Refocusing the science, innovation and technology system
The Government is making changes to New Zealand’s science, innovation and technology system to set a clear direction, lift economic growth and position New Zealand for the future.
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Introduction
The Government is making changes to New Zealand’s science, innovation and technology system. These changes will clarify priorities, lift economic outcomes and harness advanced technology for a more prosperous future.
Changes include establishing a Prime Minister’s Science Innovation and Technology Advisory Council, establishing new agency Invest New Zealand, refocusing New Zealand Trade and Enterprise (NZTE), disestablishing Callaghan Innovation and redistributing its most important functions to other parts of the system, establishing four future-focused Public Research Organisations, and developing a national policy to better manage intellectual property.
They will maximise the value of public investment and create a more dynamic science, innovation and technology system that can respond to priorities and keep pace with technological advances.
This announcement follows government consideration of the first report of the Science System Advisory Group.
The details of these reforms will be carefully worked through as part of the design and implementation of this change programme.
Prime Minister’s Science, Innovation and Technology Advisory Council
The Prime Minister’s Science, Innovation and Technology Advisory Council will provide strategic direction and oversight of the science, innovation and technology system.
The council will focus on:
- providing advice to the Prime Minister on the long-term direction and high-level priorities for government-funded science, innovation and technology, along with areas that could be de-prioritised.
- identifying and developing a list of emerging technologies that are critical to the future of New Zealand
- identifying and recommending ways to address barriers to innovation and commercialisation ensuring a thriving science and innovation ecosystem, and
- monitoring and reporting to Government on the execution and delivery of science, innovation and technology strategy, priorities and system reform.
The Council will be chaired by the Science, Innovation and Technology Minister. The appointment process of up to 8 experts with diverse experience in business, science, innovation and technology will begin as soon as possible, allowing the Council to meet and start work.
Public Research Organisations
New Zealand’s 7 current Crown Research Institutes will be refocussed to form 3 Public Research Organisations (PRO). A fourth, new PRO will be established to focus on advanced technology.
These organisations will have an increased focus on economic outcomes while delivering the critical stewardship and public good science and science services needed for a well-functioning modern economy.
PROs will be grouped by focus area:
- Bioeconomy: formed by bringing together AgResearch, Manaaki Whenua – Landcare Research, Plant & Food Research, and Scion. This PRO will drive innovation and enhance the value of New Zealand’s bioeconomy, fostering economic growth and ensuring environmental prosperity.
- Earth sciences, including climate and hazards resilience: formed by bringing together the National Institute for Water and Atmospheric Research (NIWA) and the Institute of Geological and Nuclear Sciences Limited (GNS Science), and noting that Cabinet agreed-in-principle for NIWA to acquire MetService as a wholly owned subsidiary. This PRO will foster economic and environmental resilience in New Zealand through sustainable resource use, energy innovation, climate science and effective hazard mitigation. The process for the NIWA acquisition of MetService will continue as planned.
- Health and forensic science services: formed by re-purposing Environmental Science Research. This PRO will enhance and protect New Zealand’s public health and justice systems through scientific and research services, to support economic growth, health innovation, forensic impact and to improve health and forensic outcomes for people and communities.
- A new advanced technology-focused PRO will deliver research while building capabilities and commercial outreach in areas such as artificial intelligence, synthetic biology, aerospace, medical technology and quantum technology.
MBIE is working with Crown Research Institutes to explore changes ahead of the legislation that will establish the settings for new PROs. During the transition period, Crown Research Institutes will continue to deliver the science that is needed by their customers and New Zealand.
The below design principles will be followed when establishing the PROs:
- National benefit: PROs will always aim to maximise the long-term benefit to New Zealand. While the emphasis will shift to commercialisation and delivering economic outcomes, PROs will still need to deliver critical public good knowledge and services.
- Adaptable and responsive to government: PROs will deliver to government priorities for science, innovation and technology.
- Accountability: Transparency between public funding and activity in PROs, with appropriate cost recovery models.
- Rationalisation, alignment and coordination: with mechanisms to prioritise, avoid unnecessary duplication, resolve trade-offs and support consistency and coordination within and between PROs.
- Partnership with private investors: PROs will look for opportunities to coinvest in research capability, facilities and knowledge production.
Invest New Zealand and New Zealand Trade and Enterprise
New Zealand will have two targeted agencies to support economic growth through strong international connections in trade and investment.
A new agency, Invest New Zealand (Invest NZ) will be established as a one-stop-shop for foreign direct investment – excluding public infrastructure which is the remit of the national infrastructure agency.
Invest NZ will work with multi-national corporations and foreign investors to attract people, businesses and capital into New Zealand across industries and technologies, with a particular interest in investing in the science, innovation and technology that will drive our economy.
New Zealand Trade and Enterprise (NZTE) will focus on driving export growth by facilitating trade and access to international markets and ensuring New Zealand businesses have the necessary support to expand their international reach.
Both Invest NZ and NZTE will be performance based and have a culture underpinned by clear economic incentives, with a laser focus on commercial outcomes. The agencies will also have clearly defined roles that allow them to function as easy conduits for inward investment and outward growth.
NZTE will incubate Invest NZ and run its establishment process before it officially becomes an Autonomous Crown Entity. An Autonomous Crown Entity is a type of statutory Crown entity in New Zealand that must consider government policy when directed by the responsible minister. Examples include the Arts Council of New Zealand, and Te Māngai Pāhō (Māori Broadcasting Funding Agency).
Innovation functions
To better support and incentivise innovation for future economic growth, Callaghan Innovation will be disestablished and its most important functions will be redistributed to other parts of the science, innovation and technology system.
Intellectual property
The Government will move to ensure the right settings and incentives are in place for intellectual property (IP) to generate greater commercial and economic benefits from our science, innovation and tertiary education sectors.
This will involve developing a national policy for managing intellectual property for science, innovation and technology-funded research based on the model used by Canada’s Waterloo University which vests ownership of intellectual property with the researchers who create it.
The Government will also consider how this policy will apply to the new PROs. The intention is for researchers to receive a share of the financial rewards from commercialising IP.
Indicative timeline for change
The high-level timeline is as follows and as the implementation planning progresses, these timeframes may change:
| Q1 2025 | Prime Minister’s Science, Innovation and Technology Advisory Council members appointed. Further decisions on:
|
| Q2 2025 | Further decisions on proposed national IP policy for research and wider incentives for commercialisation. Introduce legislation to give effect to reforms. |
| Q3 2025 | Set up strategic investment in advanced technology research as a first step toward establishing a PRO focused on advanced technologies. |
| Q4 2025 | Legislation passed. |
| 2026 | Legislation takes effect. |
Science System Advisory Group
The Science System Advisory Group was convened by MBIE to provide advice on strengthening the science, innovation and technology system, including the challenges and aspirations of the sector, and opportunities for growth.
The group’s first report and its recommendations informed the Government’s decisions.
Visit the Science System Advisory Group’s website:
Science System Advisory Group(external link)
Read more about the Science System Advisory Group on our website:
Science System Advisory Group Report [PDF 1.3MB]