A Comparative Macro-level Assessment of New Zealand's 'National Innovation System'

It has been argued that the power of the concept of a 'National Innovation System' (NIS) lies in its comparative nature. Adopting this viewpoint, we provide a comparative snapshot of New Zealand's NIS. Using macro-level indicators to measure innovation, knowledge absorption and diffusion, we compare the performance of New Zealand with that of other OECD economies. The data indicate that New Zealand continues to have a weak NIS, despite major changes to its research, science and technology sector since the late 1980s, and despite its openness to foreign direct investment. We conclude with some general policy considerations to remedy what, by international comparison, still seems to be a NIS failure in New Zealand. The paper also suggests directions for further research.