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 Grants for Private Sector Research and Development Scheme ("the scheme") specified in this notice.
Nature of the Scheme
The scheme is intended to increase the level of private sector investment in research and development1 in
New Zealand.
The intended outcome of the scheme is a greater level of enduring investment on research and development by firms2 that have participated.
The scheme will target all technologically aware3 firms with an emphasis on small and medium sized firms4. It will focus on projects that assist firms with the costs of research and development. These funds can be allocated to a firm (or a group of firms) to undertake a new research and development project.
Scheme Objective
Projects that meet the scheme's objective are eligible to receive funds from the foundation.
The scheme's objective is to increase the level of new private sector research and development investment.
More projects may meet the scheme's objective 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 markets, processes or services with reasonable commercial potential;
- have the potential for the greatest sustainable
impact on a firm's future research and development investments; and
- are new research and development, above existing levels of expenditure in the applicant firm.
The foundation will have full discretion to manage the allocation of funds for the scheme in a way that achieves the outcome and objective of the scheme.
The Mechanism
The foundation will use the scheme to fund up to 33.3% of the costs that a firm will incur in undertaking research and development for a project which meets the scheme's objective. The maximum amount the scheme will contribute to one project is $100,000 (G.S.T. inclusive). 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 $11.8 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.
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 notice by the Foundation for Research, Science and Technology and the extent to which the scheme achieves its stated objective, 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.
1The definition that is applied to research and development should be consistent with the OECD publication "The Measurement of Scientific and Technical Activities 1993: Standard Practice for Surveys of Research and Experimental Development - Frascati Manual"
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).
3Technologically aware firms are those firms that, in the foundation's view, have developed a basic set of competencies in the area of technological innovation and recognise that increased investment in research and development can lead to improved business performance.
4A small and medium sized firm is defined as a firm that has an annual turnover of up to and including $50 million.