Story image

Kiwi businesses finally begin to invest in innovation

04 Apr 2017

Kiwi businesses are investing more in their R&D to create innovation and success, according to Callaghan Innovation.

The company says that businesses working under Callaghan spent far more on R&D, innovation and improving their services - as evidences by Statistics New Zealand’s Business Operation Survey.

“The latest Statistics New Zealand figures show a big lift in business R&D spend. It’s great to see businesses recognise the urgency of needing to increase their innovation,” says Vic Crone, Callaghan Innovation’s chief executive.

Statistics also found that while universities or government agencies might seem to be the top picks for R&D projects, more than half of the work is being done by businesses.

“For decades we have been saying we need to diversify our economy and produce higher value products, but at the same time our investment in R&D remained stubbornly low. The pace of innovation around the world is increasing. For New Zealand complacency is not a recipe for prosperity,” Crone says.

He believes that the uptake in innovation by businesses is a good sign, especially for exporters.

“The good news is that these figures show the message is getting through: R&D is crucial in creating premiums for exporters and therefore higher wages for Kiwi workers. The rise in R&D investment in areas such as the digital and manufacturing sectors in particular tell a very encouraging story,” Crone explains.

The statistics reportedly show that Callaghan clients spend $1.3 million on R&D, compared to an average of $200,000.  In addition, $1.3 million is also being spend on innovation by clients, compared to an average $100,000.

They are also 77% more likely to have developed or introduced innovations, and three times more likely to have created new or improved products and services. 

“The harsh reality is that those that don’t innovate will be overtaken by those that do and in increasingly global markets, the competition isn’t just domestic. The good news is that we know, based on our experience with hundreds of customers, what the steps to success are,” Crone says.

How big data can revolutionise NZ’s hospitals
Miya Precision is being used across 17 wards and the emergency department at Palmerston North Hospital.
Time's up, tax dodgers: Multinational tech firms may soon pay their dues
Multinational tech and digital services firms may no longer have a free tax pass to operate in New Zealand. 
Spark’s new IoT network reaches 98% of New Zealand
Spark is the first company to confirm the nationwide completion of a Cat-M1 network in New Zealand.
WhatsApp users warned to change voicemail PINs
Attackers are allegedly gaining access to users’ WhatsApp accounts by using the default voicemail PIN to access voice authentication codes.
Robots to the fore – Key insights for New Zealand Business into RPA in 2019
From making artificial intelligence a business reality to closer ties to human colleagues, robotic process automation is gearing up for a strong 2019.
50 million tonnes of e-waste: IT faces sustainability challenges
“Through This is IT, we want to help people better understand the problem of today’s linear “take, make, dispose” thinking around IT products and its effects like e-waste, pollution and climate change."
Vocus & Vodafone unbundle NZ's fibre network
“Unbundling fibre will provide retail service providers with a flexible future-proofed platform regardless of what tomorrow brings."
IDC: A/NZ second highest APAC IoT spenders per capita
New IDC forecast expects the Internet of Things spending in Asia/Pacific excluding Japan to reach US$381.8 Billion by 2022.