Business spending on research and development (R&D) last year was up almost 30% to $1.6billion and computer services and machinery manufacturing firms showed the greatest increase.
Despite the rise, New Zealand still lags behind the average for the Organisation for Economic Co-operation and Development (OECD).
Statistics New Zealand data showed businesses spent $1.6billion on R&D in 2016, up $356million, or 29%, from 2014, SNZ business performance senior manager Daria Kwon said in a statement.
''While higher R&D spending is a key driver of economic growth according to some studies, it is not a guarantee that a business will be more creative or profitable,'' she said.
The total R&D spend as a proportion of gross domestic product rose from 1.2% in 2014 to 1.3% in 2016. The OECD average was 2.4%.
Total 2016 spending on R&D by businesses, the Government and higher education was $3.2billion, up $531million (20%) from 2014.
By sector, R&D spending rose in the higher education, university sector and government R&D had a modest rise, but the bulk of the overall increase was from business spending.
The computer services sector had the biggest dollar-value increase within the business sector, up $125million (40%) to $436million.
''Computer services firms include New Zealand businesses providing services such as producing and distributing software and web design,'' Ms Kwon said.
The second-largest increase in business-related R&D spending was in machinery and equipment manufacturing, up $105million (37%) to $392million.
Those firms included high-tech manufacturing companies developing new products and services for sale here and overseas.
