In unveiling the Government’s Science, Innovation and Technology (SI&T) strategy, Minister of Science, Innovation and Technology Judith Collins is detailing wide-ranging changes aiming to commercialise the sector.
Among these is the seven Crown Research Institutes (CRIs) being amalgamated into a new organisation, called a Public Research Organisation (PRO), that will develop into three separate entities over several years. A fourth PRO entity for advanced technology is also on the cards.
Well-known Crown entity Callaghan Innovation, founded in 2013 under a National government, will also go. New Zealand Trade and Enterprise (NZTE) faces some big changes to its current role, if the Government’s strategy proposals go through.
Collins called the strategy the “largest reset of the New Zealand science system in more than 30 years with reforms which will boost the economy and benefit the sector.”
“The reforms will maximise the value of the $1.2 billion in government funding that goes into the science sector each year, creating a more dynamic science, innovation and technology system that can respond to priorities and keep pace with technological advances,” Collins said.
“Getting the system settings right is the best way to boost long-term economic performance and ensure our scientists can pursue meaningful careers in New Zealand,” Collins added.
Kim Wallace, the convenor of the CRI chairs, said the group of seven entities were “all very supportive of the proposed changes.”
“In our opinion, done well these changes have the potential enhance the system to create science that will drive New Zealand’s economic prosperity, and ensure precious funding is prioritised for work that will have an impact. It should also enable rapidly advancing tech innovations to drive the country’s growth in both biosciences and earthsciences,” Wallace said.
The strategy is based in main on the work by the Science System Advisory Group (SSAG), set up in July last year, by the MBIE. SSAG is chaired by Peter Gluckman, who was the first chief science adviser to the Prime Minister.
Other members include Michael Ahie, director of Zespri, professor Mark Fergusson who chairs the Board of the European Innovation Council for the European Commission, entrepreneur and venture capitalist Hermann Hauser, NIWA marine biologist Barb Hayden, and Research Australia’s chief executive Nadia Levin.
Tracey McIntosh, professor of Indigenous Studies at the University of Auckland, is also an SSAG member, along with South Pacific Sera founder William Rolleston, and University of Otago evolutionary geneticist professor Hamish Spencer.
A rummage through the multiple documents in the announcement picks up multiple changes:
- Establishment of a Prime Minister’s Science, Innovation and Technology Advisory Council (PMSTIAC): to provide long-term strategic direction and oversight of the government-funded SI&T system. It will advise the prime minister on long-term direction and priorities, identify emerging technologies, monitor strategy execution, and recommend ways to address innovation barriers. It will include the minister of science, innovation and technology as chair and up to eight experts from various fields.
- Changes to the Prime Minister’s Chief Science Advisor (PMCSA) role: the role will be redefined and expanded to support PMSTIAC and to enhance the use of science and technology across government.
- Creation of a Ministry for Science, Innovation and Technology: a new, separate ministry is proposed to provide strategic oversight of the science system. This ministry may include the university component currently within the Ministry of Education.
- Establishment of a National Research Council (NRC): this will combine mission-led and contestable research funding mechanisms operated by the Crown, including the Strategic Science Investment Fund (SSIF), Endeavour, Marsden and Health Research Council (HRC) mechanisms. It will operate through expert-assessed pillars, including one to support mātauranga Māori.
- Creation of a National Innovation Advisory Committee (NIAC): this will advise the Minister on supporting outward and domestic-facing activities through Innovation New Zealand (INZ) and Enterprise New Zealand (ENZ), and be responsible for strategic oversight of the innovation pipeline.
- Establishment of Innovation New Zealand (INZ) and Enterprise New Zealand (ENZ): INZ will focus on attracting international investment and multinational corporations to New Zealand, while ENZ will focus on supporting start-up and scale-up of domestic companies. How INZ and ENZ will be funded isn’t clear, but it appears some of money managed by Callaghan Innovation, which is to be disestablished, will be re-routed to the new entity.
- Transition from Crown Research Institutes (CRIs) to a Public Research Organisation (PRONZ): existing CRIs will be consolidated into a single entity called PRONZ, with a single board and strong scientific management. This transition will be strategically planned and phased over several years to minimise disruption. The CRIs are proposed to be consolidated into three PROs focusing on: bio-economy (AgResearch, Landcare, Plant & Food, Scion) Earth sciences (NIWA and GNS Science merged, MetService folded into NIWA), and health and forensic science services (ESR will be moved here).
