Statement of Intent 2009-2012

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20-page colour document published in 2009. Full text below.  

Contents

Foreword: Minister of Research, Science and Technology

This Statement of Intent sets out the Ministry’s operating intentions for 2009/10. These intentions respond to the Government’s commitment to delivering prosperity, security and opportunities to all New Zealanders.

The Government’s investment in research is vital to boosting export performance, improving the knowledge of our physical environment and building and maintaining the scientific capabilities that we need as an advanced economy. Government investment also acts as a catalyst for and a boost to research and development undertaken by businesses and private investors.

I have two immediate priorities for the research sector. The first is simplifying the system and reducing processes around applications and compliance. I will continue to pursue this in the upcoming year.

The second is to develop a clearer statement on the Government’s science priorities so that ongoing research and investment can be better focused. I will be consulting with both the users and the providers of research to identify those priorities.

In support of these priorities, I will be responding to initiatives linked to research and development that were raised in the Jobs Summit and in other consultation forums.

Research, science and technology are vital if New Zealand is to keep advancing both economically and socially. I look forward to working with the Ministry to ensure that scientific excellence leads to practical advances for our country.

Hon Dr Wayne Mapp

Minister of Research, Science and Technology

Ministerial Statement of Responsibility

I am satisfied that the information on future operating intentions provided by my department in this Statement of Intent is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the Government.

Hon Dr Wayne Mapp, Responsible Minister for the Ministry of Research, Science and Technology

21 April 2009

Chief Executive Statement of Responsibility

In signing this statement, I acknowledge that I am responsible for the information contained in the Statement of Intent for the Ministry of Research, Science and Technology. This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriations (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Dr Helen Anderson, Chief Executive

Geoff Palmer, Chief Financial Officer

Our major outcome is: Getting measurable benefits from New Zealand’s investment in research, science and technology

What we do

The Ministry of Research, Science and Technology (MoRST) provides advice to the Minister and oversees government’s investment in research, science and technology (RS&T).

Our policy advice focuses on New Zealand’s RS&T system, its performance and how it may be strengthened for the benefit of New Zealand. We also have a role in providing specialist technical advice when government needs a scientific perspective to inform decisions.

We manage the Government’s $745 million investment through Vote RS&T by advising the Minister on priorities for investment, and ensuring there are systems in place so the money spent achieves measurable value for New Zealand.

We also work to ensure there are strong links between the New Zealand RS&T sector and overseas research interests, as well as with New Zealand businesses and the wider public.

Research, science and technology have a wide reach including across other government agencies. MoRST’s unique role is a focus on the creation and use of scientific knowledge, particularly that which has strategic or long-term relevance to New Zealand.

How we do this

We negotiate and manage the funding agreements with the agencies that invest Vote RS&T funds, notably the Foundation for Research, Science and Technology (FRST), the Health Research Council (HRC) and the Marsden Fund, which is administered through the Royal Society of New Zealand.

We assess the dynamics, performance and outputs of the RS&T system, through regular surveys and evaluations, and use this information to shape our policy advice.

We work with other agencies across government, supporting the effective use of science and technology in government decisions and policies, and in the development of New Zealand’s economy, environment and communities.

We keep an overview of the system, staying in touch with trends in science, maintaining contact with research teams, and providing a link between the RS&T sector and government.

Strategic Direction

The Government is committed to New Zealand science. It recognises the vital role science plays in providing evidence for quality decision-making, creating new knowledge to drive economic growth, and enriching
our society.

As we approach the 2009-2012 period, global economic conditions provide a challenging context for investment in RS&T. Environmental challenges are placing additional pressures on both government and business.

In these difficult times, science becomes more, not less, important. Fundamental and discovery-based research remains a cornerstone, and upon this we need to keep building a disciplined application of science toward national goals. There is an ongoing need to balance both short- and longer-term investment, equipping science to position New Zealand well for the future, for example by supporting the competitiveness of New Zealand businesses through the development of technologies that meet new market niches.

