Transforming our economy

Given the step change in broadband performance, we can predict an environment in which businesses, application developers, exporters of digital services and home consumers have access to all the connectivity they need. The question then is, to what end?

The challenge is to harness the power of the new digital world to create an innovative, high-income knowledge-based economy that will generate prosperity for all New Zealanders into the 21st century.

A high-speed digital infrastructure makes no sense without innovative content and applications to fill it. Digital production means content creators and providers can use digital networks to reformat, package, disseminate and sell their work locally and internationally, reaching consumers directly. Creating high-value content – for ourselves and for export – is an area where New Zealanders can lead the digital world. This Strategy proposes a Digital Content Innovation Cluster. This will boost New Zealand’s production of applications in areas such as e-learning, e-health and online gaming, helping drive demand for widespread broadband connection. It will also enhance the productivity and competitiveness of important export industries, such as food and beverages and farming, by creating digital solutions tailored to their needs and to local conditions.

Improved productivity is key to transforming our economy. Low capital productivity is often due to inadequate investment in technology and innovation, while low labour productivity often results from inflexible work practices, including inadequate use of digital technology. Investment in digital technology is needed to improve New Zealand’s productivity. But it is not just getting the right technology that will improve productivity and economic performance. We need to change attitudes and build world-leading capability in the smart use of technology.

Decision-makers in our businesses and organisations need to be aware of available solutions and think about how to use digital technology to increase productivity. Over the next two years, the Digital Development Council will lead a new initiative, Connected New Zealand, which will support small and medium enterprises to invest in and use digital technologies to increase productivity. Digital development teams and champions will work with businesses and not-for-profit organisations to create local-level plans for lifting productivity through broadband and digital technology, including by boosting digital skills and use of digital content in the workplace.

If we increase productivity across the economy, we can use the wealth generated to achieve our shared social and environmental goals – including better health and education, smarter, environmentally friendly production techniques and better public transport. A competitive standard of living and a high level of public services and environmental protection helps us retain skilled New Zealanders and attract new migrants, including the skilled information and communications technology (ICT) practitioners we need for digital development.