To do this, Shaun Hendy and the late Paul Callaghan, two leading thinkers, say we need to figure out how to export knowledge, not nature. New Zealand is not, in fact, the land of innovators the myth of our No8 wire mentality suggests.
They argue the gap between New Zealand and the rest of the Organisation for Economic Co-operation and Development is, in essence, a knowledge one. To accelerate our economic performance, we need to close this knowledge gap by recognising that the export of knowledge-based products and services underpins the wealth of the world's most advanced economies.
New Zealanders do not produce patents at the same rate as people in other developed countries. As an example, the book cites Melbourne and Sydney, which have populations of roughly four million and one patent for every 550 people.
Other myths outlined in the first chapter are that we are ''clean and green''; that we are an egalitarian society; and that we are nuclear free. The authors suggest that unless we rise above these myths, we cannot expect to resolve our deep-seated problems.
In reference to the Government's 2025 Taskforce led by Don Brash, the authors imply it's just too convenient to lay the blame for New Zealand's weak economic performance on taxation, regulation or the erosion of property rights.
The authors further question whether the 2025 Taskforce grounded its recommendations in evidence or simply based them on ideology. They do not believe the taskforce was correct and they take us through some of the ideas that support free-market economics.
The chapter on New Zealand's innovation economy surveys the manufacturing- and knowledge-based sectors of New Zealand's economy. It points out that the sum of exports from dairy, meat and arable farming is only 44%. In fact, the single biggest category of earnings in offshore currencies comes from the export of manufactured goods, which prompts the question, why the closure of Hillside workshops? This lost knowledge is of serious concern given, for example, the growing niche industry worldwide in steam and rolling stock restoration and preservation.
Somewhat presciently, the book refers to Fonterra saying, ''Our dairy sector is heavily reliant on the strength of our '100% Pure' brand.''
The authors continue, ''This is a dangerous crutch because, paradoxically, it is these very goods that place such a strain on our environment and put our premium brand at risk''.
The recent botulism scare was an unsettling reinforcement of this view. As Hendy commented in an interview, ''It's scary to think a dirty pipe could have a real impact on our economy and result in the [New Zealand] dollar dipping.''
The book is self-described as ''a brilliant intellectual adventure'', which roughly translates as ''academic, but topical and challenging''. Recommended reading for all present and aspiring politicos at any level who want to see New Zealand with a stronger knowledge economy and the ''brain drain'' reversed.
- Ted Fox is a Dunedin online marketing consultant.
