In the past two decades New Zealand has undergone a far-reaching process of economic reform. A solid macroeconomic framework, wellfunctioning markets, including a flexible and responsive labour market, and a generally favourable business environment have created the necessary conditions for strong economic growth. However, expectations concerning New Zealand’s economic development have so far not been fully met. New Zealand still lags behind in terms of GDP per capita, and growth has been mainly driven by increased labour utilisation. The most important economic policy challenge is to raise income per capita sustainably by boosting productivity growth. Against this background, the New Zealand government is considering what contribution different structural policies might make to improve innovation capabilities throughout the economy.
This review assesses New Zealand’s national innovation system, with an emphasis on the role of public research organisations and policies, in order to identify how and in which respects it might be improved. The review was undertaken by a team of four – two members of the OECD Secretariat and two outside experts – who engaged in face-to-face discussions with a large number of New Zealand public officials, business people and academics, examined extensive documentation, and drew on their own experience of science, technology and innovation policy making in OECD countries. On this basis, the team was able to form an overall view of the performance of New Zealand’s national innovation system, its strengths and weaknesses and the challenges which it might face in the future. It was also able to formulate a number of proposals for changes in policies, programmes and institutional arrangements. However, given the time and resources at its disposal the team was not in a position to make a detailed assessment of individual elements of performance, policies and programmes although it was able to offer a fresh perspective. The recommendations for change set out below should be seen as suggestions to the New Zealand authorities as to where they might usefully undertake more detailed examinations of the need for and possibilities of change. This report should therefore be seen as a contribution to a debate within New Zealand about the importance of innovation and the role which the government can play to try to ensure that innovation makes its full and proper contribution to the country’s future prosperity and social well-being.
The report makes a number of references to policies and practices in other OECD countries. These should be seen not as specific recommendations as to what New Zealand should do but as a means of casting light on possible weaknesses in existing policies and how these might be improved. The effectiveness of innovation policies is always conditioned by the national context in which they operate and no two OECD countries are exactly alike.