Menu
Kiwi R&D investment doubles despite business pessimism

Kiwi R&D investment doubles despite business pessimism

Investment in technology is also starting to follow suit

New Zealand business leaders are becoming less confident about the economic outlook with optimism falling from 76 per cent to 60 per cent in the space of a quarter.

According to Grant Thornton findings, such figures are consistent with the global average which has fallen from an all-time high of 61 per cent during the first quarter of 2018, to 54 per cent in the second quarter.

“These figures tell us that although there’s some anxiety about the economy, a lot of business leaders are still doing well and making all of the right moves to future proof their operations,” observed Paul Kane, partner of business advisory services at Grant Thornton New Zealand.

Despite a dive in Kiwi optimism between the opening quarters of the year, Kane said investment in research and development has doubled, growing from 26 per cent to 50 per cent.

The growth follows the $1 billion earmarked for R&D during this year’s budget.

Meanwhile, investment in technology is also starting to follow suit, and expectations for employment also leapt to 60 per cent from 46 per cent.

“The R&D investment figures are particularly promising, because although there’s a tax credit regime in the pipeline, business owners know they will still have to invest in further resources and technical abilities to meet the Government’s requisite standards,” Kane said.

“Businesses don’t make this sort of commitment if they’re not confident they can pay the bills.

“New Zealand businesses look to be taking the opportunity to invest, but they will need to make sure they are investing to a level which will help them ride out the economic shift predicted in the future.”

Kane said “strategic investment” is the way forward for businesses in New Zealand, but overseas research suggests that businesses aren’t taking steps to counter the risks that this lack of investment presents.

As a result, Kane said such businesses should be taking advantage of the rising revenues the global economy recovery has provided to invest for long-term structural growth.

“There is a sense that 2018 may be as good as it gets for the global economy,” he added.

“The bottom line for businesses is to ensure they can still make hay as the sun sets over what has been a boom during the last few years; history tells us it’s just around the corner.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Grant Thornton

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments