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Our brief

New Zealand firms: Reaching for the frontier

The Government has asked the Productivity Commission to undertake an inquiry into New Zealand’s “frontier firms”. These are the most productive firms in our economy.

The Government wants to know how the economic contribution of these firms can be maximised, through their own performance and the way they diffuse new technologies and business practices to other domestic firms.

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The inquiry

Research in 2016 showed that New Zealand’s most productive firms were, on average, about one-third less productive than international firms in the same industry.

This inquiry is about unlocking the potential of New Zealand's frontier firms versus their international counterparts, identifying opportunities to build comparative advantage and improve macro-productivity growth. 

The Commission will also investigate how innovations of knowledge and technology can diffuse more effectively from frontier firms to other firms in New Zealand.

Find out more - read our brief from the Minister of Finance here.