Research capability is essential to New Zealand's future

IRANZ Chair Dr John McDermott says the 2026 Budget reflects an ongoing shift toward strategic priorities, commercialisation, and mission-led investment, but appears to rely largely on reprioritisation of existing funding rather than significant new investment in research capability - potentially leaving the country in a vulnerable position.

He says New Zealand's research system is a critical national asset that underpins economic resilience, environmental stewardship, public wellbeing, and informed decision-making. As the Government continues implementing reforms to the science, innovation and technology system, including development of the Transition Research Fund, Dr McDermott says it is important that New Zealand maintains strong, locally grounded research capability across all disciplines.

"Research is not a luxury for New Zealand - it is part of how we improve productivity, strengthen resilience, support better policy, and create opportunities for future generations," says Dr McDermott.

"International evidence consistently shows that countries investing in research and development achieve stronger long-term economic performance. But for New Zealand, this is also about maintaining expertise that understands our unique environment, industries, communities and challenges."

Dr McDermott says a successful research system depends on maintaining capability across a broad range of fields, including the humanities and social sciences alongside science and technology disciplines.

"Innovation is not only about developing new technologies. Real-world progress also depends on understanding behaviour, communities, institutions, and how people respond to change. New Zealand benefits from a research system that brings these perspectives together."

Dr McDermott says it was encouraging to see indications that the evolving funding framework would continue to support both foundational and applied research, while also recognising the importance of developing and retaining research talent within New Zealand.

"The detail of implementation will matter. Stable settings, clear pathways, and long-term confidence are all important for sustaining a healthy research ecosystem," he said.

"Periods of structural change, both within Government and the research sector, can create uncertainty across the sector, making clear long-term signals and stable investment settings particularly important."

Dr McDermott added that the wider research sector also had an opportunity to continue building public understanding of the contribution research makes to New Zealand's future prosperity, wellbeing, and resilience.

ENDS

For further information, please contact:
Dr Rob Whitney
IRANZ Executive Officer
information@iranz.org.nz
027 292 1050