Māori me te Ao Hangarau 2015

Transcription

1 Māori me te Ao Hangarau 2015 The Māori ICT Report 2015

2 2 Ka tangi te tītī The migratory bird that searches the globe for economic opportunities, it is connected to the home, but with a global view. Ka tangi te kākā The bird of the forest resources the domestic market. ISBN:

3 Māori me te Ao Hangarau 2015 The Māori ICT Report 2015

4 Acknowledgements Matilde Tayawa Figuracion, Research and Evaluation, Ministry of Business, Innovation and Employment, for writing the report. Te Puni Kōkiri, NZ Trade and Enterprise and Callaghan Innovation for providing feedback and information for the report.

5 Contents Mihimihi... 6 Executive Summary... 8 Key Findings... 9 Introduction New Zealand ICT landscape compared globally Māori access to ICT Māori use of ICT Māori in ICT Education Māori in ICT Employment Māori business in ICT Social impact of ICT Māori ICT Companies... 34

6 Mihimihi In bygone days, Māori with a special knowledge of agriculture, geography, war, sailing and mysticism spent much time studying their art and discipline. For astronomy, Māori studied the movement of the stars and learned that it followed a seasonal cycle, as did the Earth below, so that their rising and setting marked the progression of the seasons. Our pantheon of gods, Ranginui the sky father and Papatūānuku the earth mother and their children such as Tāne, Rongo, Tāwhirimātea and Tangaroa reflected our acute awareness of there being a greater purpose to our existence. The twelve celestial heavens in Māori lore provided spiritual perspective to help define our understanding of man s place in the physical world and the universe. These same beliefs and values not only form the basis from which Māori society has flourished today but also help qualify our understanding of the natural world. As an illustration, in 1986 Dr Huirangi Waikerepuru on behalf of Ngā Kaiwhakapūmau i te Reo Māori challenged the Crowns lack of due process before introducing the Bill, the Māori Language Act, to Parliament. The Crowns actions at the time also further denied Māori access to radio frequencies and a television channel for Māori language broadcasting. As such in 1990 a further claim brought by Sir Graham Latimar on behalf of the New Zealand Māori Council sought findings that Māori have rangatiratanga over the allocation of radio frequencies. And in 1999 Mrs Rangiaho Everton also challenged the need for a portion of the management rights of radio spectrum be reserved for Māori. As a consequence, the Crown acknowledged and reserved some frequencies nationwide for the promotion of the Māori language and culture. The actions of these few rangatira laid the platform for new opportunities that resulted in Māori taking an ownership stake in mobile communication operator 2Degrees and greater support for Te Reo through the Mā Te Reo fund administered by Te Taura Whiri. He Kai Kei Aku Ringa is an expression of Māori resilience, determination and innovation based on our whakapapa, tikanga and kawa. It was used often in reference to extreme conditions such as the two world wars, the great depression and more recently during the late 1980s and 1990s where Māori unemployment ballooned. Ka Tangi Te Tītī is call of the sooty shearwater as it annually traverses from Aotearoa to the Arctic and back again, an aspiration for Māori to be internationally connected and recognised. Ka Tangi te Kākā is the squawk of the parrot in the nearby forests epitomising the rising volumes and visibility of economic activities by Māori enterprises while Ka Tangi Hoki Ahau speaks of SME and individual efforts to join the new commercial and technical highways. Māori radio, television and the ICT networks have been able to accelerate all tangi mediums to great success. The haka is still the defining icon for New Zealand and reverberates throughout the world frontiers of sport, politics, culture, war and commerce. The reverberations through Māori ICT will exponentialise those Kiwi classics.

7 Like our ancestors before us we have embraced this new technology and have welcomed the challenges that these new technologies offer our people. Our children are the early adopters of this technology and regularly participate in social networking and play a guiding hand in helping their parents and kaumātua embrace these taonga. We are also reminded of the benefits that these new technologies bring to enhancing our role as kaitiaki for our natural environment and its resources. Consequently we now see the emergence of Māori enterprises leading the world in new technological developments and showcasing their expertise to global audiences. However we should not be complacent and be like the huia forever to be lost in the memory of time. Like the ICT sector, we too need to push the boundaries and continue to explore new horizons. We should not be satisfied to be just the end user or the administrator of a workplace network. We should aspire to be present in all facets of the value chain and seek to continually acquire higher skills, experiences and qualifications. At the same time we should not forget who we are nor from where we have come. Our past does offer unique insight and knowledge that can inform how we shape our future. Finally I would like to acknowledge the great work and the analysis to complete this report. The findings will offer useful information and will hopefully guide government policy. It will also stimulate further discussion and investment into our communities so that they may thrive and provide greater contributions to our economy and country this is indeed the promise of He kai kei aku ringa The Crown-Māori economic growth partnership. Ngāhiwi Tomoana Māori Economic Development Advisory Board Panel Chair

8 Executive Summary Māori households have lower internet access than other New Zealand households. Only of the total Māori workforce is 2.5 % employed in the ICT Sector in % Māori Households 83 % National Average 68 per cent of Māori households have access to the Internet (roughly 438,000) 15 percentage points lower than the 83 per cent national average. Māori National Average Māori household and individual access to mobile phones is on a par or above the national average. Māori are more likely to use the internet for social media and networking, downloading or listening to music and obtaining education information online. This may reflect the younger Māori demographics. 1 % 3 % Māori professionals in ICT occupations earn almost double the Māori median income, but they earn less than their non-māori counterparts. Māori experienced a three percentage points growth rate in internet usage over three years. Compared to the New Zealand average, fewer Māori have internet access at home. There is a significantly low proportion of Māori people studying for ICT qualifications. Māori participation in ICT qualifications is concentrated in the lower level qualifications. Less than one per cent of Māori in tertiary education are studying for ICT qualifications most are in diploma and post graduate courses. Māori are less likely to use internet to operate a home office business or to work from home

9 9 Key Findings Māori ICT access Māori households have lower internet access than other New Zealand households. Sixty eight per cent of Māori households have access to the Internet (438,000), 15 percentage points lower than the 83 per cent national average. Māori household and individuals access to mobile phone is on a par or above the national average. Māori ICT use Māori are more likely to use the internet for social media and networking, downloading or listening to music and obtaining education information online. This likely reflects the younger Māori demographics. Māori are less likely to use internet to operate a home office or to work from home. ICT Statistics Statistics on ICT access, usage, employment and education show that Māori lag behind other New Zealanders. Less is known about Māori business in ICT, which remains a data gap. Rapid advances in ICT have led to a significant increase in the adoption of technology and related services by households, individuals, businesses, educational establishments, and the government. But this has adverse implication to those without internet access or even to those with access but don t use the internet. This puts to the fore the issue of digital divide. Māori in ICT education Relatively fewer Māori people are obtaining ICT qualifications. Less than one per cent of Māori in tertiary education are studying for ICT qualifications, and they are concentrated in diploma and post graduate courses. Māori in ICT employment Māori make up 12.5 per cent (309,600) of the overall New Zealand workforce in They work predominantly in manufacturing, wholesale and retail services, utilities and construction. Māori employment is less concentrated in the ICT sector. In 2013, there were 7,800 employed in the sector. Māori are more likely to be employed in the lower skilled ICT occupations. Of the 7,800 Māori in ICT occupations, 2,000 were ICT professionals, 2,800 were Engineering, ICT and Science Technicians and 3,000 were Design, Engineering, Science and Transport Professionals. Fewer Māori are also in highly paid ICT occupations (managers and professionals) than non-māori. Māori ICT income On average, Māori ICT professionals ($60,000) earn almost double to the median income of a Māori worker ($36,500) in Māori business in the ICT sector Data on Māori business in ICT remains a data gap. However, there are anecdotal evidence that Māori businesses are early adopters of technology and are engaged in the ICT sector.

