$90 million dishes out to techs - including London-listed Endace

BETTER DAYS: Endace's recent performance on the London Stock Exchange's AIM index (AIM: EDA).

New Zealand technology company Endace will be the beneficiary of a Technology Development Grant worth up to $6.7 million over the next 36 months, the company said this morning in a statement.

The new grant was announced in the budget, backed by a $189.5 million fund, and the first $90 million in allocations were made today.

Other major recipients included the NZX-listed Rakon and Fisher & Paykel Healthcare, which each received $7.2 million.

The following privately-held companies also received $7.2 million:

  • Gallagher Group (an electric fence maker)
  • Tait Electronics
  • Weta Digital
  • Orion Healthcare
  • Douglas Pharmaceuticals

Other big winners included Dunedin's Scott Technology ,which picked up a $3.8 million grant, and Christchurch companies Jade Software ($3.2 million) and Dynamic Controls ($5.28 million). See the full list here.

Minister of Research, Science and Technology Wayne Mapp said the new fund was all about "picking winners".

Give and take
In terms of state funding, it's been a good year for the London-listed Endace. In July, it received a $4.4 million Technology NZ grant.

The company has returned the complement by announcing plans to bring Asian manufacturing home to Christchurch, creating 10 jobs, and boost its Hamilton R&D team from 50 to 90.

The new grant, announced in Christchurch this morning by Hon Dr Mapp, Minister of Research, Science and Technology, will enable Endace to further accelerate its development of ultra-high performance packet capture and analysis systems; technology that helps computer networks run better, and more safely.

Monetising Kiwi intellectual property
Mike Riley, Endace chief executive said: "We're absolutely delighted to have received this grant and would like to recognise the support the New Zealand government has given Endace in the past and continues to provide today.

Research and development is the lifeblood of Endace and we're thrilled to see the government recognising and supporting organisations that have proven track records in creating and monetising Kiwi Intellectual property."

Protecting from cyber-attack
Endace products are used by government agencies, large enterprises and organisations that have the responsibility for protecting critical national infrastructure against cyber-attack.

Dr Richard Templer, acting Chief Executive, Foundation for Research, Science and Technology, says that Endace is a frontrunner in R&D.

“It’s no coincidence that Endace feature in the TIN100 list of leading technology businesses. Their commitment to innovation and expertise in using R&D to create products that have given them a competitive advantage have, in turn, benefited New Zealand.

“TechNZ support will ensure Endace have even greater financial certainty over the next three years and can just keep on doing what they are good at—developing innovative technology solutions that are in global demand,” Dr Templer says.

$189.5 million fund
The Technology Development Grant was announced in the May Budget as a new initiative to increase business investment in R&D, with $189.5 million available over four years. It is designed to support firms with a good track record in R&D and which spend a significant proportion of their revenue on it.

One of New Zealand’s most highly awarded and successful high-tech companies, Endace came from humble roots, formed from a latency research project in the School of Computing and Mathematical Sciences at the University of Waikato.

In 2001 the technology was successfully commercialised and Endace was formed to service Telecommunication Companies, Govern­ment Agencies and Fortune 500 organisations seeking to monitor, measure and secure their networks.

Endace became the first New Zealand company listed on the AIM (Alternative Investment Market) in the UK when it floated in mid-June 2005.

Over the last ten years Endace has seen significant growth and has evolved into a fully-fledged systems business focusing on the Cyber Security Monitoring and Financial Services markets.

Largest govt R&D investment ever
The Technology Development Grant is administered by the Foundation for Research, Science and Technology and is one of its investment products under TechNZ, the Foundation’s business investment programme.

In 2010/11, $92 million will be invested into 26 businesses in the high value manufacturing sector. This is the largest Government R&D investment into businesses ever.

The grant reimburses 20% of eligible R&D expenditure on a business’s R&D programme, up to $2.4 million (excl. GST) a year.

Grants will be awarded for three years, after which a business will have to reapply for a grant alongside other businesses. The final amount businesses will receive depends on their actual R&D expenditure over the next three years.

