Australian government offered a number of commercialization grants to businesses from 2009 to 2014. The grants were to support companies and innovators during the commercialization phase of their products and ideas. Focussing on the small firms that are supported by the program, we find that the grant recipient firms tend to invest in capital and research and development (R&D) in larger amounts than a similar comparison group. These firms also experience a faster growth in turnover and a higher probability of exporting, patenting and registering for trademarks. Overall, the program seems to have had a positive impact on firm productivity and innovation activity.