10 10 Introduction Information and Communications Technology (ICT) has been a catalyst of change and growth in a number of countries. ICT has also opened opportunities for individuals, shaping what they do and how they work with others. In modern society, ICT is becoming more powerful, more accessible, more widespread and more socially relevant. It is therefore important to examine its effects upon certain segments of society, Māori in particular. Purpose This Māori ICT report aims to pull together existing information and data to provide a picture of Māori in the ICT sector. The picture can be an important resource to whānau, hapū and iwi Māori for understanding issues, challenges and opportunities. It can also be important for work-related imperatives, such as in informing priority programmes and projects for Māori. Report Structure The report begins with a general picture of the New Zealand ICT landscape, which is then followed by a discussion of Māori internet access and affordability, Māori participation in ICT education and employment, and other impacts ICT may have on Māori individuals, households and businesses. The structure of the report is based on the ten measures used in the Networked Readiness Ranking Report 1, the executive summary of which is presented in infographics format. Sections covered in detail include the following:»» Māori access to ICT;»» Māori use of ICT;»» Māori in ICT education;»» Māori in ICT employment;»» Māori business in ICT; and»» The social impact of ICT. Why this report? The recent ICT Sector Report of 2015 highlighted how ICT in New Zealand is growing fast. Growth is seen in the number of IT businesses established, in exports of IT services, and in increased investments in Research and Development (R&D) and faster internet connection. A number of studies compare New Zealand against other developed countries. Benchmarking studies show that New Zealand has solid rankings in a number of ICT readiness indicators relative to others. According to the World Economic Forum, New Zealand has the best political and regulatory environment in Other international ICT surveys found New Zealand to be competitive against Scandinavian countries, Singapore, US and Canada. This report describes where Māori is at in terms of access, use and participation in the ICT sector. This report identifies gaps in information, particularly on uptake of ICT by Māori business sectors. 1 See Appendix one for the comprehensive discussion of the 10 pillars and the component indicators of each pillar.

11 11 Data sources for this report Data used for this report are from the Census 2013, Household Use of ICT , Household Labour Force Survey (HLFS), Education Counts, Business Operations Survey (BOS), Annual Employment Survey, Tatauranga Umanga (Māori Authorities, Statistics New Zealand) and sources available locally and internationally. Caveat/Data Limitation Usable data on Māori in ICT business are limited, a gap that is yet to be addressed. Because of this limitation, anecdotal stories on Māori businesses participation in ICT or on Māori ICT businesses are provided in this report to give a fuller picture. The 2012 Household Use of ICT Survey is one of the key data sources for this report. It should be noted that some questions in 2009 were not comparable in the 2012 survey. This study has minimal comparative analysis of the two year periods. IT Businesses The number of all IT businesses topped 10,000 for the first time in Employment in the ICT sector grew by more than 2,800 in the year to June Exports of IT services have grown at a compound annual growth rate of 14 per cent in the six years to Computer services are leading growth in business investment in R&D in New Zealand. Only five years ago the value of listed IT stocks on the NZX was virtually nothing. Currently IT stocks total 10 per cent of the value of all listings. Key themes in the ICT sector summarised The 2015 ICT Sector Report released by the Ministry of Business, Innovation and Employment identified a number of key themes emerging in the ICT sector. These themes relate to increased investment, demand for skills, research and development (R&D) and innovation, uncapped data plans and UFB, mobile connectivity and developing capabilities. While these themes are more reflective of the IT segment of the ICT sector, they highlight the importance for individuals and firms to be in the ICT space to access ICT, use it and understand how it could assist in growing their business.»» The ICT sector attracts increasing interest from angel, venture and private equity investors on the NZX;»» Increased use of ICT across the economy generates employment growth across a range of skill-sets, including software engineering and development, project management, marketing, sales, administration and business analysis;»» Information and communication technologies provide a platform for innovation across all sectors;»» Internet service providers offer uncapped broadband plans, connections to ultra-fast broadband plans and connections to the ultra-fast broadband fibre (UFB) networks taking off;»» Rapid uptake of smartphones, tablet computers and other mobile devices;»» Builds local and international business networks in support of export growth 2 The 2012 Household Use of ICT Survey targeted a 75 percent response rate. The survey achieved an actual response rate of 76 per cent, which represented 13,046 households.

12 12 New Zealand ICT landscape compared globally New Zealand scores quite well in ICT readiness compared to the rest of the high income countries. However, we need a faster, better and more affordable internet with a higher-skilled ICT workforce if we want to be more competitive globally. New Zealand is well placed against the high-income countries New Zealand scores quite well on nine out of ten ICT readiness indicators. The only pillar that it was ranked lower than average on was affordability. Overall, New Zealand ranked 17 among 143 countries. Countries in the top ten were Singapore, Finland, Sweden, Netherlands, Norway, Switzerland, US, UK, Luxembourg and Japan. New Zealand s political and regulatory environment has been ranked as the best compared to the high-income countries. Specifically, New Zealand has been ranked as the best in terms of effectiveness of law making bodies, laws relating to ICT, judicial independence, efficiency of legal system in settling disputes, efficiency of legal system in challenging regulations, intellectual property protections, software piracy rate, number of procedures and days to enforce a contract. New Zealand also ranked highly and with an upwards trajectory for other international ICT barometers, ICT ranking bodies and surveys. The World Wide Web Foundation 2012 ranked New Zealand 7 th in the world in terms of connectivity, 10 th in the world in terms of institutional infrastructure (e.g. institutions, government support to promote web access) and 17 th in terms of the ability to extract economic value. NZ also ranked 4 th in the Global Open Data Barometer, released in London by the World Wide Web Foundation and Open Data Institute. These comparative rankings show that New Zealand is competitive against other OECD countries in terms of the key pillars, measures and indicators that enable ICT to flourish. Faster, better internet for New Zealand The internet has fundamentally changed the way we live, work, learn and connect to the world, our families and communities. Being connected and online has become an essential part of our everyday lives. There is an increasing expectation of not only 100% connectivity but also of fast broadband connection and mobile coverage. While there is good broadband access, New Zealand is ranked poor on price and speed. To address faster internet connectivity, the Government invested in ultrafast broadband and in the regional broadband initiative. In 2014, the Government invested $2 billion into two major initiatives: the Ultra-Fast Broadband (UFB) Initiative and the Rural Broadband Initiative (RBI). Together, these two programmes aim to bring the benefits of improved internet connectivity to 97.8 per cent of New Zealanders (but no specific target for Māori), opening up a huge range of business, educational, community and other opportunities (MBIE, 2015).

13 13 Affordability of broadband and mobile phone The Networked Readiness Index ranked New Zealand low on affordability indicators (i.e. for pre-paid mobile cellular tariffs, fixed broadband Internet tariffs, and Internet and telephony competition) compared to developed countries. Advertised pre-paid mobile cellular tariff ranged from 20 cents per minute call (Skinny Mobile) to 49 cents per minute (Spark) with 2 Degrees and Vodafone in between. Compared to Singapore which is ranked first, New Zealand had a higher tariff rate. Skill shortage in the NZ ICT sector New Zealand has identified a skill shortage in ICT, with many organisations choosing to adopt overseas recruitment strategies due to a lack of available domestic sources. Computer design firms reported more vacancies than any other sector in the economy (MBIE, 2015). Eighty nine per cent of the vacancies were managerial, professional or technician levels. Job prospects in the ICT sector remain strong. The Ministry of Business, Innovation and Employment Occupation Outlook Report 2015 identified ICT job prospects as some of the best in New Zealand, with a likely strong growth in the sector. For software developers, for instance, the projected employment growth was forecast to be around 4.8 per cent per year from and 4.3 per cent per year to 2023.