These challenges demand the full talent of New Zealand researchers, scientists, technologists and engineers. They also require a focus on getting the best returns from research activity, as well as smart use of our existing knowledge base and international science networks.

Gearing our science system for a higher level of performance will require change. The Government has outlined its key priorities that will guide any changes. These are:

  • simplicity in the mechanisms for science funding and delivery
  • clarity of roles in the science system
  • efficiency and measurability in delivery, and
  • relevance of science for New Zealand’s needs.

In responding to this context and principles, MoRST has identified two strategic priorities that will guide our work. These are:

  • Simplifying the science system, and
  • Improving economic growth through research and development.

These are underpinned by our four core business objectives, which are to:

  • Provide scientific and technical advice
  • Provide advice on New Zealand’s RS&T system
  • Provide effective management and delivery of the government’s RS&T funding, and
  • Strengthen New Zealand’s international RS&T links.

The remainder of this Statement of Intent outlines our planned actions under each of these priorities and objectives.

Strategic priority: Simplifying the science system

In the current economic and environmental climate we must make more effective and creative use of the resources and knowledge we have.

As a priority, we will simplify the RS&T funding system, first by adapting funding processes in Vote RS&T to reduce transaction costs, and second by reducing the complexity of the range of investment categories. MoRST will ensure that those agencies that fund research will lessen the administrative burden on applicants. Accountability mechanisms will be appropriately sized for the scale and risk of the project.

We will clarify the future roles of Crown research institutes (CRIs) and provide advice on how to ensure greater predictability in their funding. We will support CRIs to operate more effectively in the national interest and encourage them to collaborate and partner strategically. In the longer term we will develop advice on the distinctive mechanisms that may best support both commercially focused and public good R&D.

Supporting the development of national science priorities and strategy will be a key task. More immediately, a statement of science priorities for FRST will be produced and monitored. With this, MoRST will provide advice on the trade-offs between the science that is needed to address current problems and that which creates future options for New Zealand.

We will also ensure the science we already have is being used effectively by removing any barriers that hold back those who wish to use the science and take action. We will work, for example, to accelerate the translation of knowledge and evidence into improved health practice.

What we will do

Annual components

  • Support the development of national science priorities and strategy and as a first step produce a statement of science priorities for FRST.
  • Implement a six-month action plan to simplify processes and reduce transaction costs in the RS&T sector.
  • Develop ways to enhance predictability of funding for CRIs that reflect their future roles in providing benefit to New Zealand.
  • Provide advice to Cabinet on changes to investment categories in Vote RS&T in order to bring greater transparency to RS&T funds from 2010/11.
  • Support HRC and FRST to strengthen health innovation for New Zealand health services and related business.

Strategic priority: Improving economic growth through research and development

Commercial and business R&D investment has a major impact on labour productivity and economic growth. In the face of challenging global markets and significantly reduced cash flow and investment, business is under pressure to reduce costs where possible and closely scrutinise expenditure. Often R&D is an early target within firms needing to make savings. There are, however, many practical examples of firms that both effectively utilise and continue to invest in R&D during times of recession outperforming their competitors as the economy improves.

One challenge for New Zealand is to ensure that firms maintain or grow their investment in R&D over the coming years. Another is to ensure that government’s own R&D investments support economic growth in an effective and measurable way. This calls for government to take a leadership role in ensuring that the mix of grant schemes and support mechanisms provided to stimulate business investment in R&D and technology acquisition are fit for purpose.

Reshaping policy to meet this need requires a business perspective. Feedback from the Capitalising on Research and Development Action Group (CRAG) business R&D investment forum is providing valuable insights into the delivery of government’s R&D support. MoRST’s work programme for 2009/10 will turn those insights into pragmatic support schemes.

Improving business performance through R&D is dependent on the adoption of new ideas and technology originating from local research organisations and from overseas. We need to ensure that New Zealand’s firms are able to access reliable and up-to-date sources of knowledge. Domestic and international knowledge transfer will become increasingly important to support existing and new R&D activities. To support knowledge transfer in New Zealand we need to encourage improved co-operation between our firms and our public research organisations. This applies both to the hi-tech manufacturing and services sectors and to the primary industries, where government is developing a new primary growth partnership package.

