Science and Innovation Minister Paul Goldsmith has today announced an additional $74.6 million in funding through the Innovative New Zealand programme in Budget 2017 to meet the growing demand for Callaghan Innovation’s research and development (R&D) Growth Grants.
“Encouraging business R&D helps high-tech, innovative Kiwi companies to bring products and ideas to the market sooner, which has significant benefit for export revenues,” says Mr Goldsmith.
“The rise in demand for Growth Grants is a positive sign that businesses are increasing their investment in R&D. This additional funding means a total of $657.2 million is now available over four years through the Growth Grants programme.”
The new funding in Budget 2017 follows on from the $761.4 million investment in Budget 2016 through the Innovative New Zealand package, and continuing investment in science and innovation over a number of years.
New data released earlier this year by Statistics New Zealand showed a significant jump in the amount Kiwi companies are spending on R&D. In the two years to 2016 business R&D increased by 29 per cent and Callaghan Innovation grant recipients increased their own R&D spending by 46 per cent.
“New Zealand companies invested $356 million more on Business R&D in 2016 than they did two years prior, lifting expenditure to the highest level since records began,” says Mr Goldsmith.
“Growing levels of business R&D are likely to increase the productivity of the wider economy as they result in knowledge and technology that can be used by other businesses to generate new industries, higher-value products and higher-skilled jobs.”
Growth Grants provide a predictable, rules-based platform for businesses to increase their investment in R&D and encourages the development of a strong business R&D ecosystem in New Zealand.
“Businesses are lifting their investment in their own R&D, and this boost to Growth Grants funding will assist more Kiwi companies to innovate successfully.”