Show me the money : perspectives on applying for government research and development co-funding

Abstract

In 2012-14 Unitec Institute of Technology (in partnership with The Innovation Workshop) carried out research into the application process for New Zealand Government Research & Development [R&D] cofunding administered by the Ministry of Science & Innovation (now Callaghan Innovation Ltd). This research revealed widespread applicant frustration with the application criteria and process. A significant problem perceived by High Value Manufacturing and Service Small Medium Enterprises (HVMS SME) businesses is the focus of R&D funding on product innovation followed by a lack of funding to support later stage commercialisation of products. This later stage of product and market development is excluded from Callaghan Innovation co-funding, leading to ‘prototypes-on-a-shelf’. Applicants also found the process time consuming, due to the complexity of the application questions and the delays in response from the funding network of regional funding partners and the Government Ministry. HVMS SME often used consultants to help manage the application, which is frowned upon by both the regional funding partners and Callaghan Innovation, despite the high levels of cofunding success from these applicants. This work has been carried out during the establishment period of Callaghan Innovation Ltd and some of the above issues may be historic and/or transitional as the institutional arrangements change. This research records the HVMS SME experience in applying for R&D co-funding. Consideration of the user experience, captured in this research, may reveal opportunities to improve the process with better outcomes for the applicants and the economy