R&D spend rose to $2.14 billion last year, says Stats NZ

A radar is tested in a soundproof container at local technology company Navico's factory in Auckland. Photo / Paul Estcourt

Research and development spending reached $2.14 billion in the year to last September, up 17 per cent from the amount spent two years earlier, Statistics New Zealand (SNZ) says.

Primary industries were the target for 19 per cent of all the R&D spending in 2008, amounting to $398. After that can manufacturing with $365m then health with $283 million.

Spending on environment was $276 million, or 13 per cent, and information and communication services with 10 per cent or $207m.

SNZ said total R&D spending represented 1.2 per cent of gross domestic product in 2008, up from 1.16 per cent in 2006.

R&D spending within the business and government sectors kept up with the overall growth in the economy between 2006 and 2008, increasing slightly to 0.51 per cent and 0.33 per cent of GDP, respectively.

University sector R&D decreased slightly as a proportion of GDP during the period, from 0.38 per cent to 0.36 per cent.

Despite the increase from 2006 to 2008, New Zealand's total R&D spending continued to be relatively low compared to other countries in the OECD, SNZ said.

Australia reported R&D spending at 2.01 per cent of GDP in 2006, and the OECD average was 2.26 per cent for the same period.

In the New Zealand business sector, R&D spending lifted 20 per cent from 2006 to $913m in 2008.

Government sector R&D spending rose 23 per cent to $584m, with university sector spending up 9 per cent to $643m.

The government sector funded $912m or 43 per cent of all R&D in 2008, with business funding 40 per cent or $859m. The university sector funded 9 per cent, and overseas funding sources 5 per cent.

Of the 2008 R&D total of $2.14b, $760m or 35 per cent was for experimental development, $730m or 34 per cent for applied research, and $650m or 30 per cent for basic research.

In the business sector 60 per cent went to experimental development, while in the government sector applied research accounted for 43 per cent and basic research 40 per cent. Universities spent 53 per cent on basic research and 28 per cent on applied research.

- NZPA