Health software firms want $4.5 million for global assault

By ADAM GIFFORD

The country's health software firms want a $4.5 million boost from the incoming Government to help pay for the infrastructure needed to take their software to a global market.

Health IT Cluster chairman David Clarke said because the health software market was growing more than 30 per cent a year, the sector had the potential to earn $2.5 billion in exports in 10 years.

But that meant creating the right climate at home, he said.

"Unless we get Government support with legislation, unless we get the Ministry of Health, unless we get all the players in the universities and research, we are not going to be able to create the domestic factors that will enable us to drive export earnings and jobs," Clarke said.

The cluster, representing more than 20 firms, met ministers this year after the Knowledge Wave promise to encourage growth in information and communications technology.

Health-related software makes up more than 10 per cent of that sector.

The early election had upset its plans, but an Industry New Zealand-financed 33-page proposal entitled A High Growth Strategy for the New Zealand Health IT Cluster would be presented to the Health Ministry this week.

The document would then be available for the new Government.

The $4.5 million the Government is being asked for would be matched by $19.5 million spending by the industry.

The first item on the list is a "Cluster Centre", in effect a trade group which would manage cluster databases, maintain the website, organise events and liaise with Government departments, district health boards, standards groups and universities.

The budget would be $1.8 million over five years.

The cluster wants to work with the Government to ensure that there are enough graduates to fill the 8000 jobs it expects to create.

It wants an overhaul of Government funding schemes which the report says are difficult and time-consuming to apply for. The proposal seeks $300,000 from the Government towards a "brand audit" and wants the Government to pay for marketing databases so that members can share that information.

The cluster also wants the Government to provide $1.8 million towards establishing a health informatics institute at Auckland University.

The institute would be at the Tamaki campus, seen by the cluster as a possible site for a health technology park of new and established firms.

The document also identified existing money which can be better used through the cluster.

This includes the $3.9 million Trade New Zealand expects to spend on the sector over five years to establish "beachheads" overseas through trade missions or at trade shows.

The cluster wants a board set up to channel up to $32.8 million in research money to cluster members.

Health IT