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

Innovation is critical to New Zealand's long-term productivity and economic growth. A strong science, innovation and technology system supports the development and adoption of new knowledge, technologies and services, while access to skilled people, expertise and capital helps businesses grow and compete internationally. Together, these foundations support higher-value economic activity and contribute to a more productive, resilient and competitive economy.

The Government's science system reforms progressed significantly during 2025/26, establishing a strategy-led science, innovation and technology system focused on economic growth. Key changes included the establishment of the Prime Minister’s Science, Innovation and Technology Advisory Council and Research Funding New Zealand, delivery of the Science Investment Plan to prioritise investment where it will have the most impact and creation of the New Zealand Institute for Advanced Technology.

The reforms are intended to improve collaboration across the research system, strengthen alignment with national priorities and maximise the impact of public investment in science and innovation. Over time, they are expected to support stronger research outcomes, greater commercialisation and higher productivity.

During the year, MBIE developed new intellectual property rules for publicly funded research to unlock the commercial potential of research, combined with a $40 million boost in support (over 3 years) to support university researchers to commercialise their innovations.

MBIE also supported the establishment of the New Zealand Institute for Advanced Technology, which will help grow New Zealand’s advanced technology sector and have an important role in turning world-class science into commercial success.

Further investment in New Zealand’s innovation system included MBIE running an investment process for a new $42 million biodiscovery platform to accelerate growth in the bioeconomy and support the development of new products and services from New Zealand's biological resources.

In addition, New Zealand's first National Artificial Intelligence (AI) Strategy was launched during the year, supported by up to $70 million of investment to encourage AI adoption and capability development.

MBIE continued to improve access to the skills, expertise and investment needed to support business growth and innovation.

The Applied Doctorates Scheme was established to strengthen connections between research organisations and industry, enabling doctoral candidates to undertake industry-focused research while building advanced skills in areas of high demand. The Scheme has successfully launched its inaugural cohort focused on Energy Innovation and is now progressing a second cohort in Aerospace, Defence & Security, demonstrating strong demand from industry and universities for applied doctoral training.

Changes to the Active Investor Plus visa attracted significant international interest and supported greater investment into New Zealand businesses. Alongside this, Immigration New Zealand progressed its Our Future Services programme, continuing the transition of visa applications to the enhanced Immigration Online platform to improve the customer experience and support more efficient processing. International student visas moved onto the platform in August 2025, followed by family of temporary visa holder applications in June 2026.

MBIE also supported greater access to growth capital through a $100 million expansion of the Elevate NZ Venture Fund. The investment is intended to increase the availability of venture capital for innovative New Zealand businesses and attract additional private sector investment.

Together, these initiatives are helping businesses access the people, knowledge and capital needed to innovate, scale and compete internationally.

April 2026 marked the 10-year anniversary of the New Zealand Space Agency, highlighting a decade of growth in New Zealand's space sector and the importance of international partnerships.

New Zealand established a globally leading regulatory regime for ground-based space infrastructure, closing a critical gap in the oversight of activities that can affect national security and other national interests. Through amendments to the Outer Space and High-altitude Activities Act 2017, New Zealand introduced a comprehensive authorisation framework for operators of satellite tracking, communications and space surveillance infrastructure, supported by enforcement powers, security requirements and ministerial intervention mechanisms. The regime positions New Zealand at the forefront of international practice by providing a clear, risk-based system to deter foreign interference, manage emerging security risks and ensure the safe, secure and responsible use of space-related infrastructure.

MBIE has worked to find efficiencies in payload permitting times to create a more enabling regulatory environment while ensuring safety and security continue to be robustly managed. Payload permitting times have decreased to under 6 weeks, down from an informal target of 12 weeks. New Zealand hit a new high of 16 orbital rocket launches in 2025/26 with an additional sub-orbital launch.

During the year, MBIE launched the $1.8 million Kiwi Space Activator (KSA) programme to support the sector capability and growth. The KSA is designed to help New Zealand businesses and research organisations take promising space technologies from the laboratory to real-world flight testing, either on high-altitude platforms or in orbit. The programme co-funds technology demonstration missions to build flight heritage, a critical step in commercialising space technologies and attracting customers and investors.

Analysis from April 2025 highlighted the growing economic significance of the sector. New Zealand's space sector contributed around $2.47 billion to the economy and supported around 17,000 jobs, with sector revenue growing by 53% between 2019 and 2024. These findings reinforce the Government's goal of doubling the size of New Zealand's space and advanced aviation sectors by 2030.

Together, these initiatives are supporting innovation, high-skilled employment and export growth, while positioning New Zealand to capture opportunities in the expanding global space economy.

Transforming New Zealand’s science, innovation and technology system

New Zealand's science, innovation and technology system plays a critical role in lifting productivity, supporting economic growth and improving wellbeing. During the year, MBIE led implementation of the most significant reform of the system in more than 30 years, aimed at maximising the value of public investment and ensuring the system is better positioned to respond to national priorities and technological change.

The reforms included the merger of 7 Crown research institutes into 3 public research organisations (PROs), the establishment of the New Zealand Institute for Advanced Technology and the creation of Research Funding New Zealand as a single, independent funding decision-maker. The Prime Minister's Science, Innovation and Technology Advisory Council was established to provide strategic advice and support stronger system-wide coordination.

A new funding model has been introduced to focus investment on key national priorities, including the primary industries and bioeconomy, technology for prosperity, environmental sustainability and resilience and healthy people and a thriving society. At the same time, reforms to intellectual property management settings are strengthening pathways between research, innovation and commercialisation.

These reforms position New Zealand for a more connected, strategically coordinated science and innovation system. They provide clearer direction for researchers and industry, support greater collaboration across institutions and create stronger foundations for translating research into economic and social value.

Active Investor Plus visa attracts global capital to support growth

New Zealand's ability to attract international investment is important for supporting innovation, business growth and long-term economic resilience. The Active Investor Plus visa was designed to attract high-value investors who can contribute not only capital, but also expertise, global networks and commercial experience.

Since refreshed settings were introduced in April 2025, strong international demand has generated approximately 801 applications representing a potential investment pipeline of over $4.4 billion. Approximately $2.1 billion had already been committed or invested in the New Zealand economy by the end of the reporting period, and more than 355 resident visas had been granted.

Investment has supported sectors including technology, healthcare, manufacturing and tourism, helping businesses access new sources of capital and expand their operations.

This initiative demonstrates how immigration, investment and economic development settings can work together to support economic growth. By attracting high-value international investment, MBIE is helping strengthen connections to global markets, support business expansion and improve New Zealand's long-term productivity performance.

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