Innovation-led growth to boost business potential

Hundreds of New Zealand companies are set to benefit from the launch of two new grants aimed at fuelling firms that want to innovate.

“This $250 million investment over the next four years is a sign of my commitment to some of New Zealand’s brightest businesses, and to turning our great ideas into building a higher-value, more sustainable economy,” says research, science and innovation minister Megan Woods.

“I want to turbo-charge all the tremendous potential I see in our business ecosystem, by introducing grants to help out with the high costs and steep learning curves associated with R&D, and to provide an on-ramp to our existing R&D Tax Incentive.

“I also want to provide extra encouragement to businesses that are performing innovation that is new to the world. Now with a combination of the R&D Tax Incentive, and the new grants programmes, we will have a system of support that is much more representative of the full gamut of business activity we want to stimulate.”

The “New to R&D Grant” is expected to support about 400 businesses over four years, while the ‘Arohia – Innovation Trailblazer Grant’ will support around 100 businesses over its first four years, and about 200 companies annually will be supported through a seed version of the Innovation Trailblazer Grant.

Woods says innovation needs investment and fostering to continue to address issues like emissions and help pave the way for economic recovery after COVID-19.

“Returns on fundamental research and development can take decades to materialise so it is right we take a long-term view,” she adds.

“The R&D Tax Incentive now has over 1500 businesses enrolled, with over $118 million of RDTI credits approved. This has supported private sector investment in R&D of over $788 million so far.

“This new investment is intended to further supplement private investment by funding innovative activities that might not happen – or happen to the optimal extent – without government support.”

Callaghan Innovation will administer the grants available from mid-September 2022.