Research and development in the primary sector
Three words consistently come up in discussions of economic development: research, innovation, and investment.
These are especially important to the primary sector, as multifaceted and intertwined factors place increasing pressure on the primary industry. Without a constant cycle of research, innovation, and commercialisation within the primary sector, it is at risk of becoming less competitive and less productive than our competitors.
The primary sector has played a key role in New Zealand’s economy since the early 1800s, underpinning exports and economic growth. This is unlikely to change anytime soon, as our fertile soil, freshwater resources, and mild climate make us uniquely suited to primary production. Just observe the export value and growth recently of different export products (Figure 1).
If New Zealand is already doing well in the primary sector, where is the pressure to research and innovate coming from?
To remain ahead of the game in the global market, we have to invest heavily in research and innovation. As a small, open economy, our future depends on our ability to outthink and outpace our larger competitors. New Zealand’s small size limits our ability to influence international market prices. Our success depends on us offering high-quality products rather than focusing on quantity.
To stay ahead of shifting consumer preferences, it is essential that we commercialise our research and innovation to support the industry's adaptation. A great example is the success of Royal Gala apples, one of two domestic varieties that account for 80 percent of domestic apple production. Six out of 10 apple varieties grown for export in New Zealand are domestically bred. The apple industry is a prime example of research and innovation in practice, from scientists to farmers working collectively to produce high-quality products.
Research and innovation in New Zealand are heavily dependent on government funding. However, we are tiny fish in a much bigger pool of competition; for example, the White House announced a US$99 billion investment in science and technology research. This is in comparison to the New Zealand science and technology research environment, which is reporting budget cuts in real terms.
Much of the heavy lifting in the research and innovation space is facilitated through strong institutions
Almost all of our universities have a strong presence in the primary sector in terms of research and innovation. Some universities, such as Lincoln University, specialise in agriculture, while others have maintained more generalist research and innovation teams. For example, Waikato University has developed new technology for picking kiwifruit, the e-bin, which aims to increase productivity and reduce labour.
Universities are not the only players in the research and development space. Crown Research Institutes, such as Scion, are fundamental in supporting new technologies and innovations in the horticulture and forestry sectors. Other institutions, such as the industry body AgriTech, are vital in connecting and facilitating collaboration between innovators, and industry. For example, onion farmers may benefit from recent innovations in weather and disease monitoring technology that AgriTech is helping to highlight.
Another key aspect of our research and innovation success is our network of innovation and development hubs. Case in point: Callaghan Innovation is a government agency that supports innovators and entrepreneurs, offering advice, guidance, funding, and technical expertise. This helps facilitate the processes of commercialising research.
Maintaining our competitive advantage, as well as increasing our productivity, in the primary sector will depend on a strong partnership between the government, universities, other Crown entities, and industry bodies. We need continuous research and innovation to ensure our industry stays relevant and in front of the curve.