Prime Minister John Key's announcement that science and innovation will be at the heart of next week's Budget is a positive step forward, say business and manufacturing industry leaders, but the biggest challenge will be commercialising that research for the benefit of New Zealand.
Key announced that the upcoming Budget
would focus on research and technology at a National Party conference held in Masterton on Sunday.
"The challenge for us is to get more of our firms using science, research and technology to deliver more valuable products and services," he told National Party delegates.
"That will translate through to better-paid jobs for New Zealanders. You can expect to see science at the heart of what we do in the Budget a few days from now. We have made this area a priority for new spending."
Ross Green, chief executive of electronic motor maker Wellington Drive Technologies, said R&D was the "engine of the new economy", and Kiwi manufacturers would welcome more Government spending in that area.
"The sooner the Government is able to step up and add some more support the sooner the returns for the country are going to be there," he said.
Green said he was hoping to see a change in direction - following the Budget - away from research and into the development and commercialisation of ideas.
"New Zealand's pretty good at research ... but where New Zealand fails pretty badly is on the commercialisation side."
Bruce Goldsworthy, of the Employers and Manufacturers Association, said there needed to be a "New Zealand Inc" approach to R&D in this country.
"We need to buy into the fact that [Government] investment in research, science and technology - those sorts of things - are good for the country."
He said not enough state funding was spent on creating jobs.
"There's no doubt that science and R&D will help develop companies and if companies are growing and are successful they create more jobs."
New Zealand Manufacturers and Exporters Association chief executive John Walley welcomed Key's indication of more funding for science and innovation but said he did not hold much hope for any major changes to the status quo.
"Remember, this is coming from a Government that cancelled the R&D tax credit."
