1. Notice to the Science Board—(1) In this notice, I:

1. specify that the Science Board is to make funding decisions on proposals for science-led contestable funding under section 10(3)(b) of the Research, Science, and Technology Act 2010; and
2. set the criteria for the assessment of proposals for science-led contestable funding under section 8(1) of the Research, Science, and Technology Act 2010.

2. General policy objective—(1) The general policy objective of science-led contestable funding is to fund research, science, or technology, or related activities that have the potential to:

1. enhance the productivity of established industries;
2. generate new industries for New Zealand;
3. add new value to public services in New Zealand;
4. develop world-leading technological capabilities by supporting programmes of research, science, or technology, or related activities to develop technology able to support a range of applications, products, and services; and
5. give effect to the Vision Mātauranga policy.

3. Vision Mātauranga policy—(1) The Vision Mātauranga policy aims to unlock the science and innovation potential of Māori knowledge, resources and people for the benefit of New Zealand. It focuses on four themes:

1. Indigenous innovation – contributing to economic growth through distinctive science and innovation;
2. Taiao/Environment – achieving environmental sustainability through iwi and hapū relationships with land and sea;
3. Hauora/Health – improving health and social wellbeing; and
4. Mātauranga – exploring indigenous knowledge and science and innovation.

4. Science Board to make decisions on proposals for science-led contestable funding—(1) The Science Board will make funding decisions on proposals for science-led contestable funding.

(2) In making funding decisions on proposals for science-led contestable funding, the Science Board may allocate funds from the following research funds:

1. Biological Industries
2. High-Value Manufacturing and Services
3. Energy and Minerals
4. Environmental
5. Hazards and Infrastructure
6. Health and Society.

(3) The Science Board must make funding decisions on proposals for science-led contestable funding in accordance with:

1. the Public Finance Act 1989 and the relevant Appropriation Acts for Vote Science and Innovation;
2. the criteria set out in the notice entitled “Description of Funds within Vote Research, Science and Technology” published in the Supplement to the New Zealand Gazette, 31 January 2011, No. 9, page 200; and
3. the criteria specified in this notice and the relevant schedules to this notice.

5. General eligibility criteria for science-led contestable funding proposals—(1) For a proposal to be assessed against the criteria in clause 6, the proposal must:

1. be made by a research organisation or a New Zealand-based legal entity representing a research organisation;
2. not be solely for the benefit of the research organisation or New Zealand-based legal entity which represents this organisation;
3. not be made by a department of the public service as listed in Schedule 1 of the State Sector Act 1988;
4. be for research, science, or technology, or related activities, the majority of which are to be undertaken in New Zealand, unless the Science Board considers that there are compelling reasons to consider the proposal, despite the amount of research, science, or technology, or related activities being proposed to be undertaken overseas;
5. meet any eligibility criteria specified in the relevant schedule to this notice;
6. meet any applicable timing, formatting, system or other similar administrative requirements imposed by the Ministry of Business, Innovation and Employment in supplying administrative services to the Science Board under section 10(7) of the Research, Science, and Technology Act 2010; and
7. advise that the proposed funding recipient will, and the Science Board is of the view that it can, adhere to the terms and conditions of funding set out in an investment contract determined by the Science Board.

(2) For the purposes of clause 5.1(a), “research organisation” means an organisation that has internal capability for carrying out research, science or technology, or related activities.

