Govt issues extra $59m in R&D grants to grow firms faster

Research & Development Growth Grants worth $59 million over three years have been awarded to 19 more high tech New Zealand businesses by Callaghan Innovation, Science and Innovation Minister Steven Joyce announced today.

R&D Growth Grants were introduced last year as part of changes to R&D funding designed to encourage more research and development to be undertaken by businesses in New Zealand.

They provide up to $5 million co-funding a year to mid-sized and large New Zealand-based companies that are experienced in doing R&D.

“These companies – who have already shown a significant commitment to R&D – have the potential to grow further and faster through the innovation this support will foster,” Joyce says.

“This new funding follows last month’s announcement of more than $140 million over three years for the first 31 companies under the new grants scheme. So far $200 million has been awarded to 50 high tech companies.”

The Growth Grants, an expansion of the previous Technology Development Grants, are aimed at encouraging R&D investment in businesses that show a commitment to R&D.

They provide 20 per cent public co-funding for qualifying firms’ eligible R&D expenditure, with an expanded cap of $5 million per annum – up from the previous scheme’s $2.4 million. After two years of funding, businesses can be granted a further two-year extension of funding.

To qualify for a Growth Grant, a business needs to commit to spend at least $300,000, and at least 1.5 per cent of revenue, on R&D occurring in New Zealand. R&D Project Grants are available for smaller companies and those that are new to research and development, while incubator support programmes assist start-up businesses.

The new Callaghan Innovation grants – R&D Growth Grants, R&D Project Grants, and R&D Students Grants – were announced in Budget 2013. A total of $566 million is now available over four years ($141.5 million a year) to encourage innovation through Callaghan Innovation’s business research and development grant schemes.

Follow Us
on Google+
Sponsored

Review: Lenmar Meridian iPhone Power Case

NetGuide The iPhone is known for not having the longest battery life. Too often you see people carrying their charger with them as the phone won’t make it through the day (and that’s without calling!). Battery cases have been around for a while, but what makes them better than just carrying the plug?   Read More →