A study has found research and development spending grew strongly during the global financial crisis but slowed as the economy recovered.
In a follow up to a study conducted three years ago, the IBM Innovation Index shows total spending on research and development (RD) rose 3% between 2007 and 2011.
IBM New Zealand chief technologist Dougal Watt says a squeeze on government spending from 2010 slowed growth, with the private sector taking up some of the slack, particularly to the manufacturing sector.
Mr Watt says the improvement in private sector RD still lags behind that experienced overseas.