This supplementary notice sets out the parameters of the investment tools available to the Foundation for Research, Science and Technology ("the Foundation") when allocating funds in the 2010/11 financial year. It supplements the notices given under section 8A of the Foundation for Research, Science, and Technology Act 1990.
- Biological Industries Research
- High Value Manufacturing and Services Research
- Energy and Minerals Research
- Environmental Research
- Science Collections and Infrastructure
- Vision Matauranga Capability Fund
- International Relationships
- Hazards and Infrastructure Research
- Health and Society Research
The notices set out above, and this supplementary notice, will be revised during 2011 to take into account the changes arising from the implementation of the recommendations of the Crown Research Institutes Taskforce, new initiatives introduced in Budget 2010, and the establishment of the Ministry of Science and Innovation.
This notice comes into effect on 1 July 2010.
Investment Tools
The tools referred to in the notices listed above are the following tools:
- Business-led Research and Development (R&D)
- Long-term non-contestable funding
- Science-led contestable funding
- Commercialisation and technology transfer support
- Partnerships
- Fellowships
Business-led R&D
Policy Objectives
The tool relates to research and development activities
led by businesses. The objectives of this tool are to
increase New Zealand businesses’ investment in research and development to support increased productivity. The objectives of the Technology New Zealand ("TechNZ") initiatives will be reviewed as part of the establishment of the Ministry of Science and Innovation.
Initiatives
There are four initiatives available within the tool.
- TechNZ Targeted Grants.
- TechNZ Capability Grants.
- Technology Development Grants.
- Technology Transfer Vouchers.
Common Eligibility Criteria
The following eligibility criteria are common to each of the four initiatives within this tool, with some variations noted in the detailed descriptions for each initiative.
- Only businesses are eligible to receive funding via this tool.
- A business must be a person or entity that is in business and resident in New Zealand:
- For those initiatives where a group of businesses are applying together, each of the businesses involved must meet these criteria.
- For those initiatives where a business or businesses nominate a representative to receive the funding, the business or businesses must meet these criteria.
A nominated representative does not need to meet these criteria.
- Businesses may not be an entity established under the Education Act 1989, Crown Research Institutes Act 1992, Local Government Act 2002 or the New Zealand Public Health and Disability Act 2000; or an entity that is 50% or more owned by one or more of those types of entities.
- For those initiatives where a group of businesses may receive funding together, such groups may not include one or more of the above types of entities; and
- For those initiatives where a nominated representative may receive funding, these entities may, however, act as nominated representatives.
- For initiatives where a nominated representative
may receive funding, the nominated representative may only receive funding when the Foundation is satisfied that those funds will ultimately be used or applied by or for the benefit of the nominating business or businesses.
1. Technology New Zealand Targeted Grants
Policy Objectives
The objectives of this initiative, in addition to the overall objectives of the Business-led R&D tool, are to:
- grow business investment in research and development in areas of government priority
- improve the ability of businesses to develop new or more sophisticated technologies.
Eligibility Criteria
In addition to the common eligibility criteria for the tool, the following are also eligible to receive funding:
- A group of businesses; and
- a representative nominated by a business, or by a group of businesses.
The following research, science and technology activities are eligible to receive funding under this tool:
- Research and development projects that significantly increase a business’ technological expertise; and
- the majority of targeted grants encourage or support high risk "stretch" research and development activities, as determined by the Foundation.
Other Parameters
Co-funding is required.
2. Technology New Zealand Capability Grants
Policy Objectives
The objective of this initiative, in addition to the overall objectives of this tool, is to grow New Zealand businesses’ research and development capability by:
- improving their ability to develop new or more sophisticated technologies; and/or
- improving research and development skills and related business management practices.
Eligibility Criteria
In addition to the common eligibility criteria for the tool, the following are also eligible to receive funding:
- A group of businesses; or
- a representative nominated by a business, or by a group of businesses.
The research, science and technology and related activities funded under this initiative should result in businesses:
- that have not previously undertaken research and development beginning to do so; or
- sustaining on-going research and development activity; or
- improving uptake of external technologies, including international technologies; or
- adopting business practices to support increased or improved research and development activity.
