29 May 2009 - Budget measures affecting research, science and technology have given universities a solid indication that the Government recognises their key role in the research and innovation system and the need to maintain it.

Their representative organisation - the New Zealand Vice-Chancellors' Committee - says the increase in the Marsden Fund is significant because it supports basic research, almost all of which occurs in universities.

The fund will increase by $9 million a year over the next four years and grows from $37.8 million in 2008/09 to $46.8 million in 2009/10. This represents a 24 per cent increase.

"Universities are the principal providers of research in this country and are therefore in the best position to carry out research that assists economic recovery," says Professor David Skegg who chairs the NZVCC Research Committee.

"Universities carry out the bulk of basic research and such research is the most likely source of research breakthroughs that will contribute to New Zealand's economic growth.

"Through research, universities have a critical role in the innovation system of all successful nations. Commercialisation of university research and research-based university teaching contribute to economic and social development."

The Budget also invested $32 million in health research over the next four years through the Health Research Council - an $8 million annual increase and a 13 per cent increase on the previous year, taking funds to be distributed by the HRC in 2009/10 to $71 million.

In a further Budget measure, the Government has approved a $16 million capital injection for the Kiwi Advanced Research and Education Network (KAREN) of which universities are members.

The Budget allocated $190 million over the next four years for the new Primary Growth Partnership which potentially benefits universities while the Performance-Based Research Fund received a modest increase, to take it to $250 million by 2011.

Professor Skegg says universities want to work with government to identify areas of research with the greatest economic potential. Further, university research on social issues would be vital in helping to reduce the societal impact from the recession and rising unemployment.