6. Assessment criteria for science-led contestable funding proposals—(1) A proposal that has been assessed as eligible for science-led contestable funding under clause 5 must be assessed having regard to the following criteria:

1. the criteria specified in the relevant schedule to this notice;
2. the extent to which the proposal is likely to achieve the general policy objective of science-led contestable funding;
3. the extent to which the proposal is likely to achieve the specific policy objectives specified in the relevant schedule to this notice;
4. the extent to which the proposal is likely to achieve the objectives of the relevant research fund set out in the notice entitled “Description of Funds within Vote Research, Science and Technology”; and
5. how the proposal contributes to the overall mix of investments in respect of each research fund, including the extent to which the overall mix of investments:
   

   i.	is likely to best achieve the objectives referred to in clause 6(b)–(d); and
   ii.	will ensure that funding is not concurrently provided in respect of any two or more programmes of research, science, or technology, or related activities that are the same or substantially similar (whether those programmes are part of a new proposal or are already being funded); and
   iii.	will minimise the risk that an applicant will not be able to undertake the relevant programme of research, science, or technology, or related activities because the applicant, or any person involved in delivering the programme, would concurrently be committed to one or more other programmes (whether those programmes are part of a new proposal or are already being funded).

7. Revocation of previous notices—I hereby revoke the notice entitled “Criteria for Proposals for Science-led Contestable Funding and Funding for Smart Ideas in the 2014 Science Investment Round” published in the Supplement to the New Zealand Gazette, 8 November 2013, No. 148, page 4063.

Dated at Wellington this 28th day of October 2014.

Hon STEVEN JOYCE, Minister of Science and Innovation.

Schedule 1

Smart Ideas Investment Mechanism

1. Specific policy objectives—(1) Smart Ideas is designed to drive innovation and an entrepreneurial culture in the research community. Smart Ideas supports novel ideas and emerging capability in research, science, or technology, or related activities, which refresh the national science portfolio.

(2) Smart Ideas is intended to:

1. support basic discovery of, or applied research into, novel, promising ideas;
2. provide early guidance to researchers on positioning research, science, or technology, or related activities for successful application or commercialisation; and
3. attract proposals from, and support, early career researchers in addition to more experienced researchers.

(3) Subject to clause 2.2, Smart Ideas funding is available in two phases: a research phase (“Phase 1”) and an application phase (“Phase 2”). The objectives of each phase are as follows:

1. The objective of Phase 1 is investigative, in that it aims to use an innovative approach to develop new knowledge that will solve a problem, fulfil a need, or prove a hypothesis. While proposals should identify the potential application and benefits of the idea, the implementation pathway and user relationships should be indicative rather than detailed.
2. The objective of Phase 2 is to encourage applicants to undertake research, science, or technology, or related activities that will help apply the idea to achieve its market potential.

2. Specific eligibility criteria—(1) To be eligible for funding under the Smart Ideas investment mechanism in either Phase 1 or Phase 2, the applicant must have committed to:

1. receiving advice or mentoring from an entrepreneur or similar commercialisation specialist to aid commercial positioning, or from an end user or service provider who could potentially apply the results of the research, science, or technology, or related activities; and
2. ensuring that some market or user needs analysis will be undertaken or sourced during the programme to aid its positioning.

(2) A proposal is eligible for Smart Ideas funding in Phase 2 only if the proposed research, science, or technology, or related activities directly build on the research programme that received Smart Ideas funding in Phase 1.

3. Specific assessment criteria—(1) A proposal for Smart Ideas funding that has been assessed as meeting the eligibility criteria for science-led contestable funding must be assessed against the following specific assessment criteria, and each assessment criterion must be weighted as set out below:

Specific Assessment Criteria for Smart Ideas Phase 1 Funding

*See clauses 4.1, 4.2 and 4.3 of this schedule for information about what constitutes novelty, market and idea for the purpose of this Schedule.

**Securing co-funding, commercial partners or other commercial arrangements is not a requirement for this phase.

Specific Assessment Criteria for Smart Ideas Phase 2 Funding

*See clauses 4.1, 4.2 and 4.3 of this schedule for information about what constitutes novelty, a market and an idea for the purpose of this Schedule.

4. Other assessment criteria—(1) For the purposes of this notice, an “idea” is a scientific or technological hypothesis, or an approach, or a process, or a product or service in which the idea is embodied. An idea being proposed must be based on sound scientific or technological principles, and this must be substantiated in the proposal put forward.

