Otago Daily Times

Computer services lead R&D spend

- By SIMON HARTLEY

BUSINESS spending on research and developmen­t (R&D) last year was up almost 30% to $1.6 billion and computer services and machinery manufactur­ing firms showed the greatest increase.

Despite the rise, New Zealand still lags behind the average for the Organisati­on for Economic Cooperatio­n and Developmen­t (OECD).

Statistics New Zealand data showed businesses spent $1.6 billion on R&D in 2016, up $356 million, or 29%, from 2014, SNZ business performanc­e senior manager Daria Kwon said in a statement.

‘‘While higher R&D spending is a key driver of economic growth according to some studies, it is not a guarantee that a business will be more creative or profitable,’’ she said.

The total R&D spend as a proportion of gross domestic product rose from 1.2% in 2014 to 1.3% in 2016. The OECD average was 2.4%.

Total 2016 spending on R&D by businesses, the Government and higher education was $3.2 billion, up $531 million (20%) from 2014.

By sector, R&D spending rose in the higher education, university sector and government R&D had a modest rise, but the bulk of the overall increase was from business spending.

The computer services sector had the biggest dollarvalu­e increase within the business sector, up $125 million (40%) to $436 million.

‘‘Computer services firms include New Zealand businesses providing services such as producing and distributi­ng software and web design,’’ Ms Kwon said.

The secondlarg­est increase in businessre­lated R&D spending was in machinery and equipment manufactur­ing, up $105 million (37%) to $392 million.

Those firms included hightech manufactur­ing companies developing new products and services for sale here and overseas.

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