New Zealand is a country in an ideal position to do business in the global marketplace 2 nd to singapore in best places to do busines Reforms included the removal of subsidies, tariffs and price controls; the floating of the exchange rate; the abolition of controls on capital movement; and the privatisation of many state assets. In recent times government policy has shifted to a focus on encouraging growth through innovation and creativity. (http://www.nzembassy.com/aboutmore.cfm?CFID=4603240&CFTOKEN=99686852&c=14&l=56&i=5481&p=477) Large energy, dairy and food sectors.
4 million people. 1300 miles to sydney. According to a working paper by Innovation in New Zealand: Issues of Firm Size, Local Market Size and Economic they tested the notion that small firms concentrated in large cities are conditions for innovation, a common notion. New Zealand struggles b/c Auckland, for example not even top 80 in OECD ranking. s2nd most isolated market in the world Their research found that Large firms may be just as likely to innovate Argue that public policy should be geared toward increasing firm size not reducing them p.18., 22.
Based on a study entiteld Innovation in New Zealand published in 2007, the researchers found that the top three barriers to innovation: Top 3 challenges: Knowledge, skilled People, Costs based on a NZ study. In 2007, innovation activity was reported by 47 percent of New Zealand businesses, a decrease from the 2005 innovation rate of 52 percen The most common reasons for innovating were to increase revenue (87 percent of all innovating firms) and reduce costs (71 percent). Reason to applaud: shows that New Zealand’s overall innovation rate is higher than that of France, Australia, Portugal and Norway, but lower than that of Ireland.
Based on the study Growing and Innovative New Zealand, the study suggests a similar list of reccommendations. Return NZ to the top half of OECD, have gov’t take an acitve role in this process. Assume that NZ has a great economy, healthy and active population, environmentally conscious, and actively pursuing innovation in all areas of business
Fifty-six percent of all businesses surveyed rated a lack of management resources as the biggest impediment to innovation, hampering it to a high (18 percent), medium (22 percent) or low (16 percent) Ensuring a skilled work-force that can compete in competitive sectors like bio-tech, engineering, communications, and business is essential to NZ With only 2 million workers between ages of 15-64, it is imperative that all citizens have access to excellent post-secondary education The government must help to build leadership and management institutes, perhaps situated in ministry of finance or education. Understanding the innovation and business process is a key skill missing from business leaders To build on that point, the gov’t could create a yearly symposium that rewards entrepeuners and brings together industry leaders to highlight product and processes.
In a country as isolated and ecologicaly diverse as NZ, we must be world leaders in innovation with a conscience. A national institute would be a multi-disciplinary, multi-industry think tank and research center that would grant long-term projects that focus on environmental sustainabilty. Our economy is so heavily dependent on agriculture, we need to lead the world in creative, sustainable solutions Smaller industries must also benefit from a renewed innovation framework. Hospitality accounts for 18% of the gdp and is one of the least innovative industries according to the 2007 survey. Health care and community services also can work under the national institute and find ways to bridge major problems To build on the working paper, cities like Auckland and Wellington should encourage larger firms, provide added incentives on taxes so that concentrated, highly skilled workers will both live and work in the same cities. Lastly, according to the OECD NZ is one of the most indebdted nations. We need to find products and services that can compete in the global marketplace
From the Growing an Innovative NZ handbook,
Innovation Policy in New Zealand
New Zealand and Innovation Recommendations to Prime Minister John Key
A Prime Place to Do Business <ul><li>World’s most liberalized economy and 2nd best for doing business according to the World Bank </li></ul><ul><li>One of the world’s most transparent and least corrupt institutional environments </li></ul><ul><li>3rd strongest property rights, world’s strongest investor protection environment </li></ul>
Innovation Goals <ul><li>Enhance the innovation framework </li></ul><ul><li>Develop an educated, globally competitive workforce </li></ul><ul><li>Foster innovation through public-private partnerships </li></ul><ul><li>Focus initiatives in areas which can have maximum impact. </li></ul>
The Plan: Education + Incubation = Innovation <ul><li>1. Invest in education </li></ul><ul><ul><ul><li>Post-secondary and poly-technical programs </li></ul></ul></ul><ul><ul><ul><li>Enhance the pre-exisiting skilled workfrace </li></ul></ul></ul><ul><li>II. Create leadership and management institutes </li></ul><ul><ul><ul><li>Businesses lack the proper resources to devise innovation strategies </li></ul></ul></ul><ul><li>III. Host R&D symposiums sponsored by the government </li></ul><ul><ul><ul><li>Bring together industry leaders in multi-sector events </li></ul></ul></ul>
Education + Incubation = Innovation <ul><li>I. Establish a national institute for sustainable innovation </li></ul><ul><ul><ul><li>Not just for bio-tech and ICT </li></ul></ul></ul><ul><li>II. Provide resources for tier 2 and 3 industries </li></ul><ul><ul><ul><li>Expand innovation to hospitality, health and community services </li></ul></ul></ul><ul><ul><ul><li>Subsidize R&D and encourage sustainable practices </li></ul></ul></ul><ul><li>III. Develop policy and incentives to foster larger firms in concentrated city centers </li></ul><ul><li>IV. Expand exports – enter the global marketplace </li></ul>