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.
This notice replaces the one published in the New Zealand Gazette, 6 July 2000, No. 75, page 1813, which established the scheme.
Grants for Private Sector Research and Development
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 investment by firms2 in research and development, technological learning, knowledge application and the development of technology-based human capital.
The scheme will target all technologically aware3 firms with an emphasis on small and medium sized firms4.
It will focus on projects that have the potential to stretch a firm's technological capabilities beyond existing levels and improve their ability to apply technological innovation for business growth.
These funds can be allocated to a firm (or a group of firms) to undertake a 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.
In making funding decisions, 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;
? are likely to start sooner and complete earlier with the scheme's support;
? have the potential to create an enduring wealth creating capability; 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 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 that meets the scheme's objective. The maximum amount the scheme will contribute to one project is $100,000.00 (G.S.T. inclusive).
Those costs can include the cost to the firm of contracting research and development capability.
Funding to be Allocated
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, the Technology for Industry Fellowship Scheme or the Technology for Business Growth Scheme; or
? between the Techlink Scheme, the Technology for Industry Fellowship Scheme or the Technology
for Business Growth 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 transfer 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 April 2003 and is estimated to continue for a period of five years.
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 11th day of March 2003.
PETE HODGSON, Minister of Research, Science and Technology.
Notes
1The definition that is applied to research and development will be determined by the Minister of Research, Science and Technology based on the recommendations of the Ministry of Research, Science and Technology and the foundation.
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 sole traders, partnerships, any Crown-owned body corporate or other entity (including but not limited to those that are governed by the Education Act 1989, 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.