Source: Wikimedia Commons

It was fun this week attending the Global Entrepreneurship Network NZ Unconference which was hosted in a completely virtual environment. GEN NZ provides a community setting to engage in discussion and take action around promoting entrepreneurship. This article comprises the basis of my pre-recorded flash talk.

During the two years that I have spent at ThincLab Canterbury, we have supported dozens of (mostly young) entrepreneurs to explore their passions through our pipeline from the wonderful UC Summer Startup programme and we have assisted a number of early stage research based ventures founded by students and academics. This has led to over $10 million in capital being raised and the creation of many new high value jobs for our region. But there is a lot more work to do.

The European Union has recently launched the world’s largest and most ambitious multinational research and innovation programme Horizon Europe, investing almost 100 Billion Euros in “goal oriented research missions”. A special “innovation council” has an additional 10 Billion Euros to “fast track” innovations to market, including investment, incubation and advisory. We don’t have those kind of budgets here of course, but what is notable is that 10% of the public investment purse is focused on addressing downstream commercialisation under this initiative.

Notwithstanding the excellent work of organisations such as KiwiNet and MacDiarmid, there is quite limited support for entrepreneurial researchers here in New Zealand. In a recent article discussing the government review of research, science and innovation, Callaghan Innovation CEO Vic Crone argued that publicly funded research requires better and more commercialisation pathways.” Yet the already microscopic funding pool for incubators (including those connected with universities) was actually reduced this year and many providers have already been excluded from further participation. The pathways are actually receding.

We all understand the need to move our economy towards high value, less polluting industries. We also now know that this will be the biggest economic opportunity of our lifetimes. But research does not spring out of the lab and turn into a business overnight and here’s why…

1. Our neighbours across Asia-Pacific have collectively invested hundreds of millions of dollars into developing their innovation ecosystems over the last two decades. For example $755 million invested into Advance Queensland. Now founders and investors are enjoying multi-billion dollar exits and reinvesting those winnings into new ventures. New Zealand has abjectly failed to make that investment in the ecosystem.
2. Our universities and research institutes are well meaning but slow moving corporate elephants whose organisational design impedes innovation rather than accelerating it.
3. Our academics and researchers are mostly not natural entrepreneurs and they are not incentivised to pursue venture opportunities in an environment where publishing papers is the only perceived way to achieve success and recognition.
4. Research with commercial potential is not being connected to entrepreneurs and industry downtown who could make a difference.

Let’s find a better way by firstly investing a meaningful amount in developing our innovation ecosystem. Secondly all public funding for science and technology research should include a 10% component towards funding downstream commercialisation support. Finally, if academics and researchers see the value in their work but are unwilling to step up as founder entrepreneurs, then ensure that we match-make those projects with experienced local entrepreneurs and industry partners, so that value created remains onshore.

Paul Spence is a commentator and serial entrepreneur, a recently exited co-founder of a New Zealand based technology venture, a co-founder and director of Creative Forest, principal at GeniusNet Research and an advisor at ThincLab. 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.