Govt failing businesses on R&D

The National Government’s research and development (R&D) strategy has failed, with a lower proportion of businesses now engaging in R&D than when they took office, the Green Party said today.

The Statistics NZ Business Operations Survey released today shows that in 2009, eight percent of businesses engaged in R&D. In 2016, that number had fallen to seven percent. Labour productivity data also out today tells a similar story, with labour productivity growth at its lowest levels, over the growth cycle, since 1996.

"Steven Joyce’s R&D experiment has failed, with just seven percent of New Zealand businesses investing in R&D, one point lower than when National took office,” Green Party Co-leader James Shaw said.

“Labour productivity over the economic cycle is also at a low not seen since 1996!

“National’s economy is one that has New Zealanders working longer and harder, but not smarter.

“Innovation creates the know-how to do more with less, which means we can add value to our exports and protect the natural world that supports us. Innovation is essential to our long-term ability to prosper and compete internationally.

“Steven Joyce has created an innovation system that doesn’t work.

“From my discussions with business leaders, it’s clear to me that Steven Joyce’s system of R&D grants has simply created an industry of R&D grant application writers. This is leaving start-ups and SMEs, who don’t have the resources, out of the picture.

“The Green Party in government will rebalance our approach to R&D investment, giving businesses access to tax credits for R&D as well as grants.

“Our economy is too reliant on simple commodity exports like dairy, raw logs, and mineral extraction. More R&D and innovation will, in the long run, help diversify our economy, grow wages, and add value to our exports,” Mr Shaw said.

 

Latest Finance Announcements

Story

Economic windfall should be funnelled straight back into communities: Green Party

Following an economic forecast that shows Aotearoa strongly rebounding from COVID-19, and Crown accounts looking much healthier than expected, the ...
Read More

Story

Green Party to abstain from tax changes that will worsen house crisis in absence of tax on assets

The Green Party will abstain from a bill that will make slight changes to income tax brackets.
Read More

Story

Green Party welcome Adrian Orr’s full and frank advice on tax

We welcome Adrian Orr signalling that he will provide advice to the Finance Minister on fiscal measures, include tax changes, to cool the housing m...
Read More

Story

Green Party respond to Government review of housing settings

It is a positive step that the Government is looking at options to take the heat out of the housing market, and has written to the Reserve Bank to ...
Read More

Story

Reserve Bank policies will inevitably heat housing market, Government must implement tax reform to cool it down

The Government must use levers to prevent further over-heating of the housing market, which will result from the Reserve Bank pumping another $28 b...
Read More

Story

No surprise in National’s latest attempt to slash public services

National’s ‘alternative budget’ that includes huge cuts to the government’s operating allowance would risk gutting critical public services, and pu...
Read More

Latest Economic Development Announcements

Story

PREFU shows efforts to keep us all healthy, now we need to revenue raise

PREFU has given a good insight into what was required to ensure New Zealanders were largely supported to continue work and remain healthy during CO...
Read More

Progressive Tax Reform

In Aotearoa, there is enough to go around. But the tax system has allowed wealth to accumulate with a small number of us, while most of us have on...
Read More

Sustainable business

In the wake of COVID-19, we must empower small businesses in Aotearoa to flourish, create new jobs, and support their local communities. The Green ...
Read More

Sustainable jobs

A sustainable economy means good working conditions and fair distribution of the benefits of our natural resources. As we respond to the disruption...
Read More

High tech economy

A strong manufacturing and technology sector will create jobs in low-emissions industries and ensure we can sell Aotearoa’s skills to the world. Th...
Read More

Story

Green Party welcomes first Wellbeing Budget

“The Green Party is proud to welcome New Zealand’s first Wellbeing Budget to deliver change for New Zealanders,” Green Party Co-leader James Shaw s...
Read More