GOVERNMENT INCENTIVES FOR SCIENTIFIC R & D LOOK PROMISING

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In a speech given on 9 February 2010, Prime Minister John Key signalled that the Government is intending on focusing strongly on “boosting research and science capability” in order to contribute to innovation in New Zealand. 

The details of how Key intends on achieving this goal will not be known until the May Budget.  However, it is clear Key is adamant on developing a stronger bioeconomy in New Zealand. 

This follows from Key’s bold statements given in NZBio’s 2009 Bioeconomy Industry Summit Report, where Key identified six key actions which will help to achieve this goal. For instance, these are likely to be in the form of tax incentives, and/or additional funding for those undertaking R & D.

Key summarised his agenda by saying “It’s my view that we need to put science at the heart of this National-led government…It’s not a lot more complicated than that.”

This is good news for all companies and research institutions in New Zealand, who will no doubt be in a position to benefit from Key’s proposed incentives. 

As you will be aware, an important part of the commercialisation process is securing Intellectual Property protection for your work.  Key’s incentives will hopefully allow solid IP protection to be more achievable, knowing that much of the cost, perhaps if not all, can be covered by government funding.  Similarly, tax incentives should allow much of the costs to be claimed back.

We will report again in May outlining the key aspects of the Budget and how they benefit R & D in New Zealand. Until then, you should plan for a future with significantly increased support of science innovation in New Zealand.

By Peter Brown, Technical Advisor