Innovation and the New Zealand Manufacturing Sector

Abstract

This thesis investigates the determinants of innovation in the New Zealand manufacturing sector by addressing the issue in three main parts. First, an extensive literature review is undertaken to identify definitions of innovation. A number of hypotheses are then proposed based on the international literature. Secondly, supported by the New Zealand Manufactures and Exporters Association (NZMEA), a unique dataset was collected via an Internet-based instrument, the Innovation Survey of the Manufacturing Sector. A series of regression models were then used to test the proposed hypotheses. The final part of the research involved a number of in-depth company interviews that approached the topic from a different perspective and complemented the qualitative analyses by further investigating issues that were unresolved from the survey. The research results suggest that “micro” (i.e. very small) firms may not be very innovative, and identified that practical skills and co-operation are crucial factors influencing innovation in the New Zealand manufacturing sector.