Professor I Axford Presiding Member Foundation for Research, Science and Technology PO Box 12 240 WELLINGTON Dear Professor Axford On 17 August 1993, pursuant to section 8A(1) of the Foundation for Research, Science and Technology Act 1990, I directed the Foundation for Research, Science and Technology to allocate funds under the Ministerial Scheme entitled ``The Technology for Business Growth Scheme''. Details of the Scheme were published in the New Zealand Gazette on 26 August 1993 (referred to as ``the 1993 notice''). This scheme shall continue in full force and effect in respect of funds allocated to it in the 1993/1994 financial year as was specified in the 1993 notice. Pursuant to section 8a (2) of the Act, I now amend the directions given in the 1993 notice to apply to the scheme funded in 1994/95 and subsequent years as follows: The Technology for Business Growth Scheme will be amended as follows: 1. Exclusion of Technology Transfer from Market-Driven Criteria Under the heading: ``The Objectives of the Expanded Technology for Business Growth Scheme'' Material beginning ``The broad criteria....'' and ending ``.... The following programmes apply within the Scheme.'' is deleted and replaced with: ``The broad criteria or constraints which will apply to all programmes within the scheme are as follows: The scheme will not target specific sectors, rather there will be a general requirement to ensure that the scheme spreads over a number of sectors rather than concentrated on just a few. The scheme will be aimed at funding initiatives which result in establishing or enhancing technological capability or capacity within enterprises, and which would not otherwise receive adequate support ie funds will not support projects which would have gone ahead anyway. Additional criteria applying to all programmes other than the Technology Transfer Programme are: 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 programmes 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, interlinked programmes are to be established, to be administered by the Foundation for Research, Science and Technology. The following programmes apply within the Scheme:'' 2. Combining of Co-operative Research and Technology Joint Venture Programmes Under the heading: ``Co-operative Research Programme'' the heading and the whole section are deleted and replaced with: ``Co-operative Research and Technology Programme This programme is a consolidation of the separate programmes previously referred to as Co-operative Research and Technology Joint Venture respectively. This programme will support co-operative research between research institutions and companies including the placement of scientists and technologists in private sector organisations. The programme will also encourage joint venture technology exploitation between enterprises and public sector science agencies to help in overcoming barriers to technology uptake. It is expected that this programme 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 criteria set out above, the 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.'' Material under the heading ``Technology Joint Venture Programme'' is deleted. 3. Provision for Carrying Forward Unused Funding for Previous Year Material under the heading ``Funding for the Scheme'' is deleted and replaced with the following: ``The Foundation for Research, Science and Technology will be appropriated $10.622 million through Vote : Research, Science and Technology for the 1994/95 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 three programmes is as follows: [tn1,2] Programme $ Allocated [tn1,2] Co-operative Research and Technology $7,671,000 [tn1,2] Technology Transfer $2,460,000 [tn1,2] In-house R&D $491,000 [tn1,2] Total $10,622,000 [tn1,2] 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. Funds allocated through the Scheme in 1994/95 will be $10.662 million, plus any funds accumulated from previous years.'' In accordance with the Foundation for Research, Science and Technology Act 1990, a copy of this notice will be published in the New Zealand Gazette and a copy laid before the House of Representatives. SIMON UPTON, Minister of Research, Science and Technology. A copy of the full text of the Technology For Business Growth Scheme as amended by this notice is obtainable from the Ministry of Research, Science and Technology, PO Box 5336, Wellington.