14 14 Māori access to ICT Māori have lower internet access at home relative to the Europeans, with a three per cent growth rate in internet use in three years 68% 86% 84% 77% 73% 89% Individuals with internet access at home Recent internet users Recent internet users using broadband Māori European Source: Household use of ICT 2012, Statistics New Zealand In 2012, 86 per cent (or 1.66 million) of all households were connected to the internet. This is equivalent to 3.45 million individuals. Māori households have lower access to the Internet than other New Zealand households, only 68 per cent, equivalent to 438,000 individuals. This is about 18 per cent lower than the national average (86 per cent). Similarly, Māori have a lower proportion of new internet users compared to the general population. Māori are seven per cent lower than the national average of 84 per cent. Of the 2.38 million recent internet users, 337,000 are Māori. In 2013, the Māori population was 598,600. Europeans have higher percentage of new internet users at 84 per cent compared to Māori. Compared to the 2009 survey, there was a slight growth in internet use, increasing from 74 per cent in 2009 to 77 per cent in 2012, a three percentage points growth rate in three years.

15 15 Māori, along with Pacific peoples, lag behind in the number of broadband users 92% 89% National average = 87 per cent 73% 73% Other ethnicity European Māori Pacific peoples Source: Household use of ICT 2012, Statistics New Zealand Seventy three (73) per cent of recent Māori internet users access the internet via broadband. This compares with 89 per cent for Europeans. The national average is 87 per cent. Dial up use is similar with the national average at around four per cent. Māori have lower access to telecommunication services compared to non-māori but higher than average in mobile phone access Satellite Dish (%) Telephone line(%) Cable(%) Mobile device (%) Other (%) European Māori Pacific peoples Other ethnicity Source: Household use of ICT 2012, Statistics New Zealand Across all ethnicities, a fixed copper connection is the most common form of internet access. Ninety two (92) per cent of recent Māori internet users also have a mobile phone, which is in line with the national average. Across devices, Māori are more likely to access the internet via a laptop or tablet (53 per cent) and desktop (38 per cent) but their rate of access is below national average (61 and 44 per cents, respectively). Māori are comparable to national average in terms of accessing the internet via a smart phone but are above average in accessing internet via games machine/other device. This could be due to the younger Māori demographics. The 2013 Census data also shows 32 per cent of Māori households did not have internet access at home compared with 14 per cent nationally in Strong broadband growth over the past two years means this will have changed.

16 16 Internet access decreases as age increases, peaking at mid to late thirties and dipping at early family years Source: Household use of ICT 2012, Statistics New Zealand, in percentage The general trend on the relationship between internet use and age for both Māori and non-māori is similar. It peaks in teenage years and at ages 35-39, and then decreases as the person matures. It is interesting to note that internet use for year-old Māori and non-māori go down. This could possibly be explained by the circumstances of people at this age i.e. having a life outside of home or busy earning a living.

17 17 Northland Māori have low internet access and high material deprivation Sources: Household Use of ICT 2012, Statistics New Zealand and NZ Deprivation Index 2013, Otago University; map by MBIE Māori internet coverage is quite variable by region, with Northland showing the lowest level of internet access at home (around 56 percent), followed by Manawatu-Whanganui (61 per cent) and Waikato (63 per cent). Northland Māori have low internet access and high material deprivation 3. Māori with Internet Access by Regional Council Regional council Total number of Māori Percent of Māori with Internet access at home Percent of Māori who are recent Internet users (1) (000) (000) % (000) % All individuals Northland Auckland Waikato Bay of Plenty Gisborne/Hawke s Bay Taranaki Manawatu-Wanganui Wellington Nelson / Tasman / Marlborough / West Coast Canterbury Otago Southland Source: Household use of ICT 2012, Statistics New Zealand 1. Recent users are those who have used the Internet in the past 12 months. Note: All numbers in this table have been rounded to the nearest thousand. Due to rounding, figures may not add to the stated totals. 3 The following are the dimensions used to derive the material deprivation index of New Zealanders: communication (internet use), income, employment, qualifications, home ownership, support, living space and transport.

18 18 The biggest barrier to taking up broadband is its availability in the local area The biggest barrier for Māori individuals to shift from dial-up to broadband is availability of broadband in the local area. The internet coverage, including access to faster internet, has likely changed because of the Ultrafast Broadband (UFB) and Rural Broadband Initiative (RBI) project of the government. The UFB and RBI projects aim to have 75 per cent of New Zealanders have access to ultrafast broadband by As of July 2015, more than 106,000 users have connected to the ultrafast broadband fibre and more than 269,000 users are able to access improved rural broadband. Thirty five towns and cities can now access ultrafast broadband. Efforts to provide faster internet access is now 100 per cent complete for Whangarei. Source: MBIE UFB and RBI Project Update, July 2015 Māori are least likely to cite cost as a barrier to access Māori were the least likely to cite cost at 34 per cent relative to 48 per cent nationally. Other ethnicities regard cost as a barrier in accessing the internet (at mid-sixties). Dial-up access was considered sufficient by 28 per cent of Māori. A number of Māori access free internet at community spaces facilities like marae education facilities and outside their homes. Sixty per cent of Māori who access the internet also access it outside of the home. Relative to other ethnicities, a significantly lower percentage (52 per cent) access the internet at work. Māori also have above average likelihood to access it at a community internet facility (33 per cent) and other sites such as family member s home ( other 32 per cent). Access at places of education and community internet facilities by Māori has increased from 31 per cent to 42 per cent for education and 25 per cent to 33 per cent for community internet facilities, respectively. These results likely suggest that cost may be an issue. Affordability issue particularly matters if they access internet through a faster yet expensive connection like broadband. Also, internet access at a marae is therefore important as it provides another community space for Māori access to the internet.

19 19 Māori use of ICT The top three reasons why Māori use the internet were social networking, entertainment and access to education information. The primary use for the internet is for social media. More than 70 per cent use it for social networking well above the national average, which may reflect the demographic age of Māori internet users. This is consistent with Te Puni Kōkiri s Media User Survey 4 where the findings show that young Māori are more likely to be using computers with internet access every day for personal reasons, and to use them for social networking, downloading/streaming music and videos and playing video games. The study also found that the level of engagement decreased with age for social networking, entertainment, downloading/streaming music and videos, and content creation. Māori are more likely to use the internet for social media Source: Household use of ICT 2012, Statistics New Zealand Relative to other users, Māori are less likely to make a purchase online, do internet banking, use Government websites, sell goods, or operate a home business/ work from home. This suggests that Māori are less likely to use the internet for transaction purposes. Face to face transaction could be the preferred option for Māori, and may also imply preference for multimodal delivery of service for Māori. In terms of leisure and entertainment activities, Māori have a higher adoption of online music and playing video games. Māori internet users are seven per cent higher relative to the national average. Watching movies and peer to peer file sharing is aligned to the national average. Reading books/newspapers is seven per cent below the national average at 35 per cent. Again, this is consistent with the characteristics of younger Māori demographics. 4 See

20 20 Māori are also less likely to access government websites to download forms and make online payments Forty five per cent of Māori individual users have been recent users of government websites, lower than the national average (of 52 per cent). Māori are also slightly below the national average in using government websites to download forms (51 per cent vs 57 per cent, respectively) and make payments online to government websites (26 per cent vs 36 per cent, respectively). There are also more Māori individuals not using government websites (32 per cent compared to 29 per cent nationally). These results have implication on access to online information and services, especially for Māori who still have low uptake of these digital services..but they have slightly higher rate of increase as users of government websites in three years From 2009 to 2012, Māori rate of increase in accessing government websites is three percentage points higher than the national average (12 per cent compared to nine per cent nationally). Education is another important driver for internet use by Māori 34% 38% 15% 8% 22% 16% Formal education or training activities Operating a home business Working from home All NZ Māori Source: Household use of ICT 2012, Statistics New Zealand Education is another important driver for internet usage for Māori. Māori were four percentage points above average (38 per cent) in using the internet for education or training. Only eight per cent cited using it to operate a home business and sixteen per cent to work from home, well below the national average. Since 2009, formal education has increased from 20 per cent to 88 per cent as the purpose of recent internet use, a growth rate matched only by Pasifika.

