It's becoming more common for businesses to invest in research and development, leading to gains through innovation.

Statistics New Zealand has just released the latest data on the topic, showing about half of all companies are spending money on developing better goods and services.

The government's welcoming the figures, happy more firms are taking a leadership approach to product enhancement.

Research and development is seen as an effective way to diversify and strengthen the economy.

Associated spending rose by almost $200m last year, to $1.4b.