Edanz.org.nz

Regions Working for New Zealand across the economy
Photo: Rob Tucker table of contents
Natural Resources The sky's the limit - Southland's innovative space programme Southland's rich mineral deposits Rotorua adding value to forestry Oil and gas in Taranaki Education and Skills Taranaki educating for Health and Safety Priority One is supporting coastal sciences Auckland initiative makes productivity skills accessible LEAN and working well in Waikato and the Bay of Plenty Strength in numbers - aggregating marine engineering in Northland Science and Innovation Converting IP to GDP – spotting IP potential Regional innovation system created Wellington takes innovation hub global Food Innovation Centre in Auckland Collaborate and grow Collaborating to compete in Dunedin Extending Export Potential Collaborating to export Engineering, oil and gas Nelson's green ports for black boats Design-led engineering solutions Investment Impact on Productivity

Regions Working for New Zealand across the economy
Why a report on productivity in Regional economic growth and productivity contribute to the country's economic performance and line up with the government's main drivers – notably support for science and innovation and also improved education and skills. These are at the heart of any regional economic development programme, as business research and science capability underpin business opportunities.
Other main drivers of the government programme – a growth-enhancing tax system, better regulation and investing in productive infrastructure – will all boost a business's capability to be productive. Government economic policies are also shifting the economy more towards exports and productive investment. These flow on from greater regional productivity. Here there are increasing opportunities for the smaller as well as the larger players to deliver value in international markets.
We know that New Zealand is a country with a strong agricultural value, so this report showcases other key regional initiatives that are helping to grow New Zealand's economy.
While it is important to realise that even our larger exporting businesses are small players on the world stage, there are increasing opportunities for small businesses across New Zealand to deliver value in international markets – as these businesses come up with new ideas and improved products and services.
Part of developing a strategic approach to building productivity in the regions, therefore, involves understanding a region's capacity to support business development. Maximising value and leveraging this helps to create a culture shift within a region. Economic development agencies (EDAs) bring a unique collaborative and integrated focus to this approach. They understand how small companies can work together through supply chain relationships that stretch across regions and the country. There is a need to understand this ecosystem of companies if we are to grow as a country.
The regions are positioned to support fast moving, high-value firms that can drive the productivity agenda. This report will explain how differing regions act and connect in this context. Samantha Seath, Executive Director, EDANZ
March 2010
EDANZ - Locally Engaged Nationally Effective

Economic Development Agencies (EDAs) advise on sustainable business practice as a crucial element of competitiveness, productivity and profitability. They also identify and take an entrepreneurial approach to developing a region's natural resources. The sky's the limit - Southland's innovative Venture Southland, the region's economic development agency, has taken an integrated approach to a number of related projects around the science and astronomy sector. These position Southland in a unique economic value chain through: The success of this project has involved forward in a global economy. They can • facilities for research (universities international partnerships, a willingness do this if they recognise the value of a both national and international) of a region to seize opportunities, and a region's natural resources and develop • opportunities and partners (space belief in the value of their products.
new business opportunities around these.
agencies in France and Sweden and "CEO of Venture Southland Jeff Troon "They can also do this by a smarter says: "The regions will collectively drive approach to supporting the innovative • potential to attract investment and the economy and move New Zealand and creative people who work in them." leverage for new business • more opportunities for spin-offs and developing peripheral small The regions will collectively drive the economy and move New businesses in the region Zealand forward in a global economy. They can do this if they • growing trust by space agencies and recognise the value of a region's natural resources and develop research organisations in Southland's ability to successfully build and host new business opportunities around these." • partnering with tertiary institutions to lift skill levels in the region.
CEO, Venture Southland Southland's rich mineral depositsFollowing oil and gas exploration, that creates the smallest amount of Other mineral production has extended Southland holds 72 percent of New carbon by-product. to silicon oxide where they hold 1000 Zealand's recoverable coal and There have also been a number of million tons of 98 percent pure. This lignite reserves. promising coal seam gas proposals has attracted considerable interest from companies Photo Voltaic Panels The Southland Energy consortium in Southland.
and Silicon Wafer.
includes 176 companies, with a The mineral deposits show a 400 number of joint ventures. Several year supply and wil supply 8.2 mil ion companies in the consortium are litres per day. It will take three and a planning to convert the lignite to high half years to first production and will energy diesel liquid, using a method employ in excess of 2000 people.
EDANZ - Locally Engaged Nationally Effective

Boosting land use – a pine forest interspersed with ginseng plants
Rotorua adding value to forestry The New Zealand forest, wood and paper Dr Jae Hyun Lee, which has been adding ginseng is in its early stages. This is the industry represents one of the country's value to the pine forests of Rotorua first year that Forest Ginseng Ltd will greatest assets, according to Rotorua's through complementary land use.
market the product off shore. economic development project manager Panax ginseng is considered better than The EDA supports the company with other varieties of ginseng and one which mentoring. It also introduces the "Its attraction lies in its sustainability and is particularly suited for growing in New company to other food and beverage environmental compatibility," he says. Zealand. FGL has been growing high industry players with potential product quality, wild panax ginseng in pine forests synergies (infusing ginseng into current However, large areas in the Bay of Plenty around Rotorua since 2003.
products and thereby optimising the have been deforested and returned to dairy land. Other areas are threatened by Currently, there is a large market for high transport costs within the industry, ginseng in both eastern and western The EDA has also been instrumental in fluctuating log prices and the fluctuating countries. It is used both as a general matching FGL with potential partners and New Zealand dollar. ingredient to boost immunity and in continues to work closely with them. energy drinks as a stimulant. Chris Heywood says that he has been keen to explore alternative ways of However, the plant takes time to mature increasing productivity of plantation land to a harvestable age, and product/market to add value to the industry.
