Govt lays out R&D plans

Happy fat cows graze on beautiful green Waikato grass on a farm on Kaipaki Rd, just out of Hamilton. Photo / Christine Cornege

Innovation Minister says farmers must do more to reach target for science investment

Farmers must spend more on research and development if New Zealand is to reach its targets for science investment, Science and Innovation Minister Steven Joyce says.

Mr Joyce yesterday laid out the Government's 10-year plan for investing in science, including changes to how funding is distributed.

The long-term strategy also included targets for higher spending on R&D by the Government and the private sector.

The National-led Government wants to raise R&D spending from 0.67 per cent of GDP to 0.8 per cent. It also wants the private sector to increase its R&D spending from about 0.5 per cent of GDP.

"If we're really going to be ensuring that our innovative companies compete and succeed on the world stage, we've got to get our sector through to around 1 per cent of GDP," Mr Joyce said.

The minister said spending by the ICT and high-tech manufacturing sectors had increased, partly as a result of government co-funding grants.

But research and development by the primary industries lagged behind. This sector had failed to increase its spending on research despite receiving "far higher levels" of co-funding from the Government.

"We're probably going to have to insist [that they] lift their R&D innovation again."

Mr Joyce said primary industries were unlikely to get further support to reach the 1 per cent target.

"It's hard to argue that we should do more co-funding than we are in sectors which are growing more rapidly off a lower government investment.

He admitted that the low milk price might deter dairy farmers from putting more money into research.

"Undoubtedly they're not going to want to turn up next year with more investment in R&D. Although in the longer term I think it's absolutely in their interests to make sure they do."

David Cunliffe, Labour's science spokesman, said the target of 1.8 per cent was below the OECD average and much lower than the 3 or 4 per cent of GDP spent by "small, smart countries".