Business NZ endorses Budget focus on innovation

Business NZ has strongly endorsed the Budget’s focus on commercial science and technology, saying it will lift economic growth and make New Zealand more competitive.

“New Zealand’s only sustainable source of competitive advantage is innovation,” Chief Executive Phil O’Reilly said.

“Innovation involves turning new ideas into commercial returns – something New Zealanders don’t do well at, despite our creativity.”

He said Budget funding for R&D grants, vouchers to facilitate links between business and research organisations, and other initiatives to capitalise on inventions, were far-sighted. He said the potential for high-tech manufacturing and services in New Zealand would be boosted.

“Research shows the biggest ‘innovation gap’ between New Zealand companies and those in other OECD countries, is among larger or leading companies. But these larger companies are the ones with the greatest potential for growth. The Budget’s technology development grants for firms that already do significant amounts of R&D will help address that gap. The simple design of the grant system will be particularly welcomed by research-intensive businesses.

“Smaller firms will also gain from the Budget support for better links with research organisations. This is a key way in which commercial innovation can be facilitated.

“We hope the Government will next turn its attention to the growth of the venture capital sector, helping companies gain access to the capital required to build scale and export capability while remaining in New Zealand.”