In his first major economic statement as Prime Minister, Malcolm Turnbull will today unveil a $1 billion plan to foster greater innovation across 11 different Government portfolios.

Key points: $1 billion plan to 'kick start innovation culture', including $100 million to CSIRO

$1 billion plan to 'kick start innovation culture', including $100 million to CSIRO Tax, research infrastructure, education affected

Tax, research infrastructure, education affected Changes to bankruptcy laws, visas, tax exemptions for investors

Changes to bankruptcy laws, visas, tax exemptions for investors Labor announces its own 20 measures

Among the measures will be a $100 million boost for the CSIRO, which was hit by around $110 million in funding 0cuts in the 2014 federal budget.

The Government will unveil plans in the areas of tax, research infrastructure, and education in the STEM subjects - science, technology, engineering and maths - in a bid to "kick start an innovation culture".

The ABC understands there will be a commitment to provide capital gains tax exemptions for investors who hold shares in a start-up for three years or more.

It is also expected there will be a relaxation of bankruptcy laws, and changes to visa rules to encourage more entrepreneurs and highly skilled workers to travel to work in Australia.

The full plan will be detailed by Mr Turnbull and Innovation and Science Minister Christopher Pyne at the CSIRO in Canberra at 12:30pm (AEDT).

Since taking over as Prime Minister, Mr Turnbull has vowed to put innovation at the heart of his Government's agenda, especially in the areas of climate change and increasing productivity and economic growth.

Federal Treasurer Scott Morrison said extra spending in the innovation policy would be offset by savings in the mid-year budget update.

"What Mathias Cormann and I ... have been doing for the last three months is continuing the work on savings to ensure that we can get the budget back to at least where it was in terms of the level of expenditure as it was in May," he told Macquarie Radio.

Assistant Minister for Innovation, Wyatt Roy, told ABC News Radio the key to driving future prosperity of our country was enabling and collaborating with the private sector.

"That's where we've got to see the role of government is bringing together both sides - the private sector the incredible research we do, so we commercialise things and create these incredible businesses, products, ideas that change the world for the better," he said.

Labor highlights 'damage caused by cuts'

Labor sought to get on the front-foot on Friday, announcing its own suite of 20 measures to encourage innovation, especially in regional Australia.

"We'll wait with bated breath, like many people are, to see if the innovation statement lives up to all the hype," said Ed Husic, Labor's spokesman on digital innovation and start-ups.

He pointed out that the CSIRO, the location for today's announcement, has had to cut 1,400 jobs as a result of budget cuts by the Coalition Government.

Millions of dollars have also been cut from other national science and research institutions, including Cooperative Research Centres, the Research Training Scheme, Geoscience Australia and the Bureau of Meteorology.

"As much as we welcome the fact that the Government is making this innovation statement, it really is important for them to spell out all the damage caused by the cuts," Mr Husic said.

Professor Les Field, from the Australian Academy of Science, said he hoped for long-term and secure funding, including for major pieces of scientific equipment, which are currently being funded for two years at a time.

Business groups are meanwhile hoping the innovation statement will provide a realistic strategy for the Australian economy.

The chief executive of the Australian Industry Group, Innes Willox, told AM solutions are needed to account for the winding down of car manufacturing in Australia, the ageing population and the end of the most recent mining boom.

"We are regarded in Australia as being very strong when it comes to research, quite poor when it comes to collaboration between universities and institutions and business, and particularly poor when it comes to commercialisation," he said.

"So it's those last two legs that the Government really needs to try to fix."