Published on the 22/06/2016 | Written by Newsdesk
Comprehensive economic study shows the tech sector makes a significant and growing contribution to the economy…
The release of a landmark study on the local technology industry has confirmed that information technology is creating better, higher-paying, more rewarding opportunities.
NZTech chief executive Graeme Muller said the ‘Digital Nation New Zealand’ report shows that nearly 29,000 tech sector firms contribute $16.2 billion, or eight percent, of gross domestic product (GDP). New Zealand exports $6.3 billion of tech goods and services – nine percent of all exports.
Almost 100,000 people, or five percent cent of the workforce, are employed in the tech sector and an additional 20,000 tech workers work in other sectors. The report found that the tech sector has the highest paid and higher qualified employees than all other sectors, on average.
And New Zealand is doing better at it than many other countries.
Said Muller: “ICT’s contribution to GDP growth in New Zealand has been higher than in any other country in the OECD from 2001 to 2013. Each new tech sector job creates up to five new services jobs around it. Each four percent productivity improvement in the tech sector is estimated to deliver an additional $2.7 billion of GDP.”
Muller said most people are unaware of the exponential impact technologies are having throughout society, something the study seeks to address. “As the voice of the technology sector, NZTech has set out to determine just how important [the industry] is. Without an answer there is serious risk that as a country we will miss opportunities for both economic and social growth.”
He added that while growth in tech exports will continue to be significant for New Zealand’s economy, the social and economic gains that technology can enable are vast and deserve increased focus.
The Digital Nation New Zealand report was prepared by the New Zealand Institute of Economic Research (NZIER) and sets out to deepen understanding and discussions about the benefits technology brings and the role that it could play in redefining country.
However, Muller also noted that NZIER recently released a report arguing that 885,000 – or 46 percent – of New Zealand jobs are likely to be automated within the next two decades. “New technologies will create new demands for occupations as well as new occupations,” he added.
Microsoft NZ CE Barrie Sheers said digital technologies are transforming society and the economy in fundamental ways and are integral to the country’s future. “Digital technologies are now a vital part of our economy. Looking simply at their impact on our national income, the technology sector’s export earnings have doubled over the past few years.”
Sheers said businesses need to recognise new opportunities and make the right investments to realise them. “Individuals and communities need to make informed choices about how they will react to the changes enveloping them. Government also needs to ensure that the actions it is taking serve to set the underlying conditions for our future success.”
Not-for profit NZTech is the voice of the New Zealand technology sector and represents over 300 organisations and 57,000 tech employees from across the New Zealand technology landscape from startups and local tech firms to multinationals and from ICT to high tech manufacturing.
Access the Digital Nation New Zealand report.