The local commercialisation of publicly-funded intellectual property (IP) also plays an important role in improving economic growth and diversity through technology spillovers and supply chain participation. Assisting this, commercialisation through growing entrepreneurial skills within publicly-funded research organisations will form part of MoRST’s longer-term advice on the part of Vote RS&T targeted at business. This work will be undertaken in collaboration with other relevant agencies and key actors in the capital markets.

Finally, to help position New Zealand firms to step up as economic conditions improve, MoRST will be taking forward the actions linked to research and development from the Jobs Summit. These actions are based on feedback from firms about the factors that hinder their investment in research and development.

What we will do

Annual components

  • Adjust schemes such as TechNZ and Global Expert to better support firms and equip them to invest in R&D in response to the Jobs Summit and business assistance review.
  • Improve the flow of IP and knowledge transfer to New Zealand firms.
  • Identify ways to grow entrepreneurial skills particularly at the research-business interface.
  • Develop improved mechanisms to measure the impact of New Zealand’s science investment.
  • Advise the Minister on implementation of the Primary Growth Partnership.

Core business objectives

To provide scientific and technical advice

MoRST provides scientific and technical advice on issues of particular interest to the Minister and other parts of government. We have strong connections to New Zealand’s scientific community, and where independent advice might be required we work principally with the Royal Society of New Zealand (RSNZ) to bring together the appropriate experts and form a judgement.

We also operate a futurewatch programme that anticipates scientific issues on behalf of government departments. We engage directly with government departments on issues of the day, such as second generation biofuels, new biotechnology regulations and how RS&T can contribute to climate change policy. The aim is to promote the development of policy across government based on sound science.

Technological advances are changing the way science itself is carried out. We advise on the new data management and infrastructure needs required to keep New Zealand RS&T in pace with global developments. For example, new molecular technologies have opened up new opportunities in taxonomy, and are revolutionising the way we understand and manage New Zealand’s biodiversity and the biological threats to the country.

Our technical expertise is also called on to help respond to trade barriers that might be introduced by other governments in response to the global financial crisis and domestic concerns about foreign trade.

Annual components

  • Advise on how to improve the regulatory system for biotechnology by maintaining an overview of the impacts of the regulatory system and monitoring scientific developments that may challenge the current system.
  • Advise on ways to improve the input of science into water resource decision making at both central and regional government levels.
  • Identify the global technology advances in biosystematics and taxonomy so they meet New Zealand’s needs.
  • Improve environmental data-sharing among research organisations and government by encouraging the adoption of best practice for data access and management.

To provide advice on New Zealand’s RS&T system

MoRST advises on the opportunities and issues that affect how New Zealand manages the delivery of RS&T. This advice ensures that RS&T delivers maximum benefit to New Zealand’s economy, environment and communities. We provide advice on areas such as the structure and investment mechanisms of New Zealand’s research system and research infrastructure needs.

Our evidence reveals the value that RS&T investment provides in achieving government objectives and identifies where intervention may be required to achieve long-term goals.

We undertake evaluation to build the evidence base that informs the development and amendment of policy. We also collect comprehensive information on sector performance through the funding and investment agents (FIAs) – FRST, HRC and the RSNZ – and various surveys.

We sponsor two surveys conducted by Statistics New Zealand: the biennial R&D Survey, which provides a statistical picture of R&D in New Zealand; and the biennial Innovation Survey, which records innovation activity and its impact on business performance. We also produce the New Zealand RS&T Scorecard to detail investment and output in the RS&T sector in New Zealand and how it compares internationally.

Annual components

  • Assess how the funding system could be modified to address capital and infrastructure requirements in the system.
  • With the Marsden Fund Council, establish a revised allocation mechanism for untargeted basic research under the Marsden Fund for the 2010/11 funding round and out-years.
  • Following the review of the Foundation for Research, Science and Technology Act 1990, provide advice to the Minister on changes to the roles and functions of FRST.
  • Monitor firms’ innovation through the biennial Innovation Survey.
  • Provide New Zealand RS&T benchmarks against standard international measures.

