Prime minister John Key announced this week that research, science and technology will be one of the major recipients of new funding in Budget 2010. Science funding will receive $321 million in funding for new initiatives, he said.

Mr Key also released the government’s new policy direction for science and innovation, called Igniting Potential.

The key point for tertiary institutions engaged in scientific research is the shift in non-contestable funding and focus away from them. The report notes:

“CRIs [Crown Research Institutions] will receive a greater proportion of non-contestable funding, will become accountable for outcomes defined in a statement of core purpose and will work more closely with the end-users of their work and other stakeholders.”

Of the total allocation of $321 million for new initiatives over the next four years, $225 million is new funding and $96 million is reprioritised funding

A major part of the money ($189 million) is going to large businesses as subsidies to invest in science and research. There is also funding for a number of new initiatives to encourage links between companies and publicly-funded research organisations, or to support the commercialisation of new products and processes.

Some tertiary institutions have welcomed the new investment, with the University of Auckland’s vice chancellor Stuart McCutcheon applauding it and welcoming the increased spending available to it’s commercial arm, Auckland UniServices Ltd.

Weltec chief executive Linda Sissons also welcomed the announcement as an opportunity to build capacity to transfer knowledge and deliver products to commercial companies.

However president of the Association of Scientists, James Renwick, said the package is overly focused on linking science with business.

“I’m a little bit surprised and disappointed to see there wasn’t more money going into the fundamental research. Fundamental, or basic, research is scientific investigation for its own sake.”