The Government is again being urged to improve the incentives available for small and medium-sized firms to carry out research and development.
A partner at KPMG, Mark Kippenberger, says the vast majority of such businesses are seeing the light at the end of the recession tunnel, and are much more confident about the future.
Mr Kippenberger says a large proportion of small and medium-sized firms would prefer research and development incentives, which have been stopped by the National-led government, to tax cuts.
Skope Industries managing director Guy Stewart says he's learnt the value of research and development and believes companies that don't engage in it are signing their own death warrants.
He says his Christchurch-based heating and refrigeration manufacturing business would spend more on research and development if it had more capital available.