Other publications:
Briefing to Incoming Minister, 2007

This briefing provides you with an update on the Foundation? of Research, Science, and Technology (the Foundation) and covers:

Role of the Foundation

The Foundation is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004 and was established under the Foundation for Research, Science and Technology Act 1990 (the Act). As the main public sector investor in the research, science and technology system, the Foundation’s key roles are to:

• translate government research, science and technology strategies, policy directions, and priorities so the Foundation can make investments into research organisations and firms to provide real outcomes for the benefit of New Zealand
• help facilitate an innovation system that is responsive, focussed, and dynamic
• identify and invest in New Zealand’s research capability needs
• build the skills, networks, and linkages to ensure the effectively implement research findings.

The environment

The New Zealand science system – and within that, the Foundation – has a vital role to play in developing solutions for accelerating New Zealand’s growth, while ensuring its sustainability.

The environment in which the Foundation operates is in a state of considerable flux. The innovation system is complex and government agencies are grappling with key questions about the role government should play in shaping, and markedly lifting, the systems’ performance. Sitting alongside this is our drive to ensure that investments in science realise tangible benefits for New Zealand.

The shifting environment has created a space in which the Foundation has been able to develop more innovative, yet pragmatic, ways for its investments to contribute to New Zealand’s economic transformation.

Withheld under the Official Information Act 1982 , sections 9(2)f(iv) and 9(2)g(i).

Recent changes

The Foundation is committed to making continual improvements to ensure we are best placed to increase the benefits our investments make to New Zealand

Taking an inclusive approach to investing

The Foundation has moved from passively accepting proposals to taking a more active and strategic approach to ensure its investments are focussed on achieving outcomes. This means the Foundation is increasingly moving to working with other funders to develop strategies and make investments.

Developing partnerships with industry

The Foundation has made it easier for industry and other players to enter partnerships and has an active role in supporting several instrumental research partnerships.

Developing a client-facing culture

The Foundation has business managers who are responsible for managing the day-to-day relationship between the Foundation and clients (which includes research organisations and firms).

Increasing flexibility about how we invest

Cabinet agreed to a new approach for investing called the stable funding environment initiative. The Foundation can now invest using either contestable or negotiated processes. Negotiated investment allows the Foundation to engage with research organisations and users in the investment process, and for research organisations to take more responsibility for how they achieve the desired outcomes.

Reviewing contract performance

Cabinet directed the Foundation to take steps to better inform investment decisions through technical review. The Foundation now has the capability to systematically and independently assess the quality of the science being done under our contracts. These processes are complemented by an upgraded approach to monitoring contracts through annual and within year reporting, and an improved approach to engaging with clients.

Bridging the gap between science outputs and uptake by science users

The Foundation now has a commercialisation group which works with research organisations to support their efforts to move their science products towards market.

Current operational initiatives

Investment processes

The Foundation is part-way through a significant process in which we will invest about $105 million in public good science by 1 July 2008. Investment decisions will be made by the Board in June 2008.
In addition to the main investment process, the Foundation makes decisions through-out the year on investments to support technological advances in firms, and fellowships for students.
The Foundation will periodically brief you about key investment decisions and potential issues that may arise from them.

Improving the way we work with firms

The Foundation is reviewing the way the firm-facing funds operate. The aim is to make it easier for firms to work with the Foundation to get the support they need to develop technological solutions that suit their business needs.

Cross-government approach to investing

The Foundation is collaborating with the Tertiary Education Commission, and New Zealand Trade and Enterprise to co-ordinate our efforts to support five areas of potential investment. The initiative is more commonly known as the trilateral project.

Withheld under the Official Information Act 1982 , sections 9(2)f(iv) and 9(2)g(i).

Budget ‘08

The Ministry of Research, Science, and Technology leads our contribution to the government’s budget process. The Foundation has provided information on areas where science capability may be vulnerable, or where new or re-prioritised funding could support new policy initiatives and market opportunities.

Current cross-agency policy initiatives

The Foundation will be working with other agencies in the upcoming year on several substantive policy projects. Each of the following projects has the potential to significantly recast the role, governance, and operation of the Foundation.

Aligning government investment

The Foundation is participating in a project led by the Ministry of Economic Development that seeks to identify areas of focus and examine how government activity could be better co-ordinated across the Votes administered by the Tertiary Education Commission, and the Ministries of Economic Development, and Research, Science, and Technology.

Stable funding environment, phase 2

The Foundation is working with the Ministry of Research, Science, and Technology to review the policy settings around its investment processes. One objective is to increase the ability of the Foundation to actively engage with potential research providers during the investment processes, thereby improving investment outcomes.

Review of the Act

The Foundation for Research, Science, and Technology Act 1990 requires that the Act is reviewed every five years. The Foundation will collaborate with the Ministry of Research, Science, and Technology on this project. We anticipate that the review will examine the role and function of the Foundation.

Pending decisions or actions for the Minister

The Foundation has no specific operational actions requiring Ministerial decisions in the immediate future. The Ministry of Research, Science, and Technology is responsible for briefing you on the substantive policy initiatives highlighted, and the Board is responsible for decisions on investments and operational policies.

Governance of the Foundation

The board

You are responsible for appointing the board of the Foundation. The board approves: investment strategies to guide investment; and investments greater than $1 million per annum. It also ensures that the Foundation operates legally and its finances are well managed.

Profiles of the board members are available in the PDF version.

The senior management team

The chief executive and officers of the Foundation:

• provide advice to the board on operations and investment
• approve investments up-to-and-including $1 million per annum
• manage the day-to-day operation of the Foundation
• manage relationships with clients
• develop investment strategies in partnership with stakeholders
• liaise with government agencies.

Profiles of the chief executive and senior managers are available in the PDF version.

This briefing accompanied a briefing prepared by the Ministry of Research, Science and Technology which is also available.