We offer a range of research and development (R&D) grants to add scale, depth and return to your R&D investment.
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- Brendan Walsh
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1 R&D Grants
2 We offer a range of research and development (R&D) grants to add scale, depth and return to your R&D investment. Contact us: callaghaninnovation.govt.nz 2 \ R&D Grants
3 R&D Grants Our R&D grants are designed to assist your business whether you are a young start-up, an established R&D performer, or want to bring students on board to assist in your R&D activities. You can apply for a grant from us at any time during the year, with the exception of Student Experience Grants, which require applications to be made within a specific timeframe. Our R&D grants include: Getting Started Grants to help your business kick-start R&D Project Grants to help your business research and develop a product, process or service Growth Grants to help your business fund an expanding R&D programme Student Grants to help your business involve students in your R&D R&D Experience Grants to bring smart, enthusiastic and fresh thinking into your R&D activities with support provided by undergraduate students in the summer break before or after their final year of study R&D Careers Grants to add a PhD or master s graduate to your R&D team to stimulate innovation R&D Fellowship Grants to solve a challenging R&D problem in your business with PhD or master s research. R&D Grants \ 1
4 Getting Started Grants Are you in the early stages of, or new to, research and development (R&D)? A Getting Started Grant will give you a kick-start to help you take your product, process or service solution from development through to commercialisation. The Getting Started Grant is designed to help you: Launch your R&D activities to create a competitive edge Navigate through R&D roadblocks whether it s troubleshooting, basic prototyping, project planning, technical feasibility studies, development of an intellectual property strategy or determining product specifications and user requirements How does a Getting Started Grant work? You can apply at any time. Phone us on and we ll help you prepare an application. If approved, your business will receive 40% of eligible costs of your external project expenditure, based on a quotation, capped at $5000. Funding is paid as a one-off payment on completion of the project. Access technical expertise to support you in taking your development in the right direction. Who can apply for a Getting Started Grant? To apply for a Getting Started Grant, your business must: Meet our business structure requirements Meet financial and due diligence requirements that provide sufficient information to support your application, including a quotation for the R&D expenditure. The Getting Started grant allowed us to quickly get the required testing completed and reduced some financial risk associated with developing a new product. Michael Lawley, Owner EcoInnovation. 2 \ R&D Grants
5 Getting Started Grants 3 R&D Grants \
6 Project Grants Is your business new to, or trying to expand your research and development (R&D)? A Project Grant can help you take on larger or more challenging R&D. A Project Grant is designed to help you: Build your R&D expertise by giving your business an opportunity to push the boundaries and uncover new scientific or technical knowledge and understanding Break new ground in an R&D project for the development of new or substantially improved devices, products, processes, systems or services Develop your business into a stable and substantial R&D performer Grow your investment in R&D. Who can apply for a Project Grant? To apply for a Project Grant, your business must: Meet our business structure requirements Meet financial and due diligence requirements. How does a Project Grant work? You can apply at any time. Phone us on and we ll talk you through the application process. Your business can receive a variable percentage of eligible R&D project costs and you may receive multiple Project Grants (each grant for a distinct R&D project). We will also ask you: What are the potential commercial returns to your business? How well will you be able to commercialise or implement the results of the project? Will your business be able to successfully deliver on the technical aspects of the project? Will the project be a technical stretch? To what extent will it help your business develop an ongoing R&D programme? What impact will grant funding have on the delivery, scale, quality or commercial success of the project? To what extent will other New Zealand firms or society benefit from this project? 4 \ R&D Grants
7 Project Grants 5 R&D Grants \
8 Growth Grants Is your business an experienced research and development (R&D) performer? This three-year grant will help you increase your R&D investment. The Growth Grant is designed to help you: Add scale to your R&D investment for greater market impact Be flexible by allowing you to adapt to where you want to take your R&D programme, outside the constraints of traditional R&D grant criteria Continue to grow your investment in R&D for maximum return. Who can apply for a Growth Grant? To apply for a Growth Grant, your business must: How does a Growth Grant work? You can apply at any time. Phone us on and we ll talk you through the application process. Your application will be reviewed by our R&D Grants panel and you will be notified of the panel s decision within four to six weeks of submitting your application. If approved, on the first day of the next quarter your funding contract will begin. Your business can receive 20% of your eligible R&D expenditure, capped at $5m per annum. A two-year extension after three years, subject to annual review requirements being met. Meet our business structure requirements Have spent at least $300,000 on eligible R&D in each of the last two years and spent at least 1.5% of its revenue on R&D. If you plan to increase your R&D spending over the next two years to these levels, transitional arrangements may be made Meet financial and due diligence requirements. 6 \ R&D Grants
