Launch of Economic Development Agencies of New Zealand publication: 'Connecting Across The Economy'

The Economic Development Agencies are an important part of New Zealand's support for innovation and economic growth. This publication, "Connecting Across the Economy", that we are launching today is an excellent summary of how New Zealand is working together to help our companies compete in the global marketplace.

Telling these stories is vital if we are to improve our economic performance. The public needs to know just how outstanding many of our businesses are. Businesses themselves need to get a better understanding of the support that is available to help them grow. This publication will give new insights into the tools that businesses can use.

As you know, this Government is committed to growing our economy. We see this as the essential first step towards building the sort of nation that we want for ourselves and our children.

Economic growth is easy to talk about. It is harder to achieve. Today I want to highlight three of the major strategies that this Government is implementing to "suit the actions to the words".

The first of these is increased collaboration across Government.

The second is improving the science system.

The third is encouraging businesses to use science and innovation to drive their own growth.

Collaboration

Earlier this month the Minister for Economic Development, Hon Gerry Brownlee, launched the Food Innovation Network New Zealand. This development is referenced in the publication, on P13.

This is a collaboration between the Government, industry, research and education providers and local government.  It will have four regional hubs in Manukau, Waikato, Palmerston North and Canterbury, and an over-arching network organisation.  

By providing the infrastructure that firms need to develop new food and beverage ingredients and consumer products, it will enable a high-value food export industry to develop more rapidly. 

The Centres of Research Excellence are another good example of scientific collaboration. By pulling together the best scientists from different institutions we can get faster results.

Improving the system

This leads to my second point, about how we can make better use of the science capability we have in New Zealand.

The eight Crown Research Institutes are a significant part of our science capability. Late last year, I set up the CRI Taskforce to see how we could better connect the CRIs with their sector groups and the Government's economic strategy.

Last month, the taskforce delivered a very well thought-out report on how we can improve the CRI system.

They identified a number of improvements such as clearer priorities and science missions, more strategic funding and the need for CRIs to work more closely together with each other and with their sectors.

Yesterday, the Government announced that it was implementing the recommendations of the CRI Taskforce. This will be the biggest overhaul of the system since it was set up 20 years ago. It will give a new sense of purpose and vitality to CRIs. It will also give their boards more scope and more responsibility to harness their scientific potential for New Zealand's greater good.

This is just part of a wider effort to simplify the system. Scientists have been spending too much time on administration and not enough on their science. A recent study by Dr Jack Sommer found that nearly half of all scientists who got money through the current funding system did not actually understand how it worked.

We also are working with the CRIs and university commercialisation offices to make their science and IP more visible and more accessible to business.

We have noted that whilst we are good at innovation, we are not so good at commercialisation. To get the best from our science, we need to look at it through the eyes of the marketplace.  

Support for business

So our third strategy is better support for business.

A crucial part of this is to better connect the various parts of the system. The Foundation, VIF, NZTE and EDANZ members all have schemes and grants to support business innovation. From the outside it can look more like a maze than a coherent system of support. Businesses need to be able to deal with one entry point, that allows them to navigate the support available and quickly find the bit that is most relevant to them.

The major scheme that supports firms to do research is TechNZ. This scheme will be revamped to make it more visible and easier to use. At the "small" end of the SME ladder, I will be looking very much to EDANZ, working with TechNZ and NZTE, to act as the contact point.

You are well placed to know the businesses in your area, and help connect them to common interests, whether they be commercial or Government.

We will also simplify the "staircase" of support within TechNZ. Grants will be dependent not only on the quality of the science, but also on the commercial applications and the pathways to market. This will allow us to concentrate what are always limited resources on those businesses that have the best prospects and performance.

This year's Budget will have more information about support for business. I cannot give more detail at this stage, except to say that this will be the focus of our science investment this year.

All this makes it an exciting time for science in New Zealand. It also means an exciting time for Economic Development Agencies. You are a vital link between the business and research worlds.  The sorts of stories contained in this publication will multiply and expand.  

People need to see these regional success stories.  They are evidence of the changing face of New Zealand business. I commend you for bringing them together and putting them out where they can be noticed.