Six ways to spark innovation and entrepreneurship

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14 November 2024

Business School, Business and economy

Opinion: The world's leading innovation hubs often have a university at their core, serving as breeding grounds for cutting-edge technology, entrepreneurial talent, and high-impact startups.

Stanford University has been pivotal to Silicon Valley, nurturing giants such as Google and Tesla, and MIT anchors Boston's biotech and robotics industries. In Canada, University of Waterloo powers the Waterloo-Toronto Corridor. In the UK, Cambridge and Oxford lead in biotech and AI. Across Asia, Tsinghua University drives China's Silicon Valley, and NUS, the National University of Singapore supports Southeast Asia's tech sector. Australian universities, such as Sydney and UNSW, are critical to MedTech and AI innovation.

A well-resourced university and science system is critical to maintaining New Zealand's competitive edge in the global marketplace.

The crisis in tertiary education caused by inadequate funding
To help make that happen the University of Auckland has spent the last two decades building a vibrant entrepreneurial ecosystem. At the core is the Centre for Innovation and Entrepreneurship, offering more than 15 programmes to nurture entrepreneurial talent and support the creation and growth of startups.

UniServices, the University's commercialisation arm, establishes partnerships with industry, manages a $40 million fund, and invests in startups emerging from the university community. Additional initiatives at the university, such as Cloud 9, a startup incubator at the Auckland Bioengineering Institute, the MedTech IQ, a nationwide initiative to spark a medical technology sector, the New Zealand Product Accelerator, and the Newmarket Innovation Precinct, further strengthen this ecosystem.

This year the centre will support close to 100 early-stage ventures and more than 7,000 people to develop their innovative capabilities.

Centre for Innovation and Entrepreneurship director Darsel Keane

In the last 21 years, the Centre for Innovation and Entrepreneurship has helped ignite hundreds of ventures, creating thousands of jobs across 195 countries and raising over $4.2 billion in capital. These ventures address global challenges in cleantech, medtech, agritech, and deep tech. Notable examples include Tectonus (seismic engineering), Alimetry (gut health diagnostics), and Toku Eyes (AI eye health).

Alumni ventures such as Kami, Auror, and Zenno Astronautics highlight the university's role in fostering industry-changing innovation. These entrepreneurs are creating the companies that New Zealand needs, building global businesses, and generating high-value jobs.

Although New Zealand has made significant strides over the last two decades, there is still much to be done. The following priorities, with a focus on the education, university, and science systems, could further advance New Zealand's innovation ecosystem:

Create a National Innovation Strategy

Many countries have developed national innovation strategies to boost economic growth, competitiveness, and technological advancement. These strategies typically focus on enhancing research and development, fostering public-private partnerships, supporting entrepreneurship, and creating frameworks for the commercialisation of innovation.

Embed Innovation and Entrepreneurship Across the Education System

Innovation and entrepreneurship must be embedded at every level of New Zealand's education system, from primary to tertiary education. Early exposure to Stem education and entrepreneurial thinking is critical for preparing students to thrive in a rapidly evolving economy. For example, the Global Entrepreneurial Student Spirit Survey in 2021 revealed that only 7 percent of University of Auckland students preferred to start their careers as entrepreneurs - well below the global average of 21.2 percent.

Expand University Innovation Programmes Nationally

Universities across New Zealand, either through a national approach or locally embedded efforts, should establish and grow opportunities similar to the University of Auckland's Centre for Innovation and Entrepreneurship. By scaling such initiatives nationwide, more students and faculty will have the resources to engage in entrepreneurial activities and launch successful startups.

Foster Talent Development and Diversity

Universities should prioritise entrepreneurial education and targeted training programmes that align with industry needs, especially in high-demand fields such as software development, AI, and MedTech. Programmes that promote diversity and inclusion, for underrepresented groups such as Māori, Pasifika, and women, will ensure New Zealand's innovation ecosystem benefits from a wide range of perspectives and capabilities.

Increase Investment in Research Commercialisation

New Zealand must boost funding and incentives for the commercialisation of university research. Expanding initiatives such as UniServices, with greater funding, can accelerate the development of startups and spinouts capable of scaling globally.

Enhance Funding for R&D Across the Science System

The science system requires additional government investment in research and development to close the gap with other leading innovation economies. Research funding should always support blue-sky, high-risk research, but increased spending will ensure that universities have the resources to conduct high-impact research that can be commercialised.

New Zealand's success depends on continued investment in universities, strengthened industry partnerships, and nurturing the next generation of entrepreneurs. By prioritising quality and commercialisation in higher education, New Zealand can lead the work to shape the innovations that drive economic and societal progress.

By Darsel Keane, Director of the Centre for Innovation and Entrepreneurship at the University of Auckland.

This article reflects the opinion of the author and not necessarily the views of Waipapa Taumata Rau University of Auckland.

It was first published by Newsroom

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Sophie Boladeras, media adviser
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