It was only fitting that Methven chief executive David Banfield presented a slightly bemused Prime Minister with his company's latest showerhead at today's R&D tax credit launch.

After all, the product was developed with the help of matching R&D funding from Crown agency Callaghan Innovation, which dished out a total of $149 million in grants last year.

But from April 1 next year, Callaghan's Growth Grants programme will be axed, with a 15 per cent R&D tax credit becoming the new mechanism for boosting research and development.

Science Research and Innovation Minister Megan Woods says business will be better off

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Where to now for Callaghan?