2001 Conference - Rotorua

|Index|Introduction|Programme|Workshop Streams|Keynote Speakers|

Business to Hamilton

Mike Underhill
Tech Park, Hamilton

Contents

• Introduction
• Common Strategic View
• Sustainable Competitive Advantage
• Value Chain
• Major Regional Initiative
• Parameter
• Implementation
• Governance
• Organisational Structure
• Role of Industry NZ
• Conclusion

Introduction

• B2H encourages and facilitates economic growth
• Operates in Hamilton and surrounding Waikato
• Strong multi-sectoral participation
• Operational funding from within membership
• Challenge: Hamilton will be a World Centre for life sciences
• Goal is to increase jobs in the region and increase GRP

Common Strategic View

• Council initiated process to develop economic development strategy
• Professional strategy development
• Wide consultation including:
• Business
• University
• CRIs
• Tainui
• Local Government
• Service Sector
• Establishment of Economic Development Forum
• Commitment of operating funding and resources

Sustainable Competitive Advantage

• Critical for regional development
• 25% of New Zealand research scientists
• Ruakura is largest agriculture and horticulture research centre in Southern Hemisphere
• Well-established dairy, livestock and environmental research
• Strong university research capability
• Strong supporting infrastructure
• Recognised as a world leader in key biotech areas
• Biotech is the next wave of fundamental development following IT and electronics

Value Chain

• Value chain starts at research and ends with product sales
• In Biotech, research captures only small part of chain
• Waikato exports most of its research for overseas development
• Challenge is to capture the value chain
• Creates net value for New Zealand - not competing with other regions

Major Regional Initiative

• Development of Innovation Park
• Focus on bio-tech
• Create local and regional economic development
• Maximise benefits to the region from technology developments in the life sciences area
• Facilitate interaction between University of Waikato, CRIs and industry
• Key elements
• Business incubator
• Established research-based industries
• Technology Commercialisation Liaison Office (TCLO)
• Adjacent to CRIs and University

Parameter

• Initial funding - $6-8 million
• Economic benefit
• 2500 direct jobs
• $375m increase in GRP
• Multi-stage process
• Viability principle: initial Public Good funding followed by self-sustaining earnings from park tenants from rentals, services and profitability

Implementation

• Management team established - funded by B2H
• Commercial Board established
• Detailed economic evaluation and business case
• Large site found in conjunction with Tainui
• Buy-in from CRIs and University
• Funding requests to Industry New Zealand
• Funding requests to Community Trusts
• Funding requests to other organisations

Governance

• B2H is a charitable Trust
• Trustees: represent wide cross section of community
• B2H is the umbrella for economic development
• Shareholder in MRIs
• Seeker of funds
• Current funding $230K/annum ramping up to $450K

Organisational Structure

Role of Industry NZ

• Spark that creates opportunity from great concepts
• Regional strategic alignment
• Capability building
• MRI advice, testing and funding?
• New, approachable, creative, enabling

Conclusion

• Waikato has great economic development opportunity
• We have a strong sustainable competitive advantage
• Will produce net gain for New Zealand
• Significant employment, GRP growth
• Wide support within region
• Need a Public Good initial funding portfolio

|Index|Introduction|Programme|Workshop Streams|Keynote Speakers|