Unlocking Economic Impact: Why Government Investment in Science is Essential for Thriving Innovation

Last week, a major announcement changed the scientific research landscape, marking the biggest shift in 30 years. This reform aims to reshape how science is funded and organized in New Zealand.

The changes are part of a report from the Science System Advisory Group (SSAG). The focus is on boosting the economy through science, but the success of these reforms hinges on how they’re put into action and whether there’s enough funding to support them.

Here are the key elements of the proposed reforms:

• The merger of seven Crown Research Institutes into three larger Public Research Organisations (PROs).
• The formation of a new PRO to concentrate on advanced technologies like artificial intelligence and cleantech.
• The closure of Callaghan Innovation and the creation of a new agency, “Invest New Zealand,” focused on attracting overseas investment.
• A new intellectual property policy to give scientists in PROs and universities equal chances at commercialization.
• The establishment of a Prime Minister’s Science, Innovation and Technology Advisory Council for strategic guidance.

As these reforms progress, important questions remain. For instance, how will we transfer expertise in advanced technologies from universities to the new PROs? Also, how will funding models adapt as these organizations are formed?

Although these reforms are encouraging, they have been a long time coming. The SSAG’s report emphasizes the need for a functional system to support scientific research. It points out that lack of government strategy often hinders progress.

The SSAG strongly believes that inadequate research funding contributes to New Zealand’s low productivity growth.

The advisory group highlighted certain cultural attitudes, such as the “number-eight wire” mentality, suggesting this hinders our respect for research. They also call for a unified approach to funding across political lines.

The recommendations for research in social sciences and mātauranga Māori are notable. The report insists on a separate funding stream within the proposed National Research Foundation for this type of research.

However, recent government decisions to cut funding for social sciences raise concerns about the commitment to these disciplines.

While the government addressed some key recommendations, it seems to have overlooked the broader issue: a need for sufficient funding to truly strengthen the research sector and boost New Zealand’s global competitiveness. The report urges us to compare our spending to that of other countries, pointing out:

We invest much less in research and development than comparable nations.

Investing in research is crucial for economic growth, especially for countries lagging in R&D spending. New Zealand’s low investment is a significant concern—as is its disappointing economic performance.

Past science ministers have recognized the need for increased government investment but struggled to follow through. For instance, Steven Joyce’s vision for the National Science Challenges faltered due to high costs, while Ayesha Verrall emphasized research priorities that never materialized into funding.

This time, there’s hope that the current reforms can justify increased investment. However, we must prioritize funding now, as the system has faced years of underfunding and recent cuts.

Implementing these reforms can’t succeed without adequate funding to back them up.