21 21 Internet use increases with income for both Māori and non-māori Māori population with internet use Non-Māori population with internet use Source: Household use of ICT 2012, Statistics New Zealand As income increases, so does internet use. But as income peaks, internet use decreases. This is true for both Māori and non-māori. Compared to non-māori, Māori have lower level of internet use across all income groups.

22 22 Māori in ICT Education One of the barriers to greater Māori participation in ICT careers is educational achievement in high school. Across the country, Māori are leaving secondary education with lower level qualifications than non-māori. In 2014, 59 per cent of Māori school leavers achieved NCEA Level 2 compared to European at 81 per cent or Asian at 90 per cent. Māori participation in ICT qualifications is concentrated in the lower level qualifications Less than one per cent of Māori are studying towards an ICT qualification 26.9% 21.1% 35.9% 40.3% 39.7% 64.1% 56.6% 55.6% 33.4% 14.9% 7.5% 4.1% Certificates 1-4 n=6100 Diploma n=5510 Bachelor s degree n=18850 Graduate Diploma & Higher n=2930 Māori European Other ethnicities Source: 2013 Education Counts, Ministry of Education Compared to the national average, Māori are disproportionately represented in the lower level qualifications (certificate levels 1-4) and disproportionately under-represented in the higher level qualifications, particularly in Bachelor s degree (level 7) qualifications or higher. In terms of Māori participation in tertiary education, less than one per cent are studying towards an ICT qualification (i.e. Computer Science, Information Systems and other Information Technology). Māori are concentrated in the certificate levels, representing 33.4 per cent of the total enrolment in Levels 1-4, or a total of 2,040 out of 6,100 enrolments. The second highest concentration of Māori in ICT tertiary education is in the Diploma level (5-6) with 14.9 per cent of the total enrolments or 820 students out of 5,510 enrolments. The number of Māori enrolments in Levels 7 and higher is small, only 7.5 per cent of the total Bachelor s degree in Information Technology enrolments. This is equivalent to a low 1,420 Māori students out of 18,850 total enrolments. The proportion in graduate diploma or higher is significantly low at 4.1 per cent or a total of 120 out of 2,930 enrolments at this level. Māori accounts for per cent total enrolment in Information Technology for all levels. Overall, enrolment in higher qualifications is lower for Māori compared to Europeans. Labour market outcomes, employment and earnings, is generally strong in the ICT sector. This provides a

23 23 strong incentive to encourage rangatahi Māori (Māori youth between 15 and 24 years of age) to qualify in one of the highest paid professions in New Zealand, and where job prospects are very high. Studies have also shown that employment rates of Māori increases as their level of education increases (Māori Labour Market, 2014). Education is also positively correlated with employment rate. In September 2014, Māori with degrees or higher qualifications had the highest employment rate at 85.4 per cent, followed by those with certificates, diploma and polytechnic qualifications (72.8 per cent) and school qualifications (58.4 per cent). Māori with no school qualifications have the lowest employment rate of 46.3 per cent (Māori Labour Market, 2014). Building Māori participation in the industry is vital, given the projected demographics of falling secondary school numbers, an ageing population and an insatiable demand by the ICT industry for suitably qualified and skilled employees. Also, the youthful Māori population means that Māori are the future tax payers so there is a need to ensure they earn good income to help pay for our ageing population. Tertiary Education Commission s ICT Graduate Programme Information and Communications Technology (ICT) is growing and developing rapidly and becoming an integral factor in successful economic growth around the world. The Government wants to ensure New Zealand has people equipped with the ICT skills required to keep pace with developments. Budget 2014 allocated $28.6m over four years for an ICT Graduate School programme. The programme will deliver industry-focused education and research that builds connections between tertiary education providers and high-tech firms. The objectives are to produce graduates with work-relevant and business-focused skills, provide more direct pathways from education into employment, and help grow New Zealand s ICT talent to support firm growth, innovation and productivity. The initiative will provide funding for education, research and collaborative activities to attract top student, academic and industry talent with schools proposed for Auckland, Wellington and Christchurch. In Christchurch, the initiative will be located in the soon to be established Christchurch Innovation Precinct. In the other cities, the initiatives will need to be integrated with the local innovation system, such as through local innovation precincts or technology hubs. In addition to providing education and research in specific locations, the programme will also involve the development of more broadly applicable ICT education initiatives that can be delivered through affiliated education providers throughout New Zealand.

24 24 Māori in ICT Employment Overall, labour market outcomes for Māori improved over the year to June Māori in skilled occupations total 107,500 in June 2015, an increase of 1,900 workers (up 1.8 per cent) from a year ago. Employment in most occupation groups increased. The biggest increases in employment were technicians and trades (10.7 per cent or 3,200 workers, clerks (9.2 per cent or 2,700 workers) and services (8.7 per cent or 2,500 workers). In contrast, the biggest falls in employment were in managers (7.5 per cent or 2,300 workers) and plant workers (7.4 per cent or 1,800 workers). Source: Household Labour Force Survey, Statistics New Zealand Māori are more likely employed in lower skilled ICT occupations and less likely employed in the highly skilled ICT occupations than non-māori Engineering, ICT and Science Technicians (3,000, 39%) ICT Professionals (2,000, 26%) Engineering, ICT and Science Technicians (32,100, 26%) ICT Professionals (37,900, 30%) Design, Engineering, Science and Transport Proessionals (3,000, 39%) Design, Engineering, Science and Transport Proessionals (55,900, 44%) Māori in ICT occupations Non-Māori in ICT occupations Source: 2013 Census of Populations and Dwellings, Statistics New Zealand

25 25 Māori make up 12.5 per cent of the overall New Zealand workforce or 309,600 people. They tend to be concentrated in manufacturing, wholesale and retail services, utilities and construction. Only about 7,800 people are employed in the ICT sector, representing about 2.5 per cent of the total Māori workforce. Non- Māori has higher proportion of the workforce employed in the ICT sector, about 7.5 per cent (125,900). The total number of people employed in ICT occupations 5 as ICT professionals, engineering, ICT and science technicians and design, engineering, science and transport professionals is 133,700. Proportionately fewer Māori were employed in the professionals occupation group compared with non-māori (see figure above) Māori median personal income in ICT occupations is almost double the median personal income for employed Māori generally $80,000 $70,000 $70,800 $60,000 $63,400 $60,600 $50,000 $40,000 $52,100 $47,200 $49,800 $30,000 $20,000 $10,000 $ Design, Engineering, Science and Transport Professional ICT Professionals Engineering, ICT and Science Technicians Median personal income Māori Median personal income Non-Māori Source: 2013 Census of Populations and Dwellings, Statistics New Zealand Of the three ICT occupations, the highest paid ICT occupation is being an ICT professional, followed by Design, Engineering, Science and Transport Professionals. The lowest paid ICT occupation is being an ICT technician. Compared to non-māori, Māori are more likely to be employed in the lower skilled ICT occupations (as ICT technicians or support) and less likely in the highly paid, highly skilled ICT occupations (as ICT Professionals, ICT Managers and ICT Engineers/Designers). Māori earn very well in the sector. As discussed earlier, they earn almost double in ICT occupations than the median income for employed Māori generally. 5 The ICT related occupations underneath these broad categories include ICT managers, ICT trainers, ICT sales professionals, web designers, electronics engineers, ICT businesses and systems analysts, multimedia specialists and web developers, software and applications programmers, database and systems administrators and ICT security, computer network professionals, ICT support and test engineers, telecommunications engineering professionals, electronic engineering draftspersons and technicians, ICT support technicians, telecommunications technical specialists, electronics trade workers and ICT sales assistants.

