25 JULY 2013 NEW ZEALAND GAZETTE, No. 94 2519

In addition to the criteria listed above, Callaghan Innovation must take into account the overall mix of relevant investments. Detailed criteria specific to each initiative are set out in more detail in the following pages.

ADMINISTRATIVE PROCESSES

Callaghan Innovation will:

• market the tool and provide easy to access public information explaining its features;
• actively seek out applicants from inside and outside the group of businesses it currently works with;
• develop and implement processes for vetting and auditing businesses to ensure that claimed research and development is legitimate;
• ensure that applicants and recipients of grants have access to complementary advice and services where appropriate;
• gather data on applicants during and following the grant period to support programme evaluation; and
• monitor funded businesses activities during and after the grant period and seek to claw-back (recover) funding as appropriate. Callaghan Innovation is expected to implement claw-back mechanisms.

Callaghan Innovation may issue standing or periodic calls to generate proposals for consideration. The calls for proposals will be consistent with the criteria in this direction, and will provide guidance for applicants. This guidance may include, where applicable:

• the area(s) of investment in which a funding decision is required;
• more detail as to how the criteria in this notice apply to the area of investment;
• the tool (or initiative within the tool) to be used;
• the amount of funding available;
• specific outcomes sought for a given investment process or decision; and
• other timeline and process information.

Calls for proposals will be published on the Callaghan Innovation website:

www.callaghaninnovation.govt.nz

TRANSITIONAL PROVISIONS

Applications for R,S&T funding that were submitted to Callaghan Innovation prior to 1 July 2013 must be decided in accordance with the criteria and process set out in the notice entitled "Direction to Callaghan Innovation—Criteria for Assessing Proposals for Funding", published in the New Zealand Gazette, 7 February 2013, No. 13, page 438.

The notice entitled "Direction to Callaghan Innovation—Criteria for Assessing Proposals for Funding", published in the New Zealand Gazette, 7 February 2013, No. 13, page 438, is revoked from midnight 30 June 2013.

Criteria Specific to the Business-led R&D Tool

OVERALL POLICY OBJECTIVE

The objective of this tool is to increase New Zealand businesses’ investment in research and development to support long-term economic growth.

INITIATIVES

Three initiatives sit within the business-led R&D tool:

1. Research and Development Growth Grants.
2. Research and Development Project Grants.
3. Research and Development Student Grants.

BUSINESS ELIGIBILITY CRITERIA

To be eligible for funding under this tool the following criteria must be satisfied together with the eligibility criteria relevant to the specific initiative:

• Only businesses are eligible to receive funding via this tool. A business or group of businesses may nominate a representative to receive funding.
• A business must have at least one director who is resident in New Zealand and at least one of the following must be true:
  • the business is incorporated in New Zealand;
  • the business has a centre of management in New Zealand; and
  • the business has a head office in New Zealand.
• Businesses may not be an entity established under or governed by the Education Act 1989, Crown Research Institutes Act 1992, Local Government Act 2002, Local Government (Auckland Council) Act 2009, the New Zealand Public Health and Disability Act 2000, or the Crown Entities Act 2004; or an entity that is 50 per cent or more owned by one or more of those types of entities.

CLAWBACK PROVISIONS

Businesses may be expected to return some or all grant funding, during or following a grant agreement, to Callaghan Innovation, if:

• the business breaches any grant agreement, misappropriates funding, provides incorrect information to Callaghan Innovation, or claims ineligible expenditure;
• the business enters into a contract or arrangement (including change of ownership) that materially reduces the current or future planned research and development activity in New Zealand; or
• the grant fund is unspent and for which contractual liabilities have not yet been incurred.

Criteria relating to each initiative are set out in the following sections.