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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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