Realise innovation - support venture capital

Wednesday 28 September
Canterbury Innovation Incubator
200 Armagh St
Christchurch

SPEECH NOTES

New Zealanders are naturally innovative.

A shortage of materials meant that early farmers used readily available No 8 wire to construct everything from coat-hangers to chairs.

This sentiment has prevailed through the years and from the Hamilton Jet to the world’s first stamp vending machine, Kiwi inventions have taken the world by storm.

While we may have a natural talent for innovation, great ideas alone are not enough.

To make these ideas a reality we must develop them through a robust business model and sell them to the world.

Only then will we ultimately fulfil our aspiration of joining the top half of OECD nations once again.

Indeed the OECD has noted that New Zealand must 'excel globally' if our living standards are to return us to the top half of the wealth rankings.

Innovation is important for so many reasons.

It provides New Zealand with the best opportunity to lift our economic performance, enhance social well-being and manage future uncertainty.

Innovation is more than good ideas.

It is a way of creating and applying knowledge.

And a key source of prosperity and wellbeing in the knowledge societies of the 21st century.

According to the Australian Department of Foreign Affairs and Trade, the world stock of knowledge is doubling approximately every seven years.

This is driven by the substantial commitment by the technologically-advanced countries to invest in knowledge and skill development.

New Zealand is developing a reputation for being world-class in all areas:

business, science, sports, arts, ideas, civic strength.

Our work in innovation fosters networks abroad and expands opportunities at home, making our country a more vibrant place to live.

This in turn helps to stem the brain drain and attract talent and capital.

It rewards us and our children with a business and educational environment rich in diversity, passion, creativity and risk-taking.

To achieve all of this our ideas need investment and support.

The Government recognises this and through New Zealand Trade and Enterprise’s Escalator Service great ideas get the support and investment they need to grow.

Since July 1 2004 more than 360 companies have received some form of one to one business assessment under the Escalator Service.

At a minimum, this includes assessment and advice, by a broker, about their business plan and business structure, and the investment opportunities for their business.

A selection of investment-ready companies have progressed through the Escalator Programme,

and have had their deals professionally prepared and brokered.

A total of $23.6 million of capital has been raised, and 3 strategic partnerships negotiated, among 31 New Zealand companies.

Realize Innovation Ltd is one of four brokering companies that are contracted to deliver the NZTE funded Escalator Service.

Realize specialises in preparing start-up and early-stage businesses for growth and subsequently sourcing angel investment.

They were recent finalists in the 'one to one business offering' category at the inaugural Vero Excellence in Business Support awards.

According to the Global Entrepreneurship Monitor New Zealand is one of the three most entrepreneurial countries in the world - yet for us this hasn’t been the economic force it could be.

With the help of the Escalator programme and the support of brokering partners like Realize Innovation we are sure to make great strides up the OECD ladder.