How innovative is the Government's innovation framework? ANDREW LAXON outlines Helen Clark's plan.
The Government's innovation framework, which is designed to lift New Zealand's economic performance, has four main aims. They are:
Improve research and development The report says New Zealand must put more effort into getting commercial benefits from scientific research. It calls for better communication and teamwork between businesspeople, scientists and Government agencies in pursuit of this goal.
It promises an entrepreneur support strategy for high-value, high-growth ventures and a mentoring network, encouraging people who have succeeded internationally to advise newcomers.
It promises to give researchers, innovators and entrepreneurs better access to global knowledge bases and help them import foreign technology.
The Government also wants to make it easier for innovators to contact each other in New Zealand and internationally - work it says has started.
The Ministry of Research, Science and Technology employs a country coordinator in Germany to bring New Zealand and German scientists together and a similar post is being established in Japan.
The report emphasises that New Zealand innovators need to protect their intellectual property - for instance, by obtaining a patent.
It talks of giving universities and Crown Research Institutes greater incentives for commercial research. These are not specified, but a report from the Prime Minister's Science and Innovation Advisory Council notes approvingly that the Government already plans to reward CRI scientists who achieve commercial breakthroughs and give them opportunities to work for commercial firms, temporarily or permanently.
A review of New Zealand's capital markets is promised to see if they can encourage investment in high-value ventures, while still allowing investors to manage the risk.
Develop skills and talent New Zealand needs to develop, attract and maintain a solid core of exceptionally talented people who can lead the way.
It also needs to make sure people with specific work skills are available.
"Skill shortages can be a major barrier to firms expanding," the report says. It describes three ways to get more talented people.
One is to develop more of our own talent, which can be done by continuing to improve the country's education and industry training system.
The second is to attract more immigrants with the right skills. The report says skilled migrants now get priority under the immigration quota system and the Government has already made it easier to recruit IT and other scarce skilled workers.
Under a Talent Visa scheme to be introduced in April, accredited employers will be able to employ highly skilled workers from overseas for two years.
After two years, the immigrants can stay if they still have a job and meet the conditions of their visa, as well as standard health and character requirements.
The third way is to make use of the 600,000 New Zealanders living and working overseas. Initiatives include a so-called "Kiwi Clubhouse" network and developing a Jobs New Zealand website telling expatriates of opportunities at home.
Another suggestion from last year's Knowledge Wave conference in Auckland - which the Government says it will consider - is talent spotting foreign students and encouraging them to stay in New Zealand.
Improving links with the world Under the eyeglazing title "increasing global connectedness" - clear English does not appear to play a key role in New Zealand's innovative future - the report sets out three aims.
One is to attract more foreign direct investment. A report by the Boston Consulting Group recommends the Government play a more active role and promote New Zealand in a targeted way.
However the report says; "Realistically, this promotional activity cannot rely on providing large financial inducements to individual companies. Indeed New Zealand is unlikely to win a bidding war with other countries or regions in terms of attracting particular companies."
The country would be better, it says, to attract foreign investment which builds on the strength of existing industry - such as Ericsson Synergy's Wellington-based centre for developing mobile internet services, which could receive up to $1.6 million of Government money in the next three years.
The report says the Government will review its business migration policies "with a view to exploring ways of utilising the investment funds required of business immigrants in a more strategic manner".
The business migration policy has been attacked for admitting rich foreign businessmen who may make passive or temporary investments of little economic benefit to New Zealand. The Government is also considering tax breaks for foreign investors, which were recommended by the McLeod report on taxation. It says it will decide this year.
The report calls for more aggressive export promotion. It says the Government will consider setting up Irish-style "beach-head" offices abroad to help exporters in foreign markets.
It describes New Zealand's "clean, green" image as out of date and more useful to tourism than business.
The country must develop a "contemporary and future-focused Brand NZ" which promotes it as a great place to invest in, live in and visit.
"Maori have a great contribution to make in this regard, and the Government is working with Maori to find ways of leveraging this for the benefit of all New Zealanders."
Supporting innovative industries The Government has identified three sectors - biotechnology, information and communications technology and creative industries - which it will support as it believes they have the greatest potential.
The report admits that there is no objective way to measure this. But it says detailed plans were drawn up by Boston Consulting and Industry New Zealand. The Government considered these and applied three broad principles in making its choices - strong impact on growth, businesses which were already internationally competitive and consistency with the New Zealand "brand".
Sectors considered but which missed out on the big three were food and beverages, niche manufacturing, environmental technologies and education exports.
The report emphasises that industries not on the list will not be sidelined. It mentions wood processing and tourism as areas where the Government is working to promote growth. An advisory board with strong private sector representation will be set up to report on the framework's progress and any opportunities.
Read the full reports:
Government of New Zealand
Growing an innovative New Zealand
Part 2
Herald features