New Zealand’s Economy Needs Stronger Research Commercialisation

New Zealand’s economic future hinges on transforming research into businesses that create jobs and enhance global competitiveness. A recent report highlights that the potential for innovation in sectors like health technology and clean energy remains largely untapped. The **Survey of Commercialisation Outcomes from Public Research** indicates that aligning research, entrepreneurship, and professional capability can lead to significant economic growth.

This annual survey, compiled by **Knowledge Commercialisation Australasia**, is a comprehensive measure of how publicly funded research translates into commercial outcomes across Australia and New Zealand. The **2024 report**, which analyzed 76 organizations, found that the **University of Auckland** and its commercialisation arm, **UniServices**, led the region by holding equity in **45 active spinout companies**. This marks the third consecutive year that Auckland has topped this metric.

Among these ventures are notable innovators such as **Alimetry**, **Avasa**, **Zenno Astronautics**, **Kitea Health**, and **StretchSense**. These companies have attracted international investments, formed global partnerships, and are successfully exporting technology developed in New Zealand. Together, these **45 firms** employ hundreds of highly skilled workers and contribute significantly to the economy, demonstrating the type of growth that New Zealand requires: science-based enterprises that can scale globally while minimizing environmental impact.

The success of these ventures is not simply a matter of luck. It reflects a well-designed system aimed at translating research into tangible outcomes. This system develops talent, aligns incentives, and encourages long-term investment. As the academic director of the university’s **Centre for Innovation and Entrepreneurship**, I witness this system in action daily. **UniServices** handles the commercialisation process, including protecting intellectual property, structuring deals, raising investment, and guiding new companies through their formative stages. The centre also emphasizes building founder capability, teaching students and researchers how to test ideas, understand markets, and develop sustainable ventures.

A recent report by the government-appointed **Science System Advisory Group**, titled **A Pathway to the Future: New Zealand’s Science and Innovation System**, echoed this focus on capability. The group identified the “IP-to-IPO” (intellectual property to initial public offering) process as New Zealand’s weakest link. Their conclusion is clear: innovation policy must prioritize people as much as financial investment. To cultivate a high-value economy, New Zealand needs more researchers fluent in market dynamics and entrepreneurs who grasp scientific principles.

The survey data supports this assertion. Across Australasia, the number of commercialisation professionals has increased significantly, outpacing research funding growth. This investment in human capital is yielding results, leading to more spinouts, deeper industry partnerships, and improved deal structures. While licensing revenue may vary year to year, the total number of active ventures continues to rise, illustrating a maturing innovation system focused on long-term capability instead of immediate gains.

University-originated ventures in fields like biotech, artificial intelligence, and advanced manufacturing are among the most productive in the economy. They often generate several times the value-added per employee compared to traditional small and medium-sized enterprises. These companies diversify the export base, retain scientific talent, and anchor knowledge-intensive clusters. For investors, a strong capability reduces risk; they are more likely to provide funding when they see effective governance, clear intellectual property ownership, and credible founders.

Despite the progress, the national innovation dialogue often centers on funding issues. Discussions frequently revolve around grant levels, R&D tax credits, and the availability of venture capital. The true constraint lies in capability. Without skilled individuals to bridge the gap between research and commercial opportunities, increased funding can result in a backlog of under-commercialised research. With the right capabilities in place, capital can serve as a catalyst for growth.

At the **Centre for Innovation and Entrepreneurship**, we strive to build this capability on a large scale. Each year, thousands of students and researchers engage in our programs, learning to navigate uncertainty, lead teams, and convert insights into viable ventures. We provide clear pathways for founders, whether they aim for a startup, a license, or a strategic partnership. This blend of entrepreneurial education and professional commercialisation is critical for reinforcing New Zealand’s position as a credible source of investable innovation.

To strengthen the commercialisation capabilities of universities and public research organizations, there must be a concerted effort to develop individuals who can effectively connect science with business and collaborate with industry to generate tangible economic benefits. Research impact should not be viewed as a mysterious challenge but as a system ready to be scaled.

New Zealand often claims to punch above its weight in various fields. In research commercialisation, the results from the **University of Auckland** exemplify what can be achieved when capability is treated as essential infrastructure rather than an afterthought. The next decade will belong to economies adept at swiftly converting knowledge into value at scale and with reliability. In this landscape, capital will follow capability.