9 Growth Grants R&D Grants \ 7
10 Student R&D Experience Grants R&D Experience Grants bring smart, enthusiastic and fresh thinking into your R&D activities with support provided by undergraduate students in their summer break before or after their final year of study. The R&D Experience Grant is an internship designed to suit work experience during the summer student break. You can access science, technology, engineering, design or business students to help you fulfil your R&D needs. The student is expected to help you with a discrete R&D project or activity. Your business can receive funding up to $6,400 for 400 hours of work. Who can apply for a R&D Experience Grant? To apply for a R&D Experience Grant, your business must have: An ongoing R&D programme and dedicated R&D staff employed Met our business structure requirements Met financial and due diligence requirements. 8 \ R&D Grants
11 How does an R&D Experience Grant work? We encourage you to talk with us before submitting your proposal. Phone us on and we ll help you identify the best approach for support, based on the business outcome you are trying to achieve. Our evaluation criteria for proposals include: All R&D Experience Grant applicants are notified of their application outcome around August. If you are successful you will be required to sign a R&D Experience Grant contract with Callaghan Innovation. You can then recruit directly for your student interns or we can introduce you to education providers to advertise your internship opportunity. 1. How will the involvement of the student within your business expose them to technical work that is relevant to their degree? This should be in the form of a defined R&D project 2. Do you have a credible plan for the professional development of the student, and what resource are you committing to this? 3. How will the involvement of the student support your business internal capability? We ll also consider any wider benefits to New Zealand, your other grants and any financial risks. The number of grants approved is limited. R&D Experience Grants are available through an annual Request For Proposal (RFP) process to identify the best commercial R&D opportunities for New Zealand students. The RFP documentation is available from our website around May each year and applications close in June. Please refer to our website for more detailed date information. Your intern student(s) may be employed anytime between October to March. You ll need to pay the student with your regular payroll activity up until the completion of 400 hours or completion of the student internship (whichever comes first). You will then be reimbursed by us. Students must be paid $16 an hour or more. The R&D Experience Grant is a contribution to the student s wage and you can expect to pay more to attract good students. Callaghan Innovation will only pay up to $6,400 and may not be used for employer KiwiSaver contributions, holiday pay, ACC or other payable taxes and levies. At the completion of the student s internship, your business will be required to complete a report and the student will be required to complete a survey. The report is used to compare the performance of businesses that have funding with those that do not. The learnings from the survey and the report will inform the design of future R&D funding schemes. Student R&D Grants R&D Grants \ 9
12 Student R&D Careers Grants Bring smart capability and fresh thinking into your business with expertise provided by recently graduated master s or doctoral students. The R&D Careers Grant is an internship designed to bridge the first six months of employment-gaining work experience, and could be a precursor to permanent employment. The student is expected to support your business in solving an R&D problem faced in the development of a new product, process or service. Your business can receive 50% of annual salary costs up to $30,000 (plus GST) to cover the salary of the student for the first six months. How does an R&D Careers Grant work? You can apply any time. Phone us on and we ll take you through the application process. You will need to prepare an online application for review by our R&D Grants panel. We ll let you know the panel s decision within four to six weeks of submitting your application. Who can apply for a R&D Careers Grant? To apply for a R&D Careers Grant, your business must have: Met our business structure requirements A structured R&D programme involving specialised R&D staff Met financial and due diligence requirements. 10 \ R&D Grants
13 R&D Grants \ 11 Student R&D Grants
