Science comes up a big winner

By PAUL PANCKHURST

Wrapped up in all the expected buzz words - knowledge economies, business incubators, "Growth and Innovation Framework" - came a big wedge of cash for New Zealand science.

Bumping up operational funding for research, science and technology - starting with a 6 per cent lift over the next year - was the single largest part of Budget measures bearing the tag of "growth and innovation".

The lift of $33.5 million will take funding in 2003-04 to $557 million.

The Government says a further $106.5 million will be added over the following three years.

The biggest winners are the Research Consortia programme - "research projects developed by science providers and users working co-operatively" - and the New Economy Research Fund.

The fund "supports new areas of research with an identifiable potential to create new types of business for New Zealand".

Much of the fund's money will go into biotechnology.

The second-largest measure is $110 million over four years for following up on the recommendations of the existing industry taskforces on biotechnology, design, screen production, and information and communication technologies.

The so-called Growth and Innovation Framework, unveiled in February last year, is an array of measures intended to lift economic growth.

Also classified under this banner in the Budget were four-year allocations of: $73 million "to promote overseas trade"; $44 million (operating and capital) for the drive to attract skilled migrants; and $39.7 million for Statistics NZ.

The Government sallies into the so-called "Valley of Death" - the earliest phase of the venture capital spectrum - with $19 million over four years for a "Pre-Seed Accelerator Fund".

Critics of the existing Government-backed Venture Investment Fund say it is too focused on the later stages of venture capital funding.

Research, Science and Technology Minister Pete Hodgson says the new fund addresses the "pre-seed" gap in the public sector and will be open to Crown Research Institutes, tertiary institutes and their subsidiaries.

The fund will provide grants for one-third of the cost of projects in areas such as experimental development and intellectual property protection.

The balance will come from research organisations and private sector co-investors.

The Government announced an extra $6.4 million over four years for business incubators, citing a growth from two to 15 incubators in 18 months.

And $1.9 million more a year will go into developing an e-commerce portal for New Zealand exporters.