READ ALSO: Chief executive named for new Ministry Science and Innovation

 

Business name

Location

Approved maximum investment (GST excl)

Applied Research Associates NZ Ltd: developer of 3D scanning and modelling technology for applications as diverse as moviemaking, geological modelling and medicine

Christchurch

$1.32m

BankLink: provider of services to accounting professionals focusing on streamlining the compliance accounting processes of small and medium enterprise owners and their accountants

Auckland

$2.10m

Compac Sorting Equipment Ltd: developer and manufacturer of fruit & vegetable packing technology, machinery, software and electronic solutions around the world

Auckland

$1.72m

Dynamic Controls Ltd: manufacturer of electronic controls for power wheelchairs and scooters

Christchurch

$5.28m

Douglas Pharmaceuticals Ltd: one of the fastest growing pharmaceutical companies in Australasia, with considerable investment in product development laboratories

Auckland

$7.20m

Enatel Ltd: specialists in the design and manufacture of a range of standby power solutions for the telecom, networking, wireless and industrial markets

Christchurch

$2.46m

Endace Technology Ltd: supplier of high-speed network traffic capture and analysis solutions to large enterprises, telcos, financial firms and government agencies worldwide

Auckland

$6.70m

Fisher & Paykel Healthcare Corporation Ltd: designer, manufacturer and marketer of a range of innovative healthcare devices which incorporate unique features to improve patient care

Auckland

$7.20m

Formway Furniture Ltd: designer of high performance office seating and furniture

Wellington

$1.22m

Gallagher Group Ltd: provider of power fence and animal performance systems

Hamilton

$7.20m

Gentrack Ltd: developing, implementing and supporting software solutions for energy, water and airport utilities

Auckland

$1.44m

Integrated Control Technology: manufacturers of leading edge integrated electronic access control, intrusion protection and building automation solutions

Auckland

$0.85m

Jade Software Corporation: designs and develops next generation applications and builds high-performance data management technology

Christchurch

$3.20m

Orchestral Development Ltd/Orion: provider of clinical workflow and integration technology for the healthcare sector

Auckland

$7.20m

Rakon Ltd: design and manufacture of frequency control solutions particularly crystal oscillators for GPS equipment

Auckland

$7.08m

Scott Technology Ltd: engineering company that specialises in the design and manufacture of automated production and process machinery in meat and food industry

Dunedin

$3.78m

Serato Inc Ltd: producer of software products for DJs for time-stretching and pitch-shifting of digital audio files

Auckland

$0.49m

Simcro Tech Ltd: designer and manufacturer of agricultural and animal health delivery systems

Hamilton

$0.93m

Sika Technology Ltd: developer and producer of aluminium die cast solutions for the telecommunication and municipal utility sectors

Auckland

$0.95m

Skope Industries Ltd: designer, manufacturer and supplier of commercial refrigeration, food service and heating products globally

Christchurch

$3.21m

Tait Electronics Ltd: designing and delivering radio solutions which are the right fit for a variety of industries including public safety agencies, government services, utilities and urban transport providers

Christchurch

$7.20m

Vista Entertainment Solutions Ltd: ticketing and billing software solutions for the cinema industry worldwide

Auckland

$1.24m

Weta Digital Ltd: digital artists in all areas of visual effects production, including animation, motion capture, crowd generation, modelling, compositing, and film scanning and recording

Wellington

$7.20m

Zeacom Ltd: provider of advanced Unified Communications (UC) and contact centre solutions that integrate real-time communication tools such as presence information, contact routing, conferencing, chat and speech recognition with conventional tools such as voicemail, email and faxad

Auckland

$2.11m

Zelam Ltd: chemical company providing products for niche domestic and international agrichemical and timber markets

New Plymouth

$0.87m

4RF Communications Ltd: developer and manufacturer of wireless radio equipment for critical infrastructure applications

Wellington

$1.89m

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5 Comments & Questions

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Don't see anything for the proposed Wool Partners Co-op venture which just may help to put New Zealand on the Sheeps back again.

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Nothing for biotechnology either.

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Re: the lack of biotech. This fund was only available for companies generating significant revenue. Disappointing but the way it is.

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Big payouts to large, established companies some of whom are listed. Can someone explain why this doesn't just represent a big transfer of money from the taxpayer to big companies that have already managed to fund their own R&D?

eg do F&P, Rakon and Weta really need the taxpayer to give them $7m?

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I suppose you have to submit a worthy research idea flooowed by consideration then are given the pay out.. if these companies are the ones that submitted ideas then of course they are the ones that are going to get the money... ie the real question is who submitted and didn't get the money?

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