14 Student R&D Fellowships Grants Solve a challenging R&D problem in your business with PhD or master s research. The R&D Fellowships Grant is designed to provide your business with advanced research at PhD or master s level. The research is undertaken inside your business and at the university, and is the research topic on which a PhD or master s thesis is based. You ll get access to the latest thinking and knowledge to solve a problem for your business and through the student s university supervisor and build ongoing links between your business and the university. How does an R&D Fellowships Grant work? Your business and the university supervisor will jointly supervise the student s research project, and the research is undertaken at both sites. Depending on the length of time for the student to complete their qualification, qualifying businesses will receive: PhD maximum payments (36 months duration) Stipend $75,000 (tax free) Travel allowance $2,666 (excluding GST) University host fee $13,333 (excluding GST). Master s maximum payments (12 months duration) Stipend $20,000 (tax free) Travel allowance $888 (excluding GST) University host fee $4,444 (excluding GST). R&D Fellowship Grant students receive a stipend and travel allowance and a fee is paid to the university to support their role in the scheme. Who can apply for an R&D Fellowships Grant? To apply for an R&D Fellowships Grant, your business must have: An ongoing R&D programme involving specialised R&D staff capable of supervising the student s research project Met our business structure requirements Met financial and due diligence requirements. You need to identify a suitable student before applying for this grant. Phone us on and we ll take you through the application process. 12 \ R&D Grants
15 R&D Fellowships Grants FAQs What type of academic study, project or thesis is eligible for an R&D Fellowships Grant? A university-approved, PhD or master s-level research topic that addresses a new product, process or service for a business with an active R&D programme meets grant eligibility criteria. The research undertaken must result in new scientific or technical capability being transferred to the business and it must be of commercial benefit for the business (i.e. leads to the development of a new product). How do I find a PhD or master s student to work in my business? University research offices will help you identify a suitable student to work with you in your business and provide details of their academic supervisor. Are international students eligible for R&D Fellowships Grants? Some international students may be eligible for the Fellowships Grant provided Immigration New Zealand requirements are met. A valid visa allowing the student to study in New Zealand for the duration of the grant must be held. If the PhD or master s proposal is the basis for the student visa application, the visa application must be in progress with Immigration New Zealand at the time of applying for the grant with Callaghan Innovation. The grant contract will be conditional and will not commence until the relevant visa is obtained from Immigration New Zealand. Can the duration of the grant be changed if the duration of the student s course of study changes? Yes. The allocated payments for master s students will either be reduced or spread out to accommodate the change. For PhD students, a standard duration of three years (36 months) applies and cannot be changed. Are stipends taxable? No. The stipend operates in the same way as a scholarship arrangement and is usually tax-free. If the student is GST registered, the stipend payments received by the student may be taxable and it is the student s responsibility to manage this with IRD directly. What are considered to be project costs under the terms of the grant eligibility criteria? Project costs are the expenses incurred by the business that directly relate to the project and are the business s contribution to the project. They might be the purchase of consumables or project-related travel such as visiting a business client or customer, or another facility. What expenses are covered by the travel allowance? An allowance is a discretionary payment made to the student to cover travel and accommodation when they are required to travel a significant distance. The business must apply for the allowance on behalf of the student when applying for the grant as they cannot be paid once the grant has commenced. Student R&D Grants R&D Grants \ 13
16 When might a business not be eligible for a reimbursed allowance? Eligible allowance expenses do not include academic fees or study costs. Does the student have to be physically located at the business s workplace to complete the project, or can they work at the university? The physical location of the work is agreed between the student, the business and the university in the grant application. To meet project objectives, the student may be required to work at a range of sites and locations (i.e. at the business, conducting field work, or at a university laboratory); however, as it is a requirement under the grant criteria that the student experiences R&D in a commercial and technical environment, there must be a balance maintained to ensure the student is able to meet their professional development objectives. The university should be able to continue research in the field and to teach on the topic. The student should be able to publish the research in their thesis. Can the student be employed at the business in another job or be employed at another business? No. The student cannot be employed by the business or the university. However, the student may work elsewhere outside of normal business hours (e.g. in the hospitality industry on weekends). If the student withdraws from the work or the work isn t completed within the agreed timeframe, will the funding have to be paid back to Callaghan Innovation? The student must work responsibly to meet completion requirements and if circumstances change it is very important that you advise us. We ll consider the impact of the changes on the grant criteria and discuss these with you. How should intellectual property be managed under the terms of the grant? The management of intellectual property (IP) must be agreed between the university, business and student at the start of the project. The business should be able to have unrestricted access to the IP resulting from the research.
