R & D investment set to drive Tait global growth to another levelTait Radio Communications is delighted to be among the first recipients of the New Zealand Government's Technology Development Grant as announced today by the Hon Dr Wayne Mapp, Minister of Research, Science and Technology.
The scheme reimburses 20 per cent of eligible R&D expenditure on a business's R&D programme, up to $2.4 million (excl. GST) a year, and Tait will receive the maximum benefit ($7.2 million) across the three-year period according to the Foundation for Research, Science and Technology.
"Today's news is all about enabling growth to deliver tangible benefits to our customers and to the country: after all, 90% of our revenues are from export. Tait has business momentum and this injection across three years helps accelerate that momentum," said Frank Owen Managing Director at Tait Radio Communications.
Steve Kingston Group R&D Manager added, "Despite some fairly challenging global conditions, Tait has maintained its investment in R&D at an average of 11% of revenue in the past three years. The last year has seen us earn record orders on the back of a record sales year in 2009. So the company is growing, has a focused strategy and clear insight into the needs of its customers and the solutions it can develop to meet those needs."
"The grants announced today go to companies with a strong track record of successful investment in research and development. New Zealand-owned, Tait Radio Communications has proven it can secure great returns for New Zealand. As well as the returns in terms of PAYE and GST from at least an extra 30 R&D recruits, there will be knock on effects for the 500+ suppliers Tait uses locally. And because of our unique structure set up by founder Angus Tait there is no money siphoned off to shareholders in the shape of future dividends. The profits from further growth enabled by this grant get reinvested in the company for even more future growth," concluded Steve.
Tait also has a close working relationship with the University of Canterbury, Christchurch Polytechnic, Futureintech and other NZ educational institutions promoting technology career opportunities for New Zealanders. Tait is a lead commissioner of research from the Wireless Research Centre which as part of Canterbury University is exploring many interesting possible breakthroughs.
About the Technology Development Grant and the Foundation
The Technology Development Grant supports firms with a good track record in research and development (R&D) and which spend a significant proportion of their revenue on R&D.
In 2010/11, $92 million will be invested into 26 businesses in the high value manufacturing sector. This is the largest Government R&D investment into businesses ever.
The Technology Development Grant was announced in the May Budget as a new initiative to increase business investment in R&D, with $189.5 million available over four years.
The Technology Development Grant is administered by the Foundation for Research, Science and Technology. It is one of its investment products under TechNZ, the Foundation's business investment programme.
The Grant reimburses 20 per cent of eligible R&D expenditure on a business's R&D programme, up to $2.4 million (excl. GST) a year.
Grants will be awarded for three years, after which a business will have to reapply for a grant alongside other businesses.
The final amount businesses will receive depends on their actual R&D expenditure over the next three years.
For more information
Tait Radio Communications is a global leader in designing and delivering radio solutions which are the right fit for a number of industries including public transport, public safety and utilities.
For more information about Tait, please contact us.