Small firms hinder innovation: D.S.I.R.

Press, 14 July 1980, Page 10

Small firms hinder innovation: D.S.I.R.

PA Wellington The preponderance of small manufacturing firms in New Zealand hindered technological innovation and the ability of manufacturers to compete on the international market, said the annual report of the Department of Scientific and Industrial RecporpH The' report, tabled in Parliament said that small firms were limited by the amount they could invest in research and development. In' this respect, New Zealand, with a few very big firms, contrasted with other countries where big firms were main research vehicles.

The report based its

comments on data gathered from two surveys, one on metal-working machine tools and the other On a cross-section ot 2QOO New Zealand manufacturers.

The findings of the manufacturers survey showed that increasing costs were the main problem.

Government were also of much coricern, although many companies felt the Government should have the main responsibility for areas that in other countries were traditionally the responsibility of private enterprise, the report said.

Jn this respect, the gathering of information on market conditions and opportunities, profitable exports and development finance were considered important.

The two D.S.I.R. surveys had been used to form the basis of a discussion paper, “Technology and innovation in the New Zealand manufacturing industry,” it said.

The Minister of Science and Technology (Mr Birch) said later that manufacturers and Government- officals would meet soon to discuss the issues raised by the paper. Mr Birch said he hoped the paper would help to clarify what changes were needed, through combined discussions and analysis of- its conclusions and recommendations.

“This will strengthen the basis for mutual understanding between the Government and New Zealand manufacturers so that industrial policy is evolved in the best national interest,” he said.