Business model Benchmarking
Innovation is one of the main drivers of economic growth, but the OECD ranks New Zealand as a poor performer in this regard.
Based on factors like R&D and the level of collaboration between universities and businesses, our country is badly placed (23rd out of 30 countries). One of the principal reasons is local institutions simply do not work together to extract the potential and creativity of researchers and entrepreneurs. The few resources available to New Zealand businesses for innovation capital are aimed mainly at manufacturing products for the domestic market. This is exactly the opposite of what European businesses do, where efforts are concentrated towards producing innovation, and R&D focused on international markets.
The experiences of countries like Belgium, Netherland, Germany, Denmark and Sweden have a common denominator, namely, collaboration. In these countries, all parties are committed to transfer knowledge and innovation between them, generating strong synergistic networks. European business models support the transfer of knowledge within industries and regions, generating business opportunities. This leads to new centres of social activity, innovation and economic growth.
New Zealand is ranked at the bottom of the OECD in R&D tax concessions. Moreover, the country is positioned 21st out of 30 OECD nations regarding the registration of new patents. This lack of innovation can be explained by the low level of local and international capital investment, and because our economy is still primary industry-based, which requires a lower level of R&D.