17 General Grant FAQS Is my business eligible for R&D funding? In addition to meeting specific criteria for each grant, your business must have at least one director who is a New Zealand resident, and been incorporated in New Zealand, or have a centre of management or head office in New Zealand. Education providers, local government, crown entities and Crown research institutes are not eligible for Callaghan Innovation s R&D grants. Details of the businesses that receive an R&D grant from Callaghan Innovation are published on our website. The name of the business receiving the grant, the title of the project being supported, the grant type and value, and the grant start and end dates are published. Ministerial releases may also include these details. Details of the businesses that receive, or have received, an R&D Experience or R&D Careers grant are available on our website. How do I apply for a grant? Phone us on to talk to us about how to apply for a grant. What information will be made public about the grant my business receives? Callaghan Innovation will not release any confidential information unless we are obliged to under the Official Information Act or by other laws, or to provide an answer to parliamentary questions. We will advise you of requests for information to the extent permitted by law and time available. R&D Grants \ 15 FAQS
18 Information for Students If you are a student studying science, technology, engineering, design or business, Callaghan Innovation may have an opportunity for you to gain valuable commercial experience. Some of New Zealand s most exciting high-tech companies are recipients of grant funding from Callaghan Innovation for research and development. We encourage applications from businesses with active R&D programmes, which realise the value of student interns in building their capability, and who have the time to invest in your professional development. What internships are available? R&D Experience Businesses applying for R&D Experience through Callaghan Innovation will know in August how many interns they may recruit and what R&D challenges they have funding for. To be eligible you must: Be studying science, technology, engineering, design or business at a New Zealand university or tertiary institute Have completed your penultimate or final year of an undergraduate or honours degree, a postgraduate diploma or certificate, or conjoint undergraduate degrees Be a New Zealand citizen or hold a relevant visa Not have been previously employed at the business or in the industry under a professional arrangement. This is for students in their penultimate or final year of an undergraduate or honours degree, a postgraduate diploma or certificate, or conjoint undergraduate degree. The grant pays for 400 hours work experience during the summer break, between October and March. You ll be paid at least $16 per hour by the business. 16 \ R&D Grants
19 R&D Career This is for students who are about to or have recently finished their master s degree or doctorate. This internship is suitable for the first six months of employment gaining work experience, and is ideally an entry into permanent employment. To be eligible you must: Be about to, or have recently completed a postgraduate degree Be studying science, technology, engineering, design or business at a New Zealand university or tertiary institute Be a New Zealand citizen or resident holding a relevant Visa Not have been previously employed at the business or in the industry under a professional arrangement. R&D Fellowships This is for students who want to undertake a master s or doctoral degree and have a thesis to complete. Funding is provided for one to three years. A business can apply for a grant once the university has agreed the research thesis project with you. To be eligible for an R&D Fellowship Grant placement, you must: Be enrolled in a master s or PhD requiring the completion of a thesis Be studying science, technology, engineering, design or business at a New Zealand university or tertiary institute Be a New Zealand citizen or resident or hold a relevant Visa. What can I expect from the business? The business will provide technical work relevant to your degree in a commercial R&D environment. They will have a professional development plan and a mentor who is different from your supervisor or manager. How do I find an internship with a business? We encourage you to contact your university or polytechnic by: Accessing your university CareerHub job vacancy system Accessing the Waikato Cooperative Education Unit website page Talking to your tutor. Approved businesses will also be listed on the Callaghan Innovation website funding-andgrants/rd-student-grants R&D Grants \ 17
20 We also help you with: Technology and Product Development Business Collaborations Innovation Skills Access to Experts Contact us: callaghaninnovation.govt.nz Information is accurate at the time of print but can be subject to change. Please refer to our website for the latest information. GRANTS_07_2015
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