New Zealand has a strong economic foundation but our productivity has continued to fall behind our main competitors. Boosting productivity, including redirecting investment towards more productive sectors, is crucial if New Zealand is to lift the standard of living of all Kiwis. At the same time we must ensure that our economy grows in a way that is sustainable and inclusive. The impacts of COVID-19 have heightened the need to grow productive sectors while also requiring some sectors to transition to adjust to this new context.
The Government is taking an active industry policy approach focused on:
- supporting industries in transition (in response to both near-term disruption caused by COVID-19 and long-term challenges such as the shift to a low emissions economy); and
- transforming industries to lift aggregate productivity and enabling the scaling up of highly productive and internationally competitive clusters in areas where we have a comparative advantage.
For key sectors, Industry Transformation Plans will be developed in partnership between government, business, workers and Māori. Each will be unique to its industry but will build on any existing work to:
- describe an agreed vision for the future state of the sector; and
- outline the actions required to realise this vision, including investment, innovation and skills development.
Industry Transformation Plans have been developed for the agritech and construction sectors, and are in development for digital technologies, advanced manufacturing, food and beverage, and forestry and wood processing.