Parochialism Will Ultimately Fail So Think Globally

Australian Prime Minister Turnbull’s recent flying visit to New Zealand, to meet our new PM Bill English, was a considerably more civil affair than Turnbull’s reportedly heated conversation with the “so called” U.S. President the previous week. Perhaps that is why the visit went under-reported in the media. Neither Prime Minister could be regarded as a stellar charismatic, but perhaps that’s not such a bad thing. In these unenlightened times, a safe pair of hands with good diplomatic skills and a head for business is a far greater asset. Strengthening regional economic linkages will be key to survival in an uncertain world.

During that top level meeting in Queenstown a cooperation agreement on science and research was signed that paves the way for more trans-Tasman collaboration. To the popular media, topics such as this are about as dull as a damp dish cloth and the agreement went largely unnoticed. That’s a shame because everyone needs to understand how important regional cooperation is becoming to the economy. How we play within Asia-Pacific will have implications for our future opportunities and prosperity. The disturbing shift (in some quarters) towards isolationism and protectionism demands that we build stronger regional relationships.

There needs to be a local mindshift as well. I’m tired of well-meaning local government agencies constantly banging on about how they are making over their cities into the next big centre for technology innovation. It’s a ridiculous notion. The entire population of New Zealand could fit into most major cities on the Asia-Pacific rim, with whom we are in a battle for capital and talent. We contribute 0.1% of the global economy and we are under-cooked by most measures in terms of science and technology research and innovation commercialisation. Short-sighted parochialism makes no sense and must end now. Our businesses and civic leadership need to get with the programme and start connecting regionally.

I had a conversation along these lines recently with Shawn O’Keefe, formerly a co-founder of South by Southwest (SXSW), a huge global film, music and interactive media event. Shawn is currently based in New Zealand and is now an advisor to the Myriad event launching in Brisbane this year. Myriad is supported by the Queensland government, which is pouring a huge investment into promoting innovation in the Sunshine State. Myriad is a three day festival of art, technology, innovation and investment match-making. A key theme of the event is that we need to collaborate regionally to compete globally.

It would be great to see a strong contingent of New Zealand tech founder entrepreneurs at this event.

Image credit: Paul Spence

Paul Spence is a commentator and serial entrepreneur, a co-founder of Wellington, New Zealand based technology ventures iwantmyname and Polanyio and a mentor with Startup Weekends and Lightning Lab. You can follow Paul on Twitter @GeniusNet or sign up for a free weekly digest of startup, tech and innovation related events curated by him through New Zealand Startup Digest.

Ashes To Ashes 2016. Now Welcome To 2017

Let’s face it, last year was a pretty shit year for fans of popular music and culture. I don’t care what the statisticians say, the catalogue of highly talented stars that made premature exits in 2016 was exceptional and shocking. However the media were (mostly) too polite to mention that the collective drug consumption of the dearly departed probably supported a number of small South American nations’ economies throughout the 1970’s and 80s. All tragic losses, but perhaps not entirely unexpected.

Less predictable was the outcome of the U.S. election, a result so unpalatable that we can only hope that the American political establishment will find a way to put matters right, before there is a very nasty accident involving long range armaments or fiscal collapse. One way or another, I very much doubt Trump will see out his four year term. The Brexit debacle was equally disturbing and was also another example of a poorly informed, inward looking minority being allowed far too much influence. But of course it would not be democracy if we excluded people with double-digit IQ and questionable heredity from voting.

At a time when irrational fear, regional isolationism and misguided notions of nationalism seem to be taking root globally once again – it is important that thinkers give voice to their concerns loudly and often. Important because intellectualism usually becomes an early victim of the mob, when rational thought gives way to populism and slogans. History repeatedly shows us that this never ends well.

So I was at first encouraged when I read this opinion piece on how we all need to work together to create a sustainable economic future for New Zealand. Whilst I certainly agree with the sentiments, I disagree that this approach is predicated on Auckland as the “centre of innovation” for New Zealand. In fact the problems of Auckland are analogous to arterial thrombosis. If the heart fails, the entire body will die – and that’s a big issue for all of us in New Zealand. Regional relationships and complex networks are the better approach, as I have discussed previously, with regional linkages and multiple innovation hubs.

For my part this year, I intend to continue to connect entrepreneurs and innovators from across New Zealand and abroad and to contribute economically by working on growing the businesses we have under the GeniusNet portfolio and (hopefully) add one or two more during the year. I will also continue to speak out on issues, especially those that relate to economic development. It is about time the citizenry had greater influence over decisions than those self-serving politicians whose main aim is building grandiose edifices to themselves. Here’s something good from 2016 that gives the world hope in this regard. Thanks Audrey.

