NZ firms increase spending on R&D

AUCKLAND: Businesses increased their spending on research and development (R&D) by $548 million in the last two years to $2.15 billion in calendar 2018, Stats NZ says.

Business spending on R&D accounted for 55% of the total $3.9 billion spent last year, and Stats NZ says it was driven by services industries where spending has tripled to

$1.4 billion since 2008.

‘‘R&D is about innovation and improving products or services,’’ says business performance manager Geraldine Duoba.

‘‘Its aim is to make businesses more profitable, efficient or [help them to] reach new markets.

‘‘However, when a business performs R&D, it doesn’t necessarily mean there will always be immediate tangible benefits,’’ she said.

R&D spending on computer services rose by $150 million, or 34 %, to $586 million in 2018.

Government and higher education institutes accounted for the balance of spending, with government lifting spending $126 million to

$784 million and educational institutions lifting spending

$83 million to $960 million.

Total R&D spending in 2018 was equal to 1.37% of GDP — the Coalition Government has committed to raising this figure to 2% over the next 10 years, and a new incentive framework to help achieve this measure was introduced in the 2018 budget.

Stats NZ says its 2019 survey will be sent to the business sector alone so it can measure the impact of the new incentives.

It usually conducts the survey every two years. — BusinessDesk