(2) When considering the novelty of ideas under this schedule, the Science Board must consider:

1. the novelty of the relevant idea itself rather than the novelty of the application of the idea (for example, an obvious extension of previous research, science, or technology, or related activities is not a novel idea for the purposes of this schedule);
2. novelty globally rather than merely in relation to New Zealand;
3. the extent to which the idea is a significant departure from previous ways of thinking and/or previous ideas, or an extension of existing or previous research which would not be obvious to a researcher who is active in the area, or a new and different combination of existing ideas; and
4. to what extent and/or level of confidence the novelty of the idea is substantiated by its absence in existing scientific and patent literature, or elsewhere.

(3) When considering the Implementation pathway assessment criterion for both Phase 1 and Phase 2 Smart Ideas, the Science Board should apply the term “market” in the appropriate context for each research fund. For example, for research benefitting the public sector, there may only be a single or few, rather than many users making up the “market”.

(4) For each proposal the Science Board may allocate no more than $500,000.00 (excluding GST) per year for up to two years.

Schedule 2

Enabling Technologies Investment Mechanism

1. Specific policy objectives—(1) Enabling Technologies is designed to:

1. support the development and application of generic technologies that have the potential to be applied in a number of different ways by a number of disparate users across New Zealand’s scientific, business or other communities;
2. accelerate the development of technology platforms that will lead to the development of the technologies described in clause 1.(1)a. of this schedule;
3. support the technology platforms’ short-term, medium-term or long-term development needs and help them build a core of expertise, knowledge and relevant infrastructure;
4. fund research, science, or technology, or related activities that are:
   

   i.	purpose-driven and aligned with national priorities that generate economic, environmental or social benefits for New Zealand; and
   ii.	likely to involve knowledge-transfer and co-ordination between participants linked to the proposed activities;

5. build on New Zealand’s existing capability to undertake research, science, or technology, or related activities so there are not long start-up periods before impacts begin to accrue;
6. support proposals that are closely aligned or partnered with users, including industry, so that pathways to development of tangible outcomes of benefit to New Zealand are incorporated from the outset;
7. involve an integrated and multidisciplinary mix of “fit-for-purpose” research, science, or technology, and related activities that includes the expertise, capabilities and infrastructure required to deliver results (ie encompassing all stages of research from basic-targeted to applied); and
8. support proposals that include, if appropriate, strong international links so there is both rapid absorption of relevant and applicable overseas knowledge and expansion of New Zealand’s market potential, while ensuring appropriate safeguards for New Zealand’s intellectual property.

(2) For the purposes of this schedule, a “technology platform” is a critical mass of capabilities and equipment that is responsive to industry needs and that provides the means to enhance the performance and capabilities of the users.

2. Specific assessment criteria—A proposal for Enabling Technologies funding that has been assessed as meeting the eligibility criteria for science-led contestable funding must be assessed against the following specific assessment criteria, which are all weighted equally:

3. Other assessment criteria—The Science Board may allocate funding under the Enabling Technologies investment mechanism only:

1. in medium to large scale funding amounts of between $1.5 million (excluding GST) and $3 million (excluding GST) per year for up to six years; or
2. in lower value sector development funding amounts of under $250,000.00 (excluding GST) to assist the applicant in developing its engagement with a sector in order to realise the commercial potential of its research, science, or technology, or related activities.

Schedule 3

Targeted Research Investment Mechanism

1. Specific policy objectives—(1) Targeted Research is designed to support purpose-driven research, science, or technology, and related activities aligned with national priorities that generate economic, environmental or social benefits for New Zealand. To increase the impact of the national science portfolio, knowledge transfer is an important part of such programmes of research, science, or technology, or related activities.

(2) Targeted Research addresses New Zealand’s strategic needs, challenges and opportunities.

2. Specific assessment criteria—A proposal for Targeted Research funding that has been assessed as meeting the eligibility criteria for Science-led contestable funding must be assessed against the following specific assessment criteria, which are all weighted equally: