Policies to build a more competitive economy

Hon David Carter
Spokesman for Economic Development
Hon Dr Wayne Mapp
Spokesman for Science and Innovation

14 November 2011

Policies to build a more competitive economy

National today announced a range of economic development and science policies that will help build a more competitive New Zealand economy, Economic Development spokesman David Carter and Science spokesman Wayne Mapp say.

This includes a new policy to invest $60 million over the next four years in a series of National Science Challenges to find innovative solutions to some of the most fundamental issues New Zealand faces in its future development.

“Examples of these issues include how New Zealand can intensify its primary industries in an environmentally sustainable way; new and cost-effective technologies for sustainable energy production; or how New Zealand can produce a new generation of high-value foods,” says Dr Mapp.

“Sustainable economic growth, which creates jobs and grows incomes, is best achieved by creating a more competitive economy that trades successfully with the rest of the world,” Mr Carter says.

“National’s approach to economic development recognises that most new jobs are created in competitive and growing businesses.

“We are working with different industries and sectors of the economy, with the aim of removing obstacles to investment, and providing the right underlying conditions for growth, so our businesses can prosper, trade profitably and expand.”

Dr Mapp says a smart, modern economy with thriving businesses is built on a solid base of science and innovation.

“National will ensure that industries can draw on a well-established base of science and innovation to create new products and new processes. It will strengthen the connections between science and business. It will also ensure businesses can have confidence that we are prioritising the important challenges facing New Zealand. This will allow businesses to transform and grow for the future.”

National’s economic development and science approach focuses on three high priority areas:

1: Boosting industries, innovation and trade: A smart, modern economy consists of thriving industries, is built on a solid base of science and innovation, and has well-developed trade links with key markets.

2: Ensuring efficient, modern infrastructure: This improves communication and flows of goods and services. It unclogs the arteries of growth, supports jobs and helps get goods to market faster.

3: Providing sensible, streamlined regulation: Good regulation balances the need to cut red tape and remove road blocks, with the need to ensure community safety and environmental protection.

Visit the policy at:
http://national.org.nz/PDF_General/Economic_Development_policy.pdf

What are National Science Challenges?
National Science Challenges are a way of finding innovative solutions to some of the most fundamental issues New Zealand faces in its future development.
The Science Challenges will seek answers to questions of national significance to New Zealand. These will include questions that are potentially solvable, but where the best solution is far from obvious.
Multi-disciplinary research teams will put together proposals for addressing these Challenges, as part of a competitive and open process. The best proposals, as determined by an independent panel of experts, will be funded.
As a result, the Challenges will encourage major collaborative research across disciplines and institutions.

What is an example of a Challenge?
The National-led Government has already piloted this approach for reducing greenhouse gas emissions from agriculture.
This is an important research question, because half of New Zealand's total greenhouse emissions come from agriculture, and there is currently no effective way of significantly reducing those emissions while still maintaining our agricultural production.
A committee of international experts in the relevant science, chaired by the Prime Minister’s Chief Science Advisor, Sir Peter Gluckman, was charged with refining the greenhouse emissions challenge. This was divided into four components: methane produce by animals, nitrous oxide release from pasture, soil carbon management and the development of decision-making tools for farmers. The scientific community then thought of ways to address these questions.
As part of a competitive process, a range of exciting and innovative proposals have been put forward and are currently undergoing independent scientific review. Successful applications that meet the criteria of excellence, innovation, relevance and applicability will be funded next year from the $16 million made available.

How will National Science Challenges differ from other sorts of science and innovation funding?
Funding is already available for many different types of scientific research in New Zealand, including:
• to support a broad base of fundamental and applied sciences
• to undertake sector-focused work, for example; through CRIs
• to encourage business-focused, practical research from both public and private organisations
• to support talent-led research, for example; through the Marsden Fund and the Centres of Research Excellence.
National Science Challenges represent a different way of funding research, based on questions of fundamental importance to our economy, society and environment.
They will fill the gap between shorter-term applied research, such as that connected to our business support schemes, and fundamental research driven purely by science.
The Government will identify important questions that science might address, but leave it to the scientific community to use its creative skills to identify the answers.

Who could apply for Challenge funding?
National Science Challenges are about unleashing the extraordinary talents and capabilities of our scientific community wherever they are based.
Challenges will be framed so that successful applicants are likely to include groups of basic and applied scientists who are likely to come from universities, public and independent research institutes and in some cases, from the private sector.
Research groups may also involve international collaboration if that is relevant.

What sorts of questions could be considered?
Challenges will be proposed by the Minister of Science and Innovation, after consultation with industry stakeholders and the science community, including the Prime Minister’s Chief Science Advisor.
Examples of questions that might be suitable for National Science Challenges are:
• How can New Zealand intensify its primary industries in an environmentally sustainable way – increasing production while at the same time protecting the environment and, in particular, the quality of our water?
• What new and cost-effective technologies can be developed for sustainable energy production – for example, through use of biomass or advanced geothermal technologies?
• How can New Zealand produce a new generation of high-value foods – for example, foods and food-derived products that have demonstrated health benefits, designed for the growing Asian market?

Where else are National Science Challenges used?
Funding bodies around the world have used a challenge approach – often referred to as Grand Challenges – to find answers to important questions.
For example, the Grand Challenges in Global Health initiative - part-funded by the Bill and Melinda Gates Foundation – focuses on 14 major global health challenges, such as “how to prepare vaccines that do not require refrigeration.”
How much funding will go to National Science Challenges?
National will commit $60 million over the next four years to fund between four and eight National Science Challenges.

ENDS