Universities to spend more on science and innovation

Universities New Zealand has welcomed the government’s budget announcement last week that it is investing NZ$761 million (US$513 million) in an Innovative New Zealand package in areas including science, skills and tertiary education, amid rosy projections for economic growth fuelled by population increases.

The largest portion of the funding invested in science and innovation measures has been put into research.

The increases will raise total spending on innovation by 15% by 2019-20.

Announcing the budget, Finance Minister Bill English said: “"This is a budget that invests in a growing economy."

Science and Innovation Minister Steven Joyce said: “Innovative New Zealand is a major step towards delivering on the vision of the national statement of science investment, and also supports the Business Growth Agenda, which seeks to grow business investment in R&D to over 1% of GDP [gross domestic product].

“Creating a thriving, independent research sector will have a strong impact on New Zealand’s productivity, prosperity and well-being.”

The Executive Director of Universities New Zealand, Chris Whelan, said: “This follows more than a decade where funding has declined in real terms for universities and where universities have struggled to maintain quality in teaching and research, and their ability to do more in the service of New Zealanders.”

“We are very pleased that Minister Joyce has listened to universities’ concerns and responded by injecting additional funds where they’re needed most.”

The budget allocations

The budget allocates NZ$411 million over four years to increased research spending on science and innovation. This includes NZ$113.8 million for the Endeavour Fund (formerly known as the Ministry of Business, Innovation and Employment’s Contestable Fund), NZ$97 million to the Health Research Council and NZ$66 million to the Marsden Fund, which supports excellence in research. In addition NZ$66 million has been earmarked for the Strategic Science Investment Fund.

According to Universities New Zealand, around 90% of health research is carried out by universities.

A further NZ$257 million over four years has been allocated to tertiary education and apprenticeship programmes “to develop the skilled workforce needed for a 21st century economy”.

Some NZ$123 million will be spent on targeted tuition fee subsidies, according to budget figures.

An estimated NZ$86.1 million of that will increase tuition subsidy rates for science (5% rate), agriculture (16%), and veterinary science students (9%), and medicine (6%).

An additional NZ$35 million will be spent on new innovation initiatives in the university sector.

In addition NZ$43.5 million will be used to help more students develop international connections in higher education.

Fee increases at tertiary education institutions are set to be limited to 2% compared to 3% this year and 4% in previous years, Radio New Zealand reported.

Whelan said: “We are pleased to see research funding receiving a boost in Budget 2016. This initiative, which includes the already announced increase to health research funding, will see more high-quality research proposals getting the green light. At present only about 10% of research proposals get funded and a lot of good research has been missing out.”

Universities New Zealand welcomed funding to support students to further develop their international education and to encourage refugees into university education, also announced today.

Whelan said the country’s universities are among the best in the world and have exceptionally strong graduate employment outcomes, despite funding that is only 70% per student of that for universities in Australia or the United Kingdom.

“We are therefore reassured that the minister has recognised that investment in universities is an investment in New Zealand’s innovation and economic growth. Together these initiatives provide a long needed boost to the New Zealand university system.”

However, he urged the minister to consider increasing funding in other areas in future budgets, since funding to disciplines like law, the humanities, teaching and commerce had not increased since 2012 and universities are finding it difficult to maintain quality in those areas.

He said with better funding a lot more univerisites could be working with schools to lift the number of young Maori making it to university.

“Likewise, funding levels are limiting the extent to which universities can work with industry to get qualification-relevant work experience for their students and support the direct transfer of university knowledge to business.”