Labor will go to the next election pledging to introduce HECS-style loans for entrepreneurial university graduates who want to create their own start-up companies.

The $5.5 million plan, to be announced by Opposition Leader Bill Shorten in Sydney on Thursday, would create the option of a "start-up year" at the end of a degree similar to an academically focussed honours year.

The option of a ''start-up year'' will be available to up to 2000 students a year. Credit:Fiona-Lee Quimby

Labor is determined to seize back the initiative on technology and innovation after Prime Minister Malcolm Turnbull made them central to his pitch for the Liberal leadership and emphasised these policy areas in his frontbench reshuffle.

"By expanding the existing income-contingent loan system, Australian students will have the opportunity to undertake an additional business-focused year of university and develop their ideas into a start-up business," Mr Shorten said.