Category Definition: Novel algorithms, datasets, or architectures.

Examples in NZ: AI radiology model, freight optimisation engine, Pacific languages speech recognition.

Why it Matters: Many AI and software ventures fall into a grey zone when it comes to government R&D rules. If you’re creating new algorithms, datasets, or architectures — not just configuring existing tools — you can unlock the same Callaghan grants and R&D Tax Incentive as deep tech companies.

This pathway helps ensure you:

• Don’t get ruled out by default — government doesn’t treat “software” as automatically non-R&D.
• Prove eligibility early with the R&D test and advisor sessions, avoiding wasted effort on ineligible grants.
• Stack the right supports — Callaghan Career Grants, Experience Grants, and R&D Tax Credits can directly fund your technical team and experiments.
• Avoid pitfalls — simply using APIs, off-the-shelf AI models, or building SaaS workflows does not qualify.

5-Stage Pathway: AI & Software (R&D YES)

Do This First: Run “Is my R&D eligible?” test and then book a free session with your Regional Business Partner (RBP)

(⚠️ RBP registration is required for most grants.)

• NZ Business Number (NZBN)
• Regional Business Partner (RBP) Network
• MSD Self-Employment Start-up Payment
• MSD Flexi-Wage for Self-Employment
• MSD Business Training & Advice Grant
• Business Mentors NZ | Ensures correct pathway ⚠️ Configuring APIs ≠ R&D
  ⚠️ Don’t skip eligibility test + RBP session | | 2. Early Validation | Fund research, validate datasets, protect IP | - RBP Capability Voucher
• Callaghan New to R&D Grant
• Callaghan R&D Career Grant
• Ārohia Evidence Grant | Proves feasibility + dataset readiness
  ⚠️ Co-funding required
  ⚠️ Must show technical uncertainty (AI ≠ R&D by itself) | | 3. Pre-Scale | Build prototype, expand team | - Callaghan R&D Experience Grants
• Callaghan Ārohia Trailblazer Grant
  -Callaghan Deep Tech Incubator ‣ ‣ | Move from research to prototype Access networks + advisory support | | 4. Scale & Capital Raise | Secure capital, enter new markets | - NZ Growth Capital Partners (Aspire & Elevate Funds)
• NZTE Export & Market Readiness Services
• NZ Export Credit (NZEC) | Fuels scaling
  ⚠️ NZGCP requires lead investor
  ⚠️ NZEC reduces export risk | | 5. Ongoing Support | Sustain innovation long-term | - R&D Tax Incentive (15% credit)
• R&D Tax Loss Cash-Out | Supports reinvestment
  Long-term innovation funding |

⚠️ Note: Several Callaghan programs (New to R&D, Career/Experience, Ārohia) are transitioning to MBIE administration in 2025. Always confirm availability before applying.

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⚠️ R&D ≠ Deep Tech (in VC Terms)

Government R&D eligibility is about whether your work meets a legal/technical definition — solving scientific or technological uncertainties with a systematic approach.

Venture capitalists, on the other hand, use deep tech to mean something narrower:

• Deep Tech (VC lens) = high-bar science and engineering companies (e.g. biotech, advanced materials, robotics, climate science, aerospace). They usually require long development timelines, capital intensity, and defensible IP.

• R&D (Gov’t lens) = much broader. A novel AI algorithm, a new data-processing approach, or an advanced manufacturing process can all count as R&D — even if they wouldn’t be pitched as “deep tech” to VCs.

  Why it matters:

  • You might qualify for Callaghan grants or the R&D Tax Incentive even if deep tech VCs wouldn’t call you “deep tech.”
  • Don’t let VC terminology stop you from applying for support — assess by the R&D tests, not just the investor label. </aside>

Case Studies

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🩻 AI Radiology Platform

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Quick Navigation:

NZ Government Support

Pathway 1: R&D YES Pathway 2: AI & Software – R&D YES Pathway 3: AI & Software – R&D NO Pathway 4: R&D NO

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🚚 Freight Optimisation Engine

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🗣️ Pacific Languages Speech Recognition

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