26 26 Māori Non-Māori Average Median income all occupations $36,500 $42,700 Average Median income ICT occupations $51,100 $63,400 The highest paid income in the ICT sector for Māori is being an ICT professional. ICT profession is also the second highest paid income for Māori, the highest being as a Chief Executive, General Manager or as a Legislator. Even when compared to the median income of all New Zealanders, ICT median income for Māori is much higher, about $9,500 more. Median income for non-māori is $42,700. It pays to be employed in the ICT profession. But, Māori still earn less than their non-māori counterparts. In part, this is due to the lesser proportion of Māori in the highly skilled ICT professions compared to non-māori. There are more Māori employed as ICT technicians and support staff than non-māori and less as ICT professionals and Design, Engineering, Science and Transport Professional, two ICT occupations that are highly skilled and highly paid. Te Uru Rangi Māori Technology Scholarships (Left) Hon Minister Te Ururoa Flavell (Right) Enspiral Māori Alumni Melissa and Kendall, who both spoke at the launch, NZTE Board member Wayne Norrie (also one of the speakers), Hemi Rolleston ( behind General Manager Māori Economy at Callaghan Innovation who MC-ed), Rohan Wakefield (front one of the founders of Enspiral Dev Academy), Liz Te Amo NZTE Māori Customer Director and Jim Wilson Acting Manager, Māori Business Facilitation Service, Te Puni Kōkiri. Te Uru Rangi is a scholarship to assist Māori students entering the technology industry created to help more Māori to benefit from the rapidly growing digital economy. It is a collaborative partnership between New Zealand Trade and Enterprise, Callaghan Innovation, Te Puni Kōkiri and Wellingon-based technology training organisation Enspiral Dev Academy. Each of the government agencies involved has contributed $20,000 to kick-start the project, and Ngai Tahu are to provide $25,000. It is expected that other iwi groups will also become financial contributors. The aim is to have 100 students funded through the 19-week programme over the next three years, so they learn what it takes to succeed in the IT industry and then connecting them with prospective employers. The programme involves nine weeks part-time remote study, nine weeks full immersion in Wellington, followed by one week career preparation. The scholarships are for Māori who have a passion for web development, want a career in the Information and Technology sector, and are keen to shape the digital economy in Aotearoa New Zealand.

27 27 Māori business in ICT ICT has a positive impact on business growth and productivity The ICT is a vertical sector (the production and supply of ICT and internet services) and a horizontal enabler (impacts of ICT on other sectors). In 2013, the sector already represents five per cent of GDP and has high growth potential (ICT Sector report 2013). Exports in the technology sector have doubled in the last five years. On average, workers in the sector earn twice the national average. According to Statistics New Zealand, labour productivity growth in New Zealand averaged 1.5 per cent a year from 1996 to A Sapere study (2014) found that across the economy, firms that make more extensive use of Internet services are six per cent more productive than average firms in their industry. The study noted that firms that use Internet services more extensively are four years ahead of the average in their industry in terms of business competitiveness. This is a significant positive impact on businesses. In the horizontal digital economy, the same study estimates that if firms currently making low use of internet services became more like high-using firms, it could be worth an additional $34 billion in productivity (initial) impacts for those firms. Few other sectors have the potential to contribute as significantly across the economy. The graph below also shows ICT s contribution to the GDP in the last five years to This was driven mainly by computer system design. ICT s contribution to GDP grew by $1.2 billion in the five years to 2013 NZ$ million Source: Annual Enterprise Survey 2013, in NZ $million

28 28 Businesses ICT use and their participation in growth-related activities are strongly linked In a survey of more than 30,000 economically significant enterprises in New Zealand in 2012, two out of three enterprises report positive outcomes from ICT, including improved customer responsiveness, better coordination of staff and business activity and improved efficiency in work processes. ICT was also reported as an effective marketing tool (Statistics New Zealand, 2012). The survey also found that businesses that use the Internet to collect sales orders have higher rates of exporting, innovation and entering new export markets. There also was a strong relationship between using ICT and carrying out activities that contribute to business growth (Statistics New Zealand, 2012). Most businesses surveyed use the Internet (96 per cent). Firms seem very comfortable using the internet to buy goods and services (77 per cent). This is good for geographically isolated New Zealand businesses. They could benefit from using ICT (e.g. online ordering systems) to break down barriers entering new markets. ICT use is positively associated with growth activities, and may play an important role in connecting New Zealand businesses with the rest of the world. The business sector is a priority rollout for Ultra-Fast Broadband with most businesses expected to have access to the network by A key issue therefore is how businesses adapt ICT to develop and grow. But less is known about Māori in ICT business or Māori businesses in the ICT sector Usable data on Māori businesses in ICT is limited. There is not enough information that could be used to discuss the uptake of ICT by Māori businesses and the impact it has on business growth and productivity. This is a data gap that has yet to be addressed. This makes it difficult to look at the performance of Māori in the ICT business or to develop an understanding of Māori ICT businesses. One area that has been looked into is the data on Māori authorities. However, the number of Māori ICT businesses is negligible. In 2014, there were only three Māori authorities identified as ICT businesses. These three businesses only employ 15 staff. In the whole of New Zealand, there were 5,406 ICT businesses employing 34,400 staff. While representativeness could be questioned, the findings from a survey of self-identified Māori businesses on their use of ICT is consistent with the findings of the Business Operations Survey. Māori businesses are early adapters of technology The Māori Business Key Insights found that Māori businesses are early adopters of technology. Forty six per cent of respondents said that mobile technology had significantly changed their business, and 63 per cent were using social media for business purposes compared to 42 per cent non-māori. 6 This report is part of the ANZ Privately-Owned Business Barometer of 3,500 business owners. The data for the Te Tirohanga Whānui was provided by 336 respondents to the survey who self-identified themselves as Māori in business, or people owning, managing or governing Māori businesses. They represent organisations with a combined annual turnover of greater than $1 billion and a range of business types.

