Modern Australian
Times Advertising

science investment must increase as a proportion of GDP for NZ to innovate and compete

  • Written by Nicola Gaston, Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology, University of Auckland, Waipapa Taumata Rau
science investment must increase as a proportion of GDP for NZ to innovate and compete

A lack of strategy and research funding – by both the current and previous governments – has been well documented, most comprehensively in the first report by the Science System Advisory Group (SSAG), released late last year.

If there is one word that sums up the current state of New Zealand’s research sector, it is scarcity. As the report summarises:

We have an underfunded system by any international comparison. This parsimony has led to harmful inter-institutional competition in a manner that is both wastefully expensive in terms of process and scarce researcher time, and is known to inhibit the most intellectually innovative ideas coming forward, and of course it is these that can drive a productive innovation economy.

The government expects research to contribute to economic growth, but policy and action undermine the sector’s capacity to do so.

The latest example is last week’s cancellation of the 2026 grant application round of the NZ$55 million Endeavour Fund “as we transition to the science, innovation and technology system of the future”. Interrupting New Zealand’s largest contestable source of science funding limits opportunities for researchers looking for support for new and emerging ideas.

Changes to the Marsden Fund, set up 30 years ago to support fundamental research, removed all funding for social science and the humanities and shifted focus to applied research. This is despite fundamental research in all fields underpinning innovation and the international ranking of our universities.

New Zealand has an opportunity to change its economy based on the potential of emerging sectors such as artificial intelligence, cleantech and quantum technologies. Other countries, including Australia and the United Kingdom, already consider quantum technologies a priority and fund them accordingly.

But when it comes to strategy, the composition of the boards of new Public Research Organisations, set up as part of the government’s science sector reform, are skewed towards business experience. Where there is scientific expertise, it tends to be in established industries. The governance of the proposed new entity to focus on emerging and advanced technologies is yet to be announced.

Critical mass requires funding and strategy

Scientists have been calling for a science investment target of 2% of GDP for a long time. It was once – roughly a decade ago – the average expenditure within the OECD; this has since increased to 2.7% of GDP, while New Zealand’s investment remains at 1.5%.

The SSAG report repeatedly refers to the lack of funding, and it would be the obvious thing to see addressed in this year’s budget. But expectations have already been lowered by the government’s insistence there will be no new money.

The report’s second high-level theme is the engagement of government with scientific strategy. Government announcements to date seem focused on attracting international investment through changes to tax settings and regulation. I would argue this is a matter of focusing on the wrapping rather than the present: the system itself needs to be attractive to investors.

Creating a thriving research sector is also a matter of scale. International cooperation is one way for New Zealand to access efficiencies of scale. And work on building international partnerships is one area of positive intent. But we need to look at our connectivity nationally as well, and use investment to build this further.

Countries with greater GDPs than New Zealand’s invest much more in research as a proportion of GDP. It means the size of these other countries’ scientific ecosystems – if measured by total expenditure – is three to four times New Zealand’s on a per capita basis.

A matter of scale

Per-capita scale matters because it tells us how easy it is for researchers to find someone else with the right skillset or necessary equipment. It tells us how likely it is for a student to find an expert in New Zealand to teach them, rather than needing to go overseas.

And it tells us how quickly start-up companies in emerging technologies will be able to find the skilled employees they need. A thriving university system that attracts young people to develop the research skills needed by advanced technology companies is a key part of this challenge.

The government’s science sector reform aims to increase its contribution to economic growth. But research contributes to economic growth when scientists can really “lean in” with confidence to commercialising and translating their science.

That can’t happen if budgets don’t fund the critical mass, connectivity and resources to stimulate the transition to a thriving science system.

Authors: Nicola Gaston, Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology, University of Auckland, Waipapa Taumata Rau

Read more https://theconversation.com/nz-budget-2025-science-investment-must-increase-as-a-proportion-of-gdp-for-nz-to-innovate-and-compete-255591

Interstate Car Transporter Urges Buyers to Book Early

As the conflict in the Middle East continues to put increasing pressure on local fuel supply, Australian transport companies are experiencing increasi...

Digital Minimalism for Business Owners: Fewer Tools, Better Systems

Be honest. How many apps are open right now? One for scheduling, another for invoices, a third for customer notes, plus a spreadsheet someone email...

The Importance Of Proactive NDIS Renewal Preparation For Sustaining Your Provider Business

Your NDIS renewal notice is not a signal to start preparing. By the time it arrives, preparation should already be well underway. For new providers, s...

Why Fire Extinguisher Testing in Sydney Is Becoming a Records Game, Not Only a Maintenance Job

A fire extinguisher used to feel like one of the simpler parts of building safety. It hung on the wall, wore a service tag, and sat there quietly unle...

The Switchboard Upgrade Question Every Melbourne Renovator Should Ask Before the Walls Close Up

Renovations have a funny way of making people think on surfaces first. Splashback, stone, joinery, tapware, paint. Fair enough too. That is the exciti...

Winter Sanitation Gaps in Parramatta Kitchens: A Hidden Pest Risk

Winter brings a host of changes to our homes, from the chill in the air to the cozy warmth indoors. However, this season also introduces sanitation ch...

When to Seek Advice from Employment Lawyers in Melbourne

Australian employment law is detailed and, at times, complex, with rights and obligations that aren't always obvious to employees or employers witho...

7 Benefits of Professional Gutter Cleaning for Australian Homeowners

Gutters aren't exactly glamorous. They sit up there on the edge of your roof, doing their job quietly - until they stop working. Clogged, overflowing ...

Pipe Floats Strengthening Pipeline Performance In Demanding Environments

Pipelines often travel through environments that are anything but predictable, water currents shift, terrain changes, and materials keep moving unde...

Why Ceiling Fans Are Essential For Comfort, Efficiency, And Modern Living

Creating a comfortable indoor environment is not just about temperature; it is about how air moves, how a room feels, and how efficiently energy is ...

Why Duct Cleaning In Melbourne Is A Smart Investment For Healthier Living Spaces

Behind your walls, ceilings, and vents lies a network quietly working every day to keep your home comfortable. Yet over time, this system can become...

Disability Service Providers Supporting Inclusive And Independent Living

Finding the right support system can feel like assembling a puzzle where every piece must fit just right. For individuals and families navigating di...

A Beginner's Guide to Owning a Caravan in Australia

Owning a caravan opens up a style of travel that's hard to match for freedom and flexibility. However, for those just starting out, the process of c...

Preparing Your Air Conditioner for Summer: What Most Homeowners Overlook

As temperatures rise, many homeowners switch on their air conditioning for the first time in months — only to find it’s not performing the way i...

What Actually Adds Value to Properties in Newcastle

Newcastle has seen steady growth over the past few years, with more buyers looking beyond Sydney for lifestyle, space, and long-term value. As dema...

What is Design and Build in Construction?

Imagine you’re about to start a new construction project, maybe it’s a custom home or a commercial building. You’ve got the idea, the land, an...

Commercial roof leak detection: why early action protects your building

Water ingress is one of the most disruptive and costly issues facing commercial properties. For property managers and facilities teams, even a minor...

Custom Photo Frames: Turning Everyday Moments into Lasting Displays

Photos capture moments, but how you display them determines how they’re experienced every day. A meaningful photograph deserves more than a generi...