Technology New Zealand Scheme 1.0 Nature of the Technology New Zealand Scheme The intended outcome of the Technology New Zealand scheme is an increased ability by enterprises to adopt new technology and apply technological learning and technological innovation for business growth. The Technology New Zealand scheme is derived from a set of policy objectives and desired outcomes agreed upon by Government. These are listed in Annex A. 2.0 Objectives of the Technology New Zealand Scheme The objectives of the scheme are to: increase enterprise awareness and understanding of the role of technological innovation; pro-actively assist in linking enterprises to appropriate sources of new technology and technological innovation; enhance synergies within the existing technology infrastructure with a view to fostering a greater focus on the needs of enterprises; foster research and development, technological learning and technological innovation within enterprises; catalyse improvements in management practices and attitudes towards technological innovation within enterprises; build scientific and technological human capital in enterprises. 3.0 Funding for the Technology New Zealand Scheme Funding for the scheme will be $15.694 million for 1997/98. The Technology New Zealand scheme comprises three programmes, recognising three distinct rationales for government investment and three sets of programme objectives. The programmes and their respective funding guidelines for 1997/98 are set out below. [rn 100,.6,5d] [rn 200,.6,5d] [st] [dr 1,lc1,200] [dr 2,cg2,200] [dr 3,rc2,200] [st][bv][hrh 100,1,3] [st][bv] Programme 1997/98 Funding ($million) [st][tn,2][hrh 100,1,3;.6] TechLink $2.694 [st12][tn,2][hrh 100,1,3;.6] Technology for Business Growth $10.000 [st12][tn,2][hrh 100,1,3;.6] Graduates in Industry Fellowships $3.000 [st12][tn,2][hrh 100,1,3;.6] TOTAL $15.694 [st12][tn,2][hrh 100,1,3;.6] [ev] The Foundation will have the discretion to reallocate up to 10 percent of funding for the Technology for Business Growth programme between the other two programmes in the Technology New Zealand scheme. Reallocations of greater than 10 percent will require the prior approval of the Minister of Research, Science and Technology. For 1997/98, the Foundation can allocate funding up to or equivalent to the amount appropriated in the Estimates for 1997/98, for the first year of approved projects. Where the projects are approved for more than 1 year, funding for subsequent financial years will be met from appropriations provided in those subsequent financial years. Where approved projects do not proceed, or are prematurely terminated, funding approved for these projects but not expended may be reallocated to other approved projects. Such reallocations to new projects may be made within the same financial year only. The Foundation may assume that the overall appropriation for the Technology New Zealand scheme will not be reduced in future years without adequate notice being given, although no guarantees can be given in this respect. 4.0 General Principles for the Technology New Zealand Scheme The Foundation will be responsible for the establishment of, and management of funding allocations for the Technology New Zealand scheme. The scheme will remain consistent with the following principles: Awareness of a Technology New Zealand scheme ``brand'' should be fostered. This brand should be associated with all activities. Where an activity is contracted out this activity should be seen to be part of the overall Technology New Zealand scheme. The needs of enterprises for a simple and well-integrated set of services with national accessibility should be met. Enterprises and science and technology providers should identify the Foundation as the entry-point to the Technology New Zealand scheme. The Technology New Zealand scheme should work closely with other parts of the New Zealand technology infrastructure to provide national and international information and technology services that maximise the value added by the public sector without encouraging distortionary behaviour. The Technology New Zealand scheme should advance the competitive advantage of New Zealand enterprises. Funding will be allocated in a transparent and contestable way. 5.0 Monitoring of the Technology New Zealand Scheme Monitoring of the Technology New Zealand scheme, including implementation of this Ministerial scheme by the Foundation for Research, Science and Technology and the extent to which the scheme achieves its stated objectives, will be carried out by the Ministry of Research, Science and Technology. 6.0 Period of Operation for the Technology New Zealand Scheme The scheme will operate each year until further notice. 7.0 Technology New Zealand Scheme Programme Guidelines 7.1 The TechLink Programme Overview of the TechLink Programme The TechLink programme is intended to create awareness of and facilitate access by enterprise to new technology. The outcome of the programme will be enterprises with the increased awareness, and understanding needed to access new technology and undertake technological innovation. Funding for this programme will be $2.694 million for 1997/98. Objectives of the TechLink Programme The objectives of the TechLink programme are to: increase the awareness of, understanding of, and access to new technology and technological capabilities critical to successful enterprises now and in the future; provide to New Zealand enterprises information about and access to programmes and activities within the Technology New Zealand scheme; provide enterprises with access to and information about public and private suppliers of technology, and technology services, within New Zealand and overseas; reduce