Paul Spence is a commentator and serial entrepreneur, a co-founder of Wellington, New Zealand based technology ventures iwantmyname and Polanyio and a mentor with Startup Weekends and Lightning Lab. You can follow Paul on Twitter @GeniusNet or sign up for a free weekly digest of startup, tech and innovation related events curated by him through New Zealand Startup Digest.

When Good Ideas Have Sex: The Case For Innovation Networking

w2wLast year I attended the final pitching session at Get Funded 36, a compressed accelerator course for budding entrepreneurs from within the academic community. Callaghan have produced a blog article explaining how it all worked, nicely showcasing PhD student Brendan Darby and his spectroscopy solution for testing turbid fluids. During the one and a half day event, the participants were walked through the fundamentals of lean startup methodology and coached on how to develop a short pitch to promote their proposal with investors and funding agencies.

I have been involved in promoting this kind of innovation networking through startup community events for some years now, including developing Unlimited Potential Wellington to the World (see photo above) a tech and research innovation showcase and helping to run a special Startup Weekend for researchers last year. The results were mixed, but Get Funded 36 went on to tailor the model a little more and I hope there will be other similar events in future. There’s certainly a strong case for developing more short course formats for giving researchers and academics a taste for entrepreneurship and for exposing the business community to new ideas.

Technology research forms the basis of most high value ventures, but New Zealand has traditionally been a poor performer in commercialising academic research. Part of the problem has been an obsession with “publishing” research, instead of turning it into a business. Our university commercialisation offices have had some successes at licensing intellectual property, but less success at seeding high growth ventures in which most of the economic value has been retained locally. Those mindsets need to change if we are to earn our keep as a nation in future.

There are other initiatives in the New Zealand research and academic community such as Velocity (formerly Spark) and KiwiNet that have gained some traction over recent years and which welcome engagement with the broader innovation and business community. We need more of this! I firmly believe researchers need to get downtown and mingle with entrepreneurs and investors more often. As a friend of mine is often fond of saying, “when good ideas have sex, great things can be achieved”.

Paul Spence is a commentator, technology entrepreneur, a co-founder of iwantmyname (a New Zealand based global Internet venture) and an organiser and mentor with Startup Weekends in New Zealand. You can follow him on Twitter @GeniusNet or sign up for a free weekly digest of startup, tech and innovation related events curated by Paul through New Zealand Startup Digest.

No Public Funding For Runway White Elephant Please

777lotrThe debate over whether or not public money should be invested in the extension of Wellington International Airport’s (WIAL) runway is starting to heat up. Despite project studies only being released to the public this week, city councils across the region have already indicated they will provide financial support towards the $330 million cost. At present central government has said it will not support and some local body councillors are already starting to feel uneasy about the overall proposal.

The Wellington City Council (minority shareholder in the airport), Wellington Chamber of Commerce and WIAL have been enthusiastically promoting the supposed “economic benefits” of the project. But the real reason the extension is needed is because the current length is sub-standard even for short-haul jet operations. WIAL is essentially asking taxpayers and ratepayers to co-fund capital works. Given that WIAL parent company Infratil earned a staggering $453 million last year and reportedly has a $1 billion war chest, why are public funds needed at all? Surely WIAL can make it’s own business case and access funding itself?

Adding 300 metres to the runway will not make it safe for wide-body aircraft.  “Long haul” flights are not coming to Wellington any time soon and here’s why. Firstly, medium haul, mid sized airliners are actually being phased out across the Asia-Pacific region as we speak. My understanding is that the last Qantas 767 has already gone and Air NZ has a small number remaining with limited lifespans. Asian airlines no longer operate these types. Air Asia and Jetstar withdrew A330s from Christchurch and Auckland, because they could not make a profit. In any event, an A330 would not be able to operate fully laden, even from an extended runway. Truly “long haul” aircraft such as A380, A340 and B777 are unlikely to be operated because of weight and size limitations.

The 787 Dreamliner is often touted as the saviour of long thin air routes. Again, it will not be possible to economically operate this aircraft out of WLG, even with a longer runway. Extending the runway will not remove the nearby hills. Aircraft take-off restrictions are governed by the climb performance under instrument flight conditions with a failed engine at the takeoff point. Long haul operations (10-16 hours) require huge fuel loads and substantial take-off weights. Take-off performance is a function of aircraft weight, engine power and ambient conditions, NOT runway length. Aircraft will be payload limited even with the runway extension in place. This is a really important point that most commentators and the media have missed.

