New Zealand’s Innovation Potential: Bridging Research and Business

New Zealand’s economic future increasingly hinges on its ability to transform research into viable businesses that create jobs and enhance global competitiveness. Recent findings from the 2024 Survey of Commercialisation Outcomes highlight the potential for growth through effective commercialisation of publicly funded research. This annual survey, conducted by Knowledge Commercialisation Australasia, offers insights into how research translates into commercial and social outcomes across Australia and New Zealand.

The report reveals that the University of Auckland, along with its commercialisation partner UniServices, has excelled in fostering innovation. The university leads the region with equity in 45 active spinout companies, marking the third consecutive year it has achieved this distinction. These ventures include notable names such as Alimetry, Avasa, Zenno Astronautics, Kitea Health, and StretchSense. Together, they have attracted international investment, formed global partnerships, and are successfully exporting New Zealand-developed technologies.

These companies not only contribute to the economy but also employ hundreds of highly skilled workers, showcasing the kind of high-value growth New Zealand aims to achieve. Such innovation stems from a system that prioritises the translation of research into tangible outcomes through a focus on building human capability, aligning incentives, and long-term investment strategies.

As the academic director of the university’s Centre for Innovation and Entrepreneurship, I witness this effective system firsthand. UniServices plays a crucial role in managing the commercialisation process, including protecting intellectual property and guiding new ventures through their initial stages. Our centre also prioritises the human aspects by cultivating founder capability and equipping students and researchers with essential skills to navigate markets and develop sustainable businesses.

The importance of capability has been underscored by the Science System Advisory Group in its report titled A Pathway to the Future: New Zealand’s Science and Innovation System. The group identified the gap between intellectual property and initial public offerings (IP-to-IPO) as a significant weakness in New Zealand’s innovation landscape. Its message is clear: innovation policy must emphasise the development of human resources alongside financial considerations.

Survey data supports this perspective, indicating that the number of commercialisation professionals is growing significantly faster than research expenditures. This investment in skilled personnel is yielding positive results, with more spinouts and stronger industry partnerships emerging. While licensing revenue can fluctuate, the rise in active ventures signifies a maturing innovation ecosystem focused on developing long-term capabilities rather than seeking immediate financial returns.

University-originated enterprises in sectors such as biotechnology, artificial intelligence, and advanced manufacturing are becoming some of the most productive businesses in the economy. These firms often generate several times the value-added per employee compared to conventional small and medium-sized enterprises. They diversify the export base, retain scientific talent, and help establish knowledge-intensive clusters.

For investors, the presence of robust capabilities significantly lowers risk. When they encounter sound governance, clear intellectual property ownership, and credible founders, funding becomes more readily available. In this scenario, capital is attracted to competence.

Despite this, the national discourse surrounding innovation often fixates on funding issues, such as grant levels and venture capital availability. The real limitation, however, lies in capability. Without skilled professionals to bridge the gap between ideas and market opportunities, increased funding merely creates a backlog of under-commercialised research. With the right capabilities in place, financial resources can catalyse growth.

At the Centre for Innovation and Entrepreneurship, we are committed to building this capability on a large scale. Each year, thousands of students and researchers participate in our programs, learning to manage uncertainty, lead teams, and transform insights into viable ventures. We provide clear pathways for founders, whether they aim to establish a startup, obtain a license, or form a strategic partnership. This combination of entrepreneurial education and professional commercialisation strengthens New Zealand’s position as a reliable source of investable innovation.

Every university and public research organisation must enhance its commercialisation capabilities by investing in individuals who can effectively connect science and business. By partnering with industries to achieve tangible economic returns, the impact of research can be maximised. Research impact is not a puzzle to be solved but a system that can be scaled.

New Zealand often claims to excel in various fields, and in research commercialisation, the evidence is mounting. The University of Auckland’s impressive results exemplify what can be achieved when capability is regarded as a fundamental infrastructure rather than an afterthought. The next decade will belong to those economies that can swiftly and reliably convert knowledge into value at scale, ensuring that capital flows towards capability.