29 About Experience Experience is a leading New Zealand creative digital agency founded on kaupapa Māori principles, focused on simplifying and maximising digital experiences to transform how people work, live and learn in a digital age. Owners Miriame Barbarich (Hauraki, Te Arawa) and John Moore started the company in 2006 with a vision to create digital experiences that put people first, not technology. They wanted to create a commercial savvy creative engine to help grow Māori ICT talent. This is coming to fruition a third of their staff are Māori and hold half of the senior positions. Their clients include large government agencies and corporates, SMEs, not-for-profits and start-ups. We ve recently delivered major projects for Chorus, Energy Efficiency Conservation Authority, Ministry of Business, Innovation and Employment, Ministry of Education, Ministry for Primary Industries, Ministry of Social Development and Radio New Zealand. Their services cover all aspects of digital, strategy, brand, design, communications and delivery. We have a senior team of 15 experts with decades of experience. We also have extensive experience working in kaupapa Māori environments requiring specific consideration of mātauranga Māori me ona tikanga. Callaghan Innovation Established in 2013, Callaghan Innovation is the Government s Hi-tech HQ for businesses, with a mandate to help grow the level of research and development by businesses across New Zealand. Callaghan Innovation connects businesses with the expertise and facilities they need to research organisations across the innovation system; operates its own research and technology laboratories and specialist equipment in support of high-tech businesses; and manages more than $160 million a year in government funding and grants to support business innovation. Callaghan offers specialist research and technical services for the ICT sector and operates an ICT R&D National Technology Network, supported by dedicated Network Manager. Twenty-three per cent of the value of Callaghan Innovation R&D grants awarded in 2013/14 went to ICT businesses, many of which will be investing in integrating ICT into processes and products. Other Callaghan Innovation services include the Accelerator Programme, designed to support the rapid formation of early stage ICT and digital technology start-ups, and the Incubators Support Programme, which encourages the development of early stage ICT and digital technology start-ups, and the Incubators Support Programme, which encourages the development of early stage, high growth businesses to generate employment growth, commercialise intellectual property and grow emerging sectors. This includes support through the Repayable Grants for Start-ups Programme. Callaghan is made up of a team of 400 researchers, scientists, engineers, technologists, investment managers and account managers, working across the country. Visit

30 30 Social impact of ICT Literature (SuPERU 7, 2013) links ICT to a range of social and economic outcomes of interest. These outcomes may be seen at the individual or family level, at the community level, at the hapū or iwi level, or at the national level.»» Health. ICT can provide earlier and better access to health information and services, taking advantage of different delivery approaches.»» Education. ICT offer a range of learning opportunities in both formal and informal settings, with access to wider learning communities.»» Economic opportunities. ICT offer access to information about business development or employment opportunities. Rapid advances in ICT have led to a significant increase in the adoption of technology and related services by households, individuals, businesses, educational establishments, and the government. This has changed the way we live. There is now a reliance on the use of the internet to access services and programmes. The government and business services are now being offered and accessed online. But this has adverse implication to those without internet access or even to those with access but don t use the internet. This puts to the fore the issue of digital divide. The Digital Divide This digital divide issue was also highlighted in the 2014 World Internet Project. Their research observed several key findings that have policy implications. They found that:»» the digital divide between elderly internet users and non internet users was more significant than that between younger Internet users and non users;»» Internet use frequency and the substitution effect on traditional media was lower for the elderly internet users than for younger internet users;»» the influence of internet use on the interpersonal interactions of the elderly was lower than that for the younger population;»» Internet users were happier than non internet users; and»» Internet use increased the level of happiness in the elderly internet users significantly more than in the younger population. Last, elderly internet users and younger internet users shared a similar habit using the PC as the main device for accessing the internet. In light of these findings we suggest allocating available resources to the elderly caught in the digital divide. 7 Formerly Families Commission

31 31 Rangatahi Māori in ICT SuPERU found that rangatahi Māori (Māori youth between 15 and 24 years of age) are generally active users of ICT, using social media and other applications. The study also identified a link between ICT use and improved health, educational, and/or economic outcomes for rangatahi Māori though it did not generally quantify those impacts. The literature shows that ICT can reinforce the social networks that connect people and give them access to information and new opportunities. Through improved access to contacts and information, people find job opportunities, learn about services available to them, and share what they learn or create with wider audiences. The study has identified three areas where there may be opportunities for ICT investment to benefit rangatahi Māori. These three focus areas are: providing greater connectivity and access to ICT. Both infrastructure and cost issues are involved in providing greater access; developing greater digital literacy and other skills among rangatahi Māori. Access to relevant material and the opportunity to engage with the wider world are insufficient in themselves. Rangatahi Māori must have the digital literacy and other skills to work online effectively; and promoting wider availability of online content relevant to Māori. Having culturally relevant content makes it more likely that Māori engage online as Māori, and have more incentive to take part in the online world. E-democracy Māori internet users show a willingness to vote online that is close to the national average and has increased by the highest margin between 2009 and Māori show willingness to vote online in a General Election 58% 62% 56% 48% 40% 42% 60% 60% 53% 55% European Māori Pacific peoples Other ethinicity NZ average Source: Household use of ICT 2012, Statistics New Zealand

32 32 The new communication channels are used to revitalise use of te reo Māori Increased use of mobile technology has made working from anywhere a major benefit for 64 per cent of Māori business respondents, as well as improving access to information for decision making and increasing productivity. Some Māori enterprises are using these new communication channels as another means of helping to revitalise the use of te reo Māori. Many smaller Māori-owned businesses have also seized the opportunity technology provides to live in their iwi rohe/tribal areas while serving a client base that may be elsewhere, nationwide or overseas (Māori Business Key Insights 2015).

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34 34 Māori ICT Companies Kiwa Digital An award winning company producing creative high quality digital content on mobile devices. The market niche is the production of immersive and experiential digital books, for youth markets particularly where indigenous or multilanguage requirements exist. Their primary target customers are publishers and other content owners operating in the edu-tainment space, where learning is delivered alongside entertainment. They have another software product in the voice dubbing and audio digital replacement industries. Their partners and customers include the world s largest film and TV production companies, primarily in the United States. Owners include: Rhonda Kite (Te Aupōuri) and Steve Renata (Ngāpuhi ki Whaingaroa, Ngāti Kurī). Straker Translations An award winning global translation company with more than 10,000 customers. Its cloud-based translation platform enables translations to be delivered with speed and simplicity. Straker built and owns its technology, which enables higher gross margins than the industry average. With global production centres in Barcelona and Auckland, Straker supports clients in nine countries, 24/7, ensuring even the most urgent translations are delivered without issue. Owner includes Grant Straker (Ngati Raukawa). Whanau Tahi Whanau Tahi (WT) offers solutions (software and services) enabling collaboration between social service and health care providers to support an integrated seamless support delivery for patient and family-centred self-management in care. Recently acquired F700 HSAGlobal to round out their solution delivery bringing assets, staff and a solid pipeline to WT. Target markets are Australia and the United States. Owner is NZ s largest social service provider Waipareira Trust. Sentient Software Sentient is the leading Private Cloud enterprise Portfolio Program Management service in Australasia across a number of diverse industry segments. Sentient PPM comprises a suite of features designed to manage all of the key activities across programs of work, from consistently assessing and prioritizing the most important initiatives, successful delivery of project and programs of work, through to reporting on completed projects and evaluating the effectiveness of project investment. Sentient was founded in 2004 in response to a growing gap in the Portfolio Program Management industry in both the local and global market place. Existing enterprise-wide PPM solutions were highly expensive, took years to implement and offered little flexibility. As a private cloud solution Sentient PPM is available anywhere, anytime to anyone with access to the internet.

