Every founder’s first stop before diving into grant pathways.
1. R&D Definition (For All Pathways)
Research = original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding.
Development = applying research findings or other knowledge to design or produce new or substantially improved materials, devices, products, processes, systems, or services before commercial production or use.
R&D in deep tech usually fits this definition. AI/software can be harder to classify — think of it as “little r and big D.”
Avoid describing R&D in commercial terms — use scientific or technical language.
Core R&D must occur in New Zealand (exceptions possible if ≤10% of project costs are offshore and justified).
The Four Tests
Uncertainty Tests
- There is a scientific or technological uncertainty you are trying to overcome.
- Knowledge to solve it is not publicly available (patent/literature search confirms).
- You are using a systematic approach — structured, methodical investigation beyond routine problem-solving.
Newness Test
- If above holds, activity creates new knowledge or substantially improved goods/services.
Quick Rule of Thumb
âś… YES it is R&D if:
- You are creating something new
- Solving technical uncertainty
- Taking a structured approach
❌ NO it is not R&D if:
- Configuring off-the-shelf software
- Branding/marketing
- Cosmetic changes
Examples
Examples of R&D (YES) | Examples of NOT R&D (NO) |
Biotech prototype for cancer diagnostics | Using an existing API |
Novel AI algorithm | Rebranding/packaging |
Advanced manufacturing process | Routine software maintenance |
Agri-robotics with new control systems | Patent filing/legal admin |
Methane reduction in dairy cows | Product line extension / Clinical trial post-phase II |
Grey Zone: AI, software, product design — self-assess if it’s truly new knowledge or just reconfiguring.
⚠️ R&D ≠Deep Tech (in VC Terms)
Government R&D eligibility is about whether your work meets a legal/technical definition — solving scientific or technological uncertainties with a systematic approach.
Venture capitalists, on the other hand, use deep tech to mean something narrower:
- Deep Tech (VC lens) = high-bar science and engineering companies (e.g. biotech, advanced materials, robotics, climate science, aerospace). They usually require long development timelines, capital intensity, and defensible IP.
- R&D (Gov’t lens) = much broader. A novel AI algorithm, a new data-processing approach, or an advanced manufacturing process can all count as R&D — even if they wouldn’t be pitched as “deep tech” to VCs.
- You might qualify for Callaghan grants or the R&D Tax Incentive even if deep tech VCs wouldn’t call you “deep tech.”
- Don’t let VC terminology stop you from applying for support — assess by the R&D tests, not just the investor label.
Why it matters:
Official Resources
- Callaghan Innovation R&D Grants: https://www.callaghaninnovation.govt.nz/products/fund
- MBIE R&D Guidance: https://www.mbie.govt.nz
- IR RDTI Eligibility (Digital Tech): https://www.rdti.govt.nz/assets/RDTI/Documents/IR_RDTI_Landscape_v10_Cover-Option-2_v6.pdf
2. Universal First Steps (All Founders)
- Create an NZBN → https://www.nzbn.govt.nz/get-an-nzbn/applying-for-an-nzbn/
- Book a session with a Regional Business Partner (RBP) Growth Advisor → https://www.business.govt.nz/how-to-grow/regional-business-partner-network
3. NZ Government Execution Pathways
Choose your pathway below to unlock the full scope of government support available to your business. Designed to reduce friction with faster access to the grants and support that move you forward, faster.
Almost every government grant flows from one question: are you doing R&D?
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