Executive Summary
2. The ICT Taskforce was set up as part of the Growth and Innovation Framework (GIF) theme of "focusing resources". ICT was identified for special attention because of its high growth potential as a sector and for its significant horizontal enabling effects across the economy. The taskforce, made up of successful private sector entrepreneurs, has provided a report with a number of recommendations designed to achieve a growth target of 100 ICT companies with $100 million in annual sales by 2012, thereby contributing 10% of New Zealand's GDP. The essence of this growth goal is the emphasis on growing large companies (by New Zealand standards) in line with the GIF themes of developing scale and critical mass. The key finding of the taskforce is that New Zealand ICT companies tend to hit a barrier and plateau at a point between $10 to $15 million in annual sales. The taskforce believe that this barrier could be overcome with sufficient mentoring, education and support for executives.
3. Relevant government agencies have been canvassed and have provided a response to the taskforce's recommendations. These have been assessed and overall the response is very positive. Actions are in train to address issues in six key areas identified by the taskforce, particularly in the area of skills and talent, executive education and work on assessing suggested tax and regulatory changes. Some acceleration of work is required, particularly intensifying the technology curriculum implementation. Four new initiatives are proposed; the Futureintech programme, designed to raise awareness among secondary students of ICT as a career and create linkages between secondary schools and industry; a programme of improved statistics for ICT; creation of a highly targeted executive development programme to be delivered by The Icehouse training company; and a number of initiatives to enable the diverse ICT sector to engage more effectively with the education system, particularly tertiary institutions.
4. The taskforce recommended that an industry-led implementation body be set up as a project team to drive achievement of the growth goal by 2012, and support for this proposal is recommended.
5. The paper also addresses the issue of achieving improved productivity through the horizontal enabling impacts of ICT. The Government has taken a number of initiatives in this area over the last three years, and the paper indicates that the question of whether further initiatives are needed (and what they might be) will require further analysis, with a report to the Associate Minister of Information Technology by March 2004.
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