development of New Zealand grown A study of complementary industries was supported by the Rotorua economic development agency (EDA). This included developing the ginseng trials that were It has been real y great working with the Rotorua undertaken by Crop and Food. The trials Economic Development Agency. They helped me indicated that a potentially premium develop my business plan and introduced me to product might be grown through inter- the Escalator programme. I have made many new planting in pinus radiata forests. contacts and can now move forward as part of a Forest Ginseng Ltd (FGL) have taken wider consortium of people in the industry." the lead in establishing this product and report very encouraging results. FGL is a Rotorua-based export company, led by EDANZ - Locally Engaged Nationally Effective Oil and gas in Taranaki The Taranaki region is home to New Zealand's oil and gas industry with almost 90 percent of the sector's total nationwide employment based there, generating $NZ 741 million GDP. Photo: Rob Tucker All of New Zealand's producing oil and a first point of contact for all ‘upstream' works in partnership with the private gas fields are located in the Taranaki (oil and gas exploration and production), sector to attract to Taranaki further Basin, with both on – and off-shore as well as ‘downstream' (petrochemical, value-added industries, linked to the oil, exploration and mining currently in a refining, oil and gas wholesaling and gas and petrochemical industries. retailing), and other energy-related At the same time, Venture Taranaki A network of highly developed support activities with their wide range of provides support to Taranaki's existing services has grown up around the specialist services. oil, gas and petrochemical base. It Taranaki energy industry and is an The group is closely linked with the also offers free, confidential advice to integral part of the region's exploration, Engineering Taranaki Consortium (see potential investors in this industry, and development and maintenance story p19) that represents a major group helps with strategies to ensure the sector of Taranaki engineering companies with is able to find the skilled workers it needs a strong Taranaki and New Zealand in the future.
Specialist group formed
customer focus. The group also regularly works in other regions of New Zealand The New Zealand Oil and Gas Specialist Technologies group is going from strength to strength, with members from Venture Taranaki, the region's economic Auckland to Bluff. With headquarters in development agency, was actively Taranaki, the 21-strong group provides involved in establishing the group. It EDANZ - Locally Engaged Nationally Effective eDUCatIoN aND sKILLs
The government's Skills Strategy clearly links vocational education and training together
with economic, industry and business development. Investing in skills development must be
connected to how skills are used in firms by workers, so that the full value of that investment
can be realised.
Throughout the OECD, innovation is physics and astronomy, according to a Universities that are linked with their local increasingly concentrated within clusters 2007 study (Waikato Innovation Park).
economic development agencies help of enterprises and research/training form an R&D structure where enterprises institutions that work on complementary Macro economic policies must address meet the challenges of international this imbalance if the market doesn't. Investments in higher education will However, New Zealand Bachelor degree enable innovative solutions to be level output was highest in the area of adopted, while investments in capital, studies in human society, and lowest in such as ICT, will enable the spread of agriculture, horticulture, viticulture, and The importance of directly aligning economic activity with skills development has been picked up by schools in Southland. The region's growing science and astronomy projects (see page 4) correlate with increased interest in science subjects in schools. Records show that over the last five years the number of Year 13 students studying physics has doubled. Taranaki educating for Health and Safety Establishing the Taranaki Health and also brings about a sense of collective Taranaki Consortium (see page 19). Since Safety Education (HSE) Centre has ownership of the centre.
its inception, Taranaki has also assisted its promoted health and safety awareness Northland counterparts in establishing a Oil and gas specialists ITL have sent all – and raised the standards of HSE similar model, with central government now their staff through the HSE centre. (ITL throughout the Taranaki region. considering using it on a national basis.
was Winner of the Taranaki Westpac According to Venture Taranaki CEO Stuart Supreme Business Awards 2009) Engineering Taranaki Consortium Chief Trundle, the benefits of this innovative ITL Operations Manager Kim Gilkison Executive Brian Souness says: "The business model are several-fold.
says: "Working in the oil and gas industry collaborative nature of initiatives, like the Taranaki HSE Centre, allows industry "It promotes best practice for all requires stringent health and safety to gain access to best practice, and industries, provides access to cost- practices, and we have found it hugely also increase efficiencies within their effective HSE training, influences HSE valuable for consolidating training.
own operations. The results are greater standards and outcomes, and has "This unique approach ensures that we improvements in safety and productivity." enabled a robust and effective HSE get a high standard of training and a strategy to be developed across all consistent message of the importance industries and the community," he says.
of HSE practices right across our The business model helps ensure the Working in the oil and gas buy-in of industry through ‘sponsorship' – "Not only is it a great training resource, companies receive HSE training in return industry requires stringent health it can act as a strong team-building for their up-front support. (A working exercise, with knowledge and awareness and safety practices, and we party utilised the collective abilities of a of health and safety as the ultimate have found it hugely valuable for CEO forum to develop this model.) outcome," Kim says.
This model not only addresses cash-flow The model has been operating and financial sustainability issues that successfully in Taranaki for some time often plague entities such as this, but under the stewardship of the Engineering ITL Operations Manager EDANZ - Locally Engaged Nationally Effective Science meets sea – concept plan for the technology park in Tauranga
Priority One is supporting coastal sciences Priority One (the economic development agency for Tauranga and Western Bay of Plenty) has helped develop a major centre of research excellence involving the University of Waikato and Germany's University of Bremen. Waikato University has built a strong managing coastal marine issues. This development on the coastal shelf, partnership with Bremen which, like knowledge will help Environment Bay as well as the implications of Waikato, has a world-class reputation of Plenty better manage the region's in marine research. Interdisciplinary resources, particularly Tauranga Harbour, • enabling the Port of Tauranga to researchers from the two universities where the science demands are better understand the effects of will work together on projects that focus increasing," says John.
