ADVOCATE COLUMN 4th WEEK SEPTEMBER 2012

ADVOCATE COLUMN 4th WEEK SEPTEMBER 2012 It has been a difficult time for New Zealand export and manufacturing businesses recently with challenges around demand and unfavourable exchange rates resulting in low economic growth. This is unlikely to change dramatically in the near future but the news is not all bad. Some New Zealand businesses are performing in a manner that defies this trend particularly those that operate in ICT, high tech manufacturing and the bio-tech sectors. Sectors in which reliable and ultrafast broadband connectivity along with a capable workforce often are essential elements to them are operating successfully. New Zealand has an innovation sector worth $7 billion a year. It contributes $5 billion per annum of exports and yet is largely based around only a handful of companies. These companies are among our biggest export earners and show that New Zealand can compete globally as a manufacturer and exporter. These companies often occupy a niche international market and operate largely unnoticed by the wider community. This is evidence of what many commentators and politicians have being saying for some time now. That is that to grow our economy and increase our productivity requires innovation and the identification of those international niche markets where our comparative lack of size can actually be a competitive advantage. Further evidence of this was the latest NZ Chambers of Commerce Northland and NorthTec’s lunchtime address by Paul Davies Director of Intellectual Property at EverEdge IP on the commercialisation of technology and Intellectual Property. It demonstrated both the interesting and innovative world leading technology taking place in New Zealand and some of the support that is currently available to assist new enterprises to compete globally. He also provided valuable insight on how to go about the process of developing a good idea into a commercial enterprise. To grow our wealth and raise our GDP will require a shift to a high wage economy. Successful manufacturing and export businesses have shown that isolation and scale are not in themselves barriers to a successful manufacturing enterprise. These companies are involved in manufacturing things of high value by weight and that have a high profit margin. We have an attractive physical environment and lifestyle in Northland. What is needed is to ensure that we create a social and commercial environment that encourages innovation and values excellence in research and development. If we can develop this environment along with a capable work force this can remove the perceived barriers of isolation and lack of scale and allows a focus on high waged economy that is required for transformational change that will benefit all our communities.