Our evaluation of Govt's Research & Development Tax Incentive (RDTI) shows positive impact on businesses

Jan 12, 2026

We have just released this paper evaluating the Govts Research and Development Tax Incentive (RDTI) for business. 

This report is the first major piece of evidence about the impact of the Research and Development Tax Incentive (RDTI) and how well it is working.

The evaluation shows:

• For every $1 of government spend, firms invested $1.40 in additional R&D.
• The additional R&D stimulated by the RDTI was estimated to generate an impact on New Zealand’s GDP of $6.77 billion (mid-point of a range estimate), which suggests an overall economic impact of 4.2 times government investment.
• Most firms indicated the RDTI had a positive impact on their R&D activities and business outcomes.
• Several firms with international operations explained the RDTI is influential in attracting and retaining R&D work in Aotearoa New Zealand.