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The New to R&D Grant supports entrepreneurs at the “getting started” stage of their innovation journey. They’ve formed a business around an exciting new idea or concept, are looking for some initial research and development (R&D) funding, and would benefit from starting their own in-house R&D to put them on the path towards commercial success. 

The grant comes in two parts, which work in parallel. If you apply, you'll put forward a proposed plan and budget for your first structured R&D project, to push forward your new idea or concept. This first R&D project often has the steepest learning curve and the most exciting, future defining outputs, and provides vital hands-on experience to use for many years to come.

Alongside the first project, you will also receive funding to build R&D skills and capabilities within your business. Our scientists, engineers and R&D experts have identified six areas of essential skills and capabilities that innovators should possess to become long term R&D performers. You’ll choose learning activities that are most likely to fill skill gaps, directly impact the progress of your idea and enhance your R&D project.

Like many other government grants, recipients will need to secure co-funding. For every dollar spent by a recipient, 40 cents come from Callaghan Innovation, and the other 60 cents come from their own funds, or via private investment. The co-funding supports a maximum total combined costs of $1m (40% - $400,000), covering both skills and capability building and R&D project costs.

Your business is unique, so your R&D should be unique too. All of this new and unique knowledge has a positive impact on the innovation ecosystem, which in turn plays a vital role in driving economic growth and future prosperity in Aotearoa New Zealand.

We know R&D can be uncertain and there’s no guarantee of yielding the results you want. But with that initial groundwork done - your ducks in a row - you can feel more confident that you’ll get to the right outcome as fast as possible, for all of your future R&D activities.

Benefits to your business

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Kickstart your first R&D project

Receive vital funding to start your first structured R&D project.

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Lay foundations for long-term R&D

Equip your team with a set of skills and knowledge needed to undertake effective R&D for years to come.

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Decrease future R&D risks

Undertake R&D activities more efficiently, and reduce risks of misspent time and money.

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Set up for future funding and support

Open the doors to future R&D funding, including the R&D Tax Incentive.

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What is R&D?

Research and development is so much more than just giving something a go to see if it works. If what you're doing ticks these three boxes, we recognise it as R&D.

Your activity seeks to resolve scientific or technological uncertainty: a competent professional in the field is unable to answer your question.

Your activity seeks to create new knowledge, or new or improved processes, services or goods: you're seeking something that doesn't yet exist in the world.

Your activity follows a systematic approach: working with a plan, in a thorough and efficient manner.

Ready for the R&D Tax Incentive

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With your newly found R&D capabilities, skills and knowledge, and your first R&D project underway, it’s highly likely that your business will become eligible for the R&D Tax Incentive (RDTI): a 15% tax credit that can be claimed annually against eligible R&D expenditure. 

Since its launch, the RDTI has provided over $300m in credits, and supported over $2bn of R&D investment.

An introductory session with the RDTI Engagement team will help you understand all the eligibility criteria, ensure you’re collecting the right information throughout the year and lend a guiding hand as you progress towards filing your application.

Find out more about the R&D Tax Incentive.

New: Increased R&D threshold and co-funding flexibility

From September 2024, we’ve increased the threshold for R&D spend, making more businesses eligible to apply. 

Now, you’ll need to have spent under $150,000 on R&D over the last three years to be eligible. This is a threefold increase from the former figure of $50,000. 

Additionally, if an applicant does not have their co-funding available at the start of the grant but is close to securing it from an external source, the grant can be approved in principle with a short window (maximum 6 months) for the applicant to secure the funding.

How the funding works

The grant will fund 40% of your eligible R&D activities and Capability Development building, up to the maximum total of $400,000. This means for every dollar spent by a recipient, 40 cents come from Callaghan Innovation, and the other 60 cents come from their own funds, or via private investment. 

As part of the funding agreement, you will be required to conduct activities from between two and six different Skills and Capability Development categories (above). You’ll need to provide the details of your chosen Capability Development activities as part of your application. 

Additionally you’ll need to demonstrate how your chosen capability development will build knowledge in the business, and the impact it will have on driving long-term R&D performance.

Your capability development activities should comprise no less than 5% of the total grant funding.  

Example (broken down below) : Your costs are $1,000,000. You will receive $400,000 total in co-funding, requiring you to fund the remaining $600,000.

 

Example:
Activity Costs 40% funded by Callaghan Innovation

Skills and capability development: Intellectual Property training

$30,000 $12,000
Skills and capability development: Regulatory & Compliance training $20,000 $8,000
Skills and capability development: Project Management $50,000 $20,000
Your chosen R&D activities $900,000 $360,000
Total $1,000,000 $400,000

Is this right for me?

As the grant is specially designed for those new to R&D, applicants who have previously invested in R&D or applied for other government R&D funding are not eligible.

As a first step, your business must:

    • Your business is an eligible entity
    • Your business must not have received any government funding for R&D greater than $5,000 in the three years prior to the date of submission of your application
    • Your business must have spent less than $150,000 in total on R&D over the three years prior to the date of submission of your application
    • You must be able to fund your 60% share of the R&D costs.

You can read the full eligibility criteria on the New to R&D Resource Hub.

You'll be asked to provide evidence for your 60% share of the co-funding. Read our evidence of funds advice, to see what evidence is suitable.

If you do not have co-funding available at the start of the grant and you are close to securing it from an external source, the grant can be approved in principle with a short window (maximum 6 months) to secure the funding. Speak with your customer Navigator or Funding Engagement Specialist to find out more. 

If you are part of a corporate group containing other R&D performing businesses, you may not be eligible to apply. You will be assessed on whether you have access to the capabilities of those businesses to assist you with your R&D. See our grouping guidance here.

The New to R&D Grant supports entrepreneurs at the "getting started" stage of their innovation journey.

You may be a completely new venture in its startup phase, or an existing business that has not really delved into R&D.

You could be from a scientific or engineering background and need further knowledge and skills in business and understanding the customer. You could be from an entrepreneurial background and need further knowledge in research methodology or deeper technical analysis.

What’s most important is acknowledgement that you and your team have skills and knowledge gaps that you want to fill to effectively drive your future R&D projects.

Frequently asked questions

If I have a New to R&D Grant, can I also apply for a Career or Experience Grant?

If you have previously received a student grant (Experience, Career or Fellowship grant), you are not eligible to apply for the New to R&D Grant. However, if you are approved for a New to R&D Grant, you may apply for a student grant in the future.

Can I apply if I do not need any capability development activities?

No - if you do not need any capability development, you are not eligible and should move to the RDTI.

Read all frequently asked question on the New to R&D Grant Resource Hub

Resources

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New to R&D Grant Resource Hub

A full list of resources can be found on our New to R&D Grant Resource Hub.

Meet our experts

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Spencer Willis
Spencer Willis GM Funding Engagement Driving positive change throughout the customer experience

I work as the General Manager of Funding Engagement at Callaghan Innovation where we guide and support innovators through the funding process for their breakthrough ideas. My journey here has been dynamic, shaped by experiences ranging from wholesale financial markets to global consumer research organisations.

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Spencer Willis GM Funding Engagement
Sharon Burleigh
Sharon Burleigh Group Manager Funding & Contract Management Funding and Contract Management Lead

My work managing the Funding & Contract Management team involves setting the terms of Callaghan Innovation’s R&D grants relationship with R&D businesses. Over twenty five years in the finance industry sees me well suited to the role of managing our grants portfolio.

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Sharon Burleigh Group Manager Funding & Contract Management
Julie Francis Butler
Julie Francis-Butler Lead, Operations - Funding and Contract Management Defending the integrity of grant giving

I am the Lead for Operations within Callaghan Innovation’s Funding and Contract Management team. We manage all the grant monies which support our customers.

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Julie Francis-Butler Lead, Operations - Funding and Contract Management
Rhonda Vincent
Rhonda Vincent Funding Engagement Specialist Guiding collaborations towards actionable solutions

I am a Funding Engagement Specialist at Callaghan Innovation helping align customers with the best funding for their situation and needs. Through my expertise in networking and connecting like-minded individuals, I excel in guiding collaborations which develop and communicate simple actionable solutions from complex situations.

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Rhonda Vincent Funding Engagement Specialist
Mun Kong Lee
Mun-Kong Lee Funding Engagement Specialist Facilitating storytelling within grant applications

My work as a Funding Engagement Specialist at Callaghan Innovation is supported by my background as a Chartered Accountant and MBA and experience from both the private and public sectors.   My primary work focus is guiding our customers through writing cohesive grant applications.

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Mun-Kong Lee Funding Engagement Specialist
Rafael Lee
Rafael Lee Funding Engagement Specialist Driven by purpose to bring innovation to life

I'm one of the Funding Engagement Specialists interfacing between Callaghan Innovation and our customers. My core skills lie in system thinking, process design, and facilitation. These enable me to engage effectively with our stakeholders and navigate the complex project challenges that arise.

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Rafael Lee Funding Engagement Specialist
Emily Sullivan
Emily Sullivan Funding Engagement Specialist Passionately supporting innovators to drive a better future

I'm a Funding Engagement Specialist working with customers seeking financial support for their business. At heart, I am an unapologetic science geek, driven by a profound passion for supporting innovators.

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Emily Sullivan Funding Engagement Specialist
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To get started with the New to R&D Grant, please contact our Customer Support team.

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