Science injection tipped to put knowledge-based economy on track

Peter Gluckman. Photo / Brett Phibbs

The Government's announcement of $321 million in new science and R&D spending will put New Zealand on track to becoming a small but aggressive knowledge-based economy, says the Prime Minister's chief science adviser.

Sir Peter Gluckman said much focus had been placed on the direct business assistance announced this week - such as $189.5 million in R&D subsidies for medium to large firms and $20 million in tech vouchers for small businesses to access public research institutes and universities - but it was also important to recognise the support pledged for nurturing science talent and commercialising research.

"If you're going to use science - and I don't think there's any choice but to use science to enhance our productivity - then you've got to have a balanced investment across basic science in the universities and CRIs and the other smaller institutes."

Gluckman said a focus on commercialising research was vital, and the new funding should make that transfer more effective. "I think you'll see that even more once the Government starts to allocate funds for these transfer options."

The art of transferring research into marketplace success was complex, he said.

"It's not just a simple transaction. I think we have very few people in this country who are good exponents of technology transfer."

This was not a problem unique to New Zealand - Australia, the United Kingdom and the United States all worried about the same issue, Gluckman said.

Asked if the Government's move to target $189.5 million in subsidies at medium to large companies was the right approach, he said: "We desperately need to get companies exporting $50 million [annually] to $500 million, and I think that area is where there's a lot of gains to be made and where the Government incentive makes a lot of sense."

He said the tech voucher system would build effective relationships between smaller firms, universities and public research institutes.

"I think [the voucher scheme] may be highly successful for the smaller companies that are maybe not so used to the experience of working in a knowledge economy."

Gluckman said investing in R&D was one of the most important investments New Zealand could make in its economic future.

"If you look around the world the most successful small countries have been those that invested heavily in R&D ... we happen to be at the bottom of the spectrum."