The technology sector is a large and significant part of the New Zealand economy, generating considerable value, jobs and exports.
NZTech recently conducted a piece of landmark research in collaboration with the Ministry of Business, Innovation and Employment to assess the impact of the tech sector on the New Zealand economy. A free copy of the resulting Digital Nation report can be accessed here. DIGITAL NATION
The New Zealand tech sector is a large and growing component of the New Zealand economy. The Digital Nation research found that in 2015:
- Nearly 29,000 tech sector firms contributed $16.2 billion or eight percent of gross domestic product (GDP). New Zealand exported $6.3 billion of tech goods and services – or nine percent of all exports.
- Almost 100,000 people, or five cent of the workforce were employed in the tech sector in 2015 and an additional 20,154 tech workers work in other sectors.
- The tech sector has the highest paid and higher qualified employees than all other sectors on average.
- ICT’s contribution to GDP growth in New Zealand has been higher than in any other country in the Organisation for Economic Co‑operation and Development (OECD) from 2001 to 2013.
- Each new tech sector job in a region has been estimated to create up to five new services jobs around it.
- Each four percent productivity improvement in the tech sector is estimated to deliver an additional $2.7 billion of GDP.
- Investment to grow the tech sector appears to deliver three times return to the economy. Every $1 of productivity stimulus in the tech sector generates $3 of growth across the national economy.
The research also found that New Zealander’s are well connected, but we are not taking advantage of internet services:
- New Zealand companies are well connected to the Internet. A total of 97 percent of firms (with more than five employees) use computers and 96 percent use the internet.
- Even the least connected sectors are well connected with 91 percent of primary sector firms using the internet.
- Firms that are making smarter use of internet services are six percent more productive than average firms in their industry.
- If all New Zealand firms made smarter use of internet services it could lift GDP by $34 billion.
- Small to medium enterprises that are highly digitally engaged, have higher revenues, 20 percent faster growth and stronger job growth than firms that are less digitally engaged.
- Each 10 percent improvement in broadband penetration delivers an estimated $3.3 billion to an economy.
- Increase used of ultra-fast broadband (UFB) is expected deliver an estimated $5.5 billion to GDP over the next 10 years.
- Making better decisions using data in 2014 provided $2.3 billion in benefits to the economy. It is estimated better use of data by business and government could deliver $4.5 billion over the next five years.