About this Site

Technologists and economic historians instinctively understand that technological innovation is the essential component of economic growth. They also appreciate that, for innovation to occur, a combination of favourable circumstances is necessary. Economists however have traditionally considered the accumulation of conventional inputs such as labor and capital to be the primary force behind economic growth.

Robert Solow won the 1987 Nobel Prize for economics for formulating a growth theory that identified the importance of technology but his ideas have only slowly become a significant part of economists’ thinking. Now, however, many macroeconomists place technological progress at the center of the growth process

The economists driving New Zealand’s reforms in the 1980s and 1990s were seeking to create a competitive environment so that New Zealand businesses and institutions were efficient in their market. However, simply becoming efficient is a dead-end road. The economists’ prescription has been notably unsuccessful. For growth to occur it is necessary to establish and maintain favourable conditions for technological innovation.

In other words, to build the economy, it is necessary to address the more complicated issue of creating a culture in which the introduction of new technologies can thrive.

The material on this site shows that New Zealand has a history of successful technological innovation which brought prosperity .

Apart from the tenacity of dedicated individuals, this resulted from a multitude of factors, including research and development, support and encouragement from state institutions and input from New Zealand educated technologists.

A key factor for most innovations is the existence of a knowledge base and a common requirement is a committed sponsor with deep pockets, prepared to take a risk.

The question now is: can New Zealand ensure its continued prosperity by creating the conditions for innovations based on the new technologies of the microchip and biochemistry?

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The History section of this site covers a technological era in New Zealand which lasted from the end of the first World War until the 1980s.

The Innovation & Growth section draws attention to the literature that outlines the key role of technology in 19th and 20th Century economic history.

The Innovation Now section looks at contemporary innovation activity in New Zealand.

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Contributions which fit in with the site’s concept are welcome.

Technological Innovation is the essential component of economic growth