Budget 2015: $25 million kickstart for provincial research institutes

Minister for Economic Development and Communications Steven Joyce. Photo / Getty Images

The Government is fronting up $25 million to kickstart new privately led provincial research institutes, in a Budget that has steered fresh science and innovation funding towards private-sector research and development.

Science and Innovation Minister Steven Joyce said the "Regional Research Institutes" would support innovation in areas outside the three main centres and be funded from a mix of private and public sources.

"We envisage funding the launch of between one and three new institutes over the next four to five years, depending on demand."

The biggest boost in this year's package for the sector was an $80 million injection over four years to research and development growth grants administered by Callaghan Innovation, which would cover 20 per cent of R&D costs for Kiwi businesses.

Around $3 million would be shuffled within portfolio funding for a new performance report and data collection programme.

A further $1 million was specially earmarked to lure international private research and development to New Zealand, while $2.2 million would fund the implementation of a national plan to engage more Kiwis in science and technology.

Mr Joyce said the extra funding announced yesterday would bring the Government's total investment in science to more than $1.5 billion in 2015/16.

New Zealand Association of Scientists president Dr Nicola Gaston generally welcomed the measures but noted several had been funded through "reprioritisation" within the portfolio, and pointed out cuts in areas like environmental research.

Highlights

• $25 million for new privately backed research institutes in the provinces over the next four to five years.

• $80 million operating boost over four years to research and development growth grants administered by Callaghan Innovation.

• $1 million, met through a funding reshuffle, for a new effort to lure research and development by global companies to New Zealand.