A Government agency is defending its decision to award a $5.9 million research and development grant to NextWindow, a Canadian-owned company that has its headquarters in New Zealand but manufactures in Asia.
The digital touch screen maker employs about 60 R&D staff at its Auckland head office.
NextWindow's funding is the largest slice of a new $50 million allocation of Technology Development Grants announced last week.
Other companies with foreign owners to receive grants include Auckland's Atlantis Healthcare, which is half-owned by a British private equity firm, and telecommunications company Open Cloud, whose shareholders include Nokia Siemens Networks. NZX-listed software developer Xero will receive $4 million, despite trumpeting at its annual meeting in July that it had a "strong cash position", with $16 million on hand.
The grants cover 20 per cent of a firm's R&D costs over three years, which suggests NextWindow will spend about $30 million in the coming 36 months.