Project Auckland: Thriving on innovation

Pam Ford, Auckland Unlimited director of investment and industry. Photo / Chris Gregory

Auckland continues to dominate the New Zealand technology sector, contributing more than half of its revenue and employing 71,000 people.

The city is now looking to add climate change to its innovation offering.

Tātaki Auckland Unlimited (formerly Auckland Tourism, Events and Economic Development) is operating a virtual innovation hub - Climate Connect Aotearoa - and is looking to establish a physical presence.

The recent floods and cyclones highlighted the need for adaptation and to tackle the climate challenges head-on with new technologies, says Auckland Unlimited director of investment and industry Pam Ford.

“There is huge potential for Auckland as we grow more clean tech companies and address climate change in built environments, energy, food supply and transport. We have made an embryonic start to how Auckland can become internationally regarded for its climate innovation companies and ecosystem,” Ford says.

Auckland Unlimited has formed a partnership with New Zealand’s future energy centre Ara Ake, based in New Plymouth. Ara Ake was established in 2020 to facilitate the development and commercialisation of low-emissions energy innovation.

At present, Climate Connect Aotearoa is concentrating on developing a knowledge hub and connecting people to build capacity and capability in addressing climate change.

Climate Connect’s purpose is: “Our kaupapa is to accelerate the uptake of innovation to support Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan, and its goals to reduce emissions 50 per cent by 2030, build resilience and deliver a resilient, low-carbon and regenerative economy.

A physical hub, based on the successful Wynyard Quarter innovation model, will create visibility and progress.

“We want to bring people together to work on climate challenges and produce solutions — a place where entrepreneurs can lean on each other to share ideas, issues and resources and to bring in experts to provide experience and knowledge,” says Ford.

The Wynyard model, with its co-sharing office space, has worked well for other areas of the technology sector such as software development, ICT and digital media, biotechnology, cyber security and lately artificial intelligence.

Wynyard Quarter. Photo / Supplied

GridAKL, which has spread through Auckland, now has nearly 1200 people and 140 businesses working in the Wynyard Quarter innovation campus; 110 in the Estblshd online community and Glen Innes hub; 64 people working at the Avondale Click Creative Tech Studios, and more than 80 entrepreneurs signed up for the GridMNK (Tukua) development programme in Manukau.

Ford says the expansion means more entrepreneurs, including Māori and Pasifika businesses, can share working spaces and networking opportunities. “It provides the ability for them to work off each other.”

Like the Wynyard innovation precinct, Auckland Unlimited initiated the Kumeu Film Studios, and in six years the city’s screen sector has nearly doubled to $1.5 billion in revenue, which includes direct spending on film production and wider economic benefits of job creation and tourism.

Since 2017, Auckland has hosted major film productions such as The Meg, Mulan, Avatar: The Way of Water and Thor: Ragnarok; Sweet Tooth and season one of The Lord of the Rings: The Rings of Power television series.

Auckland Film Studios at Henderson expanded with the completion of two new studios at the end of the year, taking the number of sound stages to five. Sound stage space in the city has grown to nearly 32,000 sq m as demand from Hollywood and regional production has grown.

The expansion cost was $37.5m with $30m from Crown Infrastructure Partners and $7.5m from Auckland Council.

A sale process is now taking place for Auckland Film Studios, and Ford says “private sector investment in the studios has allowed us to exit that function”.

But Auckland Unlimited is now looking at facilitating a creative precinct in Henderson with screen-related businesses. “Most people travel out of West Auckland to work and we want to create the opportunity of providing quality jobs in the creative sector,” says Ford.

“More people working closer to home improves liveability.”

Auckland Unlimited has developed the same thinking for the new Drury town centre and southern corridor.

“The development will house up to 60,000 residents (25,000 homes) and accommodate 12,000 jobs,” says Ford.

“Different government agencies are doing their bit and we are looking at what industries are suited to the area. Drury will be in the heart of the Golden Triangle between Auckland, Waikato and Bay of Plenty.”

The key sectors already identified are advanced manufacturing given the infrastructure that needs to be built; value-added food and beverage being near the growing area of Pukekohe; healthcare and wellbeing wrapped around a new hospital; and green economy.

Ford says the city is a catalyst for economic development and through commitments to places like Wynyard Quarter Innovation Precinct and film studios, Auckland is able to leverage government funding and private sector investment.

“As an economic development team, we work with the University of Auckland — in aerospace, advanced manufacturing and medtech, as examples — and look to places like the Newmarket innovation campus as a potential game-changing opportunity that will make this place more attractive for our young people, and grow talent and investment.”

Ford cites global cities adviser Professor Greg Clark who told Auckland’s Future, Now working session last May that: “Auckland has a growing reputation as a city for future talent, both homegrown and new migrants. The focus needs to be on liveability and innovation. To be a liveable city where future talent can work, you need vibrant arts, culture and events, and a focus on places and people”.

Ford says economic development is about the wellbeing of the city that requires an ecosystem of universities, communities, multinationals and small businesses, and central and local government.

“When I hear or read opinions that central government can do the economic development work of local government, I am puzzled.

“New Zealand Trade and Enterprise, for instance, helps grow companies once they have reached the internationally-competitive level. The role of the local area is to provide the environment, in some instances physical places, for universities, innovators and investors to develop and grow their businesses to the international level,” Ford says.

“Central government agencies work in specific areas; our role is to look at the whole picture and pull all the economic development threads together.

“This is vital for Auckland when leading and progressive cities around the world have excellent economic development agencies in a very competitive market for talent, investment and start-up support.”

Ford says Auckland is the business hub for the country, generating 38 per cent of gross domestic product and providing a diversification of sectors from horticulture to technology, screen to health; a variety of jobs; and the entry point for most visitors.

“It is important to continue having an international reputation for higher education, culture and tourism, and attract future talent to live and work in the city. To do this, we need to focus on liveability and innovation,” she says.