- Establishment of a Future Technology Initiative (FTI): this virtual platform will be directed by the Ministry to invest funds strategically in public good activity or to support the innovation sector, specifically in areas such as AI and quantum technology.
- Development of a national intellectual property (IP) policy: a national IP policy will apply to researchers in universities and PROs, giving researchers a greater stake in their work and providing financial incentives for commercialisation. For universities, the model will be based on that of Waterloo University, which vests ownership of IP with the researchers.
- Disestablishment of Callaghan Innovation: its functions will be redistributed to other parts of the system. Most of the innovation capability and advisory services will cease, while other functions like the Research and Development Tax Incentive (RDTI) will move to the Ministry of Business, Innovation, Technology and Employment (MBIE).
- Creation of Invest New Zealand: a new investment attraction agency will focus on attracting foreign direct investment into New Zealand, with a mandate to act as a one-stop-shop, excluding public infrastructure investment. The government sees Invest NZ as being similar to Ireland’s Industrial Development Agency (IDA). Invest NZ will be funded by moving existing money from NZTE. Initial establishment costs are estimated at $10 million, with ongoing operating costs forecast to be around $60 million a year. Legislation to create Invest NZ is expected to be passed late this year, and the new entity to be established around the same time.
- Refocusing New Zealand Trade and Enterprise (NZTE): as an export-oriented agency, with its current investment function to be transferred to Invest NZ.
Overall, the strategy aims to cut government funding and expenditure for science and technology:
“We are exercising fiscal responsibility by planning to make some necessary but significant reductions to government’s science, innovation and technology expenditure. At this time, therefore, it is more important than ever that we focus on using the money we have effectively, and eliminating waste where we can,” the SSAG and UAG said.
Sovereign funds such NZ Super, ACC and KiwiSaver managers will be encouraged to invest as well, with the Crown possibly underwriting the investments. The focus is on increasing private sector investment, however. Venture capital, and foreign direct investment will be encouraged the strategy proposes.
Scientists’ Association unimpressed
Lucy Stewart, of the New Zealand Association of Scientists, criticised the strategy for its lack of new funding and focus on commercialisation.
“This long-delayed announcement will do little to address the concerns of researchers and scientists which were raised across 2024,” Stewart said.
“It is entirely focused on commercialisation and commercial benefits from science and technology, announces no new funding for local research, (instead talking about ‘maximising the value’ of existing funding and attempting to attract private investment), and disestablishes the sole government institution that was focused on advanced technology research and commercialisation in favour of setting up new institutions,” Stewart added.
“In the Science System Advisory Group Report, four kinds of research are identified: stewardship research, policy-focused research, knowledge-generating research, and exploitable research. This announcement is entirely focused on the last item in the list,” Stewart said.
Questions that arise include if there is space in the new structure for environmental and social science research.
Stewart also also highlighted a lack of support for, or interest in, “public good” research, that provides answers benefiting our society and nation, but doesn’t necessarily (or ever) make a profit.
Any understanding of New Zealand’s science system that has been critically underfunded for decades seems to be missing too, Stewart pointed out.
“The message to scientists from this government is clear: they are expected to be a source of revenue rather than working for the public good, and anything they do that isn’t directly linked to economic gain is of little interest,” Stewart said.
“It is also fairly incredible for the Government to assert that we need to attract more ‘skilled individuals’ to New Zealand when we know researchers are being made redundant and leaving the country in large numbers due to this government’s actions,” Stewart concluded.
Callaghan Innovation’s chief executive responds
Stefan Korn, the chief executive of Callaghan Innovation Te Pokapū Auaha, said the Crown entity will work hard to support its staff and customers as it implements the Government’s decision to disestablish the agency.
“I am incredibly proud of the contribution Callaghan Innovation has made to the science, innovation and technology ecosystem over the last 12 years,” Korn said.
“Callaghan Innovation staff bring deep knowledge and dedication to their work every day. First and foremost, I would like to thank our people for all that they do to foster innovation and commercialise world-class science in New Zealand.”
“I know the Callaghan Innovation team will bring that same level of professionalism to managing the wind-up of the organisation and the transition to the reshaped science and innovation system the Government has announced today.”
“It will take some months to work through the disestablishment of Callaghan Innovation and change will happen at pace,” Korn added.
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