Productivity propelled

Over the last few years, New Zealand has faced a challenging economic environment with high interest and inflation resulting in a steady decline in GDP per capita. As we look forward, uncertainty surrounds our current economic trajectory. With an ageing population and slowdown in global economic growth, we must look to productivity as the main driver of New Zealand's future prosperity. New Zealand currently ranks 63rd out of 67 countries in terms of productivity and efficiency, with flat productivity growth over the last decade. Without action, this trend is expected to continue.
 

Now is the time to reverse this downward trend in GDP per capita growth and overall prosperity for New Zealand.
 

In this report, commissioned by 2degrees and prepared by Deloitte Access Economics, we’ve assessed the potential benefit that either an uplift in R&D expenditure or an increase in the adoption of existing technologies could have on the economy. However, these benefits are not guaranteed. To meaningfully lift technology adoption and/or innovation across the economy, we must address the barriers to technology adoption and low appetite for R&D investment.

This report outlines some key recommendations including

• Ensuring R&D tax incentives are fit-for-purpose
• Addressing challenges to scaling startups
• Supporting foreign direct investment
• Tackling innovation funding gaps
• Encouraging greater collaboration between tech and traditional industries and motivating firms to self-monitor and improve productivity.