The Pathway to Enhanced Productivity Through Technology and Innovation

New Zealand faces significant challenges in the rapidly evolving global landscape, including demographic shifts with an ageing workforce, reduced global participation in significant initiatives, and stagnating productivity growth. While the first two drivers of prosperity are largely out of our immediate control, productivity remains a key focus for businesses seeking improved efficiencies and delivery.

 

Absorbing and integrating technological innovations can transform a low-wage, low-productivity economy into a high-wage, high-productivity economy. New Zealand is lagging behind global productivity leaders like Singapore and Switzerland and must embrace an innovative mindset and enhance its digital capabilities to catch up and remain competitive.

 

New Zealand's economy is at a critical juncture. The country's GDP per capita has been on a steady decline, exacerbated by high interest rates and inflation. Deloitte Access Economics forecasts that the current downturn will start to ease in June 2025, but the overall decline in GDP per capita is expected to be 6.4% - worse than the downturn experienced during the 2008 Global Financial Crisis. Productivity is the key controllable factor that can drive New Zealand's much-needed economic growth. Addressing the productivity challenge today can help to turn the country's economic growth around in the coming years.

 

Increasing innovation and technology adoption are essential to uplifting productivity, according to Deloitte Access Economics. Currently, New Zealand lags behind its peer countries in investment in research and development (R&D) and technology adoption. If this trend continues, New Zealand risks missing out on significant productivity benefits over the next decade.

 

Higher technology investment can boost productivity across the economy, ensuring a sustained rise in GDP per capita, higher incomes, improved living standards, and greater collective resources to tackle systemic challenges such as climate change.

 

Barriers that hinder technology adoption in New Zealand include skill and workforce shortages, lack of business dynamism, weak management capabilities, limited collaboration within and between businesses, and a restrictive regulatory environment. Addressing these barriers is key to unlocking substantial benefits for the productivity of businesses, sectors, and the whole country.

 

Businesses and government must collaborate to address these barriers, implement policy measures that support innovation and entrepreneurship, and meaningfully lift productivity levels. Ensuring that R&D tax incentives are fit-for-purpose, addressing innovation funding gaps, and encouraging firms to more accurately self-monitor are essential steps in the right direction.

 

Leasing can play a pivotal role in accelerating technology adoption and innovation for businesses. By providing flexible leasing solutions, Quadrent helps businesses access the latest technology, enabling a more productive and innovative workforce immediately without the need for significant upfront capital investment.

 

Additionally, leasing solutions can help businesses manage cash flow more effectively, allowing investment in other areas critical to growth and innovation. By partnering with Quadrent, New Zealand businesses can overcome financial barriers to accessing the latest technology and in turn drive sustained productivity improvements.

 

Accelerating technology adoption and innovation is crucial to uplifting New Zealand's productivity and ensuring economic prosperity. Partnering with the leasing experts at Quadrent will enable businesses to unlock the full potential of their workforces and climb the ranks of productivity and economic growth.