Outcome 5: Dynamic business environment fostering innovation, technology, and international connections

Changes to the science system

We supported the largest reset of the New Zealand science system in more than 30 years. The reforms aim to maximise the value of the $1.2 billion in government funding that goes into the science sector each year. The objective is to create a more dynamic science, innovation and technology system that can respond to priorities and keep pace with technological advances. The reforms, which will progress over the coming years, include:

• New public research organisations: Transforming the current seven Crown research institutes into three public research organisations: the New Zealand institutes for Bioeconomy Science, Earth Science, and Public Health and Forensic Science. These institutes, established on 1 July 2025, will focus on delivering science that strengthens the economy, supports the environment and builds resilience for the future. Wider changes also involve disestablishing Callaghan Innovation and moving its most important functions to other parts of the system.
• New Zealand Institute for Advanced Technology: Working to establish an advanced technology public research organisation to deliver research, capability and commercial outreach around technology, such as artificial intelligence, quantum (advanced computing) and synthetic biology.
• New advisory council: Establishing the Prime Minister’s Science, Innovation and Technology Advisory Council to provide strategic direction and oversight of the system, advise on priorities and identify the biggest opportunities to leverage science, innovation and technology for economic growth.
• Intellectual property: Developing a national policy for managing intellectual property for science, innovation and technology-funded research.

Alongside the science reforms, we have supported other major changes for the science system, including:

• Genetic modification: Lifting the ban on genetic modification and engineering outside laboratories, and introducing a national regulator aligned with Australia’s Gene Technology Act 2000 to manage associated risks.
• Doctoral scheme: Enabling a new applied doctorates scheme, which launched in February 2025, providing $20 million to train over 100 doctoral students in commercially relevant science fields.

Empowering Māori innovation

MBIE has launched a new science and innovation fund, He Ara Whakahihiko, designed to unlock the economic potential of the Māori economy through science and innovation. Formed through the merger of Te Pūnaha Hihiko – Vision Mātauranga Capability Fund and the He Aka Ka Toro Navigation Fund, He Ara Whakahihiko aims to strengthen the capability of the science system and the Māori economy.

The fund will back science projects that foster effective partnerships between Māori-facing organisations and established research organisations, with a strong emphasis on commercialisation and measurable economic outcomes. He Ara Whakahihiko has two focused funding streams:

• Ara Whaihua – Impact Pathways for Research: supporting 12-month, implementation-ready research programmes with a clear path to commercialisation
• Rangapū Rangahau – Research Partnerships: investing in two-year science initiatives that build enduring connections between Māori-facing organisations and the science and innovation ecosystem.

Investing in science: Activities across 2024/25

We invest in science to help build high-performing science, technology and innovation systems. In 2024/25, science funding and projects delivered included the following.

• 119 active organisations
• 630 active contracts
• 16 new investment rounds
• 170 new contracts
• 642 reports assessed

The Strategic Science Investment Fund (SSIF), a important investment fund, supports strategic investment in research programmes and scientific infrastructure that have long-term beneficial effects on New Zealand’s health, economy, environment and society. In 2024/25, SSIF investments for programmes and infrastructure totalled $368 million per year.

One significant initiative funded through SSIF is the breeding of a ‘storm-proof oyster’, which started in 2023/24 and continued through 2024/25. Following the lessons of Cyclone Gabrielle, the Cawthron Institute, an independent science organisation, collaborated with farmers to identify oyster breeding lines that have added resilience to freshwater runoff, high temperatures and suspended sediments. They are also examining risks and opportunities associated with methods to produce triploid, fast-growing, non- reproductive oysters. This work improves economic resilience by reducing losses from disease and climate events, which supports stable production and export growth. It is also improving environmental sustainability by reducing reliance on wild spat through selective breeding and improving farming efficiency without compromising ecological integrity.

The Endeavour Fund is New Zealand’s largest contestable research fund, providing investment in projects to improve the country’s future. In the Endeavour 2024 funding round, $57 million was invested across 19 Research Programmes and 53 Smart Ideas, which have the potential to transform the economy, environment and society.

