Knowledge wave slow to crest

Jim Anderton

"Impossible things I do daily, miracles take a bit longer", says a sign in Jim Anderton's office.

It's fitting the sign should grace the wall of the Minister of Economic Development, as its message sums up nicely the Government's quest to transform the economy.

The idea is to move New Zealand away from being largely dependent on cows and sheep and toward an economy that is driven more by so-called "knowledge-based" industries.

But, if a series of reports due to be released today is any indication, that mission is proving to be more difficult than the Government expected.

The reports - authored by taskforces comprised of private sector experts and business leaders - paint what looks to be an overly ambitious picture, a fact even Anderton is willing to concede.

"They set the goals for themselves, and they set them fairly high," Anderton says. "Some of them, we even question ourselves."

The minister is not alone in wondering if the taskforces are on the right track. Industry representatives from several of the relevant sectors are also questioning whether the taskforces have set the ceiling too high. And if they did, where then does that leave this longed-for, knowledge-based economy?

To be fair - it's an initiative worth doing, Anderton says, since it's impossible to tell if the Government is on the right track without even making the attempt. But clearly, changing the face of New Zealand will take time.

The movement goes back to February, 2002, when Prime Minister Helen Clark spelled out the Government's plan in a strategy known as the Growth and Innovation Framework (GIF).

The GIF identified four sectors that warranted special attention - biotechnology, information and communications technology (ICT), screen production and design - for their high-growth potential and ability to spur other industries.

Four taskforces were established to recommend actions to aid those sectors, and in September 2003, Cabinet approved $110 million over four years to implement the suggested initiatives.

The taskforces are releasing their progress reports today through the GIF's website, with a full review of their actions by the Ministry of Economic Development set for June 2006.