$10 billion milestone highlights growing investment in New Zealand innovation

The Research and Development Tax Incentive (RDTI) has now supported more than $10 billion invested by businesses in research and development (R&D) activity, Science, Technology and Innovation Minister Penny Simmonds says.

“Reaching $10 billion in supported research and development is a significant landmark and demonstrates the growing confidence New Zealand businesses have in innovation and their capability to grow. 

“This milestone reflects the speed with which Kiwi businesses are using the scheme. It took around three years for the scheme to support its first $1 billion of R&D activity, and fewer than four more years to reach $10 billion.

“That growth shows the increasingly important role RDTI is playing in supporting business investment in R&D. 

“The latest application round shows that momentum continuing. Following the 30 June application deadline, initial results show record rates of application. More new businesses have enrolled for the scheme this year than for any year since 2021. Crucially, the majority of those new enrolees have been small businesses. The recent transition of services from Callaghan Innovation to MBIE has allowed an intensification of small business outreach across the country.

“The strong uptake reflects the governments targeted engagement activities, new guidance resources and one-to-one business support. The record number of applications will further increase the nearly $10 billion of R&D activity already supported through the scheme.”

Evidence from the scheme’s first independent evaluation in 2025 shows the RDTI is delivering real results for New Zealand’s economy. For every dollar of RDTI support provided, businesses invest an estimated $1.40 more in R&D than they otherwise would.

The evaluation highlighted that as of 2025, the RDTI had generated around $1.8 billion in additional R&D investment and an estimated $6.7 billion in total economic benefits for New Zealand, and this number has only grown in the last year.

“R&D is one of the key drivers of productivity, competitiveness and long-term economic growth. The studies show that when businesses invest in innovation, the benefits extend well beyond the companies involved.”

“We are talking about new products, improved technologies, higher-value jobs and new knowledge in New Zealand helping build a more resilient economy. That is why supporting business investment in R&D remains so important.” 

“This has been a huge success; however, we want to make the scheme more valuable for businesses, particularly small and medium-sized firms undertaking R&D. That’s why as part of Budget 2026, the Government announced in-year payments will be introduced so R&D businesses can get tax credits sooner which will improve cashflow,” Ms Simmonds says. 

“The Government wants to create an environment where businesses have the confidence to invest, grow and compete internationally. RDTI is an important part of that effort, helping firms turn ideas into commercial opportunities and economic growth.

“Today’s milestone is worth celebrating, but it is also a reminder of what is possible when government and business work together to support innovation. We look forward to seeing even more New Zealand businesses use RDTI to develop new technologies, create high-value jobs and contribute to a more productive economy.”

More information is available at www.rdti.govt.nz ...