New Research Funding Body to Streamline NZ Science System and Boost Innovation

“The message from the science and research community has been loud and clear – the current funding system is too complex, too bureaucratic, and takes time and energy away from actual research,” Dr Reti said.

New Zealand’s science and research sector is set for a major overhaul, with the Government announcing a simplified and more efficient funding system designed to reduce bureaucracy and empower researchers to focus on delivering meaningful results.

Science, Innovation and Technology Minister Dr Shane Reti revealed today that a new independent agency — Research Funding New Zealand — will be created to manage most government science investments, consolidating several existing funding streams under one organisation.

“The message from the science and research community has been loud and clear – the current funding system is too complex, too bureaucratic, and takes time and energy away from actual research,” Dr Reti said.

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A New, Unified Approach to Science Funding

At present, science funding in New Zealand is administered through multiple agencies and programmes — including the Endeavour Fund, the Marsden Fund, and the Strategic Science Investment Fund — each with its own application processes and criteria.

Under the new model, Research Funding New Zealand will replace these layers of decision-making, serving as a single, independent board responsible for evaluating proposals and allocating funding.

“This Government is simplifying the way we fund science, so our researchers can spend less time on paperwork and more time on discovery, innovation, and results that will grow our economy and benefit New Zealanders,” Dr Reti said.

The reform will not change the total amount of funding available for science, innovation, and technology, but will instead streamline access and reduce duplication.

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Focus Areas: Economy, Environment, Health, and Technology

The Government has confirmed that public investment in research will continue to cover a broad spectrum — from fundamental “blue-sky” research to applied innovation — but funding will be more strategically aligned around four key national priorities:

1. The Economy – supporting innovation that drives productivity, competitiveness, and export growth.

2. The Environment – enabling research that addresses climate change, biodiversity, and sustainability challenges.

3. Health and Society – improving wellbeing, healthcare delivery, and social outcomes.

4. Technology and Innovation – backing digital transformation, advanced manufacturing, and emerging industries.

“This change is about smarter investment and stronger outcomes,” Dr Reti said. “By streamlining funding and improving accountability, we’ll drive science that grows our economy, supports our exporters, tackles environmental challenges, and improves the health and wellbeing of all New Zealanders.”

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Health Research to Be Integrated

In addition to these reforms, the Government has made an in-principle decision to transfer health research funding from the Health Research Council (HRC) to the new Research Funding New Zealand entity.

This will bring most government-funded science under a single framework, improving coordination between disciplines and ensuring health research benefits from the same streamlined processes.

Dr Reti assured that existing HRC contracts and critical health projects will continue without disruption. “The aim is not to centralise control, but to ensure funding decisions are faster, more consistent, and better connected to national priorities.”

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Transition Plan and Sector Collaboration

The transition to Research Funding New Zealand will take place gradually over four years to ensure continuity across current programmes and stability for researchers.

During this period, the Government will engage closely with universities, Crown Research Institutes, private sector partners, and Māori research organisations to refine the implementation plan.

“All current research contracts will continue, and we will work closely with the sector to ensure this new approach delivers for scientists, industry, and the country,” Dr Reti said.

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Responding to Sector Feedback and International Best Practice

The creation of the new funding body follows recommendations from the Science System Advisory Group, which was tasked with reviewing the effectiveness of New Zealand’s research funding structures.

The group found that fragmentation across multiple agencies often created inefficiencies, competition for limited funds, and uncertainty among research institutions.

Dr Reti said the reforms draw inspiration from international models in small, advanced economies such as Finland, Denmark, and Singapore, where unified science funding agencies have proven successful in aligning research with national innovation goals.

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Balancing Discovery and Application

While simplifying funding processes, the Government has also reaffirmed its commitment to maintaining a diverse research ecosystem, supporting everything from theoretical science to commercial innovation.

“New Zealand’s researchers are some of the most talented and creative in the world,” Dr Reti said. “Our job is to make sure the system helps them, not hinders them.”

He added that the reforms would not limit academic freedom or restrict basic research, but would instead “remove red tape and help brilliant ideas move more quickly from concept to impact.”

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A Clearer, More Accountable System for the Future

The establishment of Research Funding New Zealand represents the most significant shift in the country’s research infrastructure in more than two decades.

By unifying funding processes, the Government aims to create a system that is:

• Simpler – with one application pathway instead of several overlapping ones.

• Transparent – with clear priorities and measurable outcomes.

• Efficient – reducing administrative costs and delays.

• Impact-focused – ensuring research contributes meaningfully to New Zealand’s future prosperity and wellbeing.

“This is about getting the system working better — less bureaucracy, clearer priorities, and a stronger focus on research that makes a difference,” Dr Reti said.

As the reforms take shape, the science community will be watching closely to ensure that the new model delivers on its promise: empowering researchers to innovate freely while ensuring that public investment in science continues to deliver lasting benefits for New Zealand.