There are many other reasons why investing in a runway extension is a bad idea. Not the least of these is that the airlines refuse to commit. You can be sure that Air New Zealand is not going to undermine it’s cosy hub and spoke operation that is based in Auckland and it’s not clear that any Asia or U.S. based airlines are at all interested. Some passengers complain that travel via Auckland or Sydney is onerous. But can you name any city under 500,000 population in North America that has direct air links with London or Hong Kong? Hub and spoke operations are the norm elsewhere in the world. There are many other investments that Wellington can make as a city and a region in order to promote economic development.

Unsurprisingly, there is zero information on the WCC or WIAL websites about the public consultation process. But the media are reporting the following information. There will be three public open days where people can meet one-on-one with the experts who prepared the reports. The open days will be held at Chaffers Dock Function Centre on December 2 from 12pm to 3pm, at SPCA Fever Hospital in Mt Victoria on December 3 from 5pm to 8pm, and at the Brentwood Hotel Conference Centre in Kilbirnie on December 5 from 12pm to 3pm.

Postscript: There is now a dedicated website providing links to information from the consultants who were paid by the project supporters to provide reports. The site also contains information about public presentations and how to make a submission.

Paul Spence is an ardent supporter of regional economic development, a commercial pilot licence holder and a technology sector company director based in Wellington.

A Special Event For Entrepreneur Researchers

swrschCompared to many OECD nations, New Zealand underperforms at building great global companies based on smart commercialisation of knowledge. That’s a shame, because we have no shortage of intellectual talent and we also enjoy a fantastic natural resource base.
So we are putting on a very special Startup Weekend event here in Wellington focusing on science and research. It’s all part of our efforts to strengthen the entrepreneurial ecosystem in New Zealand and get more people in science and technology thinking about entrepreneurship as a career. Encouraging a culture of entrepreneurialism and building bridges between the research and business communities are important themes in driving value-added economic growth that we need to underpin our future.
It is a fantastic opportunity for young researchers who are interested in research commercialisation to spend a weekend with some very cool mentors as well as investors and people from across the business community. The McDiarmid Institute and Kiwinet are actively supporting this event. It’s mostly about teaching a lean methodology for developing and testing business ideas, as well as networking with potential future collaborators.

Participants can bring a project of their own that they wish to explore or join another team simply for the learning opportunity. We are looking for researchers from any field plus engineers/developers, designers and business gurus to get involved as well. Who knows where it might lead?

This will be a smaller event than usual and spaces are limited. Sign up for Startup Weekend Science & Research today!

Paul Spence is a commentator, technology entrepreneur, a co-founder of iwantmyname (a New Zealand based global Internet venture) and an organiser and mentor with Startup Weekends in New Zealand. You can follow him on Twitter @GeniusNet

Wellington Local Body Amalgamation: My Submission

For the record, here is a copy of my submission to the Local Government Commission

“Firstly let me express my utter disappointment at the way this entire process has been managed. The release of the draft proposal from LGC was badly timed and there has been insufficient opportunity for robust public debate as a result. It’s clear that this suited the agendas of certain politicians who are hell bent on forcing a change that, it has become clear, the majority of people do not want. This is not good enough and we expect more of our elected officials and taxpayer funded civil service.

On that basis my submission is simply this:

1. That the entire process addressing changes to local body governance in the Wellington region be halted and subject to an independent review.

2. The existing proposal from LGC be scrapped and a new proposal be developed involving a far more democratic approach and with much deeper public engagement.

3. The existing Wellington Regional Council members be removed immediately and replaced with a temporary commissioner.

4. We already have a pan-regional council. We do not need to reinvent the wheel. What we need are functional board members who can work collaboratively with existing councils around the region.

This process is on the wrong path right now. I would urge the LGC to take heed of public opinion. Thank-you for your consideration of this matter. ”

Postscript:  We won! 90% of public submissions were against the merger and LGC has canned the existing proposal. More background here.

Dysfunctional Regional Council Must Go

In case you hadn’t noticed, the public consultation around the proposal to amalgamate local bodies in the Greater Wellington region closes on March 2nd. You could be excused for not knowing, because (much to their shame) the parties concerned have done little to encourage public debate on the topic. The proposal is highly contentious, has huge implications and yet has been so poorly publicised. But the one thing everyone seems to agree upon however is that the highly dysfunctional Wellington Regional Council must be dissolved, whatever happens.

