Investing in innovation: A win for New Zealand

An outcomes report released last week by the Ministry of Business, Innovation and Employment (MBIE) highlights the remarkable economic impact generated by New Zealand’s sustained investment into research commercialisation.

Hamilton NZ, 16 December 2024

Over the past decade, government funding through the PreSeed Accelerator Fund (PSAF) and Commercialisation Partner Network (CPN) has delivered $1 billion in economic value for Aotearoa.

The findings, from MBIE’s 2024 review of the PSAF and CPN funds, reveal that every $1 invested into PreSeed generates $13 in economic value for New Zealand—a testament to the transformative potential of targeted innovation funding.

Delivering impact from public investment

The PSAF and CPN funds were designed to unlock the potential of publicly funded research, transforming clever ideas into tangible commercial outcomes. KiwiNet, as a leading administrator of these initiatives, plays a vital role in ensuring government investments achieve maximum returns for New Zealand.

Through funding, training programs, support, and industry connections, KiwiNet helps commercialisation teams and entrepreneurial scientists take their discoveries from the lab to the world. It’s a model that ensures every dollar invested in commercialisation generates outsized returns for Aotearoa.

The KiwiNet Investment Committee in action.

The numbers

The collective impact of PSAF and CPN investment across all fund holders over the last decade underscores the value of this approach:

• 2,996 commercialisation projects supported, leading to 995 commercial deals and the creation of 112 new startups.
• 1,515 new jobs created and $750 million in investor capital raised into startups.
• $228 million in revenue to research organisations.
• Research organisations and businesses matched every $1 of government funding with at least $1.50 of their own investment.

This infographic from MBIE highlights the benefits of sustained investment in PreSeed and the CPN.

These achievements demonstrate the value of long-term, consistent investment in research commercialisation. KiwiNet’s contribution to these outcomes has been pivotal, reinforcing its role as a cornerstone of New Zealand’s innovation ecosystem.

Building a thriving ecosystem

The CPN goes beyond funding individual projects—it fosters a vibrant, collaborative ecosystem. By enabling scale, developing commercial capabilities, and building strategic connections, the CPN ensures public investment creates lasting economic and social benefits.
Through initiatives like commercialisation workshops, mentorship programs, and targeted training, the CPN strengthens the people and teams at the heart of New Zealand’s innovation system. Over the last decade, the CPN has:

• Supported 5,607 registrations for commercialisation workshops.
• Enabled 591 participants to benefit from mentored training.

These efforts equip our commercialisation workforce with the skills and networks needed to thrive on the global stage. MBIE’s recent survey found that 95% of respondents reported value from the CPN for themselves or their organisations.

Celebrating innovation success at the KiwiNet Awards.

The case for continued investment

The past decade’s results leave no doubt: investing in research commercialisation delivers exceptional returns. PSAF alone has achieved a 13x return on investment, with increased funding leading directly to more activity, outputs, and impact.

Continued support is essential to scaling these successes. Ongoing investment will empower New Zealand to amplify its innovation success stories, create more high-value jobs, power new business, and tackle global challenges.

The next decade presents an incredible opportunity. By doubling down on investment in research commercialisation and backing proven performers like KiwiNet, New Zealand can unlock even greater impact for its people, its economy, and its future.

Figures in this article are from data supplied by all PSAF and CPN contract holders to MBIE on investment outcomes over the last 10 years, between the financial years 2013/14 and 2022/23.