November 23rd, 2024
New Zealand's total research and development (R&D) expenditure reached over $5 billion in 2022, marking an 11% increase ($534 million) compared to 2020 and a 67% increase ($2 billion) compared to 2016, according to figures released by Stats NZ. The growth spans across the business, government, and higher education sectors.
Business sector nearly doubles R&D spending
Ricky Ho, business performance manager at Stats NZ, highlighted that the growth in R&D expenditure was primarily driven by the business sector, which nearly doubled its spending between 2016 and 2022. In 2022, the business sector's R&D expenditure grew by $1.5 billion compared to 2016, accounting for 59% of total R&D expenditure.
More businesses invest in R&D
Approximately 2,300 businesses reported R&D expenditure in 2022, showing a 45% increase compared to 2016. The average expenditure per business rose from $1 million in 2016 to $1.3 million in 2022.
Scientific research and technical services lead growth
Within the business sector, the scientific research and technical services industry experienced the most significant growth between 2016 and 2022, with expenditure increasing from $75 million to $321 million. This industry contributed 6% to the total R&D expenditure in 2022.
Government and higher education sectors also grow
R&D expenditure in the government and higher education sectors has also grown since 2016, up by 37% and 43%, respectively. In 2022, government expenditure reached $900 million, while higher education expenditure stood at $1.3 billion.