Waitangi Day Feature - New Zealand : New Economy

New Zealand promotes knowledge-based economy

Traditional images of New Zealand emphasise its beautiful natural scenery and productive agricultural sector. At the start of the 21st century, a new generation of New Zealanders is building on these assets – natural and man-made – to create a diversified, sustainable, knowledge-based economy. The vision New Zealand’s government has articulated is to aspire to be the world’s first truly sustainable nation, aiming at a carbon neutral economy and way of life.

The challenges for New Zealand in achieving this objective include those of building a sustainable economy based on innovation and quality and of achieving greater sustainability in resource use, to help meet global environmental challenges

Among the advantages New Zealand brings to bear in doing so are:

- a de-regulated, outward-looking economy, with a focus on international competitiveness
- a people known for resilience, independence and a fresh outlook
- a dynamic agricultural sector that has bred scientific excellence

These advantages are translating directly into the new economy taking shape in New Zealand around an increasingly diversified and sophisticated food industry; leading-edge areas of bio-technology with animal and plant science, bio-medical and nutraceutical applications and a dynamic creative sector capturing headlines for film-making, digital content and high end design.

New Zealand has a proud scientific lineage. Our three Nobel Laureates are all in science – Sir Ernest Rutherford (splitting the atom); Maurice Wilkins (discovering the structure of DNA with two partners) and Alan MacDiarmid (co-inventor of conducting polymers).

Given New Zealand’s long history of innovation in the agricultural and food products sector – starting with the development of refrigerated cargoes to send frozen meat products to the United Kingdom in the 19th century – it is not surprising that food technology is a key area of excellence for New Zealand.

There are many examples, from the well-known “innovative breakthrough” (as it was recently labelled in an OECD report on New Zealand’s innovation policies) of the gold kiwifruit, developed by New Zealand’s HortResearch for kiwifruit company Zespri; to the newer examples of a food product being manufactured by Speirs Nutritionals which puts healthy omega-3 oils into different food types without the usual fishy flavour associated with such oils.

With a reputation for excellence in the biological sciences, New Zealand has a unique advantage in the research insights (and resultant commercial opportunities) arising at the inter-face between agricultural science research and human bio-medical research.

This has led to outcomes such as the work companies like Comvita have done with researchers resulting in the production of world-leading manuka honey wound dressings for use in hospitals and clinics. New Zealand universities also have a strong base of research in the areas of diabetes, neurological and immunological diseases and osteoporosis.

A priority for New Zealand in ensuring economic and environment sustainability over the longer term is the energy sector. Currently renewable sources (principally hydro and geothermal) meet between 60-65% of New Zealand’s non-transport energy needs. In a new energy strategy, released in October, the target of meeting 90% of electricity needs from renewable energy sources by 2025 has been set.

In transportation, a goal of reducing per capita carbon emissions by 50% by 2040 has been set and big increases made in investment in public transport. Research is also looking at non-food materials for conversion into bio-fuels, including exploring the feasibility of cellulosic digesters for transport biofuels, as well as conversion of algae to fuels.

A further key measure being introduced to respond to the challenges posed by climate change is an emissions trading scheme. Legislation is now being considered by parliament which would establish a market which provided incentives to reduce greenhouse gas emissions.

As these initiatives demonstrate, New Zealand – with its unique geographical location, natural environment and diverse population – is putting innovation and sustainability at the top of its 21st century economic transformation agenda.