Boosting productivity in New Zealand by unleashing digitalisation
This paper overviews structural reforms that promote the diffusion of digital technologies
and investment in intangible capital that maximises the potential of these technologies
in New Zealand. Effective use of digital technologies enables New Zealand citizens
to participate in society in a more inclusive way, firms to strengthen competitiveness
and better integrate into the global economy, and the government to offer better services.
New Zealand has room to boost its relatively low productivity level by removing the
structural bottlenecks holding back the expansion of its digital sector and digital
innovation. There are severe shortages of specialised ICT skills owing to COVID-19-related
border restrictions and a weak domestic pipeline of these skills that partly results
from school students’ poor mathematics achievement. Some regulations have not kept
pace with technological change and risk constraining digital innovation while failing
to prevent harmful activities. More intensive use of digital tools is also held back
by the low availability of high-speed Internet connections in rural areas and a lack
of financial support for small businesses. Weak coordination between export promotion
and innovation support prevents young firms investing in digital innovation from reaping
high returns through exporting. New Zealand should rigorously implement its new national
digitalisation strategy so that government agencies and social partners can advance
digital transformation.
Published on April 08, 2022
In series:OECD Economics Department Working Papersview more titles