KNOWLEDGE ECONOMY FUND ADMINISTRATOR ANNOUNCED

New Zealand's movement towards the knowledge-based economy came a step closer today with the announcement by Research, Science and Technology Minister Maurice Williamson of the group to administer the New Economy Research Fund (NERF).

"We established the NERF in this year's Budget and increased its funding in our Bright Future package. I can now announce that the Foundation for Research, Science and Technology (FRST) will allocate that funding.

"The NERF is designed to enhance New Zealand's economic capacity by focusing on areas where there is potential for new industries and economic growth," said Mr Williamson.

"Its aim is to increase New Zealand's capacity to be part of, and to benefit from, the new economic opportunities arising in rapidly developing fields such as advanced materials and biotechnology."

Mr Williamson said that FRST expected to make decisions on the first new research projects supported by the fund in January 2000.

"We can't predict exactly which areas of research are likely to lead to new enterprises, but we do know that by doing more research we increase our chances of finding the growth points," Mr Williamson said.