A report showing New Zealand’s 200 largest technology exporters grew revenues by $1.1 billion to total $11.1 billion in the past year is great news for the country’s future, Trade and Export Growth Minister David Parker says.
“The government is committed to improving the well-being of New Zealanders and one important factor in that is ensuring that, as a country, we use our skills in areas where we have a competitive advantage. It’s great to see technology companies playing a role in this.”
Technology is now New Zealand’s third largest export sector behind tourism and dairy and is one of New Zealand’s fastest-growing sectors.
The main contribution to the rise in revenue was an increase in exports to North America, Australia and Europe, according to the 2018 TIN Report released today.
Overall exports by the group of 200, known as the TIN200, grew 12.4% in the past year to reach nearly $7.9 billion.
The importance of innovation was highlighted by the 10% growth in research and development spend to nearly $1 billion.
The successes were spread across the regions, showing that successful technology companies are not only in the big cities but are also thriving in provincial New Zealand.
“The combination of our 15% R&D tax credit and the $1 billion a year from the Provincial Growth Fund will support these welcome trends,” adds Parker, also Minister for Economic Development.
Last month, it was announced that the TIN Report shows that the TIN200 profitability increased by 38% - an important indication of the maturity of the sector.
According to the investigators behind the TIN Report, this growth is an important milestone because it shows that many high-growth companies are starting to fund expansion organically, and achieve economies of scale while doing so.
“The sector is entering a new chapter in New Zealand’s technology story,” TIN managing director Greg Shanahan said at the time.
“The rising profitability reflects the wealth of experience, capital and scale the sector has built up; creating the foundations for widespread and stable growth”.
The TIN Report monitors the performance of New Zealand’s 200 (TIN100 and Next100) largest technology exporters in the areas of Information and Communications Technology, high-tech Manufacturing and Biotechnology.
It is sponsored by New Zealand Trade and Enterprise, Spark, EY, Absolute IT, James & Wells and Simmonds Stewart.