15 APRIL, 2015
Science and Innovation Minister Steven Joyce today announced the latest companies that meet eligibility criteria for research and development (R&D) Growth Grants administered by Callaghan Innovation.
Fourteen new companies will be able to increase their investment in R&D through Growth Grants worth up to $15.8 million over three years. Callaghan Innovation’s R&D grants programme is aimed at bringing New Zealand’s levels of private R&D investment and innovation closer to those of our major trading partners.
Growth Grants meet 20 percent of the cost of an eligible firm’s R&D programme. A total of 152 hi-tech companies have now been awarded grants worth up to $356 million. That will in turn support business spend on R&D of up to $1.5 billion over three years.
“The companies in this latest tranche include young, fast-growing hi-tech firms such as audience engagement app developer STQRY and pigment company D’Arcy Polychrome that realise the importance of innovation,” Mr Joyce says.
“These grants are a crucial part of our efforts to boost levels of private R&D spend in New Zealand, which studies show is a key driver of economic growth. In addition, they help diversify the New Zealand economy and assist New Zealand companies to successfully compete internationally.
“That in turn will help lift New Zealand’s export revenues, job numbers, and the incomes of Kiwi families.”
The latest companies to qualify are:
- Agility CIS Ltd
- Bluelab Corporation Limited
- D’Arcy Polychrome Limited
- Flightcell International Limited
- Invenco Group Limited
- Izon Science Limited
- MetOcean Solutions Limited
- Portland Software Services Limited
- Rinnai New Zealand Limited
- SAFERsleep Limited
- Stella Now Limited
- STQRY Limited
- Unleashed Software Limited
- Waikato Milking Systems
About the R&D Growth Grants
R&D Growth Grants are an on-demand, non-discretionary scheme that enables qualifying companies to claim back 20 percent of their eligible R&D expenditure, capped at $5m a year.
To qualify, a business must commit to spend at least $300,000, and at least 1.5 per cent of revenue, a year on R&D that takes place in New Zealand.
Companies must maintain or increase their spending on NZ-based R&D over the course of the funding. There are clawback provisions should a change occur that reduces the benefit to New Zealand.
Growth Grants are for three years but after two years, businesses can be granted a further two-year extension of funding.
Growth Grants are just one of a suite of business innovation services provided through Callaghan Innovation, which include R&D Project Grants for smaller companies and those new to R&D, and R&D Student Grants that give graduates the opportunity to work in innovative companies.
Yesterday’s announcement of additional funding of $80m over four years adds to the $566m over four years committed in Budget 2013 for R&D grants to encourage the development of a strong business R&D ecosystem in New Zealand.
If you would like to know more about accessing funding for your company’s R&D program, click here to send The Resources Guys an email to arrange a no obligation meeting.