Winners all round in latest funding

The combined infusion of $60 million in the Government's Digital Strategy, revealed last Monday, and Thursday's announced boost of $204 million for innovation and $30 million for ICT in schools represents a substantial investment in the country's technological future, observers say.

One of the big winners is Technology New Zealand, a business unit of the Foundation for Research, Science and technology (FRST). The $41 million of new funding is to go to developing a more "strategic long-term emphasis on [research and development] in the private sector," according to a spokesman for Research, Science and Technology minister Steve Maharey.

"This means that the FRST will be actively developing partnerships with export companies specialising in technically sophisticated products or processes to encourage longer-term, ongoing R&D programmes," he said, adding that the aim is to add between five and 10 of these partnerships for each of the next three years.

Crown Research Institutes are also getting $17.8 million more in new capability funding. Andy West, chief executive of AgResearch, said that although the amount was not a lot, it was welcome.

"This country needs to be spending between 2 and 3 per cent of GDP on research and development, and we are way, way off the pace," he said. "Congratulations to the Government if they're starting to recognise that fact."

Biotech industry organisation NZBio also welcomed the funding, and said that it would spur innovation and benefit companies wishing to commercialise their technologies. However, NZBio was disappointed that the funding did not address "proof of concept" stage research.

The Telecommunications Users Association of New Zealand was more pleased with the increased Digital Strategy funding.

"It was a comprehensive package of measures that looks systematically at all the elements that are required to start bringing us up to speed" in broadband development, said chief executive Ernie Newman. And while the Government could have granted more funds, "we have no criticism of the amount".

But some analysts are treating all the new funding with some scepticism.

Alan Dent, of Deloitte & Touche, asked how the allocation of the funds would be administered.

"The ideas are laudable, but the ultimate merit of this investment depends on whether the funds actually find their way to worthwhile investments that actually have an impact," he says.

"That depends on what is in effect a bureaucratic allocation process that is unlikely to be either efficient or fast."