In December 2025, the Ministry of Business, Innovation and Employment (MBIE) announced the closure of the Ārohia Grant Programmes – the Trailblazer and Evidence Grants – as part of a broader government reset of New Zealand’s science, innovation and technology funding system.
Note: MBIE has confirmed it will honour all approved and contracted Ārohia Evidence Grant (AEG) applications, but there will be no further funding rounds for either programme.
Launched in 2023, the Ārohia grants were a bold initiative designed to support ambitious, collaborative innovation that could deliver step-change benefits for Aotearoa’s economy, society, and environment. The Trailblazer Grant focused on helping innovative businesses push beyond early development and accelerate toward market readiness, while the Evidence Grant helped teams reduce risk and validate their ideas. In just two years, these programmes supported more than 300 recipients with over $44 million in funding.
At Swell, we saw firsthand the impact these grants could have. We were proud to support Christchurch-based clean tech company Fabrum in their successful Ārohia Trailblazer application. The funding is helping Fabrum scale production, build out advanced manufacturing capabilities, and strengthen their team and operations to support rapid growth and global expansion.
The closure of the Ārohia programmes marks a loss for Aotearoa’s innovation ecosystem. But it also highlights an important truth – the innovation ecosystem is fluid, and the funding that supports it, particularly grant programmes, is equally dynamic. Programmes emerge, evolve, or conclude as government priorities shift. What hasn’t changed is the opportunity. There are still strong funding pathways available to Kiwi innovators – some of which remain significantly underused.
Let’s look at what’s still out there.
What Funding Opportunities Are Still Available?
The closure of the Ārohia Grant Programmes represents a shift – but not a shortage – in the support available to Kiwi innovators. There are still plenty of meaningful funding opportunities out there to help businesses develop, commercialise, and scale bold ideas. From tax incentives to targeted grants, these programmes continue to underpin innovation across sectors and stages.
R&D Tax Incentive (RDTI)
One of the most versatile and impactful tools for backing innovation in New Zealand is the R&D Tax Incentive (RDTI). This government‑backed scheme provides a 15 % tax credit on eligible R&D expenditure, which is often refunded as cash. That cash can be reinvested directly into your business – funding new equipment, expanding your team, deepening product development, or accelerating go‑to‑market progress.
Unlike competitive grants, the RDTI isn’t a prize you have to win – if you’re eligible, you can claim it. It’s designed to encourage businesses of all sizes and sectors to tackle scientific or technological uncertainty through a structured, systematic process – whether that means developing entirely new products, improving existing technologies, or solving complex technical challenges.
Despite its value, the RDTI remains significantly under‑used, with many eligible companies not claiming simply because they’re unfamiliar with the rules or daunted by the process. For innovators investing in R&D, it’s worth exploring whether your work qualifies – because if it does, you’re leaving funding on the table that can meaningfully strengthen your innovation pipeline.
R&D Loss Tax Credit (RDLTC)
For New Zealand companies that are loss‑making but actively investing in R&D, the R&D Loss Tax Credit (RDLTC) offers a valuable cashflow boost. Instead of carrying tax losses forward, eligible businesses can “cash out” a portion of their losses related to qualifying R&D expenditure.
This means you can receive a refund of up to 28 % of eligible R&D spend in a loss‑making year – turning sunk cost into usable funding. To qualify, your company must be a New Zealand tax resident, have a net loss for the year, be conducting eligible R&D, and meet certain criteria – such as R&D wage intensity thresholds.
The RDLTC is particularly valuable for early‑stage and R&D‑heavy businesses that are reinvesting in product development before reaching profitability. It’s still underused – often because businesses aren’t aware it exists or assume it’s out of reach – but if you’re doing genuine innovation, it’s worth a closer look.
New to R&D Grant
If you're taking your first structured steps into research and development, the New to R&D Grant can help turn early ideas into commercial innovation. Administered by MBIE, it offers up to 40 % co-funding for R&D projects – reducing financial risk and helping build internal capability.
The grant supports businesses that have spent less than $150,000 on R&D and received no more than $5,000 in government R&D funding over the past three years. Funding is capped at $400,000, based on a $1 million total project size, and projects can run for up to two years. At least 5 % of the grant must go toward developing your R&D capability that will support you through future R&D projects. Such as understanding your clients or ensuring for IP is well protected.
To qualify, your work must involve a systematic approach to solving scientific or technological uncertainty – the kind of R&D where the outcome isn't known in advance, even to experts.
For early-stage innovators, the grant provides more than just funding – it helps establish the foundations for ongoing innovation, including future support like the RDTI.
Primary Sector Growth Fund (PSGF)
The Primary Sector Growth Fund (PSGF) is designed to support innovation that boosts the economic performance of New Zealand’s food, fibre, and agritech industries. It co-funds projects that aim to lift productivity, improve sustainability, and unlock new export opportunities – helping future-proof some of our most important sectors.
Whether it’s automating farm operations, enhancing product traceability, or developing new value-added goods, the fund supports initiatives with clear potential to scale and benefit the broader sector – not just individual businesses.
To qualify, projects must demonstrate strong commercial viability and the potential to deliver outcomes that align with national growth and resilience goals. PSGF favours collaborative efforts and expects co-investment – either through funding, partnerships, or in-kind contributions.
For innovators with bold ideas that could shape the future of New Zealand’s primary industries, the PSGF offers a meaningful path to commercial impact and global market growth.
Waste Minimisation Fund (WMF)
The Waste Minimisation Fund (WMF) supports innovation that helps New Zealand reduce waste and shift toward a circular economy. It’s aimed at businesses developing products, services, or systems that prevent waste, recover resources, or improve recycling and reuse at scale.
Currently, the fund is prioritising projects focused on organic waste diversion – including food scraps, green waste, paper, and cardboard – supporting solutions that keep these materials out of landfill and enable recovery through reuse, composting, or innovative processing.
Whether you're designing sustainable packaging, developing tech to optimise waste collection, or creating new ways to repurpose organic materials – the WMF provides co-funding to help bring those ideas to life.
To be eligible, your project must demonstrate measurable waste reduction, national benefit, and alignment with the Waste Minimisation Act. Projects can be commercial or non-commercial, but must go beyond business-as-usual and offer clear environmental impact.
For innovators solving waste challenges through circular thinking, the WMF offers a practical funding route to scale your impact and contribute to a more sustainable Aotearoa.
Looking Ahead
The closure of the Ārohia Grant Programmes is a reminder that innovation funding in Aotearoa is constantly evolving – shaped by shifting priorities, new policy directions, and the changing needs of our economy and environment.
But while individual programmes come and go, the opportunity for innovators remains strong. From tax incentives to targeted grants, there’s still significant support available to help Kiwi businesses develop, test, and scale bold ideas – and much of it is underutilised.
At Swell, we specialise in helping innovative New Zealand businesses unlock funding that aligns with their goals – whether that’s accelerating product development, expanding R&D capability, or breaking into new markets. We take the guesswork out of the process – identifying the right opportunities, and managing claims end to end, so you can stay focused on building what’s next.
Have a project in mind – or just want to explore what funding options might be right for your business? Let’s talk.