Helping Kiwi firms reach the productivity frontier

NZHIT Commentary -

The Productivity Commission has released its draft report on New Zealand's most productive "frontier firms". See below for their media release and links to access the report and supporting documentation.

The report is currently in a draft state as the Commission is seeking submissions and feedback particularly in relation to the 22 recommendations that have been made in the report.

You have until the 5th of February 2021 to provide feedback and the link for this is provided at the end of the following media release.

In relation to health technology, NZHIT draws your attention to the relevant comments and recommendations made in the report as follows -

Overview - draft report Frontier Firms (page 7)

Improve the incentives on DHBs to participate in the healthtech ecosystem

District Health Boards (DHBs) are hugely important in and to New Zealand’s health system, yet most are inactive in supporting healthtech innovation. As a result, opportunities for mutual benefits for the healthtech sector and productivity and accessibility of the health system are being lost.

The main reasons for DHBs’ lack of support are their lack of mandate to participate in innovation, the lack of targeted innovation funding, and rigidities in their procurement processes. Also, the centre provides no coherent strategy on innovation and learning to guide DHBs. The ensuing variety of independent approaches raises a further barrier for healthtech firms.

The final report of the health and disability system review, published in March 2020, recommended major reforms to the health system. In pursuing any major reform, the Government should improve the mandate, funding and incentives for DHBs to work collaboratively with healthtech companies as part of their innovation ecosystem.

New Zealand firms: reaching for the frontier, draft report, December 2020

9.5 - Integrating DHBs more effectively into the healthtech innovation ecosystem (refer to pages 141-143 including recommendation R9.6 as follows:

The Government should use its intended major health system reform to improve the mandate, funding and incentives for DHBs to participate in the healthtech innovation ecosystem, for the mutual benefit of the healthtech sector, and the productivity and accessibility of New Zealand’s health and disability system.

Productivity Commission media release and links to the draft report -

Helping Kiwi firms reach the productivity frontier

Today the Productivity Commission released its draft report on New Zealand's most productive "frontier" firms. It's an in-depth assessment of how the economic contribution of New Zealand’s top businesses can be maximised to help improve New Zealand's ailing productivity.

How can we unlock New Zealand's productivity potential?

Draft report frontier firms

The Commission found that the productivity of New Zealand's frontier firms lags up to 50% behind that of its overseas counterparts. A completely new approach that learns from other small advanced economies is required. The Commission recommends:

 - 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.
Today’s report makes 22 recommendations to which your feedback is  invited. We encourage you to review the report and have your say.  Submissions are invited by 5 February 2021 via . We  look forward to hearing from you!



Posted by

Anna Arrol

Administration Assistant

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