Govt failing business on R&D
22 March 2017
Govt failing business on
R&D
The National Government’s research
and development (R&D) strategy has failed, with a lower
proportion of businesses nowengaging in R&D than
when they took office, the Green Party said
today.
The Statistics NZ Business
Operations Survey released today shows that in 2009,
eight percent of businesses engaged in R&D. In 2016, that
number had fallen to seven percent. Labour
productivity data also out today tells a similar story,
with labour productivity growth at its lowest levels, over
the growth cycle, since 1996.
“Steven Joyce’s
R&D experiment has failed, with just seven percent of New
Zealand businesses investing in R&D, one point lower than
when National took office,” Green Party Co-leader James
Shaw said.
“Labour productivity over the economic
cycle is also at a low not seen since
1996!
“National’s economy is one that has New
Zealanders working longer and harder, but not
smarter.
“Innovation creates the know-how to do
more with less, which means we can add value to our exports
and protect the natural world that supports us. Innovation
is essential to our long-term ability to prosper and compete
internationally.
“Steven Joyce has created an
innovation system that doesn’t work.
“From my
discussions with business leaders, it’s clear to me that
Steven Joyce’s system of R&D grants has simply created an
industry of R&D grant application writers. This is leaving
start-ups and SMEs, who don’t have the resources, out of
the picture.
“The Green Party in
government will rebalance our approach to R&D
investment, giving businesses access to tax credits for R&D
as well as grants.
“Our economy is too reliant on
simple commodity exports like dairy, raw logs, and mineral
extraction. More R&D and innovation will, in the long
run, help diversify our economy, grow wages, and add value
to our exports,” Mr Shaw
said.