Innovation and skills funding in Budget 2008 signals a step change towards a high wage-high skill future for New Zealand, Pete Hodgson, Minister of Research, Science and Technology, Economic Development and Tertiary Education said today.

“As part of the Economic Transformation package, investments of $1.1 billion operating and $747.3 million in capital funding are designed to boost New Zealand’s productivity through innovation involving research, a quality tertiary sector and practical support for globally competitive firms. This includes announcements made earlier this year such as the $700 million New Zealand Fast Forward Fund, R&D tax credits and export support,” he said.

Highlights are (over four years unless stated otherwise):

• Support for tertiary education providers such as universities and polytechnics of $591 million in operating funding over five years and $15.5 million capital funding over four years. This includes $46.7 million in operating funding over five years for tertiary research excellence to boost the Performance Based Research Fund to $250 million per annum.
• $168 million for the New Zealand Skills Strategy and $130.8 million in operating funding and $24.4 million in capital funding to make tertiary education more affordable for students.
• Operating funding for the development of high tech research platforms of $24 million to help build new industries over the long-term in high tech manufacturing, ICT, new materials and sophisticated engineering
• Support for exporters with the NZTE Beachheads programme into China, India and South East Asia with an extra $8 million. Better by Design also receives $8 million to help firms increase their international competitiveness by integrating design into all aspects of their business.
• $32.5 million additional research funding for sustainable energy.
• Our valuable science collections will now be funded permanently costing $22 million over four years.

In addition, $95 million of capital is being made available to co-invest with tertiary institutions in new capital undertakings, to create a more systematic approach to capital investment. This $95 million is being set aside in contingency as the timing and nature of projects are yet to be determined.