dredging Tauranga Harbour to allow on the Bay of Plenty coast and inner Intercoast will see as many as 40 for 7000 TEU vessels to call at the port.
continental shelf, and comparable areas international PhD students and of the North Sea. postdoctoral fellows work on a variety of Priority One's projects manager Greg Simmonds, says: "Intercoast also creates Called Intercoast, the projects were coastal projects relating to both the North the opportunities and relationships developed with input from Environment Sea and Bay of Plenty coasts over the to develop other regionally-relevant, Bay of Plenty and the Port of nine years of the programme.
applied research-based institutes in Tauranga, including impacts of harbour Skilled graduates, research contracts, Tauranga. These could include logistics, development on ecosystems and technology licences and the launch of sustainability, food and ICT research. utilisation of the harbour and coastline.
new businesses will all flow from this "Intercoast wil also attract organisations More than $5 million is being provided by science infrastructure. that are experts in the marine sciences and the German government, with significant Other economic benefits of the research businesses working in the marine sector." local funding and in-kind support obtained from Environment Bay of Plenty, Port of Tauranga, Priority One and • the development of the Bay of Plenty's aquaculture industry that has the potential to grow to a level of The University [of Waikato] Environment Bay of Plenty is supporting $250 million export sales by has internationally recognised the Intercoast project by committing 2025 (A resource consent has expertise and leadership in $1.5 million over 10 years for a Chair been received to enlarge the Opotiki in Coastal Science for the University of harbour entrance – a major step managing coastal marine Waikato, which will be based in Tauranga. towards developing the world's largest mussel farm) "Environment Bay of Plenty is very pleased to provide this Chair in Coastal • positioning the region as a destination Sciences that will ultimately benefit our for internationally recognised applied Environment BOP Chair region," says Environment BOP Chairman • enabling the coastal Bay of Plenty "The university has internationally to understand and manage the recognised expertise and leadership in effects of the pressures of EDANZ - Locally Engaged Nationally Effective Auckland initiative makes productivity skills accessible The increasing requirements approach to helping companies improve ongoing continuous improvements. for businesses to deliver better their productivity. Also noted was the Ultimately, the programme aims to change products and services smarter, important role played by local Economic workplace culture, building high levels faster and more competitively has Development Agency advisers who of interaction and problem solving at all led AucklandPlus – with the support made a key contribution to the success levels and a framework to lead productivity of Auckland's local economic of the programme.
improvement from the inside out.
development agencies (EDAs) – The positive evaluation has ensured that to pilot a programme providing "We have gained benefits from more Auckland small and medium sized Auckland businesses and employees improved business process, knowledge businesses are due to benefit from the with high-performance tools and and capability to drive improvements programme. New Zealand Trade and practices to foster and encourage using proven strategy and methods, Enterprise has confirmed funding to growth and increased productivity. and, more importantly in a sustainable fashion," says pilot participant and partially subsidise a further 24 Auckland A robust post-pilot evaluation general manager of The Web Company, companies through the programme during conducted by the Department Sukesh Sukumaran.
2010. The 24 businesses to participate in of Labour found the programme this year's programme will be identified by to be effective in strengthening The programme works on two levels Auckland's local EDAs.
and supporting the delivery of offering senior leadership training productivity intervention to Auckland as well as shopfloor training and businesses and saw it as a robust guidance in order to foster and support The above pilot was developed further by the Waikato and Bay of Plenty economic development agencies (EDAs). Opportunity Hamilton,
the regional EDA for the Waikato, is now leading the way in bringing this thinking to the businesses in their region. (See following story)
LEAN and working well in Waikato and the Bay of Plenty Lean Thinking is al about making simple changes to your workplace that make employees' lives easier and more enjoyable, while helping achieve increased productivity and profitability. Lean Thinking – often referred to as Lean However, it's the positive change in Manufacturing, but applicable to any its staff that Martin says has been the business – teaches techniques based on biggest benefit of Lean Thinking.
Japanese manufacturing principles. Two "Our staff meetings have changed recent converts to Lean are Camtech significantly and we get more ideas from Nutrition and TCS. our people about things we can do to improve the business. Our staff now have Through workshops developed for a better understanding of the business's Opportunity Hamilton, both companies value chain and they feel listened to. have trained with one of New Zealand's top experts, Richard Brathwaite. "They are telling us where the blocks are in the production process and people Camtech Nutrition (makers of Dunstan are working together to find and adopt Horse Feed) has just started down the Lean Thinking journey, but already it has experienced positive results. "Staff are so much more enthusiastic about their jobs because they are totally General Manager Martin Blampied says: involved in making it a better business. Learning through Lego – a Lean
"Lean Thinking is like common sense put They are engaged and they know we workshop in action together in a structured way. Applying respect their ideas," says Martin.
Lean Thinking shortens the value-add Another company, TCS (which develops staff and the positive benefits from that process in your business, and helps systems integration software for clients change will be long lasting." you get your product out the door more in the dairy, timber, meat, and fertiliser TCS has adopted Lean Thinking in its industries) is also experiencing benefits manufacturing business by developing One example of how Camtech has used from Lean Thinking.
a ‘kit system' for assembling products. Lean Thinking to create efficiencies is Managing Director and owner Peter Tait, Rather than employees picking all the its order picking process. The process says, "With Lean, we've created better small parts required to produce a circuit has been streamlined to decrease forklift cash flow, decreased inventory levels board – often by searching for items on movements, and make it more sequential and we're responding more quickly to an extensive shelving system – everything and logical. As a result, forklift gas usage our customers. But, most importantly, needed to make a product is now on a has gone down significantly.