An information guide dated December 2014 finally turned up in my letterbox in mid-February. The pamphlet explains the “draft” proposal put forward by the Local Government Commission for local government amalgamation in the Wellington region and invites public submissions. Drilling down into the commission website, it became apparent that there was not an online form for submission anywhere, but simply an email or postal address. I guess they weren’t expecting many responses. There was no obvious mention of the proposal or submission process on the Wellington City Council website at all. The Wellington Regional Council website does have one page devoted to the topic, including some useful background material, but zero information on how to actually make a submission. In an age of nearly universal access to internet, this is unacceptable and makes me suspicious about transparency around the entire process.

Notwithstanding the obfuscation, there has been a flurry of media activity in recent weeks as it emerged that almost half the Wellington Regional Council elected councillors are having second thoughts as public disquiet has been growing. Even the pro-amalgamation “Chamber of Horrors” have toned down their rhetoric lately, as it became clear that the real bill for amalgamation could be well north of $200 million, if harmonisation of I.T. services were included. In a recent joint statement the business Chambers agree there is a “need for change”, but do not go as far as endorsing the current proposal.

The original suggestion for amalgamation came from Wellington Regional Council itself and is being driven largely by an individual with one eye firmly fixed on the future super-mayor job. This person has a sterling previous track record of successfully promoting unpalatable political agendas and knows the right levers to push to get the job done. But releasing the amalgamation proposal at Christmas, then fronting up to a couple of small debates a week before the doors close simply doesn’t cut the mustard in terms of public engagement.

Ironically, it is the lack of goodwill between the existing regional council and the other councils in the region that has led to this problem in the first place. There are important regional projects such as economic development, roading and water that must be addressed in a co-ordinated way, but the regional council has failed to galvanise and unify the other players in the region. Making a clumsy grab for power must have seemed like the only option. What is really needed is a functional regional council that has the confidence of all the city and district councils and that can play nicely and work collegially on the really important issues that face our region. What we do not need is another Auckland-style unitary authoritary. Why reinvent the wheel at a huge cost to ratepayers?

So it is very clear that the existing Wellington Regional Council members must now step down and that the Local Government Commission must go back to the drawing board and respond with a structure that empowers the regional council, whilst retaining local legitimacy and addressing community needs. With luck, we should see a public referendum on the issue in the future. A prominent WRC councillor once expressed her disdain for democratic processes in the past, when she said “let us hold our noses and vote”. Perhaps ratepayers (and voters) of the Wellington region should follow suit.

Paul Spence is a commentator, technology entrepreneur and is a co-founder of iwantmyname, a New Zealand based global Internet venture. You can follow him on Twitter @GeniusNet

A Year Of Global Entrepreneurship?

It’s Global Entrepreneurship Week this week, with a focus on encouraging young entrepreneurs to step up all around the world. Unfortunately GEW seems to have bypassed New Zealand this year – but not to worry – there’s still a great deal happening in the start-up, tech and innovation space.

But lately I’ve become a little less optimistic that we are heading in the right direction in terms of supporting a high tech business start-up culture. Can start-ups really be artificially manufactured and then massaged into life, like characters on a reality TV show? Why are our academic institutions still failing to commercialise publicly funded intellectual property?

Admittedly incubation has had a somewhat chequered history in New Zealand to say the least and the jury is still out on whether intense “accelerator” programmes can work well in a small, distant and (relatively) capital poor market like ours. But who’s calling the shots on public investments in technology these days? Disturbingly, the New Zealand government’s 2015 science investment round still does not even mention a specific category for ICT. This raises questions about priorities, especially given that ICT companies have a demonstrably shorter development cycle than biotech and manufacturing.

The current crop of start-up programmes seem overly focused on creating opportunities for early stage investors, rather than advancing regional economic development. The focus should be in providing local foundations for high value, globally scalable businesses. For example, the most promising of the recent Lightning Lab alumni almost immediately relocated to the United States. But perhaps I’m missing the point? The departure of Lightning Lab itself from Wellington also underlined for me precisely why public servants and executives in suits should never be allowed to meddle with “innovation” initiatives.

Maybe none of that matters, because ultimately it’s the educational and motivational opportunities that are most meaningful. The various initiatives on offer also raise the profile of entrepreneurship as a career option. That’s important because it’s clear that the continuing lazy media obsession with sporting and entertainment “heroes” does little to encourage our young people into business at present.

What is encouraging however, is the fact that techies and start-up fanatics have become a lot more self-organising lately and are just getting on with it. I daresay the majority of interesting tech start-up companies of the future will probably get going in the same old way they have done historically – with a couple of mates bouncing an idea around over a beer and then raising some cash AFTER they get customers on board. Those companies will be thinking global from day one if they are smart. Global entrepreneurship should be the focus all year round.

Want to keep in touch with the best tech and start-up events? Make sure you sign up for the New Zealand edition of the free weekly Startup Digest.

