Maximising the Economic Wealth of New Zealand through Research and Innovation

1. Maximising the Economic Wealth of New Zealand through Research and Innovation What policies are critical to making a difference? What outcomes must be achieved?

2. Background • Why is research and innovation such a “hit and miss” affair when it comes to creating wealth for our island economy? • How do we guarantee consistent results delivering the necessary outcomes?

3. What is Our Goal? • MoRST’s Mission: “To inspire and assist New Zealanders to create a better future through research and innovation”. • Personal Mission: “Empowering New Zealanders to make a difference that other countries will want to emulate”.

4. What Can Be Achieved? • Over the past 50 years OECD countries have shown that: knowledge-based industries grow faster than industries on average. • The reality is, however, that every industry has the potential to become a knowledge-based industry – given the right resources and leadership to apply them.

5. How Can This Be Achieved? • Create self-sustaining regional and national “Centres of Innovation Excellence” – that will coordinate, streamline and combine: existing public and private, technical and commercial resources, and through such interactions, develop new resources.

6. The Cabinet Office Govt. Ministries Govt. Departments Universities & Polys Transnational govt. CRIs Regional Develop. Corporations Local Councils SMEs Large companies Business consortia Trade associations Banks & investors Technology spin-offs Technology start-ups Technology clusters Technology parks Research institutes Overseas organisations Examples of Resources: Interacting Organizations

7. Examples of Resources:Programs and Policies • Train our population to explore opportunities, solve problems, test ideas and innovate • Up-skill researchers and technologists • Educate businesses and individuals to take advantage of the vast untapped opportunities and resources available • Develop better incentives and mechanisms for collaborative research and innovation • Introduce better incentives and mechanisms for commercialising research and innovation • Increase the flows of researchers and innovators into business (and education) • Coordinate and streamline government programs and instruments facilitating research and innovation • Develop strong links with overseas programs, govts. etc. • Expand and integrate government programs assisting business and research, with non-governmental entities • Build programs that link businesses with CRIs, universities and other research providers • Encourage and reward the more capable organisations and individuals to help the stragglers

8. The First Objective • MoRST must demonstrate and project the ability to lead New Zealand government and industry in research and innovation excellence • This capability can be acquired and applied to maximising economic wealth in New Zealand from research and innovation

9. The Biggest Challenge • Most critical step once credibility has been established: Maximum diffusion and effective adoption of the resources necessary to expand New Zealand’s research and innovation capabilities • The establishment of MoRST’s “Advanced Network” for New Zealand will play a critical part. The key is to effectively engage every organisation and individual with something to contribute, to use this resource… even if it means going door to door to enlist their participation!

10. Configuring: (e.g. configurator software) Dispatching: (e.g. router) Storing: (e.g. database) Processing: (e.g. microprocessor) Interacting: (e.g. keyboard) Coordinating: (e.g. operating system) Learning: (e.g. expert system) Sensing: (e.g. antenna) Arranging information in a particular way to respond to a need Moving information from its source to its appropriate destination Collecting information in a way that can be easily and speedily accessed when need Converting raw information into useful outcomes Facilitating the exchange of information among sources to objects Harmonising activities performed by multiple entities to reach a common goal Using experience to improve the ability to act Detecting and interpreting signals in the environment Aspects of Intelligence needed in NZ’s Advanced Network

11. 5 Research & Innovation Strategies for Maximising Economic Wealth • “Ask not what your country can do for you, but what you can do for your country”. 1. Create a New National Identity • “If you fail to plan, plan to fail”. 2. Develop Targets to Meet and Exceed • “Don’t seek a problem for the solution, but find a solution for the problem. Necessity is the mother of invention”. 3. Find the Right Challenges to Face • “A tool must be applied to have value, but the application’s value depends on the tool used”. 4. Provide Resources that Equip and Empower • “Give a man a fish and you feed him for a day, but teach him how to fish, and you feed him for life”. 5. Deliver the Means to Make a Difference

12. 1. Create a New National Identity • Provide incentives to stimulate innovative behaviour,and role models that emulate innovation excellence.

13. A New Renaissance: World Famous in New Zealand • EXAMPLE: During the Renaissance Period (1450-1600) there was a great revival of interest in art, literature, science and learning. Furthermore, the Renaissance Period ushered in a grand age of exploration. People like: Leonardo da Vinci, Christopher Columbus and Johann Gutenberg were trail-blazing pioneers of the Renaissance Period. • APPLICATION: New Zealand should nurture more of its own trail-blazing pioneers – people like Rutherford and Pickering, who can inspire and lead our very own ‘Kiwi Renaissance’.

14. 2. Develop Targets to Meet & Exceed • Define research and innovation standards to meet,and the outcomes they must achieve.

15. The Economic Rebirth of a Nation: The Japanese Quality Revolution • EXAMPLE: Japan’s economic and industrial infrastructure was destroyed by the Second World War. In order to rebuild their shattered economy, Japan adopted, developed and adapted American Total Quality Management methodologies. These methodologies were effectively responsible for the miraculous turn around of Japanese Industry after 1945. • APPLICATION: Today, ISO 9000 quality management standards are sweeping the world. They represent a prominent measure of business performance, attitudes and growth potential. Research and Innovation standards should be created and elevated to the status currently enjoyed by ISO 9000.

16. 3. Find the Right Challenges to Face • Provide problems to solve,and opportunities to realize.

17. The Space Race: Necessity is the Mother of Invention • EXAMPLE: As the Space Race began, the United States and the Soviet Union were building rockets to use as long-range weapons. The United States initially favoured bombers, but the Soviets preferred missiles and thus took an early lead in rocket technology. JFK focused the Space Race on a clear goal: landing a man on the Moon before the Soviets. Along the way, many new technologies were tested and refined: e.g. photovoltaics, fuel cells, microwaves etc. • APPLICATION: Low technology products dominate New Zealand’s exports. Meanwhile, other economies have vigorously applied research and technological innovation to develop high value goods and services. It will not be enough for New Zealand to do more things, better and faster to catch up. The country also needs to do different, smarter, more profitable and competitive things to get ahead.

18. 4. Provide Resources that Equip & Empower • Provide tools to develop innovative solutions,and technical resources to deliver them.

19. Eureka (I’ve Found it!) – But Why Does it Work? • EXAMPLE: Several psychological methods have been developed to ‘force’ people to generate ideas and think ‘outside the box’. The difficulty of obtaining objective information through such means however, is that these results are neither measurable nor reliable. On the other hand, technical information is objective in nature and can be easily observed. • APPLICATION: Consequently, the process of innovation has been studied by screening over 2 million patents and 10,000 scientific effects. From these results, inventive achievements have been recorded and inventive principles derived. Problem-solving tools apply these principles reliably and effectively.

20. 5. Deliver the Means to Make a Difference • Provide business resources to commercialize research & innovative solutions,and investors to maximise the wealth created from them.

21. The New Rules of Engagement: The Internet Tsunami Effect • EXAMPLE: Speed, range and accessibility of information on the Internet, and the low cost of distributing and capturing it, create new commercial possibilities. Entirely new companies and business models are emerging in industries ranging from chemicals to road haulage to bring together buyers and sellers in super-efficient new electronic marketplaces. • APPLICATION: By harnessing the power and reach of the Internet, New Zealand companies and individuals can utilise the tools to compile and qualify business investment proposals. Furthermore, funding might come from around the block or around the world.

22. Additional Notes (Details supporting and expanding original themes)