we've seen a huge culture change in our EDANZ - Locally Engaged Nationally Effective Strength in numbers - aggregating marine engineering Step changes in capability are not something that happens overnight, as Northland's newly developed marine engineering programme management understands. Working with the strategic team of on aggregating the Northland marine yachts, using the Fitzroy Motor Yachts Enterprise Northland (the economic engineering capability, to enable bidding brand, and on high technology specialist development agency) and New Zealand for and contracting of larger vessel builds. support vessels. It is felt that this Trade and Enterprise, the programme gives focus with brand backing and effective Ship Projects New Zealand (SPNZ) local companies an opportunity to bid for marketing has a greater chance of getting was established as the private sector and access large-scale building projects. desired results. aggregator to enable the industry to bid Buyers wanted certainty of price to for and access larger scale projects. They Major factors in the success of the supply and fit-out a vessel over a two to also developed collective bid protocols three- year period. This poses significant as an aggregate entity, which has • collaborating and upskilling in terms problem for small companies who are increased collaborative bids.
of charging, pricing and a structured used to projects with shorter timeframes, costing model primarily designed and have rarely dealt with foreign to identify demarcation exchange variations. The programme gave local between suppliers These companies were also being called companies an opportunity to • SPNZ being the prime purchaser upon to predict inflation in prices at a time bid for and access large-scale of the more expensive input, but where the price of commodity materials building projects. not accepting estimated pricing as a – like steel, aluminium and oil based commercially viable concept products such as composites and glue – were escalating on a monthly basis. • constant liaison with suppliers SPNZ has developed a strategy and a to establish the demarcation points Also, allowing for cash flow based on supporting marketing plan that clearly until there is an agreed and supplier requirements for advance defines the product focus, identifies working understanding among payments was a relatively new the niche's characteristics, targeted requirement for many, particularly given appropriate influencers, and aims directly the size of vessels that Whangarei is at purchase-decision makers. looking to attract. Current market reality has meant that the To bid successful y, local businesses short-term focus is on vessels around needed new systems. The focus was 50 metres, ie on large steel-hulled motor EDANZ - Locally Engaged Nationally Effective sCIeNCe aND InnovatIon
How did we ever do without new technologies such as iPhones, networking sites and cable TV? Innovation changes our lives and the way economic opportunities are created. A vigorous flow of new ideas will become The relationships, resources and vital to the creation of wealth in New information flows that underpin Zealand over the next 10 to 20 years. innovation differ from region to region. Along with this are far more sophisticated Regions have recognised the need to approaches to technology transfer and pursue innovation policies that reflect the involvement of global partners.
their own distinctive local characteristics.
Converting IP to GDP – spotting IP potential An effective innovation ‘ecosystem' technology have combined to provide related to the sophistication with which it is one where scientific and other a framework of commercial support for operates in the IP arena. Consequently it innovations produced by institutions local research, discovery, development is part of a value chain.
can be converted into commercial and Clusters provide one of those economic benefit. New Zealand's Chief Science Advisor opportunities that has helped peripheral A successful system has two important Sir Peter Gluckman says: "Scientific companies piggy-back off innovative IP parts: the research facilities that produce research needs to be creating ‘ideas flow' but they do require policies and support the scientific output, and the business to sustain investment in innovative new schemes that are tailored to local needs. organisations that develop products A balanced and effective IP production and services for launch in international Science – and the commercialisation process, which ensures that what is of emerging products – has needed a protected and leveraged by firms is of Despite recent growth, business R & D is system that launches new products in real business value and has the best still very low by international standards international markets. This means that chance of being licensed, is core to the at 0.49 percent of GDP compared to research needs to be focused where the OECD average of 1.49 percent. there are commercial opportunities.
The critical factor is identifying sufficient The number of patents per million Intellectual Property (IP) is now treated as IP that does actually have promise, as inhabitants is also low, suggesting that a tangible product. It can also be the key well as developing a culture of innovation commercialisation of the research base is factor in the success of biotechnology firms, since it is assessed carefully In regions with a university presence, the by investors, potential partners and local economic development agency, acquirers, who understand that the value university, polytechnics and institutes of of a biotechnology firm is ultimately EDANZ - Locally Engaged Nationally Effective Regional innovation system created In 2009, the Canterbury Development Corporation (CDC) consulted extensively about innovation with their local businesses and tertiary institutions. Businesses and institutions saw innovation as being a component of Christchurch city's value proposition Firms do not innovate in isolation, but interact with other institutions, – given that the city has a significant local, national, and overseas." number of tertiary institutions and Crown Research Institutes with strengths in R&D across engineering, ICT, agriculture and Industry Development Manager. CDC environmental studies. According to CDC's Industry The Canterbury Regional Innovation The CRIS uses a low cost incubation Development Manager Gerard Quinn, System (CRIS) is a new form of regional model that allows entry to the incubator the innovation process is essentially ‘soft infrastructure' supported by at an early stage when assistance is interactive and relies on collaboration. resources from Christchurch City Council required most. Students are employed, "Firms do not innovate in isolation, but mainly to undertake desktop market interact with other institutions, local, It has been designed to ensure that analysis to provide the resources, and national, and overseas." intellectual property (IP), created by both at the same time acquire valuable The five industry sectors identified as the private sector and the government's experience in relating innovation to having high or growing potential to return investment in tertiary institutions and market opportunities. more export earnings to the region and Crown Research Institutes, is identified the capacity to create sustainable, high early and screened for commercial viability. IP can then be shaped and prepared for • technology (ICT), including software either licensing by the research offices to third parties, or turned wherever possible into locally based start-up businesses by • specialised manufacturing Powerhouse Ventures Limited. • medical technology and biotech Other private angels and investors are • agribusiness, including food and encouraged to join and co-invest in this process of company formation. • international education.