Examples of successful projects include:

• a novel medical device for delivering therapies to the ear, led by the University of Auckland. This aims to develop a medical device to transform the treatment of hearing loss by enabling rapid assessment and precision treatment. The device will be inserted down the ear canal and through a small hole in the eardrum to assess the cochlea and quickly deliver drugs and other treatments.
• scalable cryogenic memory technology for superconducting and quantum computing. This project is led by The Research Trust of Victoria University of Wellington and aims to build prototypes of the cryogenic memory arrays required for the high-performance computers of the future.

New Zealand’s space and advanced aviation sectors

An economic analysis of New Zealand’s space and advanced aviation sectors shows the space sector has grown by 53% since 2019 and contributed nearly $2.5 billion to New Zealand’s economy in 2023/24. In addition, the advanced aviation sector overlaps with the space sector and was measured for the first time, contributing close to $500 million to the economy over the same period.

This year, we released the New Zealand Space and Advanced Aviation Strategy 2024 to 2030. This sets out the Government’s approach to supporting the development of the space and advanced aviation sectors and supporting principles for New Zealand’s wider space interests. The aim is to double the size of New Zealand’s space and advanced aviation sectors by 2030.

We also supported the development of legislation to regulate ground-based space infrastructure in New Zealand, which passed into legislation in July 2025 under urgency. The new legislation manages the risks to national security and other national interests that arise from the operation of ground-based infrastructure and contributes to the development of New Zealand’s space industry by ensuring the safe, secure and responsible use of space.

Investing in New Zealand

Overseas investment brings both foreign capital and expertise to New Zealand. It is critical to New Zealand’s competitiveness and productivity. MBIE plays a major role in supporting the Government’s focus on attracting investment and investors and advancing Going For Growth priorities.

Invest New Zealand was established on 1 July 2025 as a dedicated agency intended to attract global capital, businesses and talent. An autonomous Crown entity, Invest New Zealand will have a clear commercial focus and work directly with global investors to unlock opportunities that create jobs, boost innovation and lift New Zealand’s long-term productivity. It will also streamline the investment process and provide tailored support to foreign investors, to increase capital investment across critical infrastructure, fostering greater innovation in significant sectors and attracting world-class talent.

MBIE also progressed changes designed to encourage investment in infrastructure and productive businesses. We consulted on potential changes to the climate-related disclosures regime and on potential changes to make it easier for KiwiSaver funds to invest in unlisted assets. We also progressed adjustments that will reduce costs and barriers to companies listed or listing on the New Zealand Stock Exchange.

MBIE supported initiatives to strengthen early stage capital markets announced as part of Budget 2025. This included $100 million of additional capital for the Elevate Fund. Elevate is designed to boost New Zealand’s growth and productivity by investing in early stage venture capital funds alongside matching levels of private capital. Through Elevate, the Government has invested in 12 venture capital funds and catalysed the growth of 151 of the most promising New Zealand start-ups including Auror, Tradify, Foundry Lab, OpenStar, Tracksuit, Mint Innovation and Halter.

Attracting international investors

The Active Investor Plus Visa category incentivises direct investment and encourages greater economic benefit to New Zealand. Changes made in April 2025 have simplified the investment process and introduced two investment categories.

• Growth category: This focuses on higher-risk investments, including managed funds and direct investments in New Zealand businesses. It will require a minimum investment of $5 million for a minimum period of three years.
• Balanced category: This focuses on mixed investments, with the ability to choose ones that are lower risk. A minimum investment of $10 million over five years will be required.

In 2024/25, we received 254 applications under the Active Investor Plus category, of which 199 were received after the setting changes in April 2025. Of the 199 under the new policy, 142 have been approved in principle, of which 114 are under the Growth category and 28 are under the Balance category and amount to a minimum investment of over $1.1 billion. The remaining applications are still in progress. The average time for an application to be approved in principle under the new settings is 11 working days, compared with 55 working days under the previous settings.

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