Government’s Science Reforms Demand Substantial Investment for Economic Gains

In a landmark announcement on January 30, 2025, the government unveiled comprehensive reforms to the nation’s science sector, marking the most significant overhaul in three decades. The proposed changes aim to bolster the economic impact of scientific research through structural consolidation and strategic realignment. However, experts caution that without substantial financial investment, these reforms may fall short of their ambitious goals.

Central to the reforms is the merger of seven Crown Research Institutes into three larger Public Research Organizations (PROs). Additionally, a new PRO dedicated to advanced technologies—such as artificial intelligence, synthetic biology, and clean technology—is set to be established.

The government also plans to replace Callaghan Innovation with “Invest New Zealand,” an agency focused on attracting international investment. A national intellectual property policy will be introduced to level the playing field between PROs and universities in terms of commercialization opportunities. To provide strategic oversight, a Prime Minister’s Science, Innovation, and Technology Advisory Council will be formed.

While these structural changes are poised to enhance the alignment of scientific research with economic objectives, the Science System Advisory Group (SSAG) emphasizes that adequate funding is crucial for success. The SSAG’s report identifies a lack of high-level government strategy and parsimonious research funding as core reasons for the country’s lagging productivity growth.

The report states, “The SSAG stands firmly of the view that our parsimonious attitude to research funding is a core reason that New Zealand has become an outlier in performance on productivity growth.”

The scientific community acknowledges the positive direction of the reforms but stresses the importance of detailed implementation plans and sufficient financial support. Questions remain regarding the integration of advanced technology expertise, much of which currently resides within universities, into the new PRO framework.

As the government moves forward, it must address these concerns to ensure that the restructured science sector can effectively contribute to economic growth. Without significant investment, the ambitious reforms risk being undermined by the very funding constraints they aim to overcome.