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Business- Government Partnership For Innovation and International Competitiveness : The New Zealand Story since 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 1

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

New Zealand l l l 3 Cohesive, modern, democratic, stable society Geographically remote, at New Zealand l l l 3 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)

New Zealand: the economy l l Open to FDI; committed to WTO About 350, New Zealand: the economy l l Open to FDI; committed to WTO About 350, 000 enterprises – – l l l 4 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)

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

Economic transformation: R&D and Innovation l l Strong fundamentals Improved, better resourced, better focused Economic transformation: R&D and Innovation l l Strong fundamentals Improved, better resourced, better focused policy: l l l 6 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

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

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

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

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

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

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

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

Overall current performance (2007) 14 Overall current performance (2007) 14