New Zealand's R&D Investment Surges to $6.4B, Driving Innovation and Economic Growth

“Using new ideas, knowledge, and technology to develop better ways of doing things helps the New Zealand economy grow,” said Dr Reti.

New Zealand’s research and development (R&D) sector has achieved a historic milestone, as newly released data from Stats NZ reveals a substantial surge in investment. Total expenditure on R&D activities reached an impressive NZD $6.4 billion in 2024, marking a 21 percent increase since the previous survey in 2022. The announcement has been enthusiastically welcomed by Science, Innovation and Technology Minister, Dr Shane Reti, who describes the figures as a strong indicator of the Government’s commitment to building a more innovative, resilient, and globally connected economy.

R&D Driving Economic Transformation

Minister Reti emphasized that the significant increase in R&D spending is a reflection of New Zealand's broader economic agenda, which focuses on empowering science, innovation, and technology to play a central role in enhancing productivity and creating high-value employment opportunities.

“Using new ideas, knowledge, and technology to develop better ways of doing things helps the New Zealand economy grow,” said Dr Reti. “R&D is how we lift productivity and create high-value jobs. It’s also critical to opening opportunities in global export markets, helping build a resilient economy that can thrive on the world stage.”

Key Figures from the Stats NZ R&D Survey (2022–2024)

• Total R&D expenditure: NZD $6.4 billion, up 21% from 2022

• Average R&D spend per entity: NZD $2.8 million, a 24% increase

• Increase in R&D workforce: 42,000 Full-Time Equivalents (FTEs), up 9%

• R&D expenditure as a percentage of GDP: Rose from 1.49% to 1.54%

These figures indicate an encouraging trajectory for New Zealand’s innovation ecosystem, underscoring a stronger, more focused approach to investment in R&D across business, government, and higher education sectors.

Business Sector Leading the Charge

The business community has continued to lead in R&D investment, with a record NZD $4.0 billion spent in 2024 alone. This represents a 9 percent year-on-year increase, highlighting growing confidence and strategic commitment to innovation among New Zealand’s enterprises.

While the number of R&D FTEs in the business sector remained stable at around 21,000, the average R&D expenditure per business rose to NZD $1.8 million—also a 9 percent increase. Businesses reported that the primary drivers for this investment were to expand into new markets and to safeguard their market positions.

“Having businesses investing more in technology and innovation will create higher-paying jobs for New Zealanders and diversify our economy into new industries and global markets,” said Dr Reti.

Policy and International Outlook

Dr Reti reiterated that science, innovation, and technology are fundamental pillars of the Government’s economic strategy. The focus is not only on domestic capability building but also on expanding international opportunities.

As part of this agenda, New Zealand is pursuing strategic trade partnerships, including agreements with the United Arab Emirates (UAE) and the broader Gulf Cooperation Council (GCC). These agreements are designed to create smoother pathways for the exchange of technologies, investment, and R&D collaboration.

“We’re making deliberate choices to back science, innovation, and technology as powerful enablers of productivity and opportunity across the board,” Dr Reti affirmed.

The Road Ahead

The Government views these R&D achievements not as an endpoint, but as a springboard toward even greater national innovation. The focus will now be on scaling successful initiatives, fostering collaboration across sectors, and continuing to invest in education, infrastructure, and international partnerships.

Dr Reti concluded with optimism:

“These figures show the depth and intensity of investment has strengthened. That’s a positive trend toward smarter, more focused innovation that will shape New Zealand’s future as a leading player in the global knowledge economy.”

As New Zealand positions itself at the forefront of sustainable, technology-driven economic growth, the momentum in R&D spending signals a bright future grounded in innovation and resilience.