Research and development key to building a stronger and more productive economy
The Coalition Government is delivering our plan to support a stronger and more productive economy with higher wages by injecting $1.0 billion into business research and development (R&D), say Research, Science and Innovation Minister Megan Woods and Revenue Minister Stuart Nash.
“New Zealand spends just 1.3 per cent of GDP on R&D, when the OECD average is 2.4 per cent. We need new ideas, innovation and new ways of looking at the world if our businesses are to build a more productive economy,” says Megan Woods.
“That’s why this Government is putting $1.0 billion of operating expenditure over four years on the table to finance an R&D tax incentive, giving eligible businesses 12.5 cents back for every dollar they spend on R&D. This funding will be available to all businesses spending more than $100,000 a year on R&D.
“This system will help us transition away from the current Growth Grants model, which is available to a narrower range of firms. This represents a significant increase in the amount available to help smart Kiwi businesses to innovate,” says Megan Woods.
“The design of the R&D tax incentive is currently out for public consultation and we are having very productive conversations with businesses around the country,” says Stuart Nash.
“We are committed through the Coalition Agreement between Labour and New Zealand First to lifting our national investment in R&D to 2 per cent of GDP from 1.3 per cent currently. This billion-dollar boost for innovation will make the New Zealand economy stronger and more productive,” says Stuart Nash.