R&D fund grants $2m

Thirty-six companies have received grants totalling $2 million from Technology New Zealand's Private Sector Research and Development Fund since it was launched in September.

Fund manager John Gibson expects to double this amount by Christmas.

The fund is intended to encourage small and medium-sized enterprises, with turnover of less than $50 million, to invest in research and development.

Successful applicants must clearly identify the technology gap they are addressing.

Support is limited to a third of a business's increased investment in R&D, up to $100,000.

The Government wants the fund to increase private sector investment in R&D as well as extend smaller enterprises' technological capabilities.

Based on the rate of applications, Mr Gibson expects the fund's grants to exceed $12 million by next June.