Bronwyn Dilley: Bioeconomy seen as key to future success

Opinion

New Zealand's economy has been based on the production of agricultural commodities for the past 150 years. But in the recent past, even with our global scientific and technical leadership of the sector, it has not been enough.

New Zealand's GDP per capita and economic growth has been falling steadily in the OECD rankings. Across the Tasman the GDP per capita of even the smallest states exceeds our own.

As we face one of the toughest economic landscapes seen in our lifetimes, it is time to put in place a vision of a new New Zealand.

The OECD's International Futures Programme: The Bioeconomy to 2030: Designing a Policy Agenda says: "Innovation in the biosciences requires active support from Government and industry.

"Those countries able to muster resources to invest in R&D and human capital formation - and equipped with policies to meet the challenges posed by new products and processes - will move ahead, creating wealth within their societies and becoming leaders in innovation globally.

"Those who fail to keep pace with these changes risk losing new global markets and compromising growth at the national level."

To enable New Zealand to significantly improve its OECD rankings we need to actively support research, development and commercialisation in the bioscience-based industries that offer the potential to transform the economy by increasing productivity and high-value employment and creating new industries, firms and jobs.

There is no magic formula or overnight fix for economic transformation.

Similarly, the life-sciences industry is one which requires patience and persistence to take products on the long and often complex path from the lab bench to the market.

Like bioscience, economic diversification also requires a committed strategic approach, which in New Zealand's case can build on our areas of natural competitive advantages and internationally recognised strengths.

New Zealand has the ability to develop a sophisticated bioeconomy across agricultural, food, industrial and environmental biotechnology and human healthcare, including human therapeutic development and medical technologies.

Convergence between the different sectors using innovative bioscience (for example, agriculture and food, food and health, agriculture and environment, medical devices, diagnostics and therapeutics) offers significant opportunities for New Zealand to use its natural competitive advantage to become a global player.

A common argument against the investment in the biosciences is that such products must overcome long product-development cycles and significant regulatory requirements.

Primarily, the regulatory requirements are driven by the need to ensure that products are safe and effective for use and these regulatory pathways are well established and understood.

But the challenges faced in developing these products should always be viewed in the context of the demand and need for these products.

Globally, countries are facing ageing populations, increasing incidence of serious medical conditions, increasing food prices, diminishing access to fossil fuels and traditional forms of energy and increasing awareness of the need to protect the environment.

The solutions to most of these challenges lie in innovation in the biosciences, and the markets for these products are large and growing.

So why shouldn't New Zealand's innovations be a part of the solution? Even a small number of successful firms producing products for these markets will have a significant impact on our economy as a whole.

In fact, companies such as CoDa Therapeutics, Zygem, Pacific Edge Biotechnology, Blis Technologies, AFT Pharmaceuticals, Symansis, Adept Medical and Argenta are all navigating complex regulatory environments and long product-development cycles to bring innovative New Zealand discoveries to market.

New Zealand is beginning to reap the benefits of unique bioscience capabilities that traditionally have focused on primary-production improvements.

We now have a growing number of companies whose core business is from the wider bioeconomy - high-tech companies developing a range of novel products for global markets.

New Zealand needs a vision for a future that is innovation and knowledge driven. A long-term strategy and supporting investment is required.

A focus on the bioeconomy is the theme of the fifth annual NZBio conference, Bio Solutions for a Changing World, being held from today until Wednesday.

* Bronwyn Dilley is chief executive of NZBio.