Canterbury regional innovation system model • Investment Case DevelopeD • CommerCIal entIty formeD• CommerCIal mentor/ governanCe/ management BUSINESS
EDANZ - Locally Engaged Nationally Effective From the CDC 2009 survey of businesses in the city it emerged that:
• Innovation and research and R&D can provide a competitive advantage by improving manufacturing and production processes and through the creation of unique products and services.
• Christchurch has strong research capability with a base of Tertiary and Crown Research Institutes and innovative businesses, especially in plastics, engineering, and electronics. • New Zealand's small size and quick adaptation of new ideas makes it an ideal test-bed for new technologies.
• Businesses are unlikely to compete successfully on size and low-costs in the global economy without R&D investment comparable to its competitors.
• Christchurch's exports must compete on high quality and high value however resources are essential to innovative new products.
• To maximise R&D and commercialisation potential, Christchurch and Canterbury require a coordinated approach to foster innovation from research institutions into the commercial sphere EDANZ - Locally Engaged Nationally Effective Wellington takes innovation hub global Hong Kong Cyberport Management Company Limited (Cyberport) are sharing their knowledge, know-how, processes and services in establishing New Zealand's first Digital Innovation Hub (DIH). The Knowledge Sharing and Transfer Cyberport signs a Knowledge Sharing and Transfer Agreement with Wellington City
Agreement was signed in Wellington, in Council and the New Zealand Institute for Screen Innovation, 5 November 2009.
November last year, by Cyberport, the Wellington City Council and the New Guests at the signing ceremony included (left to right): General Manager of the Grow Wellington
Centres of Excellence Laurence Greig; Wellington Mayor Kerry Prendergast; Cyberport CEO
Zealand Institute for Screen Innovation Nicholas Yang; NZISI Chair Michael Stephens; Permanent Secretary for Commerce and Economic Limited (NZISI). Development (Communications and Technology) of the HKSAR Government Duncan Pescod; Grow Wellington CEO Nigel Kirkpatrick; and Cyberport's Head of IT Operations David Chung. The DIH will house a scoring studio and be home to the NZISI internship programme and digital media ‘finishing school'. It will focus on enterprise and Engaging with Cyberport we gain invaluable knowledge and professional development, and help commercialise creative ideas and expertise, learning at a practical level how best to move ahead with the incubate start-ups.
project." "Cyberport have achieved what we want to achieve on a large scale - namely a unique Nigel Kirkpatrick creative digital community," says Nigel CEO, Grow Wellington Kirkpatrick, Chief Executive Officer of Grow Wellington, the economic development development, commercialises creative also expected that this collaboration will agency that established NZISI. ideas and incubates start-ups. encourage co-investments in screen and digital entertainment companies, or in "By engaging with Cyberport we are This is the first formal agreement the content of film, television, digital or gaining invaluable knowledge and Cyberport has signed to export its computer games and other digital media expertise. We are learning at a practical intellectual property and expertise that may come out of the DIH.
and operational level how best to move to another country This will involve ahead with the project." consultancy to the Council and NZISI to manage facilities for DIH tenants, and Cyberport is a US$2 billion (HK$15.8 in commercialising creative ideas and billion) landmark project managed by Hong Kong Cyberport Management Company Limited, and wholly owned An added advantage is that business- by the Hong Kong SAR Government. It to-business contacts among Cyberport specialises in enterprise and professional and DIH tenants can be facilitated. It is EDANZ - Locally Engaged Nationally Effective Food Innovation Centre in Auckland Focusing on Food and Beverage processing meant Enterprising Manukau (the economic development agency based in Manukau City) was able to identify new opportunities to grow the sector locally. The Food and Beverage sector is now one of the larger industry groups with more than half of the export earnings for New Zealand being generated.
Having established a Food & Beverage Industry Sector Group, Enterprising Manukau embarked on serious research. This indicated that 31 percent of New Zealand's food and beverage companies were based in the south of the Auckland region with the sector employing over 17,140 people representing 21 percent of the food labour force. If the region is extended to include Waikato and the Bay of Plenty then it incorporates 48 percent of New Zealand's food and beverage manufacturing and 36 percent of the labour force. A quarter of New Zealand's food revenue and 52 percent of all other processed food employees are located in this region.
The research also indicated that over Food Innovation Centre. This partnership exciting projects to lift the profile of the 60 percent of these manufacturers secured funding to establish the centre on food and beverage industry in recent are looking to develop new product land near Auckland International Airport. years. The best part is that the project for export markets and studies show has a wider vision to link activities right that New Zealand has the potential Such projects like this are an opportunity throughout the country and to bring an to increase its processed food export to lift food and beverage export revenue. international focus". volume by 2.5 times.
The aim is to bring all of these projects into a national network of food and The industry is reportedly excited about The industry is well served by co-packing beverage related activities that will lift the the project and hoping to explore a range arrangements, logistic operations and game for the sector.
of opportunities that might be able to be associated suppliers. To its advantage, driven through the new centre. The building of the centre at Manukau there is the international airport close by, would allow it to become a hub for two inland port facilities and a national future food and beverage activities in roading network. The location is ideal for the region. This in turn would bring more food and beverage manufacturing.
Stop press:
research and development, more product The sector is already becoming more development and higher export earnings.
