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should, in turn, influence the content of departmental research, so that there is alignment of Government’s overall investment.

B. Target Outcomes
The target outcomes enrich the interpretation of the four science envelope goals. Each target outcome gives part of a vision of what New Zealand’s future as a knowledge society could be like.

Sector aspirations, expressed in Foresight strategies and submissions, contributed to the 14 target outcomes listed opposite. These outcomes:

• describe desired future states for New Zealand;
• provide a strategic context for development of RS&T portfolios and contracts within Vote RS&T—these are expected to contribute to the achievement of target outcomes without displacing or otherwise creating disincentives for investment by others; and
• provide cohesion for the public investment in RS&T.

The target outcomes are designed to challenge limited views of the roles of RS&T in society. They are deliberately cross-sectoral, so that users and providers of RS&T will rise above their specific interests and recognise shared national needs.

Examples of some of the contributions RS&T will be expected to make towards individual target outcomes are included with the full outcome statements in Appendix One. These examples are drawn from the key competencies requiring RS&T support that sectors included in the Foresight strategies they developed as part of the Foresight Project. They illustrate the point that a wide range of RS&T activities will be expected within the portfolios purchase agents construct under each target outcome.

Together these examples provide some idea of the role of RS&T in achieving target outcomes.

• Wealth from new knowledge-based enterprises
• Innovative manufacturing and service enterprises
• Sustainable use of natural resources
• Wealth-creating food and fibre industries
• Future-focused global intelligence
• Infrastructure for a knowledge society
• People with knowledge, skills and ideas
• Strong families and communities
• Maori development
• Vibrant culture and identity
• Health for all
• People living in safe and healthy environments
• Healthy, diverse and resilient ecosystems
• New Zealand in the global biophysical environment

C. Performance Measurement System
The performance measurement system increases the information to guide public investment in RS&T by providing a framework to report achievements. It will require that RS&T achievements are reported back to Government, and that continuous improvements to investment decision-making and system performance occur.

Performance expectations
RS&T performance expectations contained within the four science envelope goal statements relate to building New Zealand’s innovative, economic, environmental and social capacity (Table 1).

These performance expectations have been expanded into a set of 14 impact expectations which form the basis of the performance measures linking the science envelope goals to the target outcomes, as shown in Table 1. These impact expectations characterise the overall direction for the Government’s RS&T investments, and the overall impact of these investments on New Zealand’s innovative, economic, environmental and social capacity.

Table 1: Performance expectations beneath the science envelope goal statements

Goal Statements
Accelerate knowledge creation and the development of human capital, social capital, learning systems and networks in order to enhance New Zealand’s capacity to innovate.

Increase the contribution knowledge makes to the creation and value of new and improved products, processes, systems and services in order to enhance the competitiveness of New Zealand enterprises.

Increase knowledge of the environment and of the biological, physical, social, economic and cultural factors that affect it in order to establish and maintain a healthy environment that sustains nature and people.

Increase knowledge of the social, biological, environmental, cultural, economic and physical determinants of well-being in order to build a society in which all New Zealanders enjoy health and independence and have a sense of belonging, identity and partnership.

Impact Expectations

• Expanding the knowledge base*
• Building human and social capital*
• Enhancing learning systems and networks*
• Stimulating an entrepreneurial culture*
• Improving the competitive positioning of NZ enterprises in the global knowledge economy
• Increasing technological intensity in NZ enterprises
• Developing and applying new, knowledge-based processes and technologies
• Developing and exploiting new, knowledge-based products and services
• Building knowledge and understanding of the integrity and quality of environmental systems, including hazards and risks
• Building knowledge and understanding of environmental processes and dynamics
• Improving the integrity and quality of environmental systems
• Building knowledge and understanding of determinants of social well-being
• Building knowledge and understanding of social processes and dynamics
• Improving social well-being

• Impact expectations associated with the innovation goal also apply to the economic, social and environmental goals

Impact expectations in the investment framework
The set of 14 impact expectations in Table 1 set the context for MoRST, on behalf of the Minister, to negotiate a set of expectations and indicators with purchase agents, and in turn for these organisations to do the same with science providers.

The proposed performance measurement system will improve the strategic focus of Government’s RS&T investment by improving alignments of accountabilities from the Government’s goals and priorities down to RS&T activities within contracts. The performance measurement system will also provide an integrated, upwards stream of