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 Pre-Seed Accelerator Scheme (“the scheme”) as specified in this notice.
Nature of the Scheme
The scheme will facilitate the application of the results
of research through supporting commercialisation. The scheme is also intended to foster commercialisation skills, technological learning and technological innovation by public sector research providers1.
The intended outcome of this scheme is to increase the stream of commercial prospects from publicly funded research2 carried out by public sector research providers, and develop these projects to the point where a private sector firm or other suitable commercialisation partner can be attracted.
The scheme will support experimental development
and related pre-commercial activities3 that develop
research undertaken by public sector research providers to an “investor-ready”4 point.
Scheme Objectives
Projects that meet the scheme’s objectives are eligible to receive funds from the foundation.
The scheme’s objectives are to:
? maximise the commercial benefits to New Zealand of previously publicly funded research;
? raise public sector providers’ commercial capabilities and skills; and
? improve public sector research providers links with potential private sector partners.
In making funding decisions, the foundation will fund those projects that, in its view, best meet the following criteria:
? Projects that commercialise previously publicly funded research;
? have a clear link to a business strategy focused on developing projects with strong commercial potential (especially to create new exports) to the “investor-ready” point;
? are likely to be started sooner and completed earlier because of the scheme’s support; and
? have the potential to generate an enduring wealth creating capability in New Zealand.
The foundation will have full discretion to manage the allocation of funds for the scheme in a way that will achieve the objectives of the scheme.
The Mechanism
The foundation, or a provider to whom the foundation has devolved funds, will use the scheme to fund a project, or portfolio of projects at an aggregate level, at up to 50% of the eligible costs5 that the provider will incur.
The provider may reprioritise existing foundation funds, up to a maximum of 12.5% of eligible costs.
The balance of the eligible costs may come from one or more of the sources listed below:
? The provider’s own discretionary funds;
? Other external funds, such as private sector co-investment, but excluding non-research funds sourced from public sector funding agencies.
Allocation of Funding
Funds available to the scheme will be published each year in the Estimates of Appropriations.
Period of Operation
The scheme commenced operation on 1 August 2003. This notice is effective from 3 September 2007. Its continuation and mode of operation will be reviewed after three years.
Monitoring Agency
Monitoring and review of this scheme, including the implementation of this ministerial notice by the foundation and the extent to which the scheme achieves its stated objectives, will be carried out by the Ministry of Research, Science & Technology (MoRST).
Dated this 25th day of August 2007.
HON. STEVE MAHAREY, Minister of Research, Science and Technology.
1For the purposes of this scheme, “public sector research providers” include entities governed by the Education Act 1989, the Crown Research Institutes Act 1992, Te Papa, Cawthron Institute and any New Zealand-based
not-for-profit research associations. Subsidiaries that are more than 50% owned directly or indirectly by one or more public sector research providers are included.
2“Publicly funded research” means research funded or co-funded by any New Zealand-based public sector funding agency.
3The definition that is applied to “experimental development and related pre-commercial activities” will be determined by the foundation and MoRST, based on the definition in the OECD Frascati Manual.
4“Investor ready” means a working prototype or similar stage at which a private sector firm, venture capital investor or other investor may reasonably be expected to be attracted, in order to advance or to complete the commercialisation process.
5Eligible costs mean the total costs of a project or a group of projects funded under this scheme.