The government announced on 11 innovative and collaborative, working on March 2010 that it will spend up to The long term goal is to attract global projects and programmes that will bring $21 million to establish a network food giants to commission research added value and lift export earnings. of open-access food development in New Zealand and to establish food facilities across the country. A healthy cross-pollination of trade and research centres around the country.
industry activity allows many of the The Food Innovation Network New group members – experienced exporters The next stage
Zealand will be a collaboration already – to share their skills and between the government, industry, knowledge with other members keen to The business feasibility study and research and education providers enter the international market. business plan was presented to the and local government. It will have Ministry of Economic Development along four regional hubs in Manukau, The Manukau Food Innovation Centre with other possible food-related projects Waikato, Palmerston North and developed as a project alongside others, throughout the country. Canterbury and an overarching bringing the Enterprising Manukau network organisation. Food & Beverage Industry Sector Group Enterprising Manukau's CEO Gaelle together with the Massey University Deighton says: "This is one of the most EDANZ - Locally Engaged Nationally Effective Collaborate and grow Dunedin and New Plymouth, both Members of clusters can co-operate medium-sized cities, have effectively in the completion of large contracts overcome the tyrannies of size and undertaken by individual members.
distance. They have transformed The Hillside Engineering group is just themselves into two of the most one example a number of registered important economic centres in the companies developed as a single country in engineering and in oil and gas commercial company. It is now focused exploration. They are already engaged on providing value added products and with the world economy and Southland services and has won a $63m contract is following very closely behind. to rebuild 36 railcars imported from The development of clusters is Britain for Auckland. Greater economies an important part of this growth. of scale led to international contacts.
Collaborating to compete in Dunedin Three separate companies (ESCEA, Al an's Sheet Metal and Farra Bros) shared a desire to protect, maintain and build the manufacturing industry that currently exists within Dunedin. Together they collaborated in aggressive Annual savings of at least $17,000 for strategies to attain sales beyond Dunedin fastenings are expected.
and, in some cases, outside of New ESCEA'S Managing Director Nigel Bamford says: "Manufacturing Any large increase in workload would not businesses like ours must constantly only bring extra income into the city, but examine the input costs to our it would also mean additional employees businesses, and look for savings to carry out the work. Because Farra and to ensure our ongoing viability, Allan's Sheet metal are large suppliers to competitiveness and growth. What is ESCEA , any growth in Escea automatical y best for Dunedin city and our staff, are translates to growth for Farra and Al an's directly, but the products Farra and cost reductions aimed at areas other than Sheet Metal.
Allan's Sheet Metal manufacture for reducing staff numbers. ESCEA will benefit from the fixed and The three companies now employ over "Thanks to the support of the EDA, we reduced material cost. are now able improve the viability and competitiveness of the ESCEA products. Dunedin's economic development agency Fastenings
We expect staff levels to grow over the (EDA) helped bring in an experienced next 12 months. The sheet metal and materials purchasing consultant. All the ESCEA also undertook a detailed audit fastenings deal we have negotiated options for reducing the cost of sheet of the types and methods of fastenings offers an annual saving of in excess of metal and fastening materials were used in their businesses. They produced NZ$64,000 with further savings to be a report with recommendations aimed at achieved over time.
standardising the fastening types used, Sheet metal
changing some fasteners to other types ESCEA is now more competitive better suited for the application.
internationally and has further A locally based company emerged as the opportunities for attaining new supplier who offered the best overall deal. A local supplier was able to offer best distribution customers in Europe This company will import a 12-month overall high volume fastening pricing. quantity of the six different steel types They also provided good local service and hold this as stock to be drawn down, and were part of a group who are globally and steel will be invoiced as used. a very large fastening supplier.
The accepted deal offers an annual saving on previous sheet metal pricing of NZ$47,000 (9.5 percent) per annum.
What is best for Dunedin city and our staff are cost reductions aimed at areas other than reducing staff numbers." Allan's Sheet Metal and Farra were not able to take advantage of those savings EDANZ - Locally Engaged Nationally Effective eXteNDING eXPort PotentIaL
More and more regions are combining resources across sectors and across regions. A focus has been on growing regional economies through developing local capability in sectors that have the capacity to maximize the value of the region. In a small country like New Zealand the challenge of building networks of col aboration in an environment of constant change are enormous. So it has been critical to put effort into building business to sustain improvement for the Economic Development Agencies' and strengthening international linkages communities they serve. This means business development staff provide to expand the market and increase the supporting businesses that already flexible support services, connecting network of partners and suppliers abroad. are in the community – not just high growth businesses with the right spending to attract and relocate people, tools and knowledge to help Most economic development businesses from elsewhere. It is an them fulfill their export potential.
programmes now recognise the important basis from which to develop importance of focusing on local a regional export model.
Apple Futures is a strong example of a Hawke's Bay, Otago and Nelson that One major benefit of the programme cross-regional, large scale project that grow 85 percent of export pipfruit. is that the leading apple exporters are has strengthened industry and regional collaborating for a common country This initiative has been led by the relationships in a sector that generates of origin mark. A strong scientific economic development agencies in those over $420 million per annum in pipfruit base enables this industry to be well regions, with Venture Hawke's Bay as the exports. The key objective is to develop positioned in markets where consumers lead agency for the project that is now in low residue fruit for targeted export are demanding new standards for food.
its third and final year. This project would not have happened without support from At the heart of the project is a partnership New Zealand Trade and Enterprise.
between PipfruitNZ and the regions of EDANZ - Locally Engaged Nationally Effective Venture Hawke's Bay, the regional development agency, has a mandate to drive medium to long term economic development for Hawke's Bay. Venture Hawke's Bay's Grow the Bay across the region and industry sectors Hawke's Bay, TechNZ and New Zealand is a business initiative that grew out of with a combined turnover of $1.1 billion Trade and Enterprise to drive their the need to build recession resilience. In were interviewed. These companies innovation-led export agenda. partnership with the Auckland University directly employ at least 3,500 people – A full Grow the Bay report outlining all Business School, Grow the Bay was nearly double this when seasonal workers aspects can be ordered from Venture developed to encompass a number of Hawke's Bay. Contact: work streams and activities to create a Out of these interviews best practice robust action plan for regional growth. case studies were developed for One of those work streams was businesses working to establish to identify and assist Hawke's Bay innovative practices. Benefits are businesses with improving productivity already beginning to be realised as the and innovation. Over 50 companies from businesses involved partner with Venture Napier Engineering and
This company is a Hawke's Bay Bay. Over the last year, NEC, with a exports of meat processing equipment to business with over 100 years cumulative new management team led by General Russia: "Stemming from a referral from a experience in the engineering and Manager Lorenzo Haupt, has vigorously local freezing works job, this developed in abattoir industries. It is a ‘Go Global' pursued a path for export led growth. to a joint venture, 'Sovenz', with the then business which provides valuable Director/Sales Contract Manager Duncan New Zealand Dairy Board. benefits to the economy, and is one of Powell described early successes with the leading engineering companies in the world Its international experience is worldwide Our strength is essentially in providing the client with with a focus on North and South America, a blueprint before serious decisions are made that incur Asia, Russia, the South Pacific, India, United Arab Emirates and Australasia.