3. Technology Development Grant
Policy Objectives
The objective of this initiative, in addition to the overall objectives of this tool, is to improve New Zealand’s economic performance by increasing the total level of
the investment made by high technology New Zealand businesses in research and development.
Eligibility Criteria
In addition to the common eligibility criteria for the tool, to be eligible to receive funding a business must:
- have a track record of reasonable spend on research and development activities relative to the revenue of that business (R&D intensity); and
- meet due diligence standards as defined by the Foundation; and
- have a research and development programme that aligns with the aspirations of the business around growth and is likely to generate wider benefit to New Zealand.
This initiative will support a programme of research and development activities.
Other Parameters
A grant equal to 20% of the eligible expenditure of a firm’s R&D programme, up to $2.4 million a year. Eligible firms must have an R&D intensity (the ratio of R&D expenditure to revenue) of 5% or more and revenue of at least $3 million per year over three years.
4. Technology Transfer Voucher
Policy Objectives
The objective of this initiative, in addition to the overall objectives of this tool, is to increase the transfer of technology and related knowledge between firms and accredited publicly funded research organisations by supporting business led projects that develop better linkages between the two.
Eligibility Criteria
In addition to the common eligibility criteria for the tool, the following are also eligible to receive funding:
- A group of businesses; or
- a representative nominated by a business, or by a group of businesses.
This initiative will support research and development activities that respond to business needs. The research and development activities will be undertaken by an accredited research organisation (as determined by the Foundation).
Other Parameters
Co-funding is required.
Long term Non-contestable Funding
Policy Objectives
A non-contestable process to support the outcomes sought through the Ministerial Directions for Vote Research, Science and Technology (RS&T) funds and to generate economic, environmental or social benefits for New Zealand. In particular, this tool will support RS&T with the potential to:
1. create and support large-scale, long-term programmes of RS&T that deliver sector strategies and outcomes important to government and deliver significant economic, environmental and social benefit to
New Zealand; and/or
2. support and maintain essential research infrastructure and associated activities that underpin RS&T outcomes in New Zealand by ensuring:
- the preservation of assets and associated activities, for example maintaining the viability and longevity of samples; and
- the maintenance and development of assets and associated activities, for example adding new samples and data, and upgrading facilities.
The objectives of this process will be influenced by the implementation of the Crown Research Institutes Taskforce report.
Eligibility
Government would expect the majority of the RS&T funded by this tool to be led by research organisations, in particular, but not exclusive to, Crown Research Institutes, Universities and Independent Research Associations.
The following RS&T activities are eligible to receive funding under this tool:
For policy objective 1:
- Activities that are large in scale with respect to
end-benefits and the size and complexity of the research effort required; and/or
- activities that have significant involvement by users in both governance (setting directions and quality measures, determining capability requirements, evaluating outcomes) and execution (in particular, technology transfer and application).
For policy objective 2:
- Activities that support research assets that:
- are critical for the longer-term capabilities of
New Zealand’s RS&T stakeholders; and
- cannot withstand discontinuity of funding without their integrity being irrevocably compromised; and
- cannot be better managed by other available funding mechanisms.
Other Parameters
In receiving funding under policy objective 1 of this tool, entities will become accountable for producing outcomes by:
- using implementation pathways that aim to maximise benefits for New Zealand; and
- delivering RS&T that meets appropriate international standards.
Relationship to Previous Investment Types
The Foundation has historically invested in this area using:
- Backbone Research.
- Stable Funding environment 1 and 2.
- Outcome based investments.
Science-led Contestable Funding
Policy Objectives
A contestable process to support the outcomes sought through the Ministerial Directions for Vote RS&T funds and to generate economic, environmental or social benefits for New Zealand.
The tool will fund RS&T that has the potential to:
- enhance the productivity of established industries;
- generate new industries for New Zealand;
- add new value to public services in New Zealand; or
- develop world leading technological capabilities by supporting research programmes to develop technology able to support a range of applications, products and services.
Eligibility Criteria
To be eligible to receive funding under this tool, entities must:
- have the capability to provide basic-targeted and/or applied RS&T.