35 35 Experieco Experieco is a software development company which delivers workforce automation, business intelligence and data visualisation applications and solutions. Designed to optimise field operations and provide visibility for their customers. Their key customer and partner is the NRMA, Australia s largest roadside assistance provider. They are re-building their solution for Australia and this will provide a base to launch to other global markets within two years. Owner Andrew McPherson (Ngai Tahu) has a significant ICT background. Animation Research Limited ARL was formed back in 1989 as a joint venture in Dunedin between Taylormade Productions (a television production company) and the Computer Science Division of the University of Otago. In 1991 Taylormade Productions bought out the University s shares and restructured as ARL. They produced their first 3D television commercial around this time and the world s first live 3D animated graphics for sports coverage The America s Cup Challenge in San Diego. ARL have gone on to win many awards over the years both in NZ and internationally. Their main areas of focus are: Commercials they helped produce the famous animated penguins for Bluebird Potato Chips ad. Programmes ARL has contributed content for many Fox, BBC and NHNZ documentaries Dunedin including Mega Disasters. In 1996 ARL pioneered motion-capture on NZ television with Squirt a TVNZ children s television show hosted by 3D penguin Spike, which ran for over 10 years. Sport Virtual Eye is the Sports division of ARL, is used in various sports such as for ball-tracking in cricket where it assists umpires with their Decision Review System and informs TV commentators and viewers. ARL s award-winning technology is now used in many big name sporting events around the world such as the US Golf Open, Cricket and Formula One racing. Animation Research Limited CEO is Ian Taylor (Ngati Kahungunu)

36 36 This work has drawn on the following sources: Crown Fibre Holding. Ultrafast Broadband Initiative and Ultrafast Broadband Extension. Accessed on 31 July 2015 at McCarthy, Chris. To what extent are Māori studying ICT: The Policy Implementation Gap? New Zealand: CPIT, Accessed 5 August 2015 at Zealand/eserv.php?pid=cpit:1530&dsID=n85.pdf and Ministry of Business, Innovation an Employment (MBIE), Labour Market Factsheet June Wellington: MBIE, Ministry of Business, Innovation and Employment, New Zealand Sectors Report Series: Information and Communications Technology Wellington: MBIE, Ministry of Business, Innovation and Employment, New Zealand Sectors Report Series: Information and Communications Technology Wellington: MBIE, Ministry of Education, Education Counts Statistics. Accessed 5 August 2015 at govt.nz/statistics. Ministry of Business, Innovation and Employment (MBIE), Occupation Outlook Wellington: MBIE, Ministry of Business, Innovation and Employment. Ultrafast Broadband and Rural Broadband Initiative. Wellington: MBIE, Accessed on 31 July 2015 at Zealand/sectors-industries/ technology-communication/fast-broadband/, Zealand/sectors-industries/technologycommunication/fast-broadband/pdf-and-documents-library/ultra-fast-broadband-intiative/broadbanddeployment-update-march-2015.pdf and Zealand/sectors-industries/technologycommunication/fast-broadband/ Otago University, Department of Public Health, Socioeconomic deprivation indexes NZDep and NZiDep Accessed on 5 5 August 2015 at otago html. Research New Zealand, New Zealanders Use of Broadcasting and Related Media. Wellington: Research New Zealand, Sapere Research. The value of Internet Services to New Zealand Businesses Report New Zeland: Sapere, Social Policy Research and Evaluation Unit (SuPERU), Improving Social and Economic Outcomes for Rangatahi Māori through Information and Communications Technologies: Review of Recent Literatures. New Zealand: SuPERU, Statistics New Zealand, Business Operations Survey New Zealand: StatsNZ, Statistics New Zealand. Census of Population and Dwellings New Zealand: StatsNZ, 2015 Statistics New Zealand, Household Use of ICT Accessed 15 August 2015 at nz/browse_for_stats/industry_sectors/information_technology_and_communications/householduseofict_ HOTP2012.aspx. Statistics New Zealand, Household Use of ICT Special data request on Māori statistics by Te Puni Kōkiri. Wellington: Te Puni Kōkiri, Statistics New Zealand, Tatauranga Umanga Māori New Zealand: StatsNZ, 2014.

37 37 Statistics New Zealand, Household Labour Force Survey 2015: Māori data. New Zealand: StatsNZ, Te Tirohanga Whānui. The ANZ Privately-Owned Business Barometer: Māori Business Key Insights New Zealand: ANZ, The World Bank Group. Doing Business 2014: Measuring Business Regulations. Accessed on 5 August 2015 via The Beehive, New Zealand Ranked Fourth in Global Open Data. Accessed on 31 July 2015 at Zealand/release/New Zealand-ranked-4th-global-open-data. World Economic Forum. The Global Competitiveness Report Geneva, Accessed on 5 August 2015 via World Economic Forum. The Global Information Technology Report 2015: ICTs for Inclusive Growth. Geneva, Accessed on 5 August 2015 via

38 38 Appendix 1 The Networked Readiness Index Ranking 2015 The Environment sub index assessed the extent to which a country s market conditions and regulatory framework support entrepreneurship, innovation, and ICT development. It has two pillars, namely: Political and regulatory environment pillar and the Business and innovation environment pillar. The former assesses the extent to which a country s political and regulatory environments facilitate ICT penetration and the development of business activities. Areas that are being assessed are protection of intellectual property rights, prevalence of software piracy, the efficiency and independence of the judiciary, the efficiency of law making process, and the overall quality of regulations pertaining to ICT. The latter gauges the extent to which the business environment supports entrepreneurship by taking into account measures of red tape, the ease of starting or doing business, and taxation. Taken into account also are indicators such as overall availability of technology, the intensity of competition, the demand for innovative products, and the availability of venture capital for funding innovation-related projects. The Readiness sub index measures the extent to which a country has in place the infrastructure and other factors supporting the uptake of ICT. It has three pillars, namely: Infrastructure, Affordability and Skills. The Infrastructure pillar captures the state of the country s ICT infrastructure as well as the infrastructure that matters for ICT development: mobile network coverage, international internet bandwidth, secure internet servers and electricity production. The Affordability pillar assesses the affordability of ICT i.e. mobile telephony costs and broadband internet subscription costs as well as liberalisation of ICT services. The Skills pillar measures the capacity of the population to make effective use of ICT by taking into account the enrolment rate in secondary education, overall quality of the education system, and of mathematics and science education in particular, and adult literacy. The Usage index assesses the extent of ICT adaptation by a society s main stakeholders: government, businesses and individuals. The Individual usage pillar measures the level of diffusion among a country s population, using mobile telephony penetration, internet usage, personal computer ownership, and the use of social networks. The Business usage pillar captures the extent to which businesses in the country use the internet for business-to-business, and business-to-consumer operations as well as their efforts to integrate ICT in their operation. It also measures the capacity of firms to come up with new technologies by taking into account the number of patent applications. It also takes into account the extent of staff training as a proxy for the capacity of management and staff to innovate. The Government usage pillar assesses the leadership and success of the government in developing and implementing strategies for ICT development, as well as in using ICT, as measured by the availability and quality of government online services. Finally, the Impact sub index. It gauges the broad economic and social impacts accruing from ICT. The Economic impacts pillar measures the effect of ICT on the economy through technological and nontechnological innovations in the country. This looks at the number of patent applications and the role of ICT in developing new products, processes, and organisational models. It also measures the overall shift of an economy toward more knowledge intensive activities. The Social impacts pillar assesses the country s societal progress brought about or enhanced by the use of ICT. Because of the difficulty of capturing data and measures in this area, some of the proxy measures for potential benefits include: extent to which ICT allow access to basic services (education, financial services, and healthcare), the use of internet at schools, the impact of ICT on government efficiency, and the quality and usefulness of information and services provided by a country for the purpose of engaging its citizens in public.

