Chief Executive Update

From an economic viewpoint, research is a process for taking financial capital (money) and seeking to turn it into intellectual capital value (the potential realisable value of new knowledge – in any of economic, social or environmental terms).  Innovation can then be seen as the process of realising as much of the intellectual capital value as possible. When both processes are operating healthily, follow-on investment by the public and private sectors has great benefit. 

This country is about 30% lower compared to the OECD mean in its public sector research and development investment, but more like 50% lower in private sector investment.  We sit lowish in the national GDP/capita rankings reported by the OECD, reflecting a relatively low labour productivity (the value created per hour worked). When our industry does invest financial capital (such as in plant and machinery), the improvements in labour productivity seem to be less than other countries achieve for similar investments. This country cannot afford a poor return on capital investment, given it also under-invests in research and innovation. 

The trick in a research and innovation system is to invest enough, distribute that investment appropriately across the spectrum from curiosity-driven to highly applied and across fields of humanities, science and technology, so as to maximise the intellectual capital value created, and then be efficient in realising the benefits of that intellectual capital value.  This means having people with the right skills and outlooks participating at the right places in our research and innovation system as decision makers and investment agents.  Ideally, workforce development should have a long term approach.

This country has a generally well-educated workforce, but that is not the same as having a fit-for-purpose research and innovation workforce. Through this, the third year of our President Wendy Larner’s term of office, the Society is looking into the research workforce. Our early career researcher group has already raised their concerns. The question on our minds is whether improvements can be made so as to better match the skills and aspirations of those entering the workforce with the actual opportunities. If improvements can be made then those whose prior achievements identify them as our best and brightest academically will have even more productive careers – both for themselves, and for our country.