Ateed is focused on creating a culture of innovation and entrepreneurship in the city, attracting talent and building a skilled local workforce, and assisting companies to export more.
For the year ending March 2015, Auckland's GDP growth increased to 3.7 per cent, driven by strong investment, spending and employment as increased international net migration boosts demand.
Patrick McVeigh, Ateed's general manager business, innovation and skills, says that through amalgamation, Auckland changed its position globally, becoming increasingly recognised as a "new world city" characterised as mid-sized, high quality of life and offering good educational options and being safe and secure for residents and businesses.
"We are not looking at becoming the next New York, London or San Francisco but we are competing with the likes of Barcelona, Vancouver, Brisbane and San Diego in terms of our offer to residents, visitors and businesses.
"As Auckland continues to grow, we need to have a talent and investment attraction proposition and an outward focus on trade through building two-way relationships and establishing connections. Our quality of life is a key attractor for talent, which will be one of the future determinants of economic success for cities," says McVeigh.
A growing economy needs skills and talent and our young people are a source of future competitive advantage.
During its first five years, Ateed has managed the establishment of the GridAKL innovation precinct which now houses 16 fast-growing technology companies in the Wynyard Quarter and is about to open stage two.
GridAKL reached capacity within four months of opening in the Polperro Building in May 2014 and the resident businesses will be moving nearby into the refurbished John Lysaght Building on the corner of Halsey St and Pakenham St West in December. Polperro will be demolished for apartments, as outlined in the Wynyard Quarter masterplan.
Lysaght almost doubles the space for innovation-based businesses and will provide room for new companies as well as the existing tenants. Ateed is also working with Precinct Properties and Panuku Development Auckland on further expansion of GridAKL, including the development of a new building, called Innovation 5A, in Madden St.
McVeigh says the initial plan was to build the brand, identity and community around GridAKL and then unlock the next stages of development as part of the broader Wynyard Quarter regeneration. "We have established a thriving community with GridAKL hosting events, networking functions, start-up weekends and the national Lightning Lab accelerator programme.
GridAKL concentrates on smart, globally-focussed ICT and digital media companies which can attract investors and joint venture partners from overseas. By 2020 the precinct will likely grow to 24,000 sq m of co-working space, incubators and accelerators set in a broader commercial district of 48,000 sq m.
A wide range of technology companies will work closely together sharing ideas and solutions. The precinct neighbours will include Microsoft, Vodafone, KPMG, Air New Zealand, Fonterra and Datacom.
McVeigh says supporting innovation-based businesses and industries is core to Auckland's economic growth. "Characterised by their deep involvement with research and development and STEM (science, technology, engineering, and math), technology-led businesses and industries typically grow faster, export quicker and create higher paid, higher value jobs."
There is a clear willingness of employers to provide these opportunities and it's also clear that young people are looking for work. Together with Youth Connections and our local boards, we have run two Job Fests in the last 12 months that saw registrations from 5000 young people and 100 employers.
He says there are 21,000 innovation-based companies in Auckland representing 12 per cent of the business population. They employ 93,000 people, 12 per cent of the Auckland workforce, and contribute $10.5 billion GDP, 13 per cent of the regional economy. Innovation-based businesses produce 8 per cent higher GDP per company and 15 per cent higher productivity than the Auckland average.
Auckland's future economic success requires the city to provide opportunities for all its residents. At present there are about 23,000 young Aucklanders (15-24 years) not in employment or training and Ateed is determined to play its part in improving this figure.
Ateed is a partner in the wider council's Youth Connections programme and is helping to improve access to work by matching young people with employers.
"We have more than 30 businesses signed up for the Youth Employer Pledge partnership and another 30 in the pipeline," says McVeigh.
"A growing economy needs skills and talent and our young people are a source of future competitive advantage.
"There is a clear willingness of employers to provide these opportunities and it's also clear that young people are looking for work. Together with Youth Connections and our local boards, we have run two Job Fests in the last 12 months that saw registrations from 5000 young people and 100 employers."
McVeigh says there is a global war for talented workers, particularly in technology, and Ateed's skills and employment programme is focused on developing a pipeline of local talent for future workforce needs and addressing the current shortfall.
He says there is a shortage of workers in the ICT and technology, tourism and hospitality, construction and engineering, and food and beverage (technologists).
"We have partnered with central government and its agencies in raising the profile of Auckland as a place for talent to live and work -- both digitally (Innovation Island's campaign) and through in-market activities in the UK and Australia.
"Auckland is the first region to sign a formal partnership agreement with Immigration New Zealand, which commits us to working together to attract more skilled talent and investment into Auckland," McVeigh says.
All these avenues lead to Auckland having a more export-oriented economy.
Ateed is also focused on building the capability of businesses and setting them on a journey to exporting. Ateed is part of the Government's Regional Business Partner Network and has facilitated nearly $12 million worth of Callaghan Innovation research and development grants and more than $5 million worth of NZTE capability development vouchers over the past three financial years.
The FoodBowl, a state-of-the-art processing plant near the Auckland airport and jointly owned by Ateed and Callaghan Innovation, offers food and beverage firms the opportunity to trial advanced processing techniques and produce new products for exporting and diversification.
The Tripartite Economic Alliance between Auckland, Guangzhou and Los Angeles has given local companies a unique opportunity to build relationships and develop easier access to the lucrative Chinese and United States markets for their goods and services.
Ateed has forged a new relationship with Guangzhou-based incubator InnoHub, paving the way for a $20m investment in Auckland companies and giving them greater exposure in the Asia and Pacific Rim markets.
"All these avenues lead to Auckland having a more export-oriented economy," says McVeigh. "We are not going to get rich selling to ourselves and we need to be globally focused. We need to leverage the trade agreements and access new markets, building effective two-way trading relationships.
"The advanced industries where the innovation is taking place -- such as ICT, screen and digital, food and beverage, high-value manufacturing, biotechnology and health technology -- provide the best opportunity to increase exports and add value to the regional economy," he says.