39 39 Appendix 2: Key ICT themes and activities in New Zealand Key themes The ICT sector attracts increasing interest from angel, venture and private equity investors on the NZX Increased use of ICT across the economy generating employment growth across a range of skill-sets, including software engineering and development, project management, marketing, sales, administration and business analysis Information and communication technologies provide a platform for innovation across all sectors Internet service providers offer uncapped broadband plans, connections to ultra-fast broadband plans and connections to the ultra-fast broadband fibre (UFB) networks taking off Rapid uptake of smartphones, tablet computers and other mobile devices Build local and international business networks in support of export growth Activity Eight firms identified as part of the IT sector have listed on the NZX since IT firms now account for around 10 per cent of the NZX s market cap. IT software firms have attracted 31 per cent of New Zealand s venture and early stage investment in the last five years, with a record $29 million invested in 2013 in start-up and early stage companies. More computer system design firms reported vacancies than any other sector in the economy: 89% of the vacancies were for managers or professionals and technicians. Computer services firms drive growth in business expenditure on R&D in New Zealand. They now account for 25 per cent of the total business expenditure on R&D, up from 13 per cent ten years ago. The latest OECD Broadband Portal penetration statistics show New Zealand is now number one among developed countries for annual growth of fibre connections in the year ending June 2014, with an annual growth of 272 per cent. New Zealand now ranks 15th out of 34 OECD countries for fixed broadband subscriptions, up from 22nd in Consumers are choosing plans with higher caps or unlimited data. Mobile broadband connections topped 3.7 million in 2014, equivalent to 82 per cent of the population. Development of modern and outward looking technology innovation system, as indicated by listings on the NZX; the emergence of specialist technology law firms, serial entrepreneurs, incubators and innovation hubs; strengthening international connections and networks; and participation of high profile investors, and Government initiatives such as of the ICT graduate schools and the Callaghan Innovation. Source: ICT Sector Report 2015, Ministry of Business, Innovation and Employment

40 Appendix 3: Comparable development funds programmes Name of initiative Administrator Explanation R&D Growth Grants Callaghan Innovation Market-led incentive for business to increase R&D investment: on-demand, three-year grants which provide 20 per cent public co-funding for qualifying firms eligible R&D expenditure (capped at $5m per annum). Qualifications: Firm needs to have invested at least $300,000 in R&D in each of the last two years. R&D Project Grants Callaghan Innovation Support for firms with smaller R&D programmes and those that are new to R&D. Typically provide support for per cent of eligible R&D cost. Primarily targeted at businesses that do not receive a R&D Growth Grant businesses with smaller research and development programmes and businesses new to R&D. R&D Student Grants Callaghan Innovation Support for New Zealand undergraduate and postgraduate students to gain and develop technical skills in a commercial R&D environment (while bringing capability into New Zealand businesses). Incubator Support Programme Accelerator Programme New Zealand Trade and Enterprise International Growth Fund Digital Futures Callaghan Innovation Callaghan Innovation New Zealand Trade and Enterprise New Zealand Trade and Enterprise Creative HQ, Vic Link and Victoria University Support for New Zealand incubators, who in-turn support start-up businesses through services and funding. Callaghan Innovation supports two types of incubators; technologyfocused incubators and founder-focused incubators. Technology-focused incubators: Powerhouse (Christchurch, Wellington, Auckland) Astrolab (Auckland) WNT Ventures (Tauranga) Founder-focused incubators: BCC (Palmerston North) Creative HQ (Wellington) Ecentre (Auckland) The Icehouse (Auckland) Soda Inc. (Hamilton) Support for Accelerators designed to support the rapid formation of early stage ICT and digital technology start-ups that drive growth in NEW ZEALAND s digital technologies industry. Co-funded at a rate of 1:2 Government to private sector funding (i.e. $2.5 from government matched by $5 from co-funders). Assists New Zealand businesses seeking to grow internationally by: Using its international network of staff to connect businesses to those with local knowledge on markets seeking to be expanded. Offering programmes and services to help improve efficiency and operations, spark innovation, refine strategy, enhance leadership and access capital. $30 million fund, part of services New Zealand Trade and Enterprise offers to businesses it works with most intensively. Skewed towards fastgrowth export businesses, sectors and regions that present the greatest opportunities for international successes. Initiative to help build the next wave of successful digital start up ventures for the Wellington region Three-month summer programme links a team of new graduates to businesses to help solve a business problem. No cost to brands to apply to be part of the programme. The Collaborators The Biz Dojo Assists start-ups in the commercialisation of ideas guiding through product refinement, market strategy, and connections to capital. Regional Development Australia Fund Te Pūnaha Hiringa: Māori Innovation Fund Department of Infrastructure and Regional Development (Australia) Science and Innovation, Ministry of Business, Innovation and Employment Supports the infrastructure needs and economic growth of Australia s regions. Funded capital infrastructure projects identified as priorities by local communities. $2 million per year fund, aimed at assisting Māori collectives in gaining the understanding and knowledge needed to realise the economic potential of their assets. The fund is open to applications from Māori collectives trusts, incorporations, Rūnanga and Trust Boards, post-settlement governance entities, and mandated iwi organisations. The Fund invests in initiatives that contribute to achieving goals and prorities in: He Kai Kei Aku Ringa (the Crown-Māori Economic Growth Partnership) the Business Growth Agenda

41 41 Māori Economic Development Fund Māori Provider Development Scheme Canterbury DHB Māori Pacific Health Scholarship Toitū Kaupapa Māori Mātauranga Te Pūnaha Hihiko Vision Mātauranga Capability Fund Ngā Kanohi Kitea Community Grants Ngārimu VC and 28th (Māori) Battalion Memorial Scholarship Kaituitui Pūtea Whanake Ōhanga, Kāpiti Coast District Council Ministry of Health He Oranga Pounamu Toitū Kaupapa Māori Mātauranga Science and Innovation, Ministry of Business, Innovation and Employment Health Research Council of New Zealand Ngārimu VC and 28th (Māori) Battalion Memorial Scholarship Fund Board Secretariat support provided by Group Māori, Ministry of Education $60,000 available for projects which align with the Council s Māori Economic Development Strategy. The Fund aims to assist whānau, hapū, iwi, mātāwaka and Māori business in Kapiti with costs associated with the ongoing development of Māori economic activity, in particular activity associated with: Manaakitangata leveraging the potential of rangatahi and building whānau capacity Kaitiakitanga Whatungarongaro te tangata toi tu te whenua (working with the whenua) Kotahitanga supporting whānau to achieve economic wellbeing through capacity, collaboration, innovation and Māori business. Scheme that works to increase the capacity and capability of Māori providers to deliver effective health and disability services for Māori. It also supports activities to develop a highly-skilled Māori health workforce. To be eligible for the development funding an organisation must: be owned and governed by Māori, and providing health and disability services primarily but not exclusively to Māori; have a contract/s with the Ministry of Health and/or District Health Board (DHB) and/or Primary Health Organisation (PHO); and be in the process of developing a contract with the Ministry of Health and/or District Health Board (DHB) and/or Primary Health Care Organisation (PHO). Scholarship financially assists students of Māori and Pacific origin planning on studying a health-related subject and covers annual course fees. Students need to be enrolled at a Christchurch tertiary institution and be planning to work in the Canterbury district. Provides scholarships and grants to encourage Māori into tertiary education Invests in projects that contribute to the development of skilled people and organisations undertaking research that support the four themes of MBIE s Vision Mātauranga policy. The Vision Mātauranga policy aims to unlock the science and innovation potential of Māori knowledge, resources and people for the benefit of New Zealand. Vision Mātauranga has four focus themes: 1. indigenous innovation contributing to economic growth through distinctive science and innovation 2. taiao/environment achieving environmental sustainability through iwi and hapū relationships with land and sea 3. hauora/health improving health and social wellbeing 4. mātauranga exploring indigenous knowledge and science and innovation. MBIE will invest up to $2.50 million per year, excluding GST, in the 2015 investment round for the Vision Mātauranga Capability Fund. The Ngā Kanohi Kitea Community Grants funding initiative provides an opportunity for iwi, hapū and community groups to investigate a welldefined area of Māori health need or gain. University scholarships for students of Māori descent studying at undergraduate, masters and doctoral level of New Zealand and international universities. Five scholarships are available per annum: three undergraduate awards ($10,000 per annum each year of fulltime study, for up to five years) one masters award ($15,000 per year of fulltime study, for up to two years) one doctoral scholarship ($25,000 per year of fulltime study, for up to two years (supports doctoral candidates through the final 24 months of study). Source: Māori ICT Fund, Unpublished.

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