Paul Spence is a commentator, technology entrepreneur and is a co-founder of iwantmyname, a New Zealand based global Internet venture. You can follow him on Twitter @GeniusNet

Capital Tech Beat Picks Up

r9sw1The logo parade on High Tech Capital’s website aptly illustrates how Wellington’s tech start-up scene just keeps getting better and better. In the depths of the global recession back in 2008, when we bravely launched iwantmyname onto the world stage, you could count the number of innovative, global-facing web start-ups on one hand. The mood was downbeat at that time, but the stage was set for what local angel investor Dave Moskovitz has labelled as a “Cambrian explosion” of innovation.

Way back about the same time the dot-coms were busting in the U.S., some of us saw that the tech and start-up ecosystem in New Zealand needed fixing. Through early initiatives such as Capital ICT cluster, Unlimited Potential Wellington to the World and Startup Weekend we set to work joining the dots. Building an ecosystem takes a long time because it requires some political risk taking and a cultural shift. With a long overdue re-draft of the regional economic strategy and the blossoming of other initiatives such as Macdiarmid, CreativeHQ, AngelHQ and  tech accelerator Lightning Lab, we finally have all the ingredients in place.

It also helped a lot that we have high tech movie and games industries and a couple of hefty counterweights in the form of Xero and TradeMe. There’s a free flow of talent across the semi-permeable boundaries between games, movie and software industries and the big boys keep Wellington in the global spotlight. The recent Green Button acquisition by Microsoft was a coup for local angels who invested and demonstrates how success springs from the tech talent pool, many of whom are skilled migrants.

Keeping talent engaged in our region involves creating an attractive cityscape and ensuring infrastructure such as broadband and transport links are world class. We also need to constantly invigorate the flow of capital and ideas through events, initiatives and global outreach to other start-up magnets around the Asia-Pacific rim.

Stay in touch with start-up, tech and innovation related events with the weekly edition of New Zealand Startup Digest. Registration is free.

Pictured: Josh Forde, Paul Spence & Dave Moskovitz at R9SW. Photo credit: ParleyMedia

 

Making Your Startup Weekend Project Shine

sw65Wet weather and some rumbles from the earth were not enough to put a damper on Wellington Startup Weekend special social enterprise edition in 2013. Teams rapidly coalesced around various ideas for social ventures and the hard work of crafting a business proposition in the short space of 54 hours got underway.

As entrepreneurs, what is our most pressing task? The most important role of an entrepreneur is TO LEARN. Starting up a new business is a crazy experiment. You have a hypothesis, you test it out and then you adjust according to what has been learned (or you stop altogether). That is the essence of a scientific approach to customer development and customers/revenue are ultimately the life blood of any enterprise. There is no magic formula apart from hard work.

Startup Weekend offers a microcosm of the venture development process. It’s primarily an opportunity to learn from and network with a wide range of people who you can potentially work with in the future. Most participants don’t walk away with a big prize or a viable long term business. If that is your primary goal, you are probably in it for the wrong reasons.
But here’s a few tips for polishing up your fantastic Startup Weekend idea.

Judging revolves around three main themes. Business model, validation and execution. Do not expect to have perfected any of these by Sunday evening.

Model. Sustainability is the key. Demonstrate that you can potentially offer a product or service that is both financially profitable or sustainably delivers on social objectives. Why would you invest many hours of your valuable time into a venture that cannot feed itself?

Validation. Judges love to see that you got out of the building and tested your ideas on others. Your Mum’s opinion doesn’t count. Talk to strangers in the street, competitors, suppliers, potential partners and anyone who can give you a subjective viewpoint. Get some online surveying going. Where is the demand? Does your idea suck or sing?

Execution. You don’t have to close any sales deals or have a fully functioning web app by Sunday evening (although many teams have certainly achieved extra credit for this at previous events). But if you have a cohesive team, a good story and some kind of “minimum viable product” or prototype concept to demonstrate, that will impress the judges a lot.

Social Media. Finally an extra tip. Startup Weekend is all about knowledge sharing, networking and community. Extra brownie points for those teams that have been actively generating buzz through social media throughout the weekend. If you don’t have those skills yourself, get someone on the team who does and learn from them – fast. Building an online profile is essential for scaling any kind of business – social enterprises are no exception.

Best of luck!

Paul Spence is a commentator, technology entrepreneur and a co-founder of iwantmyname, a New Zealand based global Internet venture. He’s also a veteran of eight ten Startup Weekends as an organiser, mentor, sponsor or player and was a judge at Wellington Startup Weekend: Social Enterprise in 2013. You can follow him on Twitter @GeniusNet