Research, science and technology will be one of the major recipients of $225 million in new funding in the 2010 budget, Prime Minister John Key said today.There are catches, however.A business must have revenue over $3 million and spend more than 5% of th
Research, science and technology will be one of the major recipients of $225 million in new funding in the 2010 budget, Prime Minister John Key said today.
There are catches, however.
A business must have revenue over $3 million and spend more than 5% of that revenue on research and development to qualify for a 20% tax break on R&D spending.
The immediate online reaction from entrepreneur Lance Wiggs, one of the founders of Pacific Fibre, after scanning background documents: "So far I am not a fan. It seems painful." (Read more of Mr Wiggs' critique here.)
"The Budget will focus squarely on building faster and sustainable economic growth - it's the only way we can create the jobs, higher incomes and the better living standards New Zealanders deserve," Mr Key said.
"Research, science and technology will help us achieve that goal.
"In February, I said that science and innovation would be a priority for this government and today's announcement backs that up."
Of the total allocation of $321 million for new initiatives over the next four years, $225 million is new funding and $96 million is reprioritised funding.
Some $44 million will go on expanding research infrastructure, with Mr Key name-checking the AUT University-driven Square Kilometre Array (SKA) bid in his speech today announcing the measures (read transcript here).
New Zealand has joined Australia in its bid to win the right to build this megascience project, which will come with a $4 billion price tag (to be shared by all international partners).
The centrepiece of the funding increase is a $234 million boost for support for business research and development over four years.
This includes:
- $189.5 million over four years for technology development grants to support R&D in businesses that already do significant amounts of R&D
- $20 million over four years to trial technology transfer vouchers, which will encourage links between companies and publicly-funded research organisations
- $11 million over four years to support technology transfer from research organisations to businesses and commercialisation of new products and processes
- $13.7 million over four years in contingency funding for initiatives to improve the transfer of technology from research organisations to the private sector
The other major new initiatives are:
- $25 million over four years for the Rutherford Discovery Fellowships which will support early to mid-career researchers
- $9 million over three years, starting in 2011/12 to attract top science entrepreneurial talent to New Zealand
- $44.3 million over four years in contingency funding for proposed large-scale science infrastructure, subject to cabinet approval.