transaction cost barriers associated with providing:[el] technology needs assessment services to small and medium sized enterprises; [sp' '] access to new technology and to sources of guidance and assistance to enterprise commencing technology based projects. Mechanisms of Support for the TechLink Programme The Foundation will have full discretion to manage the allocation of funding for the TechLink programme in a way that achieves the outcome and objectives for the programme. The type of activities that could be supported may include, but are not limited to, the following examples: publication, promotion and pro-active delivery of technology success stories and case studies on a national and a regional basis; the establishment of a Technology New Zealand website, to provide a virtual point of entry into New Zealand's technology information and networking framework, and access to overseas information; delivery of technology needs assessments and technology guidance services to enterprise; encouraging and facilitating technology acquisition, research and development, and technology strategy development through supporting the technology aspects of existing Industry Associations, Tradenz Joint Action Groups and other business networks; supporting the acquisition of overseas technologies and technological innovations by enterprises. Performance Indicators for the TechLink Programme Level of technological capability of enterprises that have participated in the TechLink programme, measured annually and demonstrated by:[el] the acquisition of, or intent to apply technology within enterprises; [sp' '] level of awareness by enterprises of local and international sources of technology and technology services. 7.2 Technology for Business Growth Programme Overview of the Technology for Business Growth Programme The Technology for Business Growth programme is intended to foster research and development, technological learning and technological innovation within enterprises. The outcome of this programme should be an increased capability by enterprises to undertake technological innovation and develop strategic technology management skills. This will be demonstrated through a greater investment by enterprises in research and development, technological learning and knowledge application and the development of technology based human capital. The programme should accommodate enterprises of a wide ranging initial technological capability. Funding for this programme will be $10.0 million for 1997/98. Objectives of the Technology for Business Growth Programme The objectives of the Technology for Business Growth programme are to: foster research and development, technological learning and technological innovation within enterprises; catalyse improvements in management practices and attitudes towards technological innovation within enterprises. Mechanisms of support for the Technology for Business Growth Programme The Foundation will allocate funds to provide part-funding for projects designed to motivate and enable enterprises (or a group of enterprises) to undertake a technology based project within a ``learning by doing'' model. Where appropriate, the enterprise(s) may engage a technology partner, ranging from a private company or consultant to a research provider. An international partner can be used if the appropriate skills or expertise are not available in New Zealand. The Technology for Business Growth programme will target support to those projects which, in the Foundation's view, best meet the following criteria: the project should demonstrate the potential to catalyse an improvement in:[el] the ability of the enterprise(s) to undertake a research and development, technological learning, or a technological innovation based project;[el] management practices and attitudes towards technological innovation within the enterprise(s); the enterprise(s) must fund at least 50 percent of the project cost; The Foundation will have full discretion to manage the allocation of funds for the Technology for Business Growth programme in a way that achieves the outcome and objectives for the programme. The type of projects that could be supported may include, but are not limited to, the following examples: technology feasibility assessments; prototype assessments; pilot plant trialing; staff secondments; cooperative research; in-house technology development. Performance Indicators for the Technology for Business Growth Programme Application of research and development, technological learning or technological innovation within a participating enterprise, measured before and at the conclusion of projects (the maximum interval for measurement being 3 years), as demonstrated by:[el] investment in research and development capabilities, technological learning and knowledge application and technological innovation activities;[el] technology strategy development and application;[el] investment in technology-based human capital. Additional technologies applied by enterprises as a result of projects. Advances in technologies applied by enterprises as a result of projects. New or improved products, processes, services or markets that result from projects. 