Hikohiko te Uira: Māori Science and Innovation Forum - “Powering the Taniwha Economy”

The World Economic Forum has identified scientific innovation as one of the most – if not the most – important drivers of our global economy.

Political and economic turbulence in some developed, western economies make it even more important for us in the Asia-Pacific region to keep our eye on the prize. The prize, as always, is the development, growth and wellbeing of our people, now and into the future.

Innovation always has been the critical driver behind economic growth and expansion. Maori are living proof of innovative, creative explorers and entrepreneurs who used knowledge to expand and grow.

Two thousand years ago they set off on a journey that would see them explore and settle nearly a third of the surface of the planet. They set off at a time when other humans were not venturing far from visible land.

When they set off, science, innovation and courage were what they had in spades.

They used advanced celestial and maritime science to guide them over ten million square miles of ocean. Centuries before Columbus arrived in America, or Cook made it to Aotearoa, our Polynesian forbears were exploring, settling and trading throughout the Pacific. Their prize? The development, growth and wellbeing of their people, then and into the future.

Two thousand years on? Science, innovation and courage are once again, what we need in spades if we are going to transform our country and our people into a true, Innovation Nation.

Because it is not just a challenge for our Māori ‘Taniwha Economy’, it is a challenge for our New Zealand Economy. We are falling behind other innovation-driven economies, falling from 21st to 25th place in this year’s World Economic Forum Global Competitiveness Report.

This month I had the pleasure of hosting Hong Kong’s Chief Executive, Donald Tsang. Here to spearhead a trade mission – that included several hui for Māori businesses hosted by Te Puni Kōkiri – Mr Tsang represents one of the leading dragon economies whose focus on innovation has led to Asia becoming the centre of gravity of our global economy. Incredibly they have achieved this in one generation.

Last year the World Economic Forum ranked Hong Kong the most developed financial market on earth, the first Asian economy to hold this title: but certainly not the last. Public and private investment in innovation and education – particularly science and research - is a lesson we must learn from Asia’s dragon economies.

Treaty of Waitangi settlements and savvy tribal investments now see Māori in control of 37% of New Zealand’s total fish quota. Māori also control 36% of our forests. Covering thousands of hectares of farmlands, iwi businesses are already exporting direct into Asia. Our tribes are investing in telecommunications, infrastructure, retail property and tourism. The Ngai Tahu tribal business is one of the largest in the South Island. Further north, and in spite of a global recession, last year Tainui Group Holdings achieved a healthy $23 million net annual profit. These two tribes alone control assets worth nearly $2 billion.

When my Māori Economic Taskforce commissioned BERL to examine the extent and nature of the Māori economy, which was thought to be around $16.4 billion in 2006, they found it was in fact worth $36.9 billion in 2010.

On top of this, BERL predicted that if the Māori economy invests successfully in science and innovation, it will lead to an additional $12.1 billion per annum in GDP by 2061 and thousands of new jobs.

BERL described the Māori economy as a ‘sleeping giant’ but I prefer to call it, the Taniwha Economy. I think it is pretty clear that the Taniwha Economy is no longer asleep, but in fact is wide awake and hungry for business.

What we need to do is make sure that the Taniwha Economy is nourished with innovation, science, ideas. This is the fuel that will power the Taniwha Economy to its full potential.

With so many of our tribal businesses being land based, it is critical that we use science and research to boost returns on our primary products. That we become price setters – not just price takers. We need to take the lead from some of our own such as the board of Wakatu Incorporation, who have employed a top scientist to help guide them in their business journey.

If we add value to our raw products we create jobs, we optimise the value of our exports and importantly we provide much needed diversification in our economy.

All of our businesses should have a research and development division, some of our incorporations and businesses such as Wakatu already do: it is critical for more of us to follow suit.

Hikohiko te uira – today’s Māori Science and Innovation Symposium – is about placing Māori asset holders and Māori thought leaders in the science and innovation space – at the centre of kōrero on how to better respond to the needs of Māori asset holders.

Today’s findings will feed into the Māori Economic Panel’s consultation process. It follows last year’s Māori Economic Summit, the creation of a unique toolkit, and a series of regional workshops to connect Māori businesses with the science sector.

Better utilising science, innovation and technology to grow our asset base is critical for the Taniwha economy and its contribution to the New Zealand economy. Bringing together Māori asset holders to discuss these matters here today with scientists, the Crown Research Institutes, universities, business, and other key decision makers is a huge step in our journey.

I encourage all to participate in such a positive and future focussed debate so that the Taniwha economy can grow even stronger as a result of using science and innovation.

In further, work BERL and the University of Waikato’s Te Kotahi Research Institute’s case study review: Strategic Step Change – Māori Entities and the Science Sector is looking more closely at this challenge.

Today’s forum will contribute to the Māori Economic Development Panel’s deliberations as we further develop our strategy and our action plan.

I would like to thank you all for taking time to attend this forum. For acknowledging, like us, that innovation and science is crucial for the future of our Māori and NZ economies.

Last year’s Māori Economic Summit set the course for our journey. Today’s symposium is a targeted response to one of the summit’s finding that Māori need to invest more in science and innovation: If we do? Then our tribes, our families, our country will benefit for years to come.

If we do nothing? Then we all lose. For years to come.

We cannot afford to sit back and do nothing: today is an important leg on our journey towards economic and social wellbeing.

Science, innovation and courage is what brought our forebears to Aotearoa in the first place.

Science, innovation and courage is still what we need today in 2012 as we, our businesses, and our Māori Economy, the Taniwha economy, journeys forward into the 21st Century.