Category Definition: Novel algorithms, datasets, or architectures.
Examples in NZ: AI radiology model, freight optimisation engine, Pacific languages speech recognition.
Why it Matters: Many AI and software ventures fall into a grey zone when it comes to government R&D rules. If you’re creating new algorithms, datasets, or architectures — not just configuring existing tools — you can unlock the same Callaghan grants and R&D Tax Incentive as deep tech companies.
This pathway helps ensure you:
- Don’t get ruled out by default — government doesn’t treat “software” as automatically non-R&D.
- Prove eligibility early with the R&D test and advisor sessions, avoiding wasted effort on ineligible grants.
- Stack the right supports — Callaghan Career Grants, Experience Grants, and R&D Tax Credits can directly fund your technical team and experiments.
- Avoid pitfalls — simply using APIs, off-the-shelf AI models, or building SaaS workflows does not qualify.
5-Stage Pathway: AI & Software (R&D YES)
Do This First: Run “Is my R&D eligible?” test and then book a free session with your Regional Business Partner (RBP)
(⚠️ RBP registration is required for most grants.)
Stage | What to Do | Programs & Links | Why It Matters |
1. Setup & Entry | Confirm R&D eligibility, formalise basics, connect with advisors | Ensures correct pathway
⚠️ Configuring APIs ≠ R&D
⚠️ Don’t skip eligibility test + RBP session | |
2. Early Validation | Fund research, validate datasets, protect IP | Proves feasibility + dataset readiness
⚠️ Co-funding required
⚠️ Must show technical uncertainty (AI ≠ R&D by itself) | |
3. Pre-Scale | Build prototype, expand team | Move from research to prototype Access networks + advisory support | |
4. Scale & Capital Raise | Secure capital, enter new markets | Fuels scaling
⚠️ NZGCP requires lead investor
⚠️ NZEC reduces export risk | |
5. Ongoing Support | Sustain innovation long-term | Supports reinvestment
Long-term innovation funding |
⚠️ Note: Several Callaghan programs (New to R&D, Career/Experience, Ārohia) are transitioning to MBIE administration in 2025. Always confirm availability before applying.
⚠️ 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:
Case Studies
🩻 AI Radiology Platform
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🚚 Freight Optimisation Engine
🗣️ Pacific Languages Speech Recognition
