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Why do R&D?

R&D allows businesses to explore new ways to create competitive advantage – and can produce a range of results including new systems and processes, or innovations in products and technology.

There are compelling reasons for businesses to consider doing more R&D:

  • R&D is a good investment. A 2017 review of economic studies around the world found the long-term payback on R&D spend is in the order of 20% a year.
  • New Zealand Productivity Commission research (2017) showed firms that adopt an ‘all-of-firm innovation mindset’ and focus on continually improving their internal processes and structures while also innovating through R&D, get exponentially better productivity outcomes than those that innovate in just one area.
  • While there is no guaranteed return on investment (ROI) for a business that spends money on R&D, the RDTI can now help eligible businesses to mitigate some of this risk by reducing their income tax bill.

A business case for investing in R&D can be found below, and in our News and Insights section. It provides further evidence that R&D creates opportunities for your business to gain a competitive advantage, helping it grow.

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