Strengthening networks and partnerships
[ Last Updated 15 August 2008 ]
Collaboration between market players and with central and local government is a key element of a well functioning modern economy. It's particularly important for a small country such as New Zealand, which has a predominance of very small firms and limited market scale, and which faces particular exporting challenges due to our distance from major markets.
Increasing specialisation within firms and tougher competition internationally require greater networking and partnering throughout the economy. Firms often can't simply operate as stand-alone entities that undertake most, if not all, functions themselves. Increasingly, they need to look outward, and focus on their core activities, but draw in information, skills and resources from outside.
Innovation requires effective linkages between firms, research institutes, education providers and government agencies. New Zealand is dominated by small businesses and it is particularly important for those businesses to work together to achieve critical mass, share information about market opportunities, allow technology transfer, and develop and maintain networks with overseas partners and markets.
Strong networks and partnerships:
- provide the flexibility to adapt quickly to changing market conditions and respond to emerging market trends
- allow firms, sectors and regions to focus their resources by agreeing on their priorities
- allow for efficiencies through joint research, early stage development, collective marketing and training
- give firms, sectors and regions access to complementary resources
- increase the sharing of information and knowledge.
Linkages are difficult to measure accurately. To measure innovation linkages between the public and private sectors, the Organisation for Economic Co-operation and Development (OECD) publishes data on the proportion of government and university R&D that is funded by business. The private sector in New Zealand appears to be well connected to public sector R&D providers (Crown research institutes and government departments), with 20 per cent of government R&D financed by business. However, R&D linkages between business and universities appear to be weaker than linkages between business and government - just over five per cent of university research was funded by business in New Zealand in 2001, the same as the OECD average.
The Statistics New Zealand innovation survey, Innovation in New Zealand 2003, found that 43 per cent of all innovating businesses had engaged in cooperative and collaborative arrangements with other businesses or institutions to develop their innovations. A similar survey in the European Union (EU) found that only 19 per cent of innovating enterprises across the EU were involved in innovation cooperation.
Innovation linkages transcend national boundaries. New Zealand's researchers appear to have reasonably well-developed channels for collaboration with offshore R&D activity. The US, Australia and the UK are New Zealand's principal scientific collaborators. At any one time, there are about one thousand active New Zealand/US collaborative research projects, about double the number of those with any other country. About one third of New Zealand scientists collaborate with their UK counterparts, and there is significant collaboration with German scientists (14 per cent of New Zealand scientists) and, to a lesser extent, French scientists (7 per cent).
While it is not governments that create wealth, but individuals and firms, there's a role for governments in working with the private sector to catalyse economic development and overcome obstacles to growth.
There's a reasonably high degree of networking and collaboration going on within the New Zealand innovation system (see Economic Development Indicators 2005). In particular, businesses appear to be making substantial use of the research expertise within government research institutes. However, further improving linkages and collaboration within the innovation system remains a priority for the government, and several recent initiatives - for example, research consortia and the Technology for Industry Fellowships- are focused on this goal.
The government is also supporting collaboration and networking through its support of sector and regional strategies and through New Zealand Trade and Enterprise's (NZTE) Cluster Development and Incubator Development Programmes. The Regional Partnerships Programme (RPP), for example, encourages the formation of regional economic development partnerships, with a particular focus on strategic planning, capability building, and the identification of regional comparative advantage. The intention here is to encourage the development of partnerships and networks in support of economic development and with a focus on regional economic outcomes and the building of critical mass.
Sector engagement is an effective economic development tool that involves collaboration between the government and industry to address sector-specific impediments to growth. The government's sector engagement framework agreed in May 2004 identifies engagement with sectors on three levels. These include:
- a whole-of-government approach
- "business as usual" engagement by service delivery agencies such as NZTE
- issue specific engagement.
A whole-of-government approach is the most intensive form of engagement. It involves developing a sector led strategy in partnership with all appropriate government agencies and assists sectors to develop a clear vision of how they might improve their sustainable economic growth. The first engagement of this nature under the sector engagement framework is with the food and beverage sector. This commenced with the appointment of the Food and Beverage Taskforce in December 2004 and is due for completion in mid 2006.
Links
- Research Consortia - Research consortia are industry-led, collaborative ventures established to fund and manage research. The Foundation for Research, Science and Technology manages investment processes to select research projects that will benefit New Zealand and proposals are sought from potential research consortia.
- Technology for Industry Fellowships - The Technology for Industry Fellowships (TIF) Programme enables students and experienced researchers to complete R&D projects in companies. TIF supports science, technology and engineering projects conducted in, and managed by, companies.
- Regional Partnerships Programme - NZTE website with information on 26 regional partnerships.
- Cluster Development Programme - NZTE website with information on clusters in New Zealand and Government assistance.
- Business incubator - Information on incubators in New Zealand and Government assistance.
Back to Top