Calls to reinstate tax incentives

Reinstating tax incentives for research and development should be considered to help innovation, a Ministry of Economic Development report on intellectual property says.

The report, released to coincide with World Intellectual Property Day today, examined how the intellectual property (IP) system could encourage innovation and productivity in the economy, Commerce Minister Simon Power said.

A survey conducted as part of the report showed there was a similar level of IP awareness amongst New Zealand businesses and, relative to the United Kingdom, there was a high level of awareness of the need to apply for IP protection.

Innovative firms surveyed called for the reinstatement of tax incentives.

The research and development tax credit was introduced by the previous Labour government and was canned by the current government.

The reports recommendations said it "bears consideration" to reinstate the tax credit.

"Amongst firms that did license their technology internationally there was a significant problem with the tax treatment of royalties on IP.

"Any tax policy that has a negative effect on licensing of intangibles needs to be reviewed," the report said.

Consideration needed to be given to supporting innovative firms with monetary grants and other help, including international registration of IP, monitoring and enforcement of IP rights, the report said.

The report also recommended raising awareness and understanding of IP, having a single comprehensive government IP policy and further research into other areas of IP.

Mr Power said the Government recognised the role it must play to enable business and others to engage in innovation.

"New Zealand innovation has also contributed to world leading technological breakthroughs in a diverse range of fields from science to adventure tourism."

A special panel discussion between students and film, music and science mentors will be held in Wellington to celebrate World Intellectual Property Day, Mr Power said.

Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7195 -0.0035 -0.48%
AUD 0.9376 0.0004 0.04%
EUR 0.6815 -0.0016 -0.23%
GBP 0.5775 0.0016 0.28%
HKD 5.5840 -0.0260 -0.46%
JPY 80.6890 -0.8190 -1.00%


Commodity Price Change Time
Gold Index 1258.3 9.000 2017-02-24T00:
Oil Brent 56.3 -0.300 2017-02-24T00:
Oil Nymex 54.0 -0.480 2017-02-24T00:
Silver Index 18.3 0.220 2017-02-24T00:


Symbol Open High Last %
NZX 50 7090.4 7099.6 7089.5 -0.44%
NASDAQ 5802.3 5845.3 5835.5 0.17%
DAX 11920.9 11934.6 11947.8 -1.20%
DJI 20751.9 20821.8 20810.3 0.05%
FTSE 7271.4 7271.9 7271.4 -0.38%
HKSE 24115.6 24121.9 24114.9 -0.62%
NI225 19232.1 19381.1 19371.5 -0.45%
ASX 5784.7 5784.7 5784.7 -0.79%