Draft report
New Zealand firms: Reaching for the frontier
New Zealand is facing the prospect of a significant economic shock from the spread of COVID-19. Helping more Kiwi firms reach the productivity frontier would be a valuable step towards the economy reaching its full potential once the immediate effects of COVID-19 have passed.
This inquiry investigates New Zealand’s most productive firms and how their economic performance can be maximised. The Commission released its draft report in December 2020. Public feedback was sought via submissions and further research, consultation and analysis is being carried out to finalise this work.
Innovation is the key to New Zealand's economic future
The frontier firms draft report is an in-depth assessment of how the economic contribution of New Zealand’s top firms can be maximised. The Commission found that the productivity of New Zealand’s frontier firms is only about half that found in their overseas counterparts. A completely new approach that learns from other small advanced economies is required. The Commission recommended:
- A greater focus on exporting specialised products at scale to overcome New Zealand's hurdles of size and distance.
- An overhaul of the innovation ecosystem to support firms and drive innovation.
- Focused government investment on areas of existing or emerging economic strength and competitive advantage.
- Collaborative, focused efforts by the Government, industry and researchers on innovation policy and investments.
- A number of policy and regulatory changes to support innovation in important areas, including immigration, dairy, GM.
The draft report presents 22 recommendations to overhaul New Zealand’s innovation system and make investments in infrastructure, regulation, skills, research and business support. Read the report:
