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High value manufacturing and services research

This gazetted document is the Ministerial Direction for investing Foundation funds in the High Value Manufacturing and Services Research Scheme from 1 July 2010.

Objective of the Scheme

The objective of the Scheme is to diversify New Zealand’s economy by undertaking research, science and technology that will enable the development of new technologies, novel materials and new products, processes and services resulting in the growth of existing, new and emerging industries.

The Scheme will support research, science and technology that is intended to be of benefit to New Zealand.

It is also expected that the scheme will support relevant research that contributes to unlocking the innovation potential of Māori knowledge, resources and people as outlined in the Vision Mātauranga policy framework.  International collaboration will be supported where this is relevant and of benefit to the objectives of the Scheme.

Indicators of success

If successful, the Scheme will generate and support the uptake of, research, science and technology that will contribute to:

  • increasing the number of New Zealand businesses who become established global exporters by leveraging intellectual property, including (but not limited to) that derived from New Zealand research;   
  • substantially increasing exports of high-technology goods and services from New Zealand; and 
  • enhancing sector performance from the use of new knowledge or technologies.

The above indicators will be measured by the Foundation at a sector level and will provide some indication of the success of the Scheme through regular evaluations.

Nature of the Scheme

The Scheme will achieve its objectives by supporting research, science and technology in the following four areas:

  • Novel materials, manufacturing and applications - encompasses research including new products and services created by transforming materials and/or automating production, and improved efficiencies in production from new engineering tools or processes.
  • Agri-technologies - encompasses research including new and emerging technologies based on New Zealand’s expertise in the agriculture and other primary sectors, particularly those technologies that exploit crossovers between agriculture and new materials, information and communications technologies, and health technologies. 
  • Health and medical technologies - encompasses research including new and emerging technologies that impact on human health and wellbeing.  This includes diagnostic and imaging devices, health IT, drug discovery and delivery systems, and assistive and rehabilitative devices.  Health services research is not included
  • Information, communication and digital technologies - encompasses productivity improvement tools, data management tools, communications technologies and digital tools for creativity.

Tools for Allocating Funding

Research, science and technology supported under this Scheme must in each case fit one of the following Tools (PDF; 313kb):

  • Science-led contestable funding – investing through a contestable process in research, science, and technology and related activities. 
    Long term non-contestable funding - using non-contestable processes to invest in research, science and technology and related activities.
  • Partnerships – support research, science and technology and related activities that provides for early and ongoing user engagement in research, science and technology and develops user-capability in engaging productively with researchers.
  • Commercialisation and technology and knowledge transfer support – research to increase the stream of commercial prospects from publicly-funded research, science and technology, and supporting and equipping users to engage with research organisations and applying the results of publicly funded research, science and technology.
  • Business-led R&D – research and development activities to increase New Zealand businesses’ investment in research and development to support increased productivity.

Estimated Funding

An estimate of the amount of funds required to be allocated by the Foundation for the purposes of the Scheme is $138.41 million in 2010/11, excluding GST.  Actual funding available will be published each year in the annual Estimates of Appropriation.

Estimated Period of Operation

I estimate that the Scheme will operate for a minimum of three years from 1 July 2010; however I anticipate reviewing this notice by 1 July 2011.

Monitoring Agency

The Ministry of Research, Science and Technology will monitor and review the Scheme.

Performance Measures

Annual performance measures for the Scheme will be published in the annual Estimates of Appropriation.  Additional performance measures to measure progress will be specified in the Output Agreement.