A perfect model for NZ to follow

By Selwyn Parker

The booming business area of North Carolina in the US could provide a model for New Zealand in the creation of an entrepreneurial economy, says Dr Marie Wilson, head of the University of Auckland's department of management and employment relations.

An economic backwater that 40 years ago relied mainly on primary production and light industry and was suffering a brain drain, North Carolina has since become one of the top 10 business regions worldwide.

It did so by - among other measures - establishing the world's first research park, which tapped the engineering and biomedical expertise of three nearby universities.

The Government also poured development funds and tax incentives into the region to attract big public and private companies that helped commercialise research and attracted top people, said Dr Wilson, who visited North Carolina last year as American Chamber of Commerce business education fellow.

Over the past decade, the region had followed up with another package of incentives to the education and commerce sector, including small business development centres.

Education was heavily subsidised. North Carolina had the highest percentage of subsidy for tertiary education in the United States, said Dr Wilson. This was part of a strategy of helping to pursue state and regional economic goals.

"Like North Carolina nearly half a century ago, New Zealand must take a focused, pro-active approach," Dr Wilson concludes after a 35-day tour that included interviews with more than 200 people in 12 business schools and 26 companies - including some in Silicon Valley - Boston business schools, 3M Corporation and the University of Texas.

Recent initiatives such as the National Government's Bright Future package did not address the development gap between New Zealand and comparative nations within the OECD, she said. "Past and current initiatives reflect a lack of integration or coherent national strategy."

Other American initiatives designed to create an entrepreneurial economy included:

* Dynamic cooperation between business, universities and Government to strengthen the private enterprise system, grow the economy and create jobs.

* The use in tertiary institutions of "pracademics" - experienced entrepreneurs who added a practical dimension to academic learning. For example, Harvard had a practice of signing on chief executives of international companies for teaching and research.

* The attraction of large "anchor" employers.

* The teaching of enterprise development in schools and universities, and not just to business or professional students.

* Compliance costs for business and revised company laws that provided an internationally competitive environment

* The structured contribution of Government as a catalyst to business education nationally and regionally.

* Selwyn Parker is available at wordz@xtra.co.nz