major expense." NEC was identified from earlier Venture Hawke's Bay work as a key regional company for involvement in Grow the General Manager, NEC EDANZ - Locally Engaged Nationally Effective "The Sovenz partnership supplied 10 meat and rendering, plus some wool scouring plants, in Russia in the 1980s. Building on these early achievements in today's environment is the challenge NEC has set for itself." Current product innovation and development aimed at export markets includes the new relocatable meat processing plant. Mr Haupt reports a 10 percent increase in exports in the 2009/10 year, with significant export growth anticipated 2010/2011 and beyond.
Modular relocatable meat processing plant
A joint work programme has been instigated between NEC and Venture Hawke's Bay to achieve NEC's three-year • export markets in key product and streamlining standardisation and growth plan. This includes working with lines, using both known networks production line manufacturing.
TechNZ via Venture Hawke's Bay, and and establishing new ones, with New Zealand Trade and Enterprise. supply channels through a combination Working on mapping supply chains and strengthening key relationships are areas Areas to focus on include: of distributors, agencies, and direct where Venture Hawkes Bay is able to • developing the strong Niven brand, and reputation for well designed and • innovative product development robust meat processing equipment • production process improvement Engineering, oil and gas Both the Engineering Taranaki Consortium and the Oil and Gas Specialist Technologies Group are excellent examples of successful collaboration in industries key to the region's economic wellbeing. Engineering Taranaki Consortium brings business opportunities. There is also together the capability and capacity of improved access to market intelligence nine of Taranaki's leading engineering and greater ability to build valuable firms with a combined workforce of business relationships. over 1000 skilled tradespeople and 200 engineers. Added to this, Oil and Gas An enhanced commercial relationship, Specialist Technologies offers the multi- between the regional development agency and key players in the industries disciplined capability of 21 companies in which they operate, has come out of providing a comprehensive range of collaboration – with additional business specialist services to the oil and gas and secured and a greater presence in the energy industries. Both cluster organisations were born out the local regional development agency, Venture Taranaki, in response to industry opportunity, and have gone on to be driven and owned by their respective sectors.
Photo: Rob Tucker Chief Executive of Venture Taranaki Stuart Trundle says: "This is evidence of how industry has truly come to recognise the value of collaboration".
Working collaboratively has brought about a critical mass, enabling increased capability and capacity to capture business opportunities." Working collaboratively has brought about a critical mass, enabling increased capability and capacity to capture CE, Venture Taranaki EDANZ - Locally Engaged Nationally Effective Nelson's green ports for black boats Nelson leads the way with plans for a modern marine eco-village at Port Nelson. This has the potential to create hundreds of jobs, upskill the local trade and technical workforces, and pump hundreds of millions of dollars into the region's economy. The green port development would associated industries together to attract "I'm keen to work as local MP to get focus on new-generation commercial large contracts, rather than having them as much support as possible from boat design and build, and the servicing compete against each other. In the past this government agencies. We're not just and maintenance of a variety of working has fragmented the industry and resulted talking about jobs here, but high-skilled boats, referred to as ‘black boats'.
in low profits," says Chal enge business jobs. If Nelson is to compete long-term, development manager Lane Finley.
it's important we pitch ourselves towards The Nelson regional economic high-end job creation, and this project development agency (EDA) has driven Stage one of the three-stage plan will work on a feasibility study on the full begin with establishing a marine precinct, scope of the concept, appointing a installing a 350-tonne Travelift, and EDA Chief Executive Bill Findlater has consultant to manage that.
developing supporting industries that can the last word: "A green port will place service ships up to 40 metres long. Nelson ahead of others by putting in Key to the long-term viability of the place environmental practices for heavy project are links with associated The aim also is for Nelson to become industry, which are likely to become specialists, such as the Cawthron a regional centre for the oil and gas mandatory. This project will provide Institute offering world-class science industry's marine onshore maintenance, opportunities for Nelson to be leading resources (in related fields such as repairs and training. The addition edge in this industry.
aquaculture and algae technology) of large-scale buildings and heavy and the Nelson Marlborough Institute lifting equipment would also create "It could be the first of its type in the of Technology providing training opportunities for ‘mega-structure' design Southern Hemisphere. We are talking and build projects which need seaside leading-edge here in boat design and construction space and barge delivery. A consortium of four Nelson firms design technology, which will have – Challenge New Zealand, Unimar, Nick Smith, Nelson MP and Minister flow-on effects to small engineering Kernohan Engineering and Port Nelson for the Environment, said that the key companies in the region." Ltd – supported by the EDA and New support required to make this project Zealand Trade and Enterprise – are grow will be private sector investment.
establishing an environmentally certified centre of excellence for marine and general engineering. Future capability means tackling projects If Nelson is to compete long-term, it's important we pitch ourselves on ships the size of the Cook Strait ferries towards high-end job creation, and this project does that." and the new-generation Royal New Zealand Navy patrol fleet vessels. Minister for the Enviroment, MP for Nelson "While Chal enge is spearheading the concept, the primary goal is to bring EDANZ - Locally Engaged Nationally Effective Design-led engineering solutions Metalform (Dannevirke) is a family engineering firm based in the Tararua district. The firm began designing solutions for the company's vision and confidence in forming an export plan, and applying local farmers and businesses and has taking their products to a wider market.
the knowledge to the company's expanded into exporting around the world. own business.
