Transcript Invest in innovation for NZ`s future

Presentation to
Royal Society of
New Zealand
Peter Benfell
23 June 2004
What is the Foundation?
Crown Entity
Current investments $465m p.a.
75 staff
Objective:
“Invest in innovation for NZ’s future”
- economic, environmental, social
- also knowledge (underpinning)
Investment Funds
2004/05
Supporting Promising
Individuals
1.6%
Technology NZ
8.7%
Pre-seed Fund
1.0%
International Investment
Opportunities Fund
0.3%
New Economy Research Fund
15.1%
Consortia
3.7%
Non-Specific Output Funding
7.0%
Public Good Science & Technology
New Economy Research Fund
Research for Industry
Environmental Research
Social Research
Maori Knowledge & Development
Research
Non-Specific Output Funding
Research Consortia
Other Funds
Pre-seed Fund
Technology NZ
Supporting Promising Individuals
International Investment Opportunities
Fund
Maori Knowledge &
Development Research
0.6%
Social Research
1.4%
Total
Environmental Research
20.3%
Research for Industry
40.4%
$m
70.4
187.8
94.4
6.6
2.7
32.4
17.1
411.4
4.8
40.4
7.4
1.4
465.4
19 Portfolios
50000
45000
$ 2003/04 ($000's)
40000
35000
30000
25000
20000
15000
10000
5000
0
SEG
INF
MAN
NBP NSU
PQA
RIC
SPS
SER
RFI
PRU
RPM
MKDOC
FHT
NPT
NZT
GLO ECO
NERF
SCS SRU
ENV
Portfolio
SEG
Sustainable Economic Growth
RPM
Rangahau Putaiao Maori
INF
Innovative Foods
FHT
Future Human Technologies
MAN
Manufacturing Processes, Products & Materials
NPT
New Physical Technologies
NBP
Niche Biological Products & Services
NZT
Technologies to Leverage NZ’s Strengths
NSU
Networks, Structures & Utilities
GLO
Global Environmental & Earth Processes Change
PQA
Primary Production, Quality & Assurance
ECO
Resilient, Functioning and Restored Natural Ecosystems
RIC
Resilient Infrastructure & communities
SCS
Building Sustainable Cities & Settlements
SPS
Sustainable Productive Systems
SRU
Maintaining Environmental Integrity for Sustainable Resource Use
SER
Building Knowledge-Intensive Service Industries
BIS
Building an Inclusive Society
PRU
Optimising Use of Physical Resources
BIS
SOC
New Economy Research Fund
$45,000,000
$40,000,000
$35,000,000
$ Amount
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Basic Untargetted
Basic Targetted
Applied
Experimental
Development
Product Development
2002
$1,426,611
$36,250,970
$15,328,662
$4,337,544
$473,134
2003
$374,031
$41,856,658
$18,099,461
$4,088,672
$315,250
Research for Industry
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$ Amount
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
Basic Untargetted
Basic Targetted
Applied
Experimental
Development
Product Development
2002
$3,328,658
$75,697,080
$65,254,560
$21,985,353
$7,055,074
2003
$1,034,300
$66,538,255
$93,224,757
$17,395,935
$4,143,371
Range of Providers
AgResearch
Private (incl Consortia)
Research Associations
NIWA
University of Auckland
IRL
Other Universities
ESR
HortResearch
GNS
ForestResearch
LandcareResearch
Crop & Food
New Zealand investment in
R&D
NZ investment 2002 - $1.42B
• 1.13% of GDP
Private sector - $524M
• 0.42% of GDP
OECD average business investment in
R&D
• 1.5% of GDP
Challenge
How to get the same outcomes from
predominantly public funded R&D system
that other countries achieve from a
predominantly private funded one!
(across economic, environmental and
social objectives)
“FRST must improve its measurable
returns to NZ from its investments”
Why?
• future Government investment in science
- make it easy for the politicians
• increase private sector and international investment
• be able to better reward our scientists
- retention
- attraction
Co-funding of our
investments
Seek co-investment in all types of
funds
Technology NZ
New initiatives
•Research consortia
•Pre-seed
•Outcome-based investments
•International Investment Opportunities Fund
Co-funding of our
research investments
$400,000,000
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
2002/03
2003/04
Total $ Allocation
Cofunding $ (Direct and Related)
Research Consortia
User-led joint ventures
Leveraging new funding from private
sector
Foundation funds up to 50%
Seven established with another 6 likely in
next 12 months
• Private sector investment - $25m pa
Pre-seed Fund
New fund of $5m per annum
Foundation invests in public sector research
organisations to assist projects through
“valley of death”
To get projects more ready for private
investment and further commercialisation
Technology NZ
Invest in private sector companies to
enhance technological capability
Usually 50/50 co-funding
Foundation investment of $50m pa
Outcome based
investments
Outcome focused
Longer term, 6-12 years
Providers determine the projects
User engagement and commitment
Performance monitored
To be piloted in Ecosystems portfolio
International Investment
Opportunities fund
New fund, $3m in 2004/05, then $4m, $5m
Enable NZ researchers to respond to
international collaboration opportunities
arising out-of-cycle
Assist top researchers to re-locate to NZ