NZ Backs Commercial Science Reforms with Budget 2025 Innovation Boost

The New Zealand Government has unveiled a bold science and innovation agenda in Budget 2025, focused on commercialisation, future-proofing national capabilities, and enabling transformative technologies. The announcement by Science, Innovation and Technology Minister Dr Shane Reti marks a significant step in repositioning the country's research and development sector toward economic outcomes and public benefit.

Dr Reti emphasized the Government’s intent to harness the full potential of modern science by reprioritising existing resources to foster innovation, job creation, and commercial growth. The Budget announcement signals a major transition from a traditionally academic-oriented science system to one focused on real-world application and commercial viability.

Key Budget 2025 Initiatives

Three major pillars anchor this transformation:

1. Creation of New Public Research Organisations (PROs): A total of $20 million has been earmarked over two years to support the launch of three new PROs, which will focus on:

   • Bioeconomy: Developing sustainable biological resources to power agriculture, manufacturing, and energy.

   • Earth Sciences: Improving resilience against natural hazards, informing infrastructure planning, and addressing the effects of climate change.

   • Health and Forensic Sciences: Advancing diagnostic tools, medical technologies, and forensic methods with a view toward both public safety and commercial spin-offs.

   These organisations are tasked with identifying emerging opportunities and accelerating the transition of research ideas into market-ready innovations.

2. New Gene Technology Regulator: With $23 million allocated across the forecast period, the Government will establish a dedicated gene technology regulator. Scheduled to begin operating in 2026, pending the passage of enabling legislation, the regulator will oversee the safe and effective deployment of gene-editing and genetic modification technologies.

   Dr Reti underlined the need to modernise New Zealand’s approach: “Gene technology has enormous potential to improve healthcare, help communities adapt to climate change, boost exports and lift agricultural productivity. But we’ve been constrained by some of the toughest gene technology regulations globally.”

   The regulator’s responsibilities will include licensing, compliance, enforcement, and public safety monitoring—establishing a framework that encourages innovation while ensuring safety and transparency.

3. Prime Minister’s Science, Innovation and Technology Advisory Council: Another $5.8 million over the forecast period will go toward operating this newly formed high-level council. With support from a dedicated secretariat housed within the Ministry of Business, Innovation and Employment (MBIE), the council will:

   • Offer strategic advice on science funding priorities.

   • Identify areas of global opportunity.

   • Ensure public investment in science yields tangible economic and social returns.

Shifting the Focus: From Academic Research to Economic Growth

Dr Reti pointed out that while New Zealand boasts some of the best researchers globally, its publicly funded research institutes have lacked both incentives and structured pathways to translate their work into viable commercial products or services.

“Budget 2025 represents a strategic reset,” Dr Reti said. “We need publicly funded research to solve real-world problems. This includes preparing us for natural disasters and climate shifts, but also driving productivity and exports through science-led innovation.”

Funding Reprioritisation: No New Spending, Smarter Allocation

Importantly, all initiatives announced under Budget 2025 are being funded through the reprioritisation of existing expenditure within the Science, Innovation and Technology portfolio. This signals a fiscal strategy that balances innovation investment with budgetary discipline.

Rather than injecting new money into the sector, the Government is opting to reallocate current spending to high-impact initiatives that better align with national growth goals.

Future-Proofing Through Science

In his closing remarks, Dr Reti noted that innovation must be both proactive and adaptive. “We must have an eye on emerging opportunities to make sure we keep growing the role of science and innovation. We must always be asking: what’s next?”

With these reforms, the Government aims to ensure New Zealand remains competitive on the world stage by fostering a vibrant science sector that is responsive, commercial, and ready to tackle global challenges head-on.