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Generating More Value from Our Forests - Ministry of Forests

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14<br />

Key Drivers for Success<br />

Research based on literature review, recent interviews with<br />

stakeholders, and discussion forums with senior government<br />

staff suggest that the successful promotion <strong>of</strong> further<br />

manufacturing is driven by a few key factors. These factors,<br />

when present, serve as drivers for success; when absent, they<br />

constitute barriers to growth.<br />

Access to Raw Material<br />

For the traditional value-added sector, past studies identified<br />

a lack <strong>of</strong> consistent, dependable, competitively priced fibre<br />

as an impediment to growth. Although next generation<br />

products can be generated <strong>from</strong> under-utilized fibre types,<br />

detailed information on this inventory is less developed.<br />

Chart 3<br />

Product Innovation Pathway<br />

Investment<br />

Business<br />

Policy<br />

Basic R&D<br />

Technology Push<br />

Investors<br />

Government<br />

<strong>More</strong> detailed inventory information <strong>of</strong> under-utilized fibre and<br />

mechanisms to facilitate the flow <strong>of</strong> fibre to further<br />

manufacturing are required.<br />

Competitive Processing Capacity<br />

The preponderance <strong>of</strong> the commodity-focused business model,<br />

combined with a small traditional value-added sector, has resulted<br />

in weak capacity to commercially manufacture innovative,<br />

next generation forest products. Chart 3 shows the innovation<br />

cycle for new products, <strong>from</strong> basic research to commercialization<br />

and product diffusion. The commercialization phase, which requires<br />

new or converted processing capacity, has been a particularly<br />

challenging barrier to overcome. Greater wood processing<br />

capacity will be required to capitalize on further manufacturing<br />

growth opportunities.<br />

Market Pull<br />

Applied R&D Demonstration Commercialization Diffusion<br />

Adapted <strong>from</strong>: Environmental Policy Group, Imperial College, London<br />

Consumers

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