7.3 Graduates in Industry Fellowships Programme Overview of the Graduates in Industry Fellowships Programme The Graduates in Industry Fellowships programme supports science and technology based projects carried out within enterprises and, where appropriate, supported by a research provider. The projects can be carried out by individuals ranging from senior undergraduates to post-doctoral fellows. The outcome should be an enhanced level of scientific and technology based human capital within New Zealand enterprises. Where appropriate the individual should be working towards a tertiary qualification. Funding for this programme will be $3.0 million for 1997/98. Programme Objectives The objectives of the Graduates in Industry Fellowships programme are to: enhance the scientific and technological innovation competencies of New Zealand enterprises at a range of starting capabilities through increasing the number of scientists, technologists and engineers working in professional roles; increase the level of exposure, and understanding of individuals, at a range of starting capabilities, to the commercial research and technological development environment; increase research providers understanding of, and exposure to the commercial research and technological development environment; improve linkages between enterprises and research providers. Mechanisms of support for the Graduates in Industry Fellowships Programme The Foundation will allocate funds to projects which, in the Foundation's view, best meet the following criteria: Enterprise/Host: the project should catalyse an improvement in the science- or technology-based human capital within the enterprise; the enterprise must contribute substantially to the resources necessary for the project. Individual: the individual will be of at least senior undergraduate level within the fields of science, engineering or technology and demonstrate potential to be an innovative professional within an enterprise environment; the individual will have the necessary qualifications for the project. Research Provider: the research provider will have the professional capability to provide, where necessary, expert support to the individual and the enterprise; the research provider will identify, where necessary, an academic supervisor. Projects may be approved for up to 4 years. Performance Indicators for the Graduates in Industry Fellowships Programme Level of investment by the enterprises in technology based human capital, measured before commencement and at the conclusion of participation (the maximum interval for measurement being 3 years). Level of linkages, between the enterprises and research providers, measured before commencement, and at the conclusion of participation (the maximum interval for measurement being 3 years). Career intentions of the individual, measured before commencement, and at the conclusion of participation (the maximum interval for measurement being 3 years). Dated this 3rd day of July 1997. MAURICE WILLIAMSON, Minister of Research, Science and Technology. Annex A: Policy objectives, Outcomes sought and operating principles agreed by Government [rn 100,.6,5d] [rn 200,.6,5d] [st] [dr 1,lc1-.3,200] [dr 2,cg2,200] [dr 3,cg3,200] [dr 4,cg4,200] [dr 5,rc4+.3,200] [st][bv][tn,4][hrh 100,1,5;5d] Strategies Strategy 1 Strategy 2 Strategy 3 [la6] ``raise the technological competence and understanding of more New Zealand enterprises educating firms about technology'' ``ensure the environment within which technology investments are made is free of regulatory, institutional and other impediments'' enhance the integration of NZ firms into the global technology market'' [st][tn,4][hrh 100,1,5;.6] Policy[el][qfp] Objectives To increase firms' awareness and understanding of the role of technological innovation to enable them to adopt and develop technologies for competitive advantage To reduce the barriers to effective knowledge transfer between science and technology (S&T) providers and firms To develop firms' links to international technology sources To increase public awareness and understanding of the role of technological innovation [st][tn,4][hrh 100,1,5;.6] Outcomes[el][qfp] Sought Increased awareness and understanding of the role of[el] technological innovation within firms and the wider[el] community;[el] Increased capacity within firms to identify market[el] challenges and opportunities which may be addressed[el] through technological innovation;[el] Established technology capabilities in firms.[el] Upgraded strategic technology management within[el] firms. Sustained linkages between firms and relevant S&T[el] providers, in order to enhance contact,[el]communication, and technology transfer;[el] Increased access by firms to appropriate information[el] about opportunities for applying new and existing[el] technologies, from various sources;[el] Catalysed industry networks and groups of firms to[el] gain critical mass and commitment to tackle[el] technology development;[el] Improved capacity of firms to identify collectively[el] strategic and operational technology needs. Overseas[el] technology[el] experts visiting[el] New Zealand;[el] to introduce[el] and/or improve[el] understanding[el] of relevant[el] technological[el] innovations;[el] New Zealand[el] firms and[el] technologists[el] visiting[el] overseas[el] sources of[el] relevant[el] technological[el] innovations. [lc.3] [st][tn,4][hrh 100,1,5;5d] [ev 3,4] Operational[el][qfp] Principles [tn2,3] An integrated portfolio of programmes should be developed to address technology promotion, technology evaluation, and ``learning-by-doing'' projects. [el][qfp] In order to simplify the interface between firms and the portfolio of programmes, the portfolio of programmes should be managed through a single entity. This entity should be the Foundation for Research, Science and Technology. [el][qfp] Implementation of Strategy 2 objectives should address reducing the transaction costs associated with linkages between S&T providers and firms (individual or networked), and ensuring that barriers to technology transfer from current S&T programmes are removed. An amendment to the Government's statement of priorities for the Public Good Science Fund is proposed. [st][tn,4][hrh 100,1,5;.6] [ev]