The Government could do more to boost innovation by giving more work to local firms, a top technology executive says.
New targets have been set by the Government for research and development spending for the public and private sectors.
The Government says it will lift its spending on research from 0.6% to 0.8% of GDP over the next couple of years.
But the head of Dunedin-based Animation Research, Ian Taylor, says many worthy local firms will not benefit from that spending.
Mr Taylor says awarding more government work to those firms, rather than foreign competitors, would help those that miss out.
Economic Development Minister Steven Joyce says departments are being pushed to use local suppliers where possible.
Mr Taylor says he has heard the same thing from ministers for 20 years, but bureaucrats continue to favour foreign firms.