**New Zealand**: Despite a 17% rise in research and development funding to NZ$3.7 billion, businesses struggle with low commercialisation of innovation, highlighting the need for stronger collaborations with universities to boost knowledge production and industry diversification.
New Zealand’s innovation landscape is currently grappling with the challenge of turning substantial research investment into tangible commercial success. In 2023, the country’s expenditure on research and development reached NZ$3.7 billion, reflecting a significant 17% increase from the previous year. However, despite this financial commitment, the commercialisation of innovation remains notably low among New Zealand businesses.
Data presented by the World Intellectual Property Organization indicates that while New Zealand ranks 21st globally for innovation inputs, it falls significantly behind in outputs, ranked 45th and 78th for knowledge production and industry diversification respectively. This disparity suggests that while the nation is investing heavily, the returns in terms of innovative products and business diversification are less than optimal.
A significant contributing factor to these shortcomings is identified as a lack of collaboration between New Zealand businesses and universities. Universities are typically at the forefront of generating pioneering knowledge, equipped with cutting-edge technology and extensive industry connections. Collaborating with academic institutions can facilitate access to vital research, government resources, and international networks, ultimately bolstering a business’s credibility and attracting potential investors.
The findings are derived from a comprehensive study conducted involving a digital survey of 541 firms across varied sectors and regions in New Zealand. The research sought to determine the impact of university partnerships on the potential for businesses to bring ideas to market, licence intellectual property, and foster technology development.
The investigation highlighted the advantages of partnering with foreign universities. Collaborations with international institutions allow New Zealand businesses to utilise global expertise, tapping into advanced research and diverse knowledge all while learning from various applications of scientific knowledge. For instance, a New Zealand firm focused on artificial intelligence could gain valuable insights by working alongside top universities in the United States, gaining access to leading AI models and advanced algorithms. Such partnerships are crucial for maintaining a competitive edge in rapidly evolving markets.
Conversely, the research also identified that local university collaborations bring distinct benefits. New Zealand’s unique context—such as its specific challenges related to climate change or the integration of AI in local industries—makes local expertise particularly relevant. Partnerships with local universities facilitate strong personal relationships and quicker knowledge exchanges. Unlike international collaborations that may rely heavily on digital communications, local interactions promote regular face-to-face brainstorming and problem-solving sessions.
Moreover, local collaborations provide businesses with access to top local talent, enabling them to recruit skilled graduates who are familiar with the domestic market and its needs.
Ultimately, the study emphasizes that merely investing in research and development is insufficient to fuel innovation. It advocates for a balanced approach, where both foreign and local university collaborations complement each other. While international partnerships can provide groundbreaking advancements and global connections, local collaborations offer accessible knowledge and a deeper understanding of New Zealand’s specific market conditions.
The research was conducted by a team comprising Annique Un from Northeastern University, Kazuhiro Asakawa from Keio University, Jarrod Haar from Massey University, and Sihong Wu from the University of Auckland, with funding support from the Building New Zealand’s Innovation Capacity Spearhead within the Science for Technological Innovation National Science Challenge. As the landscape evolves, the imperative for New Zealand businesses is clear: the focus should now be on how swiftly they can initiate partnerships with academic institutions to foster innovation and drive economic growth.
Source: Noah Wire Services
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