Science, Research and Innovation Minister Shane Reti has explained the policy change that is reallocating $122 million of existing Government science spending to focus more investment in emerging and advanced technologies, such as quantum technology, robotics and genomics.

He said the policy change would help New Zealand take the lead in niche areas where it could be as globally competitive as other small advanced economies, such as Singapore and Ireland.

Speaking to about 100 scientists, investors and innovators at a Sprout Agritech summit in Auckland yesterday, Reti emphasised the Government’s economic considerations:

Strengthening that recovery, and our ability to rebound after shocks, and lifting New Zealand’s long-term economic performance is a priority for the Government. 

That is why two of this Government’s major agendas – Going for Growth and the Science, Innovation and Technology System Reforms – are deeply intertwined; the latter being one of the five key mechanisms in the Going for Growth agenda.

Nowhere is that more obvious than in the sectors represented here today: agritech, agrifoodtech, deep tech, and biotechnology, sectors where New Zealand has natural advantages, deep expertise and global potential. 

Advanced technologies were already reshaping the agrifood economy — from AI enabled automation, to climate resilient crop systems and precision fermentation, Dr Reti said.

He also cited work from companies like Halter, which has pioneered virtual fencing and precision livestock management through its solar-powered smart collars and software platform, enabling farmers to herd, monitor and manage cattle remotely without physical fences.

Another example of agritech success was last year’s Prime Minister’s Science Prize awards that went to AgResearch for developing an endophyte microorganism which enhances the health and productivity of the ryegrass common on New Zealand farms.

We need more of these stories across the economy. 

On public science funding, Dr Reti said not enough investment has been targeted at the creation of new technologies, new products and new companies.

That is why the Government is undertaking the most significant modernisation of the science, innovation and technology system in more than three decades.

Key reforms in the past year include:

• A shift to a strategy‑driven funding system that aligns public investment with national research priorities
• A new national intellectual property framework to strengthen incentives and pathways for researchers to commercialise breakthrough ideas.
• Consolidation of the seven CRIs into three Public Research Organisations, including the Bioeconomy PRO, which will be pivotal for agrifood and agritech innovation.
• Creation of PMSITAC as the national strategic science council.
• Creation of Research Funding New Zealand, aligning investment with national priorities and economic opportunity.
• Establishment of the New Zealand Institute for Advanced Technology, backed by $231 million, with a statutory mandate to commercialise frontier technologies such as quantum, AI and synthetic biology.

During his presentation, Dr Reti announced the release of the Prime Minister’s Science, Innovation and Technology Advisory Council (PMSITAC) Report on Prioritisation in New Zealand’s Science, Innovation and Technology System.

This sets out how science investment will be refocused into areas intended to make the biggest difference for New Zealand.

The report focuses on science funding in the portfolio and not the almost equal amount of science funding in other portfolios including Ministry for Primary Industries, the Department of Conservation, the Tertiary Education Commission, Centres of Research Excellence, and Tertiary Research Excellence Fund, the $315 million a year which funds university research.

The Council’s report signals four areas, or pillars, where Government’s science investment can make the biggest difference for New Zealand.

These are:

• Primary Industries and Bioeconomy
• Technology for Prosperity
• Environmental Sustainability and Resilience
• Healthy People and a Thriving Society

At the heart of the report is a new Technology for Prosperity pillar, which will crosscut across all science endeavours, Dr Reti said.

Investments in areas such as quantum technologies, AI modelling, next generation sensing and engineered biological systems, will enable innovation across all four pillars, including agrifood and agritech.

The Council recommends adjusting the funding balance within these pillars to be 60 per cent mission-led (aligned to national priorities and outcomes) and 40 per cent investigator-led (competitively funded, curiosity-driven research).

This replaces the current approximate 45 per cent mission-led and 55 per cent investigator-led balance, and positions New Zealand alongside other leading small, advanced economies who are similarly positioning towards more mission-led science.

The Council recommends an increase in investment in advanced technology through a gradual reallocation of some of the agriculture and environmental research funding.

Cross cutting will clearly position some of this funding back into those areas, just from a different pillar and with an emerging technology lens. For example, through something like AI-driven robotic harvesting technology. 

The fourth key to the report is simplified science funding with less bureaucracy. The PMSITAC Priorities Report will inform the development of the Science Investment Plan, which will set New Zealand’s long‑term research priorities and align public investment with national missions. The plan will be released later this year.

Dr Reti said the transition must be supported by the foundations of the system — the workforce, research infrastructure, commercialisation pathways, and global partnerships.

It strengthens the fundamentals of New Zealand’s agrifoodtech opportunity by shifting investment toward the data, biology, engineering and automation layers that form the foundation of globally scalable agritech companies.

This moves public investment toward platform technologies, for example AI, genomics, sensors, synthetic biology and digital twins, that can generate intellectual property and global revenue. 

Dr Reti said the report describes reprioritisation, not a reduction in science funding.