New Zealand’s Research Potential Drives Economic Growth Strategy

New Zealand’s economic future hinges on effectively translating research into viable businesses, according to a recent report. The 2024 Survey of Commercialisation Outcomes from Public Research reveals that innovation can significantly enhance job creation, export generation, and global competitiveness. The report highlights that while New Zealand’s universities and public research organisations produce groundbreaking discoveries in sectors such as health technology and clean energy, much of this potential remains untapped.

The survey, conducted by Knowledge Commercialisation Australasia, provides an in-depth analysis of how publicly funded research translates into commercial and social outcomes across Australia and New Zealand. It assessed 76 organisations, with the University of Auckland and its commercialisation arm, UniServices, leading the way. The university reported equity in 45 active spinout companies, marking the third consecutive year it has topped this important metric.

These ventures, which include innovative companies like Alimetry, Avasa, Zenno Astronautics, Kitea Health, and StretchSense, have attracted international investment and established global partnerships. Collectively, they employ hundreds of skilled workers and contribute significantly to New Zealand’s economy. These science-based enterprises represent a crucial shift towards sustainable growth, as they aim to scale internationally without the environmental impact associated with traditional industries.

The success of these spinouts is not merely a result of chance; it reflects a systematic approach to translating research into commercial success. As the Academic Director of the University of Auckland’s Centre for Innovation and Entrepreneurship, I witness this system in action. UniServices plays a vital role by managing the commercialisation process, protecting intellectual property, structuring deals, and assisting new companies through their formative stages. The centre prioritises the human element, focusing on developing founder capabilities and teaching students and researchers how to test ideas and understand market dynamics.

The findings from the Science System Advisory Group’s recent report, titled A Pathway to the Future: New Zealand’s Science and Innovation System, echo this emphasis on capability. The group identified the “IP-to-IPO” (intellectual property to initial public offering) as a critical weakness in New Zealand’s innovation landscape. Their conclusion is clear: innovation policy must equally prioritise the development of human talent alongside financial resources. To build a high-value economy, the country requires more researchers fluent in market dynamics and entrepreneurs who possess scientific understanding.

Survey data further reinforces this conclusion, showing that the number of commercialisation professionals in Australasia has expanded significantly, outpacing research expenditure. This investment in people is yielding results, with more spinouts emerging, stronger industry partnerships forming, and increasingly sophisticated deal structures being established. Although licensing revenue may fluctuate annually, the overall number of active ventures is on the rise, indicating a maturing innovation system focused on long-term capabilities rather than short-term gains.

University-originated ventures in fields such as biotechnology, artificial intelligence, and advanced manufacturing often generate several times the value-added per employee compared to conventional small and medium-sized enterprises. They diversify New Zealand’s export base, retain scientific talent, and anchor knowledge-intensive industry clusters. For investors, a strong capability base reduces risk; sound governance, clear intellectual property ownership, and credible founders attract capital.

Despite the prevailing focus on funding in national innovation discussions, the real constraint lies in capability. Debates often revolve around grant levels, research and development tax credits, and venture capital availability. Without skilled individuals to convert ideas into opportunities, increased funding simply results in a backlog of under-commercialised research. The right capability transforms capital into a catalyst for growth.

At the Centre for Innovation and Entrepreneurship, we are dedicated to nurturing this capability on a broad scale. Annually, thousands of students and researchers participate in our programmes, learning to navigate uncertainty, lead teams, and transform insights into ventures. We provide clear pathways for founders, guiding them towards start-ups, licensing agreements, or strategic partnerships. This blend of entrepreneurial education and professional commercialisation strengthens New Zealand’s reputation as a source of investable innovation.

Every university and public research organisation must enhance its commercialisation capabilities by investing in individuals who can bridge the gap between science and business. Collaborating with industry to deliver tangible economic returns is essential. Research impact is not a puzzle to be solved but a system to be scaled.

New Zealand consistently claims to outperform expectations. In the realm of research commercialisation, this assertion holds true. The University of Auckland’s achievements exemplify what is possible when capability is treated as foundational infrastructure rather than an afterthought. The coming decade will favour economies that can quickly and reliably convert knowledge into value at scale. As history shows, capital will follow capability.