NZ tech sector boosts R&D spend and shines bright

NZ tech sector boosts R&D spend and shines bright

New Zealand’s high tech firms boosted investment in research and development (R&D) and staff numbers and many posted strong revenue growth despite difficult business conditions, according to a comprehensive survey of the $8 billion sector.

The eighth annual TIN100 Report, an analysis of the performance of the top New Zealand-founded high-tech companies published in association with Industrial Research Ltd, reveals an impressive range of increasingly R&D-focused companies who achieved strong revenue growth despite a sluggish economy and currency headwinds.

“In addition to solid overall growth of 2.2%, this year’s TIN100 Report features a wide range of R&D focused companies, from high-tech manufacturing to ICT and biotech, who achieved phenomenal revenue growth,” says Shaun Coffey, Chief Executive of Industrial Research Ltd, the TIN100 Report’s major sponsor.

Major tech sector success stories over the year included a diverse array of IRL research partners and clients, both large and small, past and present.

“What this year’s data shows is that the companies featuring in the TIN Report, which include many of our industry partners and clients, accept now more than ever the importance of business investment in innovation and R&D as a strategy for achieving economic gain in both the short and the long term,” Coffey says.

“Far from succumbing to difficult business conditions, many of these companies met the economic challenges head-on, increasing investment in R&D by 8% overall to stay ahead in the highly competitive technology game.”

Among those achieving greatest growth by dollar value were primary sector technology companies Tru-Test and Gallagher Group – both current and former IRL R&D partners.

- IRL research partner Tru-Test, a provider of livestock management systems, milk meters and fencing products (under the Stafix, Speedrite, PEL, Patriot and Hayes brands) as well as contract manufacturing services, which exports to 80 countries, appeared for a 2nd consecutive year on the TIN Report’s top 10 list of growth companies, growing a phenomenal 22% to over $100m.

- Gallagher Group, a long-time IRL research partner offering animal management, security, fuel systems and contract manufacturing solutions, grew nearly 7% to $187m over the year.

Other R&D intensive companies of note featuring in the report are:

- the Dunedin-based, NZX-listed purchaser of IRL’s superconductor technology firm HTS-110, Scott Technology grew an impressive 15.1%, won a key Australian meat industry automation contract worth $11m and graduated from the $20m-$49m category up into the $50m-$99m set, with revenues of $53.6 million. (In its August year end results, Scott Technology reported 19% revenue growth to $65m).

- Palmerston North-based New Zealand Pharmaceuticals, whose long-time collaboration with IRL is accelerating growth in the high-value pharmaceutical manufacturing industry and delivering substantial foreign exchange earnings to New Zealand, grew 13.2%.

- The multi-award-winning Canterbury Scientific Ltd, an innovative Christchurch-based biotech company leveraging IRL’s newly developed industry focused protein science team to diversify its diagnostic product range, grew its revenues by more than 21%, from $4.2m to $5.1m.
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