Vision Manawatu also alerted Metalform The business has the ability to operate to the Export Accelerator Programme In November 2009 Metalform was named 24/7 with automated machinery that works that the company later completed. This the Hawke's Bay Today Business of the throughout the night. Products include programme is offered jointly by Vision Year. The firm also won the Export Hawke's the ezi-riser electric wheelchair, paddock Manawatu and the New Zealand School Bay Exporter Award and the Pan Pac cleaner, and a knife sharpening system.
of Export. It focuses on export skills, Forest Products Large Business Award.
Accelerating a business
In 2008 Vision Manawatu (the regional economic development agency) invited key staff to participate in its Smart Business Acceleration Programme. This was offered to 10 companies only per intake, and aims to upskill managers in key areas to fast track further company growth. The company's management was surprised at the level of expertise they were exposed to during the course, citing the session on best practice and the follow-up mentoring as opening their eyes to areas they had not even considered. Poised for international growth, they said the course was particularly timely for Metalform.
Vision Manawatu and Metalform believe Act local, think global – a family firm looks to the future. From left: Metalform director
and design manager Campbell Easton; director Geoff Easton with baby Anders Easton; the programme made a real difference to Metalform founder Bryce Easton. EDANZ - Locally Engaged Nationally Effective INVestMeNt aND Its ImPact
on ProDUctIvIty
Escalator early-stage investment programme can add
These are underpinned by the fact that financial literacy in enormous opportunities for appropriate companies New Zealand is low, resources are scarce, and access to investors is relatively unstructured (outside the small number The New Zealand early stage capital market is developing of formal groups). and in its infancy. Unfortunately some types of firms are not able to access finance or do so only at a premium rate. Escalator (a government initiative), provides training and funding for such businesses to help provide access to Entrepreneurs have two main challenges to financing their information around those first steps to market. business:• finding the money • knowing how to get the money into the bank. SciTOXEnvironmental monitoring is essential to safeguarding communities from the risk of pollutants and toxins in public waters To meet the demand for a rapid Ventures Ltd, SciTOX had pilot customers and accurate means of monitoring toxic contamination in wastewater, However, what was needed was the Christchurch-based SciTOX created The essential capital to fully commercialise Alpha – a bio-sensor toxic analyser that the product. SciTOX needed to raise can assess all toxicants in the waste $1.3m to successfully capitalise on stream within 15 minutes.
potential overseas markets.
The Alpha alerts wastewater treatment Raising that kind of money is a plants to any potentially toxic trade formidable task, especially for first-timers waste, allowing the treatment facility like SciTOX. However, with the support of to modify its processes. Trade-waste Escalator, the company's capital raising customers charged on the toxicity or venture closed oversubscribed by 30 help secure the capital alongside its seed content of their waste.
percent - six weeks ahead of schedule.
co-investment partner, the New Zealand As a team of international experts had Escalator broker Pacific Channel called Venture Investment Fund. Pacific Channel developed the bio-sensor on behalf of on its connections and good relationships was also able to help guide SciTOX Lincoln University subsidiary Lincoln with investors in the bio-tech sector to through the investment process What the SciTOX team learned:
• Investments are not just about getting money for a concept. To achieve a viable product it needs to: » be able to be produced commercially (design for manufacture) » be focused on minimising costs (lean; design for quality) » have a viable market plan that can be rapidly executed. • Piecemeal implementation delays the likelihood of positive cash flow, especially if your marketing and sales channels aren't ready.
• You need to focus on costs and productivity at the front end, and budget for worst-case scenarios. Then, if the forecast return on capital looks good, pursue the product.
• Adding a team with strong sales and financial expertise brings benefit. The most important aspect of an investment is the ability to make painful decisions.
• Success, whether in business in general or in capital-raising, is built on a solid and structured business plan and by creating a financial model for growth.
EDANZ - Locally Engaged Nationally Effective across the economy By engaging directly in, and leading the development of regional networks and partnerships, economic development agencies (EDAs) are bringing a collaborative regional approach to economic development, job retention and job growth. Each region has examples of where for raising productivity, and still invest in maintain relationships and networks with EDAs have focused on productivity and strategic assets for the long term. central government, local government, innovation development, collaboration industry organizations, community EDAs have needed to maintain a organizations, individual firms and reasonable flow of investment in all business owners. The impact of the global recession forced areas. They are unique in their position regions and their economic development to connect the dots, coordinate the The reach is extraordinary in a local and agencies to balance activities and budgets disconnected, deliver interventions and national sense; no other agent network with the need to find immediate solutions initiatives, develop local solutions and can produce such stretch.
economic Development agencies of new Zealand
Economic Development Agencies New Zealand (EDANZ) expertise in the economic development field, helping to supports, coordinates and advocates for economic further New Zealand's economic performance. development agencies (EDAs) throughout New Zealand. EDANZ is organised as 14 key regional groups at the EDAs work with their local authorities to deliver governance level to provide national coverage. programmes in the regions.
In partnership with local and also central government, EDANZ can tap into a wealth of knowledge and practical level 1, Civic assurance House Phone: (04) 978 1291
114 - 118 lambton Quay Fax: (04) 914 1138
Po box 5548 WellingtonNeW ZealaND

Source: http://www.edanz.org.nz/wp-content/uploads/2014/02/FinalPDFConnecting-across.pdf