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Nigel Haworth The University of Auckland

Business- Government Partnership For Innovation and International Competitiveness : The New Zealand Story since 1999. Nigel Haworth The University of Auckland CONFIEP Seminar “Experiencias Internacionales de Promoción del la Innovación” Lima, 3 September 2008. Background Project.

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Nigel Haworth The University of Auckland

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  1. Business- Government Partnership For Innovation and International Competitiveness : The New Zealand Story since 1999 Nigel Haworth The University of Auckland CONFIEP Seminar “Experiencias Internacionales de Promoción del la Innovación” Lima, 3 September 2008

  2. Background Project ECLAC project on "Public-Private Alliances for Strategic Export Development”

  3. New Zealand • Cohesive, modern, democratic, stable society • Geographically remote, at the end of supply chains and trade routes • Small, relatively urbanised, highly-educated, globally-orientated population (4.2 million)

  4. New Zealand: the economy • Open to FDI; committed to WTO • About 350,000 enterprises • easy to form • Most small, high rates of formation/closure • Growth: averaging 3%+ over recent years • Unemployment very low: 3-4% in recent years • Productivity (especially MFP) poor • Wages relatively low • R&D performance poor (50% OECD average; private sector less than 50% R&D spend)

  5. Post 1999 Vision: Integrated Economic Transformation • 1999: rejection of market fundamentalism • Impact of path dependency • Vision: Economic Transformation • Growing globally competitive firms • A world class infrastructure • Innovative and productive workplaces • Environmental sustainability • Auckland: an internationally-competitive city • Key supporting factors: • Sustainable through electoral cycle • Social inclusion • Committed stakeholders • Goal: to regain top half of OECD

  6. Economic transformation: R&D and Innovation • Strong fundamentals • Improved, better resourced, better focused policy: • R&D framework • Innovation at company and sector levels • Priority sectors (esp. biotech, ICT, Cultural Industries) • Improved funding • Focus on the relevant and the commercial

  7. Economic transformation: improved workplace productivity • Employment relations framework legislation focused on partnership and productivity • Stakeholder-driven initiatives in: • Workplace productivity improvement • Employer-trades union partnership • Supported by: • New qualifications framework in compulsory education • Growth (numbers and funding) in tertiary education • Renewed focus on skill training (including numeracy and literacy)

  8. Economic transformation: global connectedness • New Zealand Trade and Enterprise: ‘one stop shop’ • Regional business development • Industry initiatives • Company initiatives • Internationalisation programmes • Supported by: • Strong commitment to WTO , APEC etc • NZ diplomatic focus on trade advantage

  9. Economic transformation: public-private partnerships • Sustained commitment to stakeholder engagement especially with business • Tripartism • Both vision and implementation: • Foundations of economic transformation • Board level leadership and membership • Task forces, consultative measures • Access to ministers • Example: Growth and Innovation Advisory Board (GIAB)

  10. Economic transformation: Implementation • Leadership at top political level (Prime Minister) • Committee of main ministers driving process • ‘Whole of Government’ approach • High quality, technically competent public service • Monitoring of policy by Treasury, Department of Prime Minister and Cabinet, PM’s own office

  11. Economic transformation: Principles of Government Support • Emphasis on • Support and facilitation, not direction • Targeting (e.g.) • Prioritised sectors, • High-end, high value-add, high-tech • International potentia • SMEs • Capability building important • Applied, relevant outcomes

  12. Economic Transformation: Principles of Support contd. • Part user-pays (e.g. 50% model) • accountability • Competitive tendering (e.g. for research funds) • Wide range of support limits from $5k to multi-million • Partnerships/collaborations encouraged

  13. Economic Transformation:Evaluation • Of vision (ministers and stakeholders e.g. Growth and Innovation Advisory Board) • Of implementation • Of agencies (e.g. By Ministers, Treasury, DPMC, other ministries, GIAB) • Of schemes • By delivery agencies (including private sector) • By monitoring agencies

  14. Overall current performance (2007)

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