Another B on the bucket list

Callaghan Innovation chief executive, Mary Quin.

Callaghan Innovation chief executive Mary Quin reckons more New Zealand companies should position themselves as global players from Day One.

Quin has got to know all the key players in the local innovation eco-system in the period since she returned from Alaska to New Zealand last year to become Callaghan's founding CEO. She's noticed the increasing trend for NZ firms to go global and bypass the traditional proving stage in the domestic market by leveraging high technologies and networks to access international markets.

Another trend Quin has noted is a desire by some companies to aspire to the "4 Bs" - to have that boat, that bach and the BMW - and to also be a billion-dollar company.

"The fourth 'B' is what we need - to have a lot of those companies that have fantastic ideas and have already made inroads."

Getting more NZ companies even above the $100 million mark is the starting point.

"The good news is we have a good seed crop of many small and diverse companies; we don't have to build that baseline of businesses, the challenge is how to grow these companies bigger and in a faster timeline. Obviously, not all companies want to become very large companies, and that is the prerogative of the founders, owners or leadership team."

That latter point was borne out by a recent report by ManufacturingNZ which undertook case studies of 15 successful, high-growth NZ manufacturers. The firms - which were well shy of the billion-dollar mark - were predominantly locally owned and privately held and wanted to stay that way.

Callaghan Innovation is identifying industries where NZ already has a critical mass of innovative companies. "Our mission is high-value manufacturing and services companies, and we will support all that need help.

"I don't want to pre-empt what the board might decide about industry focus, but we have analysed using data such as the TIN 100, and 100+ companies and we see larger groupings of companies in some areas than others."

The healthcare sector and process food and beverage sectors will be likely priorities, but Quin has been "quite surprised" to see how many companies are building modes of transport, aircraft, boats, unmanned vehicles, quad bikes - Yike Bikes as an example - and companies building software around fleet management and parking spaces.

"I think there are quite a few groupings of companies that need capability from a number of technology platforms we are building - certainly the ICT and robotics, automation and sensing, and the advanced materials technology platforms and networks across all the R&D providers, across New Zealand."

Like Cabinet Minister Steven Joyce, she stresses the importance for businesses to understand that the grants Callaghan administers are across "totally open access".

"If you need R&D help, we will connect you, within our own capability or outside. It doesn't matter what sector you are in, as long as it is in high-value manufacturing and services. We were not set up to help tourism or the commodity end of the primary industries."

Quin has found a collaborative spirit among companies. But when she asks the big question - 'What is holding you back from growing bigger, faster?', it's always one of two things. Talent shortages - such as the people to write software codes in the ICT sector or who have the engineering skills to work in high technology. And capital for when companies hit the stage when they need to access investment of $3 million and $5 million.

"Often that funding is not so much about showing that the prototype works and having worked out the R&D," says Quin. "But it is about investing in distribution channels, in the sales and expertise they need. Because they are going to global markets they need that capability whether they are going into the US or Asia, Europe or South America.

"I think that is an opportunity and challenge for young New Zealanders because a lot of companies are anxious to give them challenging jobs and for them to be part of the growth of those businesses. "

Callaghan is also focused on developing some collaborative innovation projects.

Quin cites the "Sensing Cities" project related to the rebuild of Christchuch. Callaghan has contributed funds and personnel to supporting the project. And in the Maori economy it is in dialogue with the Federation of Maori Authorities around their interest in accelerating the growth of more technology orientated businesses ."

There's obviously a lot on Quin's plate.

Asked how she will be judged, she says ultimately the important metrics are the number and size by revenue ("hopefully by profitable revenue") of New Zealand companies that are in the high-value manufacturing and services she thinks of as technology intensive products and services.

Rigorous benchmarks are being developed by Chief Scientist Sir Peter Gluckman.

"Sir Peter is doing a lot of work around very useful benchmarks for us. I think an important metric to success is also businesses saying, 'it is really helpful having Callaghan Innovation - someone from Callaghan Innovation or one of their programmes has helped us get to where we are'.

"Sometimes many of the ways we help will be in partnership with other organisations, or we might be in the background, but hopefully visible enough so that firms see we have contributed."