R&D and innovation news: Budget 2018: Research, Science and Innovation

Through Budget 2018 the Government will invest $1.1 billion of funding over four years for Research, Science and Innovation, growing the total Government investment by 26 percent from $1.58 billion in 2017/18 to $ to $1.99 billion in 2019/20.

Budget 2018 funding will invest in new initiatives that stimulate increased business expenditure on R&D, invest in critical research, science and innovation infrastructure, and leverage our international science relationships.

Budget 2018 Initiatives  18/19 19/20 20/21 21/22 Total
R&D Tax credit $70m $280m $320m $350m $1020m
Measurement Standards Laboratory $2.5m $5.3m $4.2m $4.9m $16.9m
National Research Information System $3.9m $2.4m $2.2m $1.6m $10.1m
Science Cooperation with Singapore $12.0m $15.0m $15.0m $15.0m $57.0m
Total new funding $88.4m $302.7m $341.4m $371.5m $1104.0m

Budget 2018 demonstrates the Government’s commitment to lifting R&D spending to 2% of GDP by 2027. This package is the Government’s first investment in an inclusive, adaptive and resilient economy, underpinned by science and innovation.

MBIE initiatives receiving increased funding

Tax Incentive

  • The Government’s new R&D tax incentive will receive $1.02 billion over four years. This funding will enable the Government to deliver a 12.5% tax credit on eligible expenditure for businesses doing R&D in New Zealand. The credit will be available for eligible expenditure incurred from 1 April 2019. The Government welcomes submissions on the proposed design of the R&D tax incentive. Submissions can be made before Friday, 1 June 2018 here.

Measurement Standards Laboratory

  • The Government will invest $16.9 million over four years in revitalising the Measurement Standards Laboratory. This will be made up of $8.33m of new operational funding and $8.59m of new capital funding over four years. The funding will support MSL to maintain and adapt its metrology services so that it continues to support New Zealand’s businesses to grow, diversify and export.

Science Cooperation with Singapore

  • $57 million over the next four years is being set aside for joint research programmes in data science and future food science, supporting delivery of a new bilateral ‘Enhanced Partnership’ with Singapore. Funding is being made available now to enable negotiations with Singapore to be concluded.

National Research Information System

  • $10.1 million over the next four years will be for the development of the National Research Information System (NRIS), an information hub where people can easily find information about research, science and innovation in New Zealand.