To provide effective management and delivery of the government’s RS&T funding

MoRST manages the majority of the government’s investment in RS&T through Vote RS&T.

We negotiate funding agreements with the FIAs. These funding agreements are agreed before the beginning of the year and monitored by MoRST on behalf of the Minister through quarterly and six-monthly reports. Funding agreements can be changed at any time throughout the year with the agreement of our Minister and the FIAs.

MoRST meets regularly with the FIAs to inform them about government’s priorities for RS&T. This also provides them with an opportunity to update us on the implementation of government policy and strategy.

MoRST also manages government’s ownership interests in the FRST Board through preparing advice on board appointments and monitoring board performance.

Annual components

  • Provide advice to the Minister on appointments to the FRST Board and Marsden Fund Council.
  • Manage the Vote RS&T 2010 Budget process.
  • Establish output agreements between the Minister and FIAs for 2010/11.
  • Establish contracts between the Minister and the Royal Society of New Zealand for 2010/11.
  • Monitor the FIAs’ progress including assessments of accountability documents and regular monitoring of reports for the Minister.

To strengthen New Zealand’s international RS&T links

Most scientific outputs originate from outside New Zealand, making the development of international linkages with leading-edge partners essential. MoRST facilitates the establishment of strong relationships with long-established research entities in the United States and Europe where New Zealand’s science capability can be expanded and enhanced by collaborative research.

North Asia’s influence in RS&T is growing. We are therefore initiating new linkages with the emerging research capability in North Asia. MoRST negotiates with international agencies to facilitate contacts between researchers and research institutions, and presents New Zealand’s excellence in science and technology. We also provide a New Zealand RS&T perspective in wider international affairs.

Annual components

  • Streamline and simplify grants supporting early stage international research collaboration and align these more effectively with other funding instruments.
  • Consolidate the RS&T bilateral relationships in North Asia.
  • Enhance international relationships in the areas of renewable energy research and development, to help support New Zealand’s energy security and economic development.

How we demonstrate success

Performance and evaluation

Monitoring and evaluation ensures that our work delivers value for money, identifies how our work can improve, and informs future investment decisions. We use a range of measures to evaluate the effectiveness and value of our activities in relation to our goals.

At the broadest level we use international and national level measures to monitor our effectiveness. For example, in 2009/10 we will:

  • sponsor the New Zealand Innovation Survey 2009 published by Statistics New Zealand
  • publish the Public Sector RS&T financing survey, and
  • publish the New Zealand RS&T Scorecard.

To check progress in relation to the priorities of simplicity, clarity and relevance we will also:

  • report to the Minister on FIA progress in implementing actions undertaken to reduce transaction costs within the RS&T sector
  • request and assess Investment Impact Reports from FRST, HRC and the Marsden Fund Council.

In 2009/10 MoRST is also developing a series of measures to assess the impact of New Zealand’s RS&T investment. It is expected that these measures will make up a significant part of how MoRST assesses the impact of public investment in RS&T. This will then form part of the impact measures for future Statements of Intent.

Cost-effectiveness

We monitor our cost-effectiveness through MoRST’s costs as a proportion of Vote RS&T.

Managing in a changeable environment

Risk management

As part of our business planning, our work teams identify any specific risks that may restrict their ability to achieve their outputs and outcomes. We monitor any new risks as part of our regular management meetings and we operate an environmental-scanning network to advise us on future science issues.

The size of MoRST enables us to be flexible and fast. Our ability to easily reprioritise resources from one area to another is, however, at times, limited. For this reason, we continue to put considerable effort into effective planning and prioritisation. We undertake formal quarterly operating reviews and will continue to refine this process to ensure we are putting resources where they matter the most and are most cost effective.

