A new university research fund will cut red tape while directing academic effort towards economic growth.
Cabinet has approved the final design of the Tertiary Research Excellence Fund, which replaces the Performance-Based Research Fund from 2027. The new system will invest $315 million per year in research capability across New Zealand's tertiary education system.
Tertiary Education Minister Penny Simmonds said the fund would significantly reduce compliance costs for universities and polytechnics.
"It enables a move away from the burdensome process of assembling individual Evidence Portfolios that was required under the PBRF," Simmonds said.
The old system required academics to compile detailed portfolios of their research work every six years. Universities spent months preparing submissions that were then peer-reviewed by panels.
Under the new fund, money will be allocated based on research performance measured through external research income, citations, commercialisation outcomes and policy impact.
"It also includes a greater focus on impact – through external research income and new metrics for citations, commercialisation and policy outcomes," Simmonds said.
"The TREF will support New Zealand's future skills and innovation needs by rewarding research excellence and impact in a more responsive and efficient way."
The University Advisory Group, chaired by Sir Peter Gluckman, advised on the fund's design alongside sector experts.
Changes will be phased in from 2027, with funding fully aligned to the new framework from 2029. The Tertiary Education Commission will now begin operational design work.
The shift reflects government priorities to make research funding more commercially focused while reducing administrative burden on institutions.