IMPACTS OF DIRECT FINANCIAL SUPPORT FOR R&D.

This report presents results from an evaluation of publicly-funded R&D assistance provided to New Zealand firms. We find that additional impacts depend upon the type of R&D assistance provided to a firm. Firms that receive Capability Building assistance show significantly higher employment growth compared with matched unassisted firms. In contrast, we find no overall additional impacts of Project Funding. We found significant additional impacts only for small firms and for firms that had not undertaken R&D two years prior to receiving their first assistance. We conclude that R&D assistance has a significant positive additional impact when it is targeted at firms that are building capability; that are small and that have not previously undertaken R&D [ABSTRACT FROM AUTHOR]