NZ Gov pledges $20M investment in tech sector growth
Share
The NZ Government has pledged an additional $20 million to develop the country’s tech sector for the next four years with two key initiatives of the Digital Technologies Industry Transformation Plan (ITP).
Minister for the Digital Economy and Communications David Clark said the investment in the growth of New Zealand’s digital technologies sector was made in the Budget 2022, which will guide the country towards a high-wage and low emissions economy.
“In 2020, the digital technologies sector contributed $7.4 billion to the economy. Since 2015 it has, on average, grown about 77% faster than the general economy,” Minister Clark said.
“We have been working with industry on a Digital Technologies Industry Transformation Plan to help our tech companies fulfil their huge potential as generators of high-value jobs and export revenue.”
He revealed that the Budget 2022 would provide $20 million over four years towards the growth of the Software-as-a-Service (SaaS) Community and the marketing initiative ‘New Zealand’s Tech and Innovation Story’, which will be led by industry in partnership with the government.
“New Zealand has a number of globally successful SaaS companies and we want that to increase. The SaaS subsector has experienced sustained growth despite the COVID-19 pandemic and nearly doubled its export revenue and headcount within a five-year window,” said Minister Clark.
“As a small island nation, a long way from traditional markets, a strong digital economy allows us to leverage what kiwis have to offer – no matter our geographic location, the time or place.”
Thanks to the NZ Government’s new funding under the Budget 2022, the country’s SaaS community can further build its momentum and expand its network as it will also support the delivery of short courses for digital skills development.
“We know for the digital sector to grow, it needs access to the right people. Historically, there has been a “skills mismatch”, but the key to future success is training our domestic talent with the right skills, and encouraging New Zealanders to participate, whatever their background,” Minister Clark said.
“However, if we want our tech workforce to be world leaders, it makes sense they learn from world leaders. Government’s recently announced rebalance of immigration system will help alleviate some of the immediate pressures on industry, enabling businesses to lure skilled labour from offshore.”
Several key senior roles are expected to receive a fast track to residence pathway through the Green List, including ICT managers, software engineers, ICT security specialists, and multimedia specialists.
“For the Tech Story initiative, the new funding will build on work already underway to promote our vibrant tech sector both locally and internationally. We will begin shifting perceptions of our country and rebrand as a global contender in the tech market,” Minister Clark said.
“While this is an exciting step for these two initiatives, it’s important to note that the ITP is a long-term vehicle for growing the digital technologies sector. I remain committed to the other industry initiatives which were well supported in consultation, and look forward to releasing the final ITP in the coming months.”
Source: Inside Government NZ
Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.
