This article was published on 11 August 2014
Research and Development (R&D) Growth Grants expected to be worth more than $41m over three years have been approved for 23 high tech companies.
Research and Development (R&D) Growth Grants expected to be worth more than $41m over three years have been approved for 23 high tech companies by Callaghan Innovation, Science and Innovation Minister Steven Joyce announced today.
“These are innovative companies producing world-leading, high-value products and high-quality jobs for New Zealanders. They are all proven businesses that have committed to investing in R&D in this country,” Mr Joyce says.
“The Growth Grants will help them increase that investment, which will drive their growth and increase exports.”
R&D Growth Grants were introduced last year as part of changes designed to encourage more R&D by businesses in New Zealand. They provide 20 per cent public co-funding for qualifying firms’ eligible R&D expenditure, with an expanded cap of $5 million a year - up from the previous scheme’s $2.4 million.
To qualify for a Growth Grant, a business needs to commit to spend at least $300,000, and at least 1.5 per cent of revenue, annually on R&D occurring in New Zealand. Once approved, a company can claim for funding quarterly in arrears. The Grants are for three years, but after two years, businesses can be granted a further two-year extension of funding.
The latest companies to be approved for R&D Growth Grants are involved in a wide range of fields, from accounting software to robotic walking devices to high tech trampolines. They are:
- ARANZ Healthcare
- AuCom Electronics
- Bayer New Zealand
- BBC Technology
- Best Bars
- Booktrack Holdings Limited
- Brand Developers Limited
- Caldera Health
- Comrad Medical Systems
- Core Builders Composites
- Focus Genetics Management Limited
- FoodCap International Limited
- Integrated Control Technology
- Rex Bionics
- Spark Dental Technology Limited
- Springfree New Zealand
- Tekron International
- TracPlus Global
- Wellnomics Ltd
In total 88 companies have been approved for R&D Growth Grants estimated to be worth about $262 million (excluding GST) over three years.
The Callaghan Innovation grants - R&D Growth Grants, R&D Project Grants, and R&D Students Grants – were announced in Budget 2013. A total of $566 million is available over four years to encourage R&D through Callaghan Innovation’s business R&D grant schemes. Since its creation and up until 30 June 2014, Callaghan Innovation has approved grant funding for 961 contracts across 702 companies.
R&D Project Grants are available for smaller companies and those that are new to research and development, while Callaghan Innovation also runs incubator support programmes to assist start-up businesses. R&D Student Grants give graduates the opportunity to work in innovative companies.