New Zealand Callaghan Innovation R&D Grants

Program Overview

Callaghan Innovation—the New Zealand government agency dedicated to driving smart, sustainable growth—offers a portfolio of research and development (R&D) grants that help businesses transform ideas into globally competitive products and services. Grants provide up to NZD $5 million in co-funding for projects that push technological boundaries in agritech, aerospace, biotechnology, digital solutions, climate tech, and advanced manufacturing. The program includes Project Grants for early-stage validation, Student Grants to connect businesses with emerging talent, and Growth Grants for companies scaling established R&D programs. Successful applicants receive not only funding but also advisory support, access to specialist labs, and connections to Crown Research Institutes (CRIs), universities, and international innovation networks.

Why These Grants Matter

New Zealand businesses often face high upfront costs when developing novel technologies, particularly in niche export markets far from major customer bases. Callaghan Innovation grants address this challenge by sharing risk, accelerating time-to-market, and enabling companies to attract additional investment. The program aligns with national strategies such as the Industry Transformation Plans (ITPs) for agritech, digital technologies, and advanced manufacturing, as well as the Government’s Emissions Reduction Plan. By partnering with Callaghan Innovation, companies can strengthen domestic supply chains, create high-value jobs, and contribute to a resilient, low-emissions economy.

Funding Model and Eligible Activities

Grant structures vary by instrument, but most cover up to 40% of eligible R&D expenditure, requiring companies to co-fund the remainder. Eligible costs include:

• Salaries and contractor fees for scientists, engineers, product designers, and technicians working on the project.
• Materials, components, and consumables used in prototyping and testing.
• Equipment usage fees, calibration, and maintenance related to R&D activities.
• Outsourced research services provided by universities, CRIs, or specialized laboratories.
• Intellectual property protection costs (patents, trademarks, freedom-to-operate analyses).
• Market validation activities such as user testing, clinical trials, or regulatory consulting when directly linked to R&D.
• Project management, quality assurance, and compliance activities.

Ineligible costs include general marketing, routine production, or overhead unrelated to R&D. Funding is reimbursed retrospectively based on verified expenditures and milestone achievements, so applicants must demonstrate robust cash flow management.

Eligibility Requirements

To qualify, applicants must be New Zealand-registered businesses conducting R&D domestically. Additional expectations include:

1. Commercial Potential: Projects should target sizable market opportunities and outline clear revenue models. Preference is given to export-oriented ventures or innovations that substitute imports.
2. Innovation Merit: Proposals must demonstrate novel science or technology beyond routine product improvements. Provide evidence of technical feasibility and differentiation from competitors.
3. Capability and Governance: Companies need skilled teams, strong leadership, and systems to manage intellectual property, finances, and risk.
4. Co-Funding Capacity: Applicants must confirm they can finance their portion of project costs through equity, retained earnings, or other funding sources.
5. Compliance History: Businesses should have a record of meeting tax, employment, and regulatory obligations. Previous grant recipients must demonstrate positive performance.

Application Timeline and Process

The 2025 call encourages submissions by August 29. The typical pathway includes:

1. Discovery Meeting: Engage with a Callaghan Innovation navigator to discuss the project concept, funding options, and eligibility.
2. Expression of Interest (EOI): Provide a high-level overview of the innovation, technical approach, budget, and expected impact.
3. Full Application: Develop a detailed proposal covering technical plans, market analysis, financial projections, milestones, and risk management. Include supporting documents such as financial statements, IP summaries, and letters from partners.
4. Assessment: Callaghan Innovation conducts technical and commercial due diligence, often involving subject-matter experts. They evaluate innovation merit, capability, and strategic fit with national objectives.
5. Funding Agreement: Approved applicants negotiate milestones, reporting schedules, and payment terms. Agreements typically span 6–36 months depending on project complexity.
6. Monitoring: Recipients submit quarterly or milestone-based progress reports, expenditure claims, and evidence of outcomes. Callaghan advisors provide ongoing support and may suggest additional services or partnerships.

