"The NSW Parliament’s state development committee is investigating opportunities to grow the defence industry to boost economic development," Challen said.

The latest inquiry follows the committee's recent hearing in Sydney, which saw witnesses from Thales, Quickstep, the Department of Defence and a number of SMEs.

Witnesses at the Orange inquiry included representatives from Bathurst Regional Council, Parkes Shire Council, Central NSW councils (Centroc), Bland Shire Council, Evocities, Orange City Council and Charles Sturt University.

Minister for Trade and Industry Niall Blair said the inquiry into defence reflects the NSW Defence and Industry Strategy, and is focusing on maximising opportunities for NSW-based companies.

"The hearings will also highlight how the regions can tap into Sydney’s booming economy, which is benefiting from increases in international trade, infrastructure construction, tourism, innovation and research," Minister Blair said.

The director of Defence NSW Peter Scott recently highlighted the regional focus the government is taking in regard to defence and how it can best work with academic and research institutions.

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"There's a very strong focus on regional New South Wales where, of course, defence is very important as an investment stream and for promotion of new jobs and so on," said Scott.

"As you might expect, a strong focus on innovation and commercialisation, so we're working very closely with many of the major academic and research institutions."