How we determine our strategic direction

Our strategic direction is driven by government priorities informed through consultation with people and organisations that are involved or have an interest in the RS&T system. We do this on a regular basis through:

  • meetings with the Minister
  • senior officials’ meetings
  • developing directions for science
  • context-sharing and environment-scanning with FRST, HRC and the RSNZ
  • advisory groups such as the Research Infrastructure Advisory Group
  • the findings from research and evaluations of the various investment mechanisms undertaken by MoRST and the FIAs
  • participation in international policy forums such as the Organisation for Economic Co-operation and Development (OECD) and the Asia-Pacific Economic Cooperation (APEC).

Our accountability

The Forecast Statement of Service Performance sets out the key performance indicators for MoRST for 2009/10. This statement represents the output plan that is agreed with the Minister. The statement details the specific deliverables MoRST will be accountable for when reporting on performance quarterly to the Minister, and annually to Parliament through our annual report.

In addition to our output plan with the Minister, we establish individual output agreements between the Minister and each of the FIAs, to cover the research contract management activities and other services they provide. These output agreements specify the performance, reporting and other contractual requirements for funding agencies so the agencies account for how they spend the funds provided through Vote RS&T.

We are proud of our reputation as a great place to work. We are one of the smallest government departments, yet our major outcome – getting measurable benefits from New Zealand’s investment in RS&T – is very broad. This means people throughout the organisation need to be dedicated and demonstrate leadership in the way they work.

Being the government’s science policy agency means that to be effective and efficient, we also need to have strong links and engagement with our partners in the government and RS&T sectors.

Organisational health and capability

Value for money

It is always important that the public service is efficient and effective – that we use taxpayers’ money to best achieve the Government’s priorities. Although we are a small department, MoRST must be able to do more with less, like all departments. As part of reviewing our expenditure, MoRST has identified $930,000 savings in its operations over the next four years, as well as savings in the non-departmental expenses that we administer for the Minister. We will continue to review our efficiency and how we work in future years.

Leadership

We recognise that the quality of leadership and accountability within MoRST plays a major role in achieving our goals. Strong internal leadership and organisational clarity are critical to achieving our strategy. We will continue to develop talented leaders and reinforce our purpose and priorities, as well as the roles and responsibilities within the Ministry.

Engagement

To fulfil our leadership role we need to be well connected and informed about the environment on which we advise.

Our priorities for engagement are informed by stakeholder surveys and we will continue to undertake these periodically.

Equal employment opportunities

MoRST works hard to be an equal opportunity employer. In a small ministry it is difficult to represent the diversity present in New Zealand; however, we will review our policies and processes to ensure we support the State Services Commission’s Equality and Diversity Policy. We do not anticipate any significant changes in our diversity profile over the next year. MoRST has completed our Pay and Employment Equity review and will implement its recommendations.

Departmental capital intentions

MoRST works hard to be an equal opportunity employer. In a small ministry it is difficult to represent the diversity present in New Zealand; however, we will review our policies and processes to ensure we support the State Services Commission’s Equality and Diversity Policy. We do not anticipate any significant changes in our diversity profile over the next year. MoRST has completed our Pay and Employment Equity review and will implement its recommendations.

MoRST will ensure its infrastructure is suitable and relevant to the need to deliver on the outputs agreed with the Minister. This expectation is demonstrated by the careful maintenance, optimisation and timely updating of infrastructure. The infrastructure of MoRST comprises:

  • the accommodation space that MoRST occupies
  • the fit out and furnishing of that accommodation
  • the computer hardware that MoRST uses
  • the software on which MoRST has developed its processes and systems, and
  • the policies and procedures that underpin its internal and management controls.

MoRST will ensure the long-term sustainability of the funds invested in this infrastructure through careful management of its balance sheet, so that the Ministry is always able to meet its obligations and liabilities. Inherent in this commitment is the expectation that MoRST will always:

  • have a positive cash position
  • ensure revenue matches or exceeds expenditure, and
  • ensure actual expenditure is within appropriation (i.e. Parliament’s authority to spend).

The detail of MoRST’s financial and non-financial performance expectations, as well as its capital expenditure for 2009/10, is set out in the Information Supporting the Estimates of Appropriation for the year ending 30 June 2010 – Education and Science Sector, released with the 2009 Budget publications.

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