Parameters
- RS&T projects and programmes supported under this tool will tend to be short to medium term.
- There will be a focus on excellent research as assessed by the quality of the available capabilities, research management processes and potential impact of the targeted outcomes.
- Government would expect the majority of the RS&T supported by this tool would be led by research organisations, in particular, but not exclusive to, Crown Research Institutes, Universities and Independent Research Associations.
Relationship to Previous Investment Types
The Foundation has historically invested in this area using:
- New Economy Research
- Transformational RS&T
- Contestable investment processes.
Commercialisation and Technology Transfer Support
Policy Objectives
The objective of this tool is to increase the benefit
New Zealand derives from publicly funded RS&T outputs.
Objectives
The objectives of this tool are to improve the ability of:
1. research organisations to commercialise the results of their RS&T:
- via existing businesses and industry organisations; and/or
- in the absence of a well-established industry, through the creation of new commercial entities; and
2. research users to access the skills, knowledge and
results generated by publicly funded RS&T.
Eligibility Criteria
For objective 1:
Research organisations are eligible to receive funding under this tool to support:
- Activities that develop publicly funded RS&T to an "investor ready" point, including:
- Experimental development and related pre-commercial activities.
- Activities that raise research providers’ commercial capabilities and skills.
- Activities that improve links between publicly funded research providers and potential private sector partners.
For objective 2:
RS&T users are eligible to receive funding under this tool to support:
- improved science input from research organisations to their activities, including decision making;
- an increase in their engagement with the RS&T sector; and
- greater collective engagement between research users and the science system generally.
Other Parameters
- Co-funding is required for funding going to research organisations and their offices.
- Research users may include regional councils.
- Some activities funded under this initiative may be devolved to research organisations.
Relationship to Previous Investment Types
The Foundation has historically invested in this area using:
- Pre-Seed Accelerator fund.
- Envirolink.
Partnerships
Policy Objectives
The objective of this tool is to invest in RS&T and related activities that increase competitiveness in New Zealand industry by increasing investment in RS&T through the development of ongoing partnerships with research organisations. The partnerships should:
- provide for early and ongoing user engagement in RS&T so as to increase the likelihood of developing successful commercial applications from research outcomes; and
- develop user-capability in engaging productively with researchers, thereby encouraging an increase in the level of private investment in New Zealand-based RS&T.
Key Parameters
- Co-funding is required.
Eligibility Criteria
Partnering arrangements led by research users and involving research organisations.
Central and local government agencies are not eligible to receive funding under this initiative, although they can contribute to partnering arrangements.
The proposed RS&T and related activities must:
- address a specific user problem or opportunity for which solutions are likely to increase productivity and profitability;
- incorporate clearly defined pathways to implementation and commercialisation for their intended research outcomes; and
- build the RS&T capability and innovation potential of the user.
Relationship to Previous Investment Types
The Foundation has historically invested in this area using:
- research consortia.
Fellowships
Policy Objectives
The objective of this tool is to benefit New Zealand by building a research community capable of unlocking the distinct innovation potential of Maori knowledge, people and resources.
The tool will fund fellowships for the purpose of supporting undergraduate, post-graduate and early career stage
New Zealand scientists, technologists and engineers to undertake RS&T of relevance to Vision Matauranga.
Eligibility Criteria
The following entities are eligible to receive funding under this tool:
- Individuals with an appropriate RS&T track record.
To be eligible to receive funding under this tool, the RS&T activities must be relevant to one or more of the following four Vision Matauranga themes:
- Indigenous innovation contributing to economic growth through research and development;
- Taiao - environmental sustainability through iwi and hapu relationships with land and sea;
- Oranga - improving Maori social well-being; and
- Matauranga - exploring the interface between indigenous knowledge and RS&T.
Other Parameters
- Funding is contestable.
Relationship to Previous Investment Types
The Foundation has historically invested in this area using:
- Te Tipu Putaiao Fellowships.
Dated this 21st day of June 2010.
HON DR WAYNE MAPP, Minister of Research, Science and Technology.