You’ve got the idea. You’ve started tinkering, testing, maybe even prototyping. You’re pushing boundaries, trying to build something that doesn’t exist yet. But R&D takes time, resources – and most importantly – money.
If you're just beginning your research and development journey, a cash injection can make all the difference between a great idea and true commercial innovation.
That’s where the New to R&D Grant comes in.
This government-backed grant helps fund a structured R&D programme – not just a one-off project – covering up to 40% of eligible costs. It’s designed to build internal capability and help you get your idea off the ground with more confidence and less financial risk.
But it's not just about funding – it's about building internal capability, developing a repeatable R&D process, and setting you up for future innovation success, including incentives like the R&D Tax Incentive (RDTI).
In this article, we’ll break down everything you need to know about the New to R&D Grant – who it’s for, how it works, what counts as R&D, and how Swell can help you secure it.
What is the New to R&D Grant?
The New to R&D Grant is a co-funding initiative designed to help New Zealand businesses take their first structured steps into research and development. It's now administered by MBIE (formerly by Callaghan Innovation), and it’s aimed at businesses that haven’t previously received significant R&D support.
At its core, the grant exists to do two things:
- Lower the barrier to entry for businesses starting out in R&D.
- Build internal capability so these businesses can continue innovating long-term, and tap into future incentives like the R&D Tax Incentive (RDTI).
Eligible businesses can receive up to 40% of their R&D project costs, giving them the confidence – and capital – to explore new technologies, products, or processes that could drive growth and create real commercial impact.
Who the grant is for
The New to R&D Grant is designed for businesses taking their first real steps into innovation.
You might be a brand-new startup or an existing business that hasn’t yet engaged in formal R&D. Whether you're developing a new product, solving a technical challenge, or simply exploring what’s possible—the grant is here to help you get started with confidence.
It supports businesses at the beginning of their R&D journey—helping you launch your first project while developing the skills and capability to carry that work forward.
To be eligible, you’ll need to meet a few key criteria:
- You haven’t received more than $5,000 in government R&D funding in the last three years
- You’ve spent less than $150,000 total on R&D in the last three years
- You can fund your 60% share of the project costs
How the New to R&D Grant Works: Funding, Limits & Timeframes
Here’s what you need to know about how the grant is structured and who it’s designed for:
- 40% Co-Funding Model: MBIE will cover up to 40% of eligible project costs, with your business contributing the remaining 60%.
- Co-Funding Timeline: Once approved, you’ll have up to six months to secure your co-funding. This window allows startups and early-stage ventures to use their grant approval as leverage to attract investment or unlock other funding sources.
- Project Size: The maximum total project cost is $1 million, with MBIE’s contribution capped at $400,000.
- Eligibility Spend Cap: Your business must have spent less than $150,000 on R&D over the three years leading up to your application.
- Previous Funding Limit: You must not have received more than $5,000 in government R&D funding in the past three years.
- Capability Building Requirement: At least 5% of the total grant funding must be used for building R&D capability – this must include at least two of the preset capability areas.
- Project Duration: The grant supports a programme of work over up to two years – allowing time to establish repeatable innovation practices.
Capability development
This grant isn’t just about funding a project – it’s about helping you build long-term R&D capability.
To receive funding, you’ll need to carry out activities across at least two of six key capability areas identified by scientists, engineers, and innovation experts. These might include structured learning like workshops or courses, internal assessments, or other tailored development.
Some of these resources are provided directly by Innovation Services, while others come from trusted partners and providers. You’ll also join an introductory session with the R&D Tax Incentive Engagement team to get you set up for success.
The goal? To ensure your business is equipped not just to launch R&D, but to lead it.
What Counts as “R&D”?
R&D can mean different things in different contexts – but for MBIE and this grant, it has a specific and technical definition.
To qualify, your project must involve systematic work aimed at resolving scientific or technological uncertainty. In other words, you’re not just making incremental improvements or applying known solutions – you’re trying to solve a problem where the outcome is genuinely unknown, even to experts.
To meet the R&D definition, your work needs to satisfy three core criteria:
1. Objective
Your goal must be to create new or improved knowledge, processes, services, or products. It’s not enough to enhance the look or feel of something – the work should result in meaningful technical advancement.
2. Uncertainty
There must be scientific or technological uncertainty involved – something that can’t be solved with publicly available information or known techniques. Even experts in your field shouldn’t have a clear, proven answer without doing further work.
3. Approach
You must follow a systematic approach – that means your R&D should be planned, methodical, and documented. This includes defining the problem, testing potential solutions, analysing results, and refining your direction based on what you learn.
How Swell Can Help You Access the New to R&D Grant
The New to R&D Grant can be a game-changer – a vital cash injection that helps you bring a new product, process, or technology to life. But for many businesses, the hardest part isn’t the innovation – it’s the application.
Time, resources, and expertise are common barriers. Pulling together a robust application means more than just filling out forms – you need to articulate your R&D story clearly, align it with MBIE’s criteria, and provide detailed supporting information. It’s a process that can be overwhelming, especially if you’re new to it.
That’s where Swell comes in.
As a specialist innovation funding advisor, Swell works alongside you throughout the process – handling the application end to end so you can stay focused on what matters: building, testing, and innovating.
We don’t just fill out forms. We partner with your team to shape a compelling project that clearly aligns with MBIE’s eligibility criteria. That includes defining your development goals, articulating your technical challenges, and building a credible case for both funding and capability building. We translate the complexity of government requirements into a clear, well-structured application – giving your project the best chance of success.
From early-stage scoping to submission, review meetings, and follow-up, we’re with you at every step – removing the friction and helping you confidently access the support you need to innovate.
Is Your Project a Fit? Let’s Find Out
If you’re exploring R&D for the first time and think your project might qualify, our team would love to help.
Get in touch with Swell’s grant funding experts to assess your eligibility and unlock support that could fast-track your next big move.