By Yoke Har Lee
A record number of small and medium-sized companies will be receiving Technology New Zealand funding this year, signifying the scheme's growing importance in helping companies use technology.
The sharp growth in grants - more than 1000 - also means Tech NZ will burn out its reserves in the
next few years.
Between July 1998 to April 1999, Tech NZ received 1423 applications for project support, up 276 per cent over the same period in the previous year.
The Tech NZ scheme provides a 50:50 grant for companies with approved projects. Several schemes are organised under the Tech NZ umbrella which has an annual funding of $16 million from the Government.
Last year, Tech NZ was able to provide grants amounting to $20 million as it had funds rolled over from previous years, said.the chief executive of the Foundation for Research, Science and Technology, Steve Thompson. The foundation administers the funds.
"At present, we are using reserves which are being drawn down. At the rate we are burning, the reserves will be drawn down between two or three years."
Research done by Tech NZ has shown that smaller companies have exceeded medium-sized ones in using the Tech NZ scheme. And while most companies know of the Tech NZ scheme, many don't know what is available.
"Companies assume we fund only high-tech businesses like electronics and small businesses think we fund only larger companies. In fact, we've funded everything from raspberry harvesting, small goods processing machinery and bread making technology to biotechnology and waste management," he said.
Over the years, Tech NZ schemes have been fine-tuned to make it more accessible to companies. Tailoring the scheme into more digestible forms, fast-tracking application assessments have been among the ingredients making the scheme more popular for small companies.
Despite the increase in companies putting money into technology development, Massey University research shows New Zealand's ability to use and diffuse technology ranks low compared with 18 other OECD countries.
It points to the private sector's weakness in R&D spending, low employment of technology and a lack of skills in managing technological development.
