R&D links sought in Japan

By BRIAN FALLOW economics editor

The Ministry of Research, Science and Technology plans to base a representative in Japan to build links between New Zealand's research and development community and Japanese businesses.

At a meeting of the Japan-New Zealand Business Council in Kyoto last week, the ministry's chief executive, James Buwalda, outlined areas of the knowledge economy in which New Zealand had something to offer.

AgResearch's work into the genes which regulate muscle development, for example, could have value not only in growing bigger livestock faster, but for human muscle disorders like heart disease, Dr Buwalda said.

New Zealand expertise in designing buildings to withstand earthquakes was another area of mutual interest.

"I got the idea they were quite impressed at the range and quality of the new economy work going on here," he said.

"The popular image of New Zealand is not that of a high-technology country. Instead, it's expansive pastures and snow-capped peaks."

Fostering hopes for complementary partnerships was a perception that New Zealanders were long on ideas and entrepreneurial gusto, but short on the skills and capital needed to make a commercial success of that innovation.

By contrast, said Kerry McDonald, New Zealand chairman of the Japan-New Zealand Business Council, some of the Japanese business leaders at the Kyoto meeting had acknowledged their own countrymen were "not good at start-ups". People were inherently risk-averse and preferred to work for established companies.

More generally, Japan remained a land of opportunity for New Zealand exporters, Mr McDonald said, despite being in recession and struggling to achieve effective reform.

"Some Japanese companies are leaving behind their traditional ways and becoming much more dynamic and entrepreneurial, and some of those are to be found in sectors like housing and food distribution."

He said New Zealand's share of Japan's imports had fallen from 1 per cent in 1988 to 0.5 per cent now - symptomatic of New Zealand's own economic failings.