1504 NEW ZEALAND GAZETTE No. 65

information on RS&T achievements. This will enable better decision-making about future RS&T investments at all levels.

Performance measurement modules reflect the achievement of expectations at different levels of the investment framework. These measures will include qualitative and quantitative performance indicators. They will be developed as existing work is realigned under the new target outcome framework.

The 14 impact expectations kick-start the top performance measurement module. Government has chosen to place additional emphasis on seven of the 14 impact expectations which are linked to three of its strategic priorities. These seven impact expectations are:

Expand our knowledge base and technological capability

• Expanding the knowledge base
• Building human and social capital
• Stimulating an entrepreneurial culture
• Improving the competitive positioning of NZ enterprises in the global knowledge economy
• Developing and applying new knowledge-based processes and technologies

Extend economic and social opportunity

• Improving social well-being

Safeguard indigenous biodiversity

• Improving the integrity and quality of environmental systems

These seven impact expectations are to be given additional emphasis when purchase agents make investment decisions within Vote RS&T.

4. Roles and responsibilities

A. Ministry of Research, Science and Technology

MoRST will be responsible for:

• assessing the analyses from purchase agents across the target outcome set and providing advice to Government on funding levels of Output Classes and Outputs of Vote RS&T as part of the annual budget appropriations process;
• representing the value of Government’s investment in RS&T in the context of its contribution to national innovation capacity, and to economic, environmental and social goals;
• acting as the Minister’s agent, providing advice on the nature and size of Output Classes and Outputs that Government purchases;
• negotiating purchase agreements and appropriate performance expectations with purchase agents;
• monitoring the performance of purchase agents and addressing any indicator-driven distortions that may develop over time; and
• monitoring purchase agents on the delivery of Outputs that have been contracted.
• providing an annual ‘strategic analysis’ to the Minister of Research, Science and Technology.

Managing their investment in ways that contribute to target outcomes

Purchase agents will continue to purchase outputs in the Output Classes and Outputs of Vote RS&T under the provisions of the Public Finance Act 1989. However, the target outcome structure will ensure that the outputs they purchase are structured and grouped so that they make coherent contributions to the science envelope goals.

Negotiation and relationship building are critical in a stable long-term purchasing environment, but contestability and fostering a diversity of ideas and approaches will remain important aspects of the purchasing strategy. It will also be crucial to foster interactive relationships between researchers, technologists, engineers and other professionals in the public and private sectors, that together underpin a vibrant and thriving knowledge-based society.

Negotiating portfolios of research, science and technology programmes that contribute to each outcome

The 14 target outcomes and, as appropriate, the sector strategies that support them, will be used as a starting point for developing research portfolios of contracted outputs within Vote RS&T. This approach will enable purchase agents to construct research portfolios in an innovative and flexible way.

Each portfolio will be designed to make an effective contribution towards the relevant target outcome. As a first step, purchase agents are to map their existing investments across to target outcomes.

Portfolio design is the responsibility of the purchase agents managing Vote RS&T investments—FRST, HRC and RSNZ.

FRST is unique in that it has responsibility for investments under several Output Classes (e.g., through Public Good Science and Technology, Technology New Zealand). It will be expected to organise contracts with providers under each of these Output Classes, to create portfolios of RS&T contracts that make contributions towards target outcomes.

Purchase agents responsible for Vote RS&T are to interact with government departments as they develop the research portfolios, and to ensure that Vote RS&T investments complement and support the RS&T activities in other Votes.

The Foresight Project has already led to a heightened level of contact and co-operation among Vote RS&T purchase agents. Purchase agreements are to specify the expectation that co-operation and negotiation among purchase agents will continue to be developed.

Purchase agreements with these agents will specify their responsibilities. The target outcome portfolios set up by purchase agents will be used as starting points for application of the performance measurement system.

The Marsden Fund Committee operated by the RSNZ will continue to fund the basic, untargeted research specified in its terms of reference. The Committee will be asked to provide strategic analyses of the opportunities and needs it sees for filling stock of knowledge and human-capacity gaps across target outcomes. These analyses will enhance the impact of its activities.

Providing an annual analysis to the Minister of Research, Science and Technology

Initial analysis

Purchase agents managing Vote RS&T investments will be required to provide an initial analysis of RS&T needs and opportunities for the target outcomes before significant changes from current investments are implemented.