Reaction: Budget 2025

Hamilton NZ, 23 May 2025

Statement from Dr James Hutchinson, CEO of KiwiNet, in response to the Government’s 2025 Budget announced on 22 May.

We welcome the government’s continued focus on lifting impact from New Zealand’s science, innovation and technology, including the $100M boost to the Elevate fund. The changes to how employee share schemes (ESOP) are taxed are also a positive step to help start-ups attract talent and grow.

While the new tax incentive to invest in productive assets will help businesses generating taxable income, start-ups need different support, especially those that are research-intensive and pre-revenue.

If Aotearoa is serious about capitalising on these initiatives and delivering on its Going for Growth vision, we need a meaningful lift in investment right across the science, innovation and technology system, from fundamental research through to impact.

This includes commercialisation as a critical piece of the puzzle. Right now, less than 1% of public investment in the science system supports commercialisation, yet this is the crucial step that gets research out of institutions and into the world as new products, services, and businesses. Backing commercialisation is one of the smartest ways to unlock the full potential of Kiwi science and deliver results for New Zealanders.

Further investment in commercialisation and entrepreneurship will create a system ready to deliver more value and economic impact in the future.

Commercialisation is key to turning great Kiwi science into real-world outcomes:
Dr James Hutchinson, CEO of KiwiNet