Direction To: The Foundation for Research, Science and Technology ("the foundation").
Under section 8A of the Foundation for Research, Science and Technology Act 1990, I direct the foundation to allocate funds in accordance with the Technology for Business Growth Scheme ("the scheme") specified in this notice.
This notice revokes and replaces the notices dated 17 August 1995, 1 August 1996 and 10 July 1997 which established and amended the Technology for Business Growth Scheme.
Nature of the Scheme
The scheme is intended to foster research and development, technological learning and technological innovation in technologically capable1 firms.
The intended outcome of the scheme is a greater investment by firms2 in research and development, technological learning, knowledge application and the development of technology-based human capital.
The scheme is intended to focus on projects that have the potential to enhance technological capability and enable firms to move towards high-value, technology-based products, processes or services.
Scheme Objectives
Projects that meet the scheme's objectives are eligible to receive funds from the foundation.
The scheme's objectives are to:
- foster research and development, technological learning and technological innovation within firms; and
- support projects that may enhance a firm's technological capability and may enable firms to move towards high-tech, high-value markets.
More projects may meet the scheme's objectives than there are funds available. The foundation will fund those projects that, in its view, best meet the following criteria:
- have a clear link to a business strategy focused on developing new markets for high-value, technology-based products, processes or services with reasonable commercial potential;
- are not likely to proceed without the scheme's support;
- are technology-based projects undertaken in a "learning by doing" model; and
- have the potential to create an enduring increase in technological capability in the firm.
The foundation will have full discretion to manage the allocation of funds for the scheme in a way that achieves the outcome and objectives of the scheme. The type of projects that could be supported may include, but are not limited to, the following:
- feasibility projects; and/or
- product and process development; and/or
- technology platform development.
The Mechanism
The foundation will use the scheme to fund up to 50% of the research and development costs that a firm will incur in undertaking a project which meets the scheme's objectives. Those costs can include the cost to the firm of contracting research and development capability.
All projects funded pursuant to this notice must comply with the terms of the notice published in the New Zealand Gazette on 22 June 2000, No. 67, page 1485, that records the Voluntary Moratorium Discussed Between the Government and Persons Involved in the Field Testing or Release of Genetically Modified Organisms.
Funding to be Allocated
Funding for the scheme will be $18.5 million (G.S.T. inclusive) in the 2000/01 financial year. Funds available for the scheme will be published each year in the Estimates of Appropriations.
The foundation will have the discretion to allocate up to 10% of funding for this scheme:
- to the TechLink Scheme or the Technology for Industry Fellowship Scheme; or
- between the Tech Link Scheme and the Technology for Industry Fellowship Scheme.
This will occur if all schemes involved in the allocation are appropriated within the same non departmental output class under the Public Finance Act 1989.
The Minister of Research, Science and Technology's written approval is required before the foundation can allocate 10% or more than 10% of the scheme to any other scheme issued by the Minister of Research, Science and Technology under section 8A of the Foundation for Research, Science and Technology Act 1990.
Period of Operation
The scheme will commence operation on 1 July 2000 and is estimated to continue for a period of five years from 1 July 2000.
Monitoring Agency
Monitoring of the scheme, including implementation of this Ministerial notice 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.
Dated at Wellington this 22nd day of June 2000.
PETE HODGSON, Minister of Research, Science and Technology.
1Technologically capable firms are those firms that, in the foundation's view, have developed a comprehensive set of competencies in the area of technological innovation and recognise that research, science and technology capability is fundamental to sustained competitive advantage.
2A firm is defined as a body corporate or other entity that has a legal personality or existence distinct from those of its members (including sole traders) and is resident in New Zealand. For the purposes of this scheme, a firm excludes any Crown owned body corporate or other entity (including but not limited to those that are governed by the Education Act 1989, or the Local Government Act 1974 or the Crown Research Institutes Act 1992).