There's belief the science sector is on the right track with a major overhaul.
Seven Crown Research Institutes will now merge into three public research organisations.
Another public research group is also being created to focus on AI and advanced technology, with Callaghan Innovation set to close.
The moves follows a review by the Science System Advisory Group.
Former Chief Science Advisor Sir Peter Gluckman says the changes follow around 80 percent of his recommendations.
"Strategy must precede operations, and what this first report - and how the Government's responded to it - is about getting the architecture of the system right."
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