26 AUGUST NEW ZEALAND GAZETTE 2553

• In general, user contribution of funding should be more than 50% of the cost of the project, subject to variation according to project needs. This demonstrates a credible and sustainable end-use commitment to the particular proposal.

A key element of the Scheme is that proposals should be strongly user linked and market driven. This should be demonstrated principally through the provision of user funding and the commitment of a user to take up the end product of the project. This will create an increase in private sector investment as a result and also a strong commitment to overall management of the projects supported.

To achieve these objectives, a number of interlinked programmes are to be established, to be administered by the Foundation for Research, Science and Technology.

The following programmes apply within the Scheme:

Co-operative Research Programme:
This programme is effectively an continuation of the TBG mechanism. This programme will support cooperative research between research institutions and companies including the placement of scientists and technologists in private sector organisations. It is expected that this will foster links between enterprises and research organisations with an aim of overcoming the lack of scientific and technological skills in enterprises. It is primarily designed to encourage enterprises to use scientific capabilities (particularly staff) to assist embryonic research programmes and innovation in those enterprises. Proposals can be initiated by the enterprise but in collaboration with the research organisation providing the capability;

In addition to the general criteria set out above, following additional criteria apply specifically to this programme:

• All proposals should be jointly made between an enterprise (or group of enterprises) and a suitable research institution. However the industry partner should be clearly in the lead role to ensure “ownership” of the outcome.

• Enterprises with effectively no or low levels of in-house r&d capacity or little record of r&d investment but demonstrating a commitment to a change in approach will be encouraged to apply.

Technology Joint Venture Programme:
This programme will encourage joint venture technology exploitation between enterprises and public sector science agencies to help in overcoming barriers to technology uptake. Eligible activity may include the commercialisation of technology already developed in the public sector; or the support of joint r&d aimed at further developing commercially valuable technology, which is the result of spin-offs from investments made in public good science or the development of new technology based on ideas from elsewhere.

The following criteria apply specifically to this programme:

• all proposals must be jointly made between an enterprise (or group of enterprises) and a suitable research institution;

Technology Transfer Programme:
This programme is designed to promote the uptake in New Zealand enterprises of technology contained in the existing knowledge base. The programme will include technologies or practices developed by the Government’s historical investment in science in New Zealand but will extend to other sources of technology as well.

The following criteria apply specifically to this programme:

• Proposals must have the potential to achieve long term benefits to the industry sector and the economy.

• To maximise the impact of the programme across the whole economy, no single sector will be favoured (ie it is open to all sectors of the economy). To ensure this, the programme will need to demonstrate broad sector coverage.

• The programme will favour technology transfer to multiple (as opposed to single) end users. Where one-on-one technology transfer is being supported, demonstrable spin-offs must be able to occur to other similar users.

• Funding may be channelled through “brokers” (which may be CRIs, specialist firms, or industry associations) who are able to establish a credible link between the knowledge base and groups of users.

• Funding should complement and not replace current funding for technology transfer activity being made by the private sector or other Government agencies.

• Proposals should be end use driven with demonstrable links to these users.

• The programme will aim to assist in overcoming generic problems in different industry groups or sectors rather than assisting individual users or suppliers of technology on an ad hoc basis.

In-House R&D Programme:
This programme will co-fund research and technological development conducted by enterprises with no link to a public research agency with the principal aim of establishing an effective in-house research or technological capacity (ie the programme will not support the use of an established capacity with no element of extension or expansion.) This programme is intended to catalyse important elements of strategic technology management in industry through the accumulation of relevant technological skills and expertise.

The following criteria apply specifically to this programme:

• enterprises with effectively no or low levels of in-house R&D capacity, or planning to use funding to add a new dimension to existing capacity, will be encouraged to apply.

Integration of proposals
Although the programmes are separately defined they overlap to some degree, and it is recognised that an integrated approach may often be sensible. Proposals may therefore fall into more than one category and this will not be a negative factor in proposal assessment.

Funding for the Scheme
The Foundation for Research, Science and Technology will be appropriated $10.622 million through Vote : Research, Science and Technology for the 1993/94 financial year which will be disbursed to participants through the allocative processes adopted by the Foundation. Future appropriations for this Scheme will be dependent on the annual budgetary process of Government. The indicative funding split amongst the four programmes is as follows:

The Foundation will have the discretion to vary this funding split by 10% plus or minus to any one programme. Variations (either cumulative or singular) of greater than 10% will require the prior approval of the Minister of Research, Science and Technology. The total funds allocated through the programme will not exceed $10.662 million in 1993/94.