Digital tech could boost NZ economy by NZ$26 billion
Friday 22 Mar 2024
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Spark and the New Zealand Institute of Economic Research (NZIER)
recently launched a new study – Accelerating
Aotearoa businesses one technology generation forward – to
explore how Aotearoa’s well-documented productivity challenges can
be addressed by the acceleration of advanced digital technologies.
The study combines insights from global research of small-
advanced economies, economic modelling by NZIER, and Spark’s
knowledge of current and future opportunities enabled by digital
technology. The findings reveal clear and compelling benefits of
modernising New Zealand’s economy – with
a 20% uplift, the use of advanced digital technologies is
predicted to increase industry output by up to NZ$26 billion over
the next decade, and GDP by as much as 2.08% per year.
“New Zealanders generate significantly less output
than many other small advanced economies, despite working longer and
harder comparatively as a nation,” says Spark CEO,
Jolie Hodson. “Our productivity is a persistent challenge
that has seen little change over many decades, but what is changing is the
urgent need to address it.
“Aotearoa is
getting bigger, older, and more diverse. Inflation is forcing a greater
focus on efficiency and cost control, and we are facing more frequent and
extreme weather events. The good news is that the pace of technological
advancement globally is accelerating at an even faster rate, and
advanced digital technologies are now reaching a level of
maturity where they have the potential to solve business
challenges where it wasn’t possible in the past.
“This is a key focus for the initiatives we are
launching today – how can technology help New Zealand organisations
become more productive and sustainable, and in doing so, support Aotearoa
to move forward one technology generation.”
To help boost the adoption of advanced digital technologies and to
support innovation among New Zealand’s largest organisations,
Spark is committing NZ$15 million to an Innovation Fund
for its business and government customers over the next three years. NZ$12
million is allocated to customers already, and an additional NZ$3 million
will be available for customers to apply for.
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Source and image credit: Spark
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