Setting the Scene
[ Last Updated 16 December 2005 ]
PowerPoint Presentation Slides
Lewis Holden
Deputy Secretary
Industry and Regional Development
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Contents
Slide 1: The Growth Challenge (1)
Slide 2: The Growth Challenge (2)
Slide 3: A Good Platform for Growth
- Sound monetary and fiscal frameworks
- inflation target
- Public Finance Act
- Government surplus
- Flexible labour markets
- Few domestic barriers to competition
Slide 4: ... Including a Good Climate for Entrepreneurs ...
Slide 5: Size and Distance
- Small domestic market, and low density of population
- High proportion of small firms, and distance from major trading partners
- Geo-political marginalisation (NAFTA, EU)
Slide 6: A Growth and Innovation Framework (GIF) (1)
- A blueprint for growth
- Importance of continuing to strengthen the foundations
- institutions, education, R&D, and so forth
- higher growth through incremental change
- Three policy areas important for growth:
- global connectedness,
- innovation,
- skills and talent
Slide 7: A Growth and Innovation Framework (2)
- Focus of Government effort to generate critical mass in three sectors
- Sector selection based on:
- horizontal impact (GPTs)
- current and potential strengths
- Pro-active role for Government in industry and regional development
Slide 8: Strategic Priorities
- Development and alignment of economic development activities across public sector
- Enhanced entrepreneurial and innovative capability of NZ firms
- Improved regulatory environment for business
- Improved quality and reliability of key infrastructure services
Slide 9: Industry and Regional Development Policy Objectives
- Supporting improvements to the business and regulatory environment
- Facilitating access to infrastructure
- Promoting an enterprise culture
- Facilitating collaboration & linkages
- Access to skills and expertise
- Access to finance
- Access to innovation and new technologies
- Information on new business opportunities
Slide 10: Business and Regulatory Environment
- Evidence that Government regulation and other processes are having some negative impact on firm performance
- Government activities include: implementation of business compliance cost panel recommendations, ongoing efforts with regulatory and business compliance cost statements, amendments to Commerce Act, review of Resource Management Act
Slide 11: Infrastructure and Resources
- Inadequate levels of infrastructure
- Government activities include: Project PROBE, Ministerial panel on infrastructure, infrastructure audit
Slide 12: Enterprise Culture
- Some evidence of:
- negative attitudes to wealth and high achievement ("tall poppy" syndrome)
- reluctance to cede control
- lifestyle motivations
- Government activities include: promotion of enterprise education, Innovate on Road shows
Slide 13: Collaboration and Linkages
- Sub-optimal levels of collaboration and linkages
- Government activities include: cluster development, and public-private partnerships
- GIF focused Sector Taskforces, and strategies
- Regional capacity building
Slide 14: Skills and Expertise
- Economy-wide skill shortages (specialist, management and exporting capability)
- Government activities include: management skills training (BIZ), Talent visa and skills shortage work permit, development of Tertiary Education Strategy
Slide 15: Finance
- Some evidence of financing constraints (early-stage finance), and lack of fund raising skills
- Government activities in this area include: VIF, Investment Ready Scheme, Angel investor network
Slide 16: Innovation and New Technologies
- Research mainly carried out by universities and crown research institutes, with little generation of commercial value from this research
- Government activities include: Commercialisation of IP through Centres of Excellence, and Research Consortia, plus TechNZ schemes
Slide 17: New Business Opportunities
- Access to new opportunities restricted given high transaction costs, asymmetry of information, cultural constraints, and low levels of networking and clustering
- Government activities include: FDI attraction, export promotion, development of international networks and contacts
Slide 18: Questions for Policy Forum
- Does New Zealand have an appropriate set of policies to achieve the Government's objective of enhanced economic growth?
- Does New Zealand have the appropriate systems and capacities in place to deliver the existing set of policies?
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