The Department of Innovation, Industry and Regional Development (DIIRD) was created on 5 March 2002 by the renaming of the Department of State and Regional Development (VA 4189) to the Department of Innovation, Industry and Regional Development, and the establishment of the Department of Tourism, Sport and the Commonwealth Games (VA 4560) by the Public Sector Management and Employment Act 1998.
Under Administrative Arrangements Order No. 177, DIIRD assumed responsibility for many of the functions of the Department of State and Regional Development (VA 4189), particularly those associated with business and economic development, innovation and policy, industrial relations, regional and rural development, science and technology, liquor control and licensing, and employment programs.
At the time of establishment, DIIRD reported to the following ministers: Minister for State and Regional Development, Minister for Innovation, Minister for Manufacturing Industry, Minister for Employment, Minister for Information and Communication Technology, Minister for Small Business and Minister for Industrial Relations.
Following the Victorian state election in November 2002, DIIRD also assumed responsibility for tourism, including the Australian Grands Prix Act 1994 and the Tourism Victoria Act 1992, under Administrative Arrangements Order 182. Responsibility for functions associated with liquor control and licensing were assumed by the Department of Justice (VA 3085) under Administrative Arrangements Orders 182 and 183.
In December 2002 after a cabinet reshuffle the Department reported to the following ministers: State and Regional Development; Innovation; Tourism; Manufacturing and Export; Small Business; Financial Services Industry; Industrial Relations.
On the 25 March 2003 under the Public Sector Management and Employment Act 1998 the Office of the Innovation Economy Advisory Board was established in DIIRD. On the 16 May 2003 the function of administering the Melbourne Cricket Ground Redevelopment Project was transferred from DIIRD to Department of Victorian Communities.
In 2005, the Government launched an Energy Technology and Innovation Strategy (ETIS). DIIRD was responsible for this strategy through its Office of Science and Technology. Following the November 2006 Victorian state election, ETIS became the responsibility of the Department of Primary Industries (VA 4563) as part of its Energy and Minerals Resource Division.
Following the 2006 state election, DIIRD assumed responsibility for the Information and Communication Technologies functions previously part of the Department of Infrastructure (VA 3971) and Multimedia Victoria, under Administrative Arrangement Order No. 192 (Victorian Government Gazette S 317).
Another significant change was DIIRD assuming responsibility for the Office of Training and Tertiary Education, under Administrative Arrangement Order 192. The Office of Training and Tertiary Education (formerly part of the Department of Education and Training) is responsible for providing strategic support and regulation in the areas of vocational education and training, apprenticeships and higher education.
After the election, DIIRD reported to the Minister for Industry and State Development, Minister for Small Business, Minister for Innovation, Minister for Regional and Rural Development, Minister for Industrial Relations, Minister for Skills, Education Services and Employment, Minister for Tourism and the Minister for Information and Communication Technology.
Following the 2006 state election, the primary functions carried out by DIIRD were: Business Development; Business Support; Corporate Services; Economic Policy and Planning; Industrial Relations Victoria; Innovation Economy Advisory Board; Invest Victoria; Office of Training and Tertiary education; Office of the Victorian Small Business Commissioner; Multimedia Victoria; Regional Development Victoria; Strategic Communications; Tourism Victoria; Workplace Rights Advocate.
On the 14 August 2007 through administrative arrangements order 196 of 2007 the Minister of Industry and State Development changed to the Minister of Industry and Trade.
DIIRD then reported to the following ministers: Industry and Trade; Information and Communication Technology; Major Projects; Major Projects; Skills and Workforce Participation; Regional and Rural Development; Small Business; Tourism and Major Events; Industrial Relations; Innovation.
In 2008 a new Department of Transport took over most of the functions of the former Department of Infrastructure except for Major Projects Victoria which was transferred to DIIRD. These administrative arrangements came into effect on the 30 April 2008 through Administrative Arrangements Order No. 199 of 2008. DIIRD then also reported to the new Minister for Major Projects.
On the 29 December 2008 a new Minister for Financial Services was appointed as announced in the Government Gazette S392. During 2007/2008 machinery of government changes also resulted in the transfer to DIIRD of Citizen Access and Transformation, and Workforce Participation.
In the both the 2008-09 and 2009-10 Annual Reports DIIRD had 11 organisational divisions comprising: Corporate Services and Development; Policy and Coordination; Skills Victoria; Innovation and Technology; Industry and Trade; Internal Coordination; Regional Development Victoria; Tourism, Aviation and Communications; Workforce Victoria; Investment and Major Projects; Economic Infrastructure. DIIRD also had one associated body, the Office of the Victorian Small Business Commissioner.
The Department of Innovation, Industry and Regional Development (DIIRD) was abolished on 2 December 2010 when it was renamed the Department of Business and Innovation (VA 4925) under the section 10 (c) of the Public Administration Act 2004, the Order in Council published in Victorian Government Gazette S485. The name change was part of machinery-of-government changes made by the newly elected Coalition Government in December 2010. Most functions of DIIRD were transferred to DBI, however some moved to other Departments. Skills Victoria transferred to the Department of Education and Early Childhood Development (VA 4840); part of Regional Development Victoria moved across to the Department of Planning and Community Development (VA 4838); and the public sector industrial relations function transferred to the Department of Treasury and Finance (VA 3745).