Crafting a Compelling Value Proposition

A persuasive application integrates science, market, and execution narratives:

• Customer and Market Insight: Quantify the problem you are solving, the addressable market size, and the competitive landscape. Present customer validation through pilot results, letters of intent, or early sales data.
• Technology Differentiation: Explain why your approach is unique and defensible. Reference patents, proprietary algorithms, or breakthrough research. Describe the current technology readiness level (TRL) and how the project advances it.
• Economic Impact: Estimate export revenue, productivity gains, or import substitution. Highlight how the project contributes to regional development, supply chain resilience, and Māori and Pasifika economic opportunities.
• Sustainability Outcomes: Detail how the innovation reduces emissions, supports circular economy models, or improves health and wellbeing. Align with New Zealand’s climate targets and Te Tiriti o Waitangi obligations where relevant.

Project Plan and Milestones

Break the project into stages with clear deliverables and responsibilities. Example structure:

1. Phase 1 – Feasibility & Design: Detailed design, simulation, lab testing, IP assessment (Months 1–6).
2. Phase 2 – Prototype Build: Manufacture of prototype units, integration of software/hardware, user experience design (Months 6–12).
3. Phase 3 – Testing & Validation: Field trials, regulatory approvals, certification, and iterative improvements (Months 12–24).
4. Phase 4 – Commercial Readiness: Pilot production, supply chain setup, go-to-market planning, and investor engagement (Months 18–30).

Use Gantt charts, RACI matrices, and KPI dashboards to demonstrate disciplined management. Incorporate risk registers covering technical, market, and operational uncertainties with mitigation plans for each.

Budget Planning and Co-Funding Strategy

Develop detailed budget tables linking each cost to project activities. Example:

Explain co-funding sources (equity rounds, loans, revenue) and attach evidence of availability. For startups, include investor term sheets or bank letters confirming facilities.

Talent Development and Collaboration

Highlight partnerships with universities, CRIs, or iwi-led research entities that provide expertise and talent pipelines. Consider integrating Student Grants to fund internships or master’s/PhD placements working on project deliverables. Outline mentorship and training programs that upskill staff in areas like data science, regulatory compliance, and design thinking. Demonstrating commitment to workforce development strengthens alignment with national skill-building goals.

ESG, Regulatory, and Compliance Considerations

Address environmental, social, and governance (ESG) factors early:

• Lifecycle assessments, waste minimization, and responsible sourcing policies.
• Alignment with health and safety regulations, particularly for products involving chemicals, food, or medical devices.
• Data privacy and cybersecurity strategies for digital solutions, referencing NZ privacy law and international standards.
• Governance frameworks that ensure transparent decision-making, especially if Māori partners or investors are involved.

Risk Management and Reporting

Prepare a risk register covering technical uncertainties, market adoption barriers, IP disputes, and supply chain vulnerabilities. For each risk, document probability, impact, mitigation actions, and contingency budgets. Establish internal reporting processes that capture KPIs, expenditure, and lessons learned. Callaghan Innovation values agile teams that can pivot when data reveals new insights.

Application Checklist

Before submitting, ensure you have:

1. Executive summary and pitch deck tailored to Callaghan Innovation reviewers.
2. Detailed technical proposal, work plan, and milestone schedule.
3. Market analysis, customer validation evidence, and competitive benchmarking.
4. Financial statements, cash flow forecasts, and proof of co-funding.
5. IP strategy, including patent searches, ownership documentation, or licensing agreements.
6. Letters of support from partners, customers, or investors.
7. Risk management plan, ESG commitments, and governance documentation.
8. CVs of key team members showcasing relevant expertise and track record.

Scaling Beyond the Grant

A clear post-grant roadmap reassures reviewers that public funding will deliver long-term value. Describe plans for manufacturing scale-up, regulatory approvals in export markets, strategic partnerships with distributors, and ongoing R&D investment. Engage New Zealand Trade and Enterprise (NZTE) for export support, seek additional capital through venture funds or angel investors, and explore participation in international accelerators. Demonstrating a robust commercialization strategy positions your company to leverage Callaghan Innovation’s support and become a flagship example of New Zealand ingenuity on the global stage.

Insider Tips to Win New Zealand Callaghan Innovation R&D Grants

• Engage Callaghan Growth Advisors early. Use them to refine your project scope and eligible costs.
• Map co-funding ratios. Demonstrate your firm’s cash contribution and how it unlocks additional investment.
• Show export potential. Provide beachhead market plans that align with New Zealand Trade & Enterprise priorities.