Survey Insights: 100 NZ Manufacturers Share Their Experience with the R&D Tax Incentive
Manufacturing is a key driver of New Zealand’s economy. It’s one of our largest and most productive sectors — contributing to GDP, powering exports, and providing skilled jobs across the regions. Put plainly, when manufacturing does well, so too does the broader economy.
But to keep pace in a fast-changing global market, Kiwi manufacturers need to keep doing what they do best: innovating. That’s where research and development (R&D) comes in. Whether it’s developing new or improved products, processes, or services, R&D helps businesses grow, evolve, and stay competitive.
The government’s R&D Tax Incentive (RDTI) is designed to back these efforts, offering a 15% tax credit on eligible R&D activity. For many manufacturers — especially SMEs — the RDTI can make it easier to invest in innovative ideas and turn them into real results.
To get a clearer picture of how the RDTI is playing out on the ground, we teamed up with our partner, Advancing Manufacturing Aotearoa (AMA) to run a nationwide survey. Together, we gathered insights from 100 of AMA’s manufacturing members across New Zealand to understand how they’re engaging with the RDTI.
This article highlights the four key insights from the survey — including the high number of manufacturers that are missing out on the RDTI, and the real value it’s delivering for those who are making use of it. It also sheds light on the confusion around eligibility and the application process, which continues to be a sticking point for many.
Insight #1 – Most Manufacturers Are Missing Out on the RDTI
.png)
Perhaps the most notable finding from the survey is the fact that most manufacturers aren’t accessing the RDTI. 61% of respondents said that they’re not currently accessing the scheme; and from what we’ve seen across the industry, the real number is likely more in the region of 70-80%.
That means a lot of companies are missing out on vital funding that could stimulate growth. The reasons behind this low uptake come through clearly in the following insights — but can be boiled down to limited awareness, confusion around eligibility, and the complexity of the application process.
Insight #2 – RDTI Delivers Real Value for R&D Investment
For those manufacturers who are accessing the RDTI, the benefits are clear. In fact, nearly 90% of those using the scheme felt it provided meaningful financial relief.
Many respondents said the tax credit helps reduce the financial burden of R&D, enabling them to reinvest in innovation and support their growth with greater confidence. Some noted it helped attract investor support, while others saw it as a way to stretch their R&D budgets further.
Insight #3 – Interpreting Eligibility Remains a Common Hurdle
Understanding what qualifies as R&D under the RDTI remains a major challenge for manufacturers. In the survey, 55% of respondents identified confusion around eligibility as one of the key barriers they face when engaging with the scheme.
R&D can mean different things to different people. This creates confusion around what qualifies for the R&D Tax Incentive. In a manufacturing context, R&D can take many forms, such as improving how a process works, developing a new product, testing new production methods, or making purposeful changes to equipment to improve performance. However, for this activity to be eligible for the RDTI, it needs to meet the following criteria:
- The Objective: You’re aiming to develop a new or improved product, process, or service, or to generate new knowledge.
- The Uncertainty: Your activity must face a scientific or technological uncertainty. In other words: a challenge that needs to be overcome to achieve your objective. Your work must involve tackling a scientific or technological challenge. That means there’s no known solution readily available — you’re dealing with uncertainty about how (or whether) you can achieve your objective.
- The Approach: Your method to solve this uncertainty must be planned & systematic and involves a structured approach to formulating and testing possible solutions.
For a more detailed breakdown of RDTI eligibility, check out the guide on our website.
Insight #4 – The Application Process is a Major Barrier
Even for manufacturers who are aware of the RDTI and believe their work may qualify, the application process itself is a significant hurdle. In the survey, 72% of respondents accessing the RDTI said the complexity of the application was one of the biggest challenges they faced.
From preparing general approvals to navigating documentation requirements and responding to post-filing reviews, the process can be complex – especially for smaller teams without dedicated resources.
Case in Point: New Ground™
The team at New Ground™, an innovative coffee manufacturer, knew their R&D work qualified for the RDTI — but the application process proved overwhelming. Like many others, they faced challenges pulling together the right information and navigating the requirements.
That’s where Swell came in. We helped identify eligible projects, handled the documentation, and made the process simple and stress-free – allowing them to focus on innovation while we handled the rest. With Swell's support, New Ground™ secured $150,000 in R&D tax credits, providing valuable funding to accelerate development.
Check out the full case study here.
How Swell Makes the RDTI Easy for Kiwi Manufacturers
Swell specialises in helping Kiwi manufacturers access the RDTI with confidence. Our team does the heavy lifting — from assessing project eligibility and preparing applications to managing documentation and navigating the review process. We speak your language, understand how innovation works on the factory floor, and simplify what can often feel like an overwhelming system.
Whether you're just starting to explore the incentive or have tried and found it too hard in the past, we're here to make the process straightforward, practical, and worth your time.
Need RDTI support? Get in touch with the Swell team.