As the world grapples with increasingly pressing environmental challenges, the cleantech sector stands at the forefront of innovation and sustainability. Alimentary Systems Ltd. is proud to be part of a coalition of leading New Zealand cleantech companies that recently submitted a comprehensive report to the Science System Advisory Group (SSAG). This submission highlights the critical need for enhanced government support to bolster the journey of cleantech startups from inception to global commercialisation. Here are the key takeaways from this pivotal report, enriched with detailed insights and direct quotes from the submission to Peter Gluckman: Chair, Science System Advisory Group.

New Zealand has a strong history of technological innovation and a global reputation for high-calibre academics and technologists. These strengths provide a solid foundation for an innovation-centric economy. However, the report underscores that the nation risks falling behind if it does not actively design and enhance its science and technology ecosystem. The submission states, "New Zealand has a strong history of technology innovation leading to international growth and success. However, at times, our nation has not kept up with the rapidly evolving norms for opportunity deployment observed in other innovation-centric economies."

Strategic Government Intervention

The report calls for strategic government intervention to drive innovation, economic growth, and environmental sustainability. This includes improving the alignment of government resources to support advanced technology initiatives and their commercialisation. "Our recommendations are designed to be actionable and align with the principles the Advisory Group is set to establish. We are confident that these measures will significantly enhance the connectedness, efficiency, and overall impact of New Zealand's science sector."

Support for Deep Tech Companies

Deep-tech companies focusing on high-tech innovation in engineering, science, and medicine face unique challenges. The report highlights the need for substantial capital investment in R&D, efficient market validation, and overcoming regulatory hurdles. "Globally, deep tech companies face unique challenges at various stages of their journey from startup through to the sustaining-growth phase. These challenges require clear and agile strategic planning, sustained investment, and a robust support ecosystem."

The submission recommends strengthening Callaghan Innovation’s role in establishing growth strategies for economically essential sectors and aligning government funding sources to these strategies. This also involves improving coordination between different government departments to foster a culture of collaboration. "To mitigate these challenges, it is important for government departments to establish clear roles and responsibilities, improve coordination mechanisms, and foster a culture of collaboration."

To attract foreign investment and international talent, the report suggests reviewing the tax regime for foreign investment and ESOP taxation. This would make New Zealand more competitive globally. "Addressing these challenges by streamlining tax compliance, offering targeted tax incentives, and revising ESOP taxation rules could significantly enhance New Zealand’s competitiveness in attracting foreign investment and international talent."

By creating a representative industry body for New Zealand, cleantech companies can enhance the sector's profile on the global stage, facilitate collaboration, and advocate for favourable policy changes. "Forming a representative industry body for New Zealand Cleantech companies holds substantial value both domestically and internationally."

The report addresses barriers impacting technology transfer from universities and CRIs. Recommendations include adopting open innovation principles, reducing startup overhead costs, and enhancing IP management and protection. "Effective IP transfer fosters a vibrant ecosystem where academic discoveries can be rapidly transformed into market-ready products and services."

The global cleantech sector has become a significant economic driver, contributing approximately USD 320 billion to the global economy in 2023. The report highlights that "In 2023, clean energy contributed approximately USD 320 billion to the global economy, accounting for about 10% of global GDP growth." New Zealand's cleantech industry is pivotal for the country's economic, environmental, and social prosperity. With over 130 companies generating significant revenue and employment, the sector is poised to drive the transition to a knowledge-based, diversified economy.

The submission emphasises that the New Zealand cleantech industry is crucial for the country's future economic, environmental, and social prosperity. "The Cleantech sector plays a critical role in transitioning New Zealand to a knowledge-based diversified economy. With companies involved in agriculture, energy, materials, and waste management, the industry is poised to drive economic growth through innovation and technological advancements."

The report comprehensively assesses New Zealand’s innovation performance, highlighting both strengths and weaknesses. "In 2023, New Zealand was ranked 27th in global innovation, behind Switzerland, Sweden, Singapore, Denmark, and Estonia. This below-average ranking is for a country with a wide array of strengths, but our weaknesses significantly offset our potential."

The submission to the SSAG reflects a collective vision for a vibrant and sustainable cleantech sector in New Zealand. Alimentary Systems Ltd. and its partners are committed to ensuring that New Zealand continues to lead in innovation and sustainability. By implementing the recommendations outlined in the report, New Zealand can harness the full potential of its cleantech industry, driving economic growth and securing a sustainable future for generations to come. "We extend our heartfelt gratitude to the range of government departments that have shown unwavering support for Cleantech development. Your efforts are instrumental in fostering an environment where innovation thrives and Cleantech startups can progress from inception to global commercialization."

This comprehensive submission was made possible through the collective efforts of various contributors from leading cleantech companies in New Zealand. We extend our sincere thanks to:

Christina Houlihan – Bspkl Ltd.

Karyna Young – EnPot Ltd.

Dr. Trevor Stuthridge – Cetogenix Ltd.

Colum Rice – Mint Innovation Ltd.

Matt Kennedy Good – Neocrete Ltd.

Mark Bregman – Quidnet Ventures Ltd.

Glen Willoughby – Nilo Ltd.

For More Information: Potential of Cleantech Sector —A recent report launched today by the NZ Cleantech Mission has found that this country’s fast-growing Cleantech sector could become a high-value export earner. This report shows the emergence of a group of New Zealand start-up companies developing high-value clean technology solutions with significant potential global reach.