Creating an R&D culture
Association of Crown Research Institutes
FOR IMMEDIATE RELEASE 17 May 2007
Creating an R&D culture
Commenting on the 2007 Budget, Anthony Scott, executive director of the Association of Crown Research Institutes (ACRI) said:
"This Budget may be remembered as kickstarting an R&D culture.
"It is great news for people, companies and sectors keen to see New Zealand products earn more and to better compete globally.
"R&D is the essential component of increased productivity. This is especially important to New Zealand right now because we are at full stretch on labour use.
"R&D also means we can move New Zealand goods up the value chain, and ensure we can continue to compete internationally.
"The R&D tax credit is in line with the definition and processes used in about 40 countries, so we know it works.
"It does four things: enables those already convinced of the value of R&D to invest even more; encourages people to try R&D when they might not have done so previously; identifies R&D which otherwise would have gone unnoticed and unvalued; and it provides a constant signal to companies and sectors that R&D is worthwhile.
"With the New Zealand private sector investing only one-third of the OECD average into R&D, New Zealand desperately needs this boost. The short fall is estimated to be about $1.4 billion, so the projected $260 million credits in 2010-11 is a small but very welcome step in the right direction.
"The additional Budget investment into specific sector areas, such as agriculture and climate change, signals the importance of these for existing and future economic and environmental wealth and where New Zealand has global strengths.
"Increased investment into CRIs, universities and polytechnics acknowledges that each of these deliver value to New Zealand in differing ways and need the resiliency to deliver on those roles and responsibilities.
"As the only research organisations dedicated to research specifically to benefit New Zealand, CRIs welcome the additional Capability Fund of $4.5 million in the 2008-09 financial year and the promise of $13.5 million in the years through to 2012. This is about 10 per cent of CRI revenue.
"The savings culture has underpinned the huge investment governments around the world, especially in Asia and more recently in Australia, have made into RS&T. There is a clear correlation between RS&T and increased living standards. So we look forward to sustained and significant investment in future years from both public and private sector."