"The current moratorium on field trials of genetically modified organisms and the lengthy process required to get permission for research is discouraging innovation in New Zealand. We don't want to lose these people and skills overseas."
Dr Rolleston said encouraging a healthy biotechnology sector would boost other sectors such as primary production, pharmaceutical development and environmental protection.
Prime Minister Helen Clark recognised biotechnology's "spillover" effect but gave no indication the Government was prepared to relax rules it set after the controversial "proceed with caution" finding of the Royal Commission on Genetic Modification.
"While research on genetic modification falls under the broad rubric of biotechnology, so do ecological research and many other areas of biological science," she said.
"The need for a precautionary approach with respect to one aspect of biotechnology should not blind us to the opportunities which this fast-developing field represents."
The Government's Growing an Innovative New Zealand report found the Royal Commission had noted that New Zealanders had a history of adopting and adapting new technologies.
"They advised that it would be wise to establish a Bioethics Council and develop a biotechnology strategy for New Zealand which would take into account factors such as scientific, environmental, economic, cultural, consumer preference and the interplay between them."
Read the full reports:
Government of New Zealand
Growing an innovative New Zealand
Part 2
Herald features
Catching the knowledge wave
Global Kiwis
Proud to be a Kiwi
Our turn
The jobs challenge
Common core values
