The new policy gives researchers more rights over the commercialisation of their inventions.
The New Zealand government has introduced an IP management policy that will cap the amount of equity that universities can take in academic research spun out into companies at between 5% and 10%.
The new policy, which will take effect from 1 July 2026, is designed to boost the commercialisation of spinouts from the country’s government-funded universities and research organisations, by setting clear rules on ownership and giving researchers more control over the commercialisation of their inventions.
The new rule gives university researchers the first right to commercialise their inventions based on government-funded research. If researchers choose to work with their university to commercialise their research, the universities will be responsible for protecting and managing the IP, with a limit to the equity share they can take in the spinout company.
The new policy leaves open the possibility for universities to take more than a 10% equity share in spinouts or share in net revenues, if they provide “more than a reasonable amount of services” in the commercialisation of a spinout. This includes the university making a direct financial investment or providing financial support to cover external costs.
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The move to cap equity has spread across global academic systems in an effort by governments to boost the economic value of academic research. Investors argue that large equity stakes taken by universities can disincentivise academic researchers from making a commercial success of their projects.
But some argue that capping the ownership that universities can take in spinouts will dissuade academic institutions from making an effort to commercialise research. Some investors also say that large equity taken by universities does not put them off from investing in spinouts.
