Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Overcoming distance to improve productivity

16 April 2014

Overcoming distance to improve productivity

New Zealand’s productivity paradox shows more work is needed to overcome our key disadvantages, says BusinessNZ.

New research by the Productivity Commission reveals the paradox that New Zealand’s reasonably robust policy settings should mean productivity growth 20% higher than the OECD average, when it is actually 20% below the OECD average.

The research shows two key reasons for New Zealand’s low productivity growth are poor international connections and poor performance in knowledge-based business.

BusinessNZ Chief Executive Phil O’Reilly says our distance from large markets affects both of these, making it harder to achieve international connections and harder to learn from new knowledge-based advances in overseas markets.

“But we can do better in overcoming the disadvantage of distance,” Mr O’Reilly said.

He said moves already underway – including more NZTE support for exporters and exporters working together to better penetrate overseas markets – would help grow connectivity over time, and better use of ICT would be a key way of improving connectedness and performing better in knowledge-based business. Callaghan Innovation would also have an increasing role to play in facilitating knowledge-based businesses.

“It will be important for us to maintain and grow our efforts across a range of initiatives, including completing more trade agreements, investing more in applied skills and helping more businesses to participate in global supply chains. These will be useful policy considerations for all parties contesting the coming election.

“Higher productivity growth is essential for competitiveness and the Productivity Commission’s analysis is helpful in focusing us all on this key area,” Mr O’Reilly said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news