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Why Should NZ Prioritize R&D to Keep Young Talent?

Ilan Gross

29 April 2025

Why New Zealand Must Increase R&D Spending to Keep Young Talent

New Zealand is renowned for its breathtaking landscapes, innovative spirit, and world-class research in agriculture, environmental science, and biotechnology. However, when it comes to research and development (R&D) investment, we’re lagging behind other developed nations—and it’s costing us our brightest young minds.

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New Zealand’s R&D Spending in Global Context

According to [Visual Capitalist’s analysis of R&D investment by country](https://www.visualcapitalist.com/rd-investment-by-country/), New Zealand spends just 1.4% of GDP on R&D—far below the OECD average and trailing behind countries like Israel (5.4%), South Korea (4.8%), and even Australia (1.8%). This underinvestment limits our ability to compete globally and pushes young talent to seek opportunities abroad.

Why Boosting R&D Investment Matters

1. Economic Growth & High-Skill Jobs

Countries that invest in R&D see stronger economic growth and create high-value industries. If New Zealand wants to move beyond traditional sectors like agriculture and tourism, we need more innovation in tech, green energy, and biotech—sectors that attract and retain skilled workers.

2. Solving Local & Global Challenges

From climate change to healthcare, R&D is essential for developing homegrown solutions. Young researchers and entrepreneurs want to work on meaningful problems—but without funding, they’ll take their ideas elsewhere.

3. Keeping Young Talent in New Zealand

One of the biggest risks of low R&D spending is the brain drain. Many of our best graduates leave for countries with better-funded research programs, startups, and tech industries. If we want them to stay, we must provide exciting career opportunities in science, engineering, and innovation.

4. Future-Proofing Our Economy

With AI, automation, and green tech reshaping industries, businesses that don’t innovate will fall behind. Increased R&D investment ensures Kiwi companies—and the jobs they provide—remain competitive.

What Needs to Change?

1. Increase Government Funding

- New Zealand should aim to at least match Australia’s R&D spending (1.8% of GDP) with a long-term goal of 2.5%. - Boost Private Sector R&D: More tax incentives and grants for businesses investing in innovation.

2. Strengthen University-Industry Links

- Better collaboration between academia and businesses can turn research into real-world opportunities, keeping graduates engaged in NZ.

3. Support Startups & Tech Hubs

- Young talent thrives in dynamic innovation ecosystems—we need more incubators, grants, and venture capital for early-stage companies.

The Bottom Line

If New Zealand wants to keep its young talent, it must invest in R&D. Without more funding, we risk losing the next generation of scientists, engineers, and entrepreneurs to countries that value innovation.

By increasing R&D spending, we can create exciting career paths, solve big challenges, and build a stronger economy—all while ensuring our brightest minds don’t have to leave to fulfill their potential.

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Picture of Ilan Gross

Ilan Gross

Picture of Ilan Gross

Ilan Gross

Ilan Gross is a distinguished pioneer and authoritative leader in the IT industry, boasting over two decades of unparalleled expertise in CRM systems and CRM strategy. As the Principal Zoho CRM Consultant at Lumen Business Solutions, Ilan has revolutionised the way B2B enterprises leverage CRM solutions, firmly establishing himself as a cornerstone of technological innovation and strategic prowess. His specialisation in integrating cutting-edge sales methodologies like SPIN, Gap Analysis, and Challenger Selling into CRM platforms has not only set new standards in the industry but has also redefined the essence of customer relationship management for enterprise customers. Ilan's visionary approach extends beyond traditional CRM systems; he is a trailblazer in AI development, AI implementation, and AI consulting, particularly noted for his pioneering work with private ChatGPT on the Azure platform. His foresight in recognising the transformative potential of AI in business processes has led to the creation of numerous AI applications for enterprise solutions, further solidifying his reputation as a leader in driving technological advancement and innovation. Under Ilan's leadership, businesses have experienced groundbreaking advancements in revenue-lifting strategies. Through his expert guidance, enterprises have not only improved their sales processes and customer engagement but have also witnessed substantial increases in revenue. Ilan's mastery of CRM systems, combined with his deep understanding of the strategic needs of large-scale businesses, positions him as an indispensable asset for any organisation aiming to scale and excel in today's competitive market. Moreover, Ilan Gross is celebrated as a pioneer of software development tools, including Aware IM and Magic Software. His contributions to these platforms have been instrumental in empowering developers and businesses alike, enabling them to build powerful, efficient applications with unprecedented ease and flexibility. This aspect of his expertise further underscores his role as a visionary leader, whose influence spans across the entire spectrum of IT development and strategy. In sum, Ilan Gross stands as a paragon of innovation and leadership in the IT industry. His exceptional skill set, combined with his pioneering contributions to AI and software development, marks him as a pivotal figure in shaping the future of technology for enterprise success.