NEW ZEALAND GAZETTE

No. 65

5. Smart purchasing, relationship contracting and contestability

Portfolios of research will be designed and contracted through a three-way negotiation between providers, users and purchase agents. Purchase agents will be required to facilitate these relationships. They will balance the benefits of allowing scientists and users to define the problems and devise the best approaches to solving them, with the need to ensure that the research investment is being directed towards achieving target outcomes.

All purchase agents must operate a transparent and contestable process for making investment decisions. Any individual, public or private enterprise or organisation can signal an interest in being part of the negotiation of a portfolio of research.

6. Meeting standards of merit

All RS&T proposals must meet acceptable standards of merit. Selection among proposals of satisfactory merit is to be on the basis of potential contribution to the science envelope goals set out in this document, and in purchasing strategies developed by purchase agents.

In making assessments, purchase agents are to consider the entire portfolio of proposals for the relevant target outcome, and determine the mix which is, in their view, most likely to achieve that outcome by contributing to the science envelope goals and the strategic goals for that Output Class. Fostering the diversity of ideas and approaches within each portfolio is to be a strong principle in determining the distribution of funding.

7. Paying the full costs

Government investments in RS&T are to be fully funded in such a way that the contribution to target outcomes is achieved as efficiently and effectively as possible. Contributing to target outcomes will involve integrating a wide range of activities collectively employing a wide range of assets. The development and maintenance of RS&T assets, including databases and collections, should be funded in full.

Full funding also means ensuring that the primary results of publicly funded RS&T are made available by providers to the public and stakeholder groups, through appropriate means, at the marginal costs of dissemination.

Any compliance costs passed on to providers as a result of purchase agents’ obligation to provide information to MoRST, for example, for the purposes of evaluating the effectiveness of the investment, are to be treated as part of the full cost of programmes.

8. Using strategic analysis as the basis for Government’s investment in RS&T

In addition to complying with financial management processes, purchase agents are to provide information on the effectiveness of their investment decision, through an annual analysis to the Minister of Research, Science and Technology. This will be fed into the annual budget process to ensure that any changes to appropriations (the Output Classes or Outputs purchased) are based on the best available information. The Output Classes and Outputs purchased in Vote RS&T in 1998/99 appear in Appendix Two.

9. Responsiveness to Maori

Purchase agents are expected to design research portfolios that are responsive to the needs and diversity of Maori. FRST has a legal obligation to consult with Maori in their policy development process. The HRC has addressed Maori health research issues through its statutory Maori health committee.

All the target outcome areas should contribute knowledge that will assist in the advancement of Maori. In designing portfolios beneath each target outcome area, purchase agents need to consider research that addresses disparities between Maori and non-Maori in New Zealand, and recognises Maori knowledge requirements.

An outcome specifically related to Maori development has also been included in the target outcome set. In this target outcome a focus on Maori people is fundamental, in recognition of the Treaty partnership. Any research that contributes to this outcome will need to develop appropriate methods to assess Maori-specific methodologies and approaches to research.

10. Optimising global connectedness

Public good RS&T should contribute to and draw from the global knowledge base. Portfolios should be managed to optimise interaction with the best international RS&T and to ensure information on emerging knowledge, technologies and market opportunities is widely available.

Government needs RS&T inputs to ensure its participation in multilateral and bilateral fora maximises benefit to the New Zealand economy and innovation system. This benefit should be managed through development of portfolios based on negotiation between the purchase agents and responsible government departments.

6. Timeline

IMPLEMENTATION TIMELINE

The approach to RS&T investment set out in this blueprint will require MoRST and purchase agents to develop new strategic competencies. It will also take time to realign existing work under the new target outcome framework and to develop new working relationships across the system. Changes will be implemented over the two-year period between May 1999 and the middle of 2001.

Key steps in this timeline will be:

• October 1999—purchase agents provide interim reports on alignment of RS&T contracts into portfolios and on opportunities and needs for future investment.

• During 2000—new processes for bidding and tendering put in place by purchase agents, where required.

• From July 2000—RS&T contracts are managed as portfolios aligned to target outcomes.

• July 2000—report to Cabinet on new Output Classes and funding levels for Vote RS&T.

• By July 2001—new Vote RS&T Output Classes in place. RS&T contracts arising from new bidding and tendering processes come into effect under these Output Classes.

• September 2002—report to Cabinet on effectiveness of new policies and procedures.

• By June 2004—existing 6-year PGSF contracts end, transition to new system completed.

APPENDIX ONE: Full Target Outcome Statements

TARGET OUTCOME STATEMENT

Wealth from new knowledge-based enterprises. New Zealanders recognise that ideas are the basis for new wealth-creating business. The entrepreneurial capacity to generate and exploit ideas is valued and highly developed.

Examples of the contributions RS&T could make towards this target outcome:*

• Expanding the knowledge base and developing new enabling technologies in knowledge-based emerging areas of the global economy such as biotechnology, nanotechnology, advanced materials, and information and communication technologies.