When the Herald put Brown’s thinking to Reti in May, the minister said the mayor had a case. Today, he confirmed it.
“The institute is intended to have a central base in Auckland, as an existing centre of innovation, and will invest in a broad network of smaller centres to conduct research in collaboration with universities, industry and existing research institutions,” Reti said.
Callaghan Innovation, created in 2013, has been based in Wellington and Lower Hutt.
The Crown agency was defunded (as of June 30) in Budget 2025 as part of a restructure that saw Callaghan’s R&D tax break and innovation grant roles transfer to the Ministry of Business, Innovation and Employment (MBIE), and the merger of several Crown research institutes.
Union sees brain drain
The Government expects to introduce enabling legislation for the new Institute for Advanced Technology in the final quarter of this calendar year.
The Public Service Association earlier warned that it saw a brain drain of research talent heading offshore, given the gulf between Callaghan being defunded in June, with associated layoffs of 67 researchers, and the establishment of the new institute at some point next year.
“The institute will focus on breakthrough technologies like AI, quantum computing and synthetic biology – fields with the potential to transform industries, grow exports, and lift New Zealand’s global competitiveness,” Reti said this morning.
“It will be a cornerstone of our plan to grow a high-tech, high-value economy.”
Unlike Australia, where more than A$1 billion in new federal funding is being put into quantum computing, New Zealand’s science and technology restructure is being accommodated within existing funding, some of which has been “reprioritised”.
The new agency will have an initial $231 million funding over four years, Reti says.
POSTSCRIPT: Auckland, but which part?
Shortly after the news broke that Auckland had bagged the new advanced research agency, a new bunfight broke out: Where would be the best place in the city to locate it?
“Many New Zealand businesses have just been holding on, surviving quarter to quarter for the better part of the last five years,” Newmarket Business Association chief executive Mark Knoff-Thomas said.
“This announcement signals the clear and necessary pivot that we need to move beyond survival and start building a future-facing economy that competes on the global stage. I fully support this move.
“AI is the fastest, most scalable way to accelerate business performance. Establishing a dedicated institute to champion the commercial use of AI and other advanced technologies is exactly the kind of move we need. This will be what unlocks the productivity that business leaders have been looking for.
“Newmarket is the best location for this new institution. We’re already emerging as an R&D hub, anchored by the University of Auckland’s Innovation Precinct.”
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
