The coalition Government has started its major science and innovation system reform to strengthen economic growth and align scientific research with national priorities. These changes mark the most significant reset of the country’s science system in over 30 years.
However, while strategy may look great on paper, successful implementation is what truly matters. As the saying goes, “culture eats strategy for breakfast”-a reminder that new organisations’ human and cultural dynamics will ultimately determine their success.
Ultimately, the success of these changes will hinge on how well they are implemented. A strong strategy alone is insufficient; cultural alignment, industry collaboration, and effective leadership will make the difference between meaningful reform and disruption. This is the type of organisational change work that justifies ‘bringing in the experts’. Mergers are notoriously tricky undertakings. In the corporate world, the failure rate for mergers and acquisitions (M&A) is between 70 percent and 90 percent. I have plenty of confidence in the people who are currently the CEO’s and Chairs of the Crown Research Institutions (CRIs) to reflect their experiences in this process – but it’s hard to do surgery on yourself. Like many, I’d like to see the total of investment increased for these groups. I’d also like to see investment in the merger activity itself by including significant external expertise in the truly hard stuff, i.e. the soft stuff.
What we know
The new public research organisations (PROs)
The restructuring involves consolidating and realigning existing Crown Research Institutions (CRIs) to create four PROs:
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Bioeconomy PRO
This entity will integrate AgResearch, Plant and Food Research, Scion, and Manaaki Whenua-Landcare Research. It will focus on agriculture, horticulture, forestry, and environmental sustainability research. The goal is to improve innovation in food production, bio-based materials, and land management. This is the PRO most strongly associated with the work and aspirations of AgriTechNZ. There is a wealth of knowledge and skill in the current CRIs, and we expect many of them will remain strong collaborators in the agritech ecosystem.
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Earth sciences PRO
This organisation will merge the National Institute of Water and Atmospheric Research (NIWA) and GNS Science. A key development is that NIWA will acquire MetService as a wholly owned subsidiary. This PRO will drive geology, climate science, and environmental monitoring research, which are critical for disaster resilience and sustainable resource management. The knowledge and capability developed in this PRO will find purpose across agritech solutions.
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Health and forensic science services PRO
This organisation, evolved from the existing Institute of Environmental Science and Research (ESR), will specialise in public health and forensic research, supporting critical areas such as disease prevention and criminal investigations. Agritech is not disease or crime free! Whilst the links will be less direct with this PRO, we know that good innovation can come from adjacent domains and that food and health are integrally linked.
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Advanced technology PRO
A new entity dedicated to emerging technologies, including artificial intelligence, synthetic biology, and quantum computing. This organisation aims to accelerate research, development, and commercialisation of cutting-edge technologies to boost New Zealand’s global competitiveness. Whilst sector agnostic, this PRO will focus on some of the most transformative technologies known to humans. We will undoubtedly be engaging and representing the agricultural perspectives necessary and expected from Aotearoa New Zealand.
Other major changes
In addition to the establishment of PROs, several structural adjustments will reshape the innovation ecosystem:
Disestablishment of Callaghan Innovation – Over the next four months, Callaghan Innovation will be phased out. Its business innovation and research and development (R&D) grant programs, such as the Ārohia Innovation Trailblazer Grant and Technology Incubator program, will be transferred to the Ministry of Business, Innovation and Employment (MBIE). However, some services, including capital education and one-on-one business coaching, are expected to cease. These capabilities will be sorely missed. Hopefully, the work of groups like Sprout Agritech will get further support and emphasis (Note: the changes do not impact ‘business as usual’ for Sprout Agritech, we see further potential for their work). AgriTechNZ will continue the work of the ‘Agritech Activator’, which was initially established as an industry collaboration and will now continue as an industry-led initiative.
- Creation of Invest New Zealand – This new entity will act as a one-stop shop for foreign direct investment, attracting investors who can provide capital, expertise, and networks to boost New Zealand’s innovation landscape. AgriTechNZ is exploring what investability looks like for agritech, recognising that significant investments have already been made in the sector. We believe these investments signal opportunities for even greater levels of collaboration with global-scale partners.
- Two independent convenors have been appointed to lead the mergers for the bioeconomy and earth science PROs.
- Advisory group for transition will oversee key decisions on PRO structures, the refocusing of New Zealand Trade and Enterprise (NZTE), and the transition of innovation functions. It’s not yet clear what is intended here. Possible future entities such as ‘Innovate New Zealand’ and ‘Enterprise New Zealand’ have been mentioned. We believe there is validity in establishing an entire innovation pipeline within NZTE, with different services, people and cultures supporting innovators across idea to scale phases.
The role of AgriTechNZ in shaping the future
While the science system reforms aim to create a more efficient and aligned research framework, key industries must continue to have a voice in shaping the new structures. AgriTechNZ remains committed to ensuring that New Zealand’s agritech ecosystem thrives during this transition. We remain an industry funded community, so none of this is existential to the organisation.
As the Bioeconomy PRO takes shape, AgriTechNZ will advocate for the sector’s needs, ensuring that agricultural and environmental research continues translating into real-world applications for farmers, growers, and agritech innovators. By fostering collaboration between industry, researchers, and policymakers, AgriTechNZ will work to maintain a strong innovation pipeline, ensuring that agritech remains a key driver of New Zealand’s economy.
AgriTechNZ will actively participate in the new organisations’ establishment phase and ongoing governance. Its role will be to highlight the importance of open data, commercialisation pathways, and strong industry connections.
Ultimately, the success of these changes will hinge on how well they are implemented. A strong strategy alone is insufficient; cultural alignment, industry collaboration, and effective leadership will make the difference between meaningful reform and disruption.
As these changes unfold, AgriTechNZ will champion the agritech sector’s unique requirements, ensuring that the new research structures support the sector’s long-term growth and success.
The transformation of New Zealand’s science system presents both opportunities and challenges. With strategic engagement from industry stakeholders like AgriTechNZ, the agritech sector can ensure that research remains practical, impactful, and aligned with the needs of New Zealand’s primary industries. After all, “culture eats strategy for breakfast”-and in the coming years, the ability to embed the right culture in these organisations will define their success.
Written by Brendan O’Connell (CEO AgriTechNZ)