Helen Clark was receptive to the idea last night, saying it had some merit.
But it would need caveats.
New Zealand would not want to poach students whose Governments had sponsored their study. And they would have to be subject to the usual health and security checks.
The report also suggests that both outward and inward flights should consider running a brief video message of welcome from the Prime Minister outlining opportunities for talented people.
The report, "New Zealand Talent Initiative," was completed in November but released yesterday as part of the Government's innovation strategy.
It suggests that the English language requirement, which was relaxed last year, be made more stringent. Australia and Canada have set higher standards, the report says.
"Poor English language skills appear to be a major factor preventing good assimilation into New Zealand society, including good job outcome appropriate to qualifications."
Immigration Minister Lianne Dalziel said the language requirement would not be altered but more advice would be given.
Applicants for visas would be told that the minimum language requirement might not be sufficient for certain types of work.
"People will need to think very carefully about the level of English language they need.
"Some people who think they've got quite good English, even studied in English, have quite strong accents and may need to think about taking on lessons."
The report says the rapidly changing requirements of a knowledge economy meant employers should be more closely involved in selecting immigrants.
Its recommendation of a so-called talent visa was approved and announced in December.
It will allow accredited employers to recruit skilled overseas workers to work for two years on a temporary residence visa before being eligible for permanent residency.
It is due to take effect in April.
The report also recommends:Maintaining stronger links with foreign students once they have returned home.
Establishing roving interview teams to screen borderline immigrants.
Launching a website of jobs in New Zealand for overseas talent.
Foreign fee-paying students comprised nearly 4 per cent of the tertiary student roll in 2000.
At present foreign students who have a three-year qualification from a New Zealand university or polytechnic must have a job offer relevant to their qualification before they become eligible for a two-year work permit.
Read the full reports:
Government of New Zealand
Growing an innovative New Zealand
Part 2
Herald features
Catching the knowledge wave
Global Kiwis
Proud to be a Kiwi
Our turn
The jobs challenge
Common core values