Wellington, Mar 27 (IANS): The New Zealand government continues to encourage research and development investment by providing a significant cash flow boost for local innovators, said Minister for Research, Science and Innovation Ayesha Verrall on Monday.

"We're enabling businesses to receive 15 percent credit on eligible research and development expenditure as regular payments throughout the year, rather than having to wait for the money to be paid out after the end of the tax year," Xinhua news agency quoted Verrall as saying.

Applications for the "in-year" payments of the Research and Development Tax Incentive, were open on Monday, she said.

It represented a win for businesses eager to invest in research and development, the Minister noted.

Research and innovation are critical to meeting the biggest challenges and opportunities facing New Zealand, from combating climate change and preparing for and responding to natural disasters, she said.

"The government wants to make things as easy as possible for business," the Minister said.

Ongoing investment in research and development grows the New Zealand economy, Verrall said, adding it fuels innovation, drives economic diversification and increases productivity.