 

An additional $8 million in funds will come from the project’s backers including Newcastle City Council and the University of Newcastle.

The project includes a new “innovation hub” building to support technology-based industry, a “digital precinct” with highs-speed, fibre-based broadband to about 250 properties and “smart city infrastructure” aimed at making Newcastle’s infrastructure work more efficiently. 

The plan is part of Newcastle City Council’s “smart cities” initiative, and Lord Mayor Nuatali Nelmes – one of the Innovation Project’s most enthusiastic backers – said it would “support economic growth, jobs and spur innovation”.

“It will provide smart city infrastructure like Wi-Fi, smart parking and lighting, and an innovation hub where sharp thinkers can put their minds together to make our city and region a better place to live, work, visit and invest,” she said.

The $9.8 million commitment from the Baird government is the first allocation from the final $50 million remaining in the Hunter Infrastructure and Investment Fund. The Newcastle Herald revealed last week that the fund – set up after the 2011 election to guide 20 years of the infrastructure development in the region – had been quietly finished.

There are nine other projects still under consideration for funding from the remaining $40 million, including a dedicated cruise ship terminal.

The government is yet to indicate which projects might earn funding, but in parliament last week Planning Minister Rob Stokes indicated there would be more announcements shortly.

Mr Stokes said the University of Newcastle’s involvement in the innovation project would build on its increased presence in the city, which includes the NeW Space city campus and the government’s recent announcement that it would allow the Hunter Development Corporation to negotiate directly with the University on securing additional campus space in the city centre. 

“Not only will Newcastle come to be known as a great University city; it will also be known for its cutting edge research and innovation,” Mr Stokes said. 

Professor Kevin Hall – the University of Newcastle’s Deputy Vice-Chancellor - said the funding would support an “increased engagement between the University and different industry sectors across the region”. 

“The Hunter Innovation Project will allow us to harness the University’s reputation for research excellence to facilitate close ties between academia, business and industry,” he said.

The “hub” building – on the corner of King and Auckland Streets – is due to be complete by early 2019. A part of the university’s so-called “integrated innovation network”, the aim is to bring researchers and students together with start-ups and small to medium size enterprises. 

Michael Neilson, the executive manager of Newcastle Now, said it was a “great day” for innovators in the Hunter. 

“This new infrastructure will create an environment for budding entrepreneurs to experiment and innovate within our city centre,” he said.

What is it?

The Hunter Innovation Project was one of 10 projects short-listed for funding from the final $50 million allocation from the Hunter Infrastructure and Investment Fund, which was set up by the former O’Farrell government after the 2011 election to guide spending in the Hunter. The goal of the project is to encourage Newcastle’s transformation as a city known for pushing innovation, and as a hub for start-ups.

What does it include?

According to the government, Newcastle City Council and the University of Newcastle there are three pillars to the project.

An “innovation hub”: a dedicated facility in the Newcastle CBD which will aim to bring together researchers, students, developers, entrepreneurs, investors, technical specialists and business advisors. The university says its aim will be to “facilitate the launch of spinoffs, start-ups and mature companies; attract investment and businesses to the Hunter Region; encourage innovation and commercialisation; and produce the next generation of entrepreneurs, business leaders and inventors”. 

A “digital precinct”: a designated zone with fibre-based broadband to about 250 properties. The “precinct” is aimed at giving the city a “key competitive advantage in attracting and retaining high-tech, digital and creative industries to stay or locate in the region”.

And “smart cities infrastructure”: a network involving an array of Wi-Fi-linked sensors and integrated technology located initially throughout the Newcastle CBD. The council says the network will provide “detailed real time data on the performance of city infrastructure, facilitating an openended range of services and applications to improve the ease of access, efficiency and liveability of the city for residents, businesses and tourists”. Through this infrastructure a new source of ‘open, big data’ will become available to start-ups, entrepreneurs, and the public to develop and test information technology products through the Innovation Hub and the wider innovation ecosystem. 

Who’s paying for it?

$9.8 million is coming from the Baird government. The additional $8 million is coming from the project’s backers, Newcastle City Council, the University of Newcastle, Newcastle NOW, and Hunter DiGiT.