Hon Dr Shane Reti
Minister of Science, Innovation and Technology

Science, Innovation and Technology Minister Dr Shane Reti has welcomed a significant milestone in New Zealand’s research and development (R&D) sector, with new figures showing total expenditure on R&D has climbed to $6.4 billion – a 21 per cent increase since 2022.

Dr Reti says the strong rise in R&D expenditure demonstrates growing momentum and reflects the Government’s commitment to backing science, innovation and technology as core drivers of economic growth and supports its global trade and investment agenda.

“Using new ideas, knowledge and technology to develop better ways of doing things helps the New Zealand economy grow,” Dr Reti said.

“R&D is how we lift productivity and create high-value jobs. It’s also critical to opening opportunities in global export markets, helping build a resilient economy that can thrive on the world stage.”

According to data released by Stats NZ today, between 2022 and 2024, the business, government, and higher education sectors reported:

• Total R&D expenditure rose to $6.4 billion – up 21 per cent since the 2022 survey
• Average R&D expenditure per entity increased 24 per cent to $2.8 million – an average increase of $524,000
• The number of R&D FTEs increased by 9 per cent to 42,000
• R&D expenditure as a proportion of GDP rose from 1.49 per cent to 1.54 per cent

“These figures show the depth and intensity of investment has strengthened. That’s a positive trend toward smarter, more focused innovation.

In the business sector, R&D expenditure reached $4.0 billion in 2024 – a 9 percent year-on-year increase. The number of R&D FTEs remained stable at 21,000, while the average R&D spend per business rose by nearly 9 percent to $1.8 million.

Businesses reported that their top motivations for investing in R&D were to gain access to new markets and to maintain their market position.

“Having businesses investing more in technology and innovation will create higher-paying jobs for New Zealanders and diversify our economy into new industries and global markets,” Dr Reti says.

“Science, innovation and technology is a key pillar in our Government’s plan to grow our economy.

“It will not only create more jobs, increase incomes and provide more opportunities at home in New Zealand but also enable additional international trade and investment – something the Government is actively pursuing, including through international trade agreements like those with the UAE and GCC.

“We’re making deliberate choices to back science, innovation and technology as powerful enablers of productivity and opportunity across the board.”

Note:

Visit the Stats NZ website to read the Research and Development Survey 2024: https://www.stats.govt.nz/information-releases/research-and-development-survey-2024/

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