A $234-million-dollar investment boost in research and development for business will help lift the country's economic performance, Prime Minister John Key said yesterday.
"New Zealand has very high quality research institutions, both public and private, which are carrying out cutting-edge science.
"But we have some way to go when it comes to turning scientific knowledge and insights into business growth," he said.
Next week's Budget will provide $189.5 million over four years to create technology development grants of up to 20% of the expected research and development spend for three years, targeted at medium-to-large research intensive firms.
"Funding through technology development grants will give firms the confidence to invest in longer-term research and development programmes, increasing the amount of research they do," Mr Key said.
TechNZ grants, which fund 50% of a project, will be retained.
The Government will spend $20 million on technology transfer vouchers, targeted at firms without in-house research and development ability, but which would benefit from working with a university or Crown Research Institutes (CRIs).
Mr Key said the vouchers would typically be worth $100,000 to $200,000 and increase the overall volume of research and development but also improve links between business and science.
Further funding would be made available to assist firms adapt technology and to capture the commercial value of research completed by public science organisations.
Business New Zealand chief executive Phil O'Reilly welcomed the investment, saying it was more significant in the context of earlier changes to the structure of the Foundation for Research Science and Technology and the Ministry of Research Science and Technology and to CRIs which reduced bureaucracy.
Mr O'Reilly said it was logical that funding target larger companies as that was where there would be "bigger bangs for the bucks".
Business would also welcome Mr Key mentioning that high-tech manufacturing and services would be a funding target, that it was not solely aimed at food production.
Labour's research, science and technology spokesman David Shearer said the funding was less than half what the Labour government proposed with its tax credits and Fast Forward Fund proposal which were abandoned by the National Government.
