Bay of Plenty Business News June/July 2019
From mid-2016 Bay of Plenty businesses have a new voice, Bay of Plenty Business News. This new publication reflects the region’s growth and importance as part of the wider central North Island economy.
From mid-2016 Bay of Plenty businesses have a new voice, Bay of Plenty Business News. This new publication reflects the region’s growth and importance as part of the wider central North Island economy.
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BAY OF PLENTY BUSINESS NEWS <strong>June</strong>/<strong>July</strong> <strong>2019</strong><br />
PlantTech a big boost for <strong>Bay</strong> Agritech<br />
From page 1<br />
5<br />
able to do that thing reliably,<br />
time and again, at a cost that<br />
the market could bear.<br />
He paraphrased agritech<br />
investor Michael Helmstetter,<br />
who has observed that the first<br />
pitfall comes between basic<br />
research and the commercialisation<br />
<strong>of</strong> a new product. This<br />
gap most <strong>of</strong>ten occurred when<br />
public investments were made<br />
in very early stage research<br />
without sufficient attention to<br />
the later stages <strong>of</strong> the innovation<br />
process.<br />
“I believe that there has<br />
been a long and widely held<br />
misconception that this ‘innovation<br />
gap’ is somehow a market<br />
failing,” said Begbie.<br />
“I suggest it is much more<br />
accurate to view this as a<br />
‘market characteristic’, that is<br />
an inevitable consequence <strong>of</strong><br />
the desire to move from new<br />
knowledge to new products<br />
and capabilities, based on that<br />
knowledge.<br />
“We cannot plug the gap<br />
and walk away, somewhat<br />
like the boy with his finger<br />
in the leaking dyke. Rather,<br />
we must find a way to work<br />
together, over the long term,<br />
to carry promising ideas across<br />
the gap.”<br />
The next key factor was<br />
change, said Begbie. “The<br />
issue <strong>of</strong> how we realise social,<br />
environmental and economic<br />
benefit from innovation is<br />
more pressing now than ever.”<br />
He quoted Canadian Prime<br />
Minister, Justin Trudeau, who<br />
told the World Economic<br />
Forum in 2018: “The pace <strong>of</strong><br />
change has never been this<br />
fast, yet it will never be this<br />
slow again.”<br />
Trudeau went on to say:<br />
“You are rightly anxious<br />
about how quickly our existing<br />
business models are being<br />
disrupted. Still, if you’re<br />
anxious, imagine how the<br />
folks who aren’t in this room<br />
are feeling.”<br />
Triple Helix<br />
The third thing related to the<br />
concept known as Responsible<br />
Research and Innovation<br />
(RRI), a term used by the European<br />
Union to describe scientific<br />
research and technological<br />
development processes that<br />
take into account the effects<br />
and potential impacts on the<br />
environment and society.<br />
“The means <strong>of</strong> addressing<br />
the first two [issues] - and<br />
what the RRIs are a version <strong>of</strong><br />
- is what is becoming widely<br />
known as the Triple Helix,”<br />
said Begbie.<br />
Current thinking and the<br />
“triple helix” model could be<br />
traced back to 1949, with the<br />
establishment <strong>of</strong> the Fraunh<strong>of</strong>er<br />
Society, a three-way collaboration<br />
between industry,<br />
academia and the Bavarian<br />
government.<br />
By 1952 the society was<br />
formally recognised as an arm<br />
<strong>of</strong> non-university research, but<br />
it was not until 1973 that the<br />
Fraunh<strong>of</strong>er Model was agreed<br />
with the Federal Government.<br />
“This model established a<br />
long-term, sustainable partnership<br />
and it enabled the<br />
Fraunh<strong>of</strong>er organisation to<br />
become a global cornerstone<br />
<strong>of</strong> science-led industrial innovation,”<br />
said Begbie.<br />
Similar approaches are now<br />
established across Europe,<br />
North America and the<br />
Asia-Pacific.<br />
“This is a space and a mission<br />
that genuinely excites me,<br />
Science Minister Megan Woods and PlantTech chief executive Mark Begbie<br />
with Bluelab chief executive Greg Jarvis. Photo/John Borren Photography.<br />
and in which I see success as<br />
one - but a critical - part <strong>of</strong><br />
delivering national competitive<br />
advantage.”<br />
Begbie said when he was<br />
approached about PlantTech,<br />
one <strong>of</strong> the things that attracted<br />
him was the clear and positive<br />
commitment to change taken<br />
by the government and MBIE,<br />
to dedicated triple-helix entities<br />
doing excellent science<br />
with, and for, industry.<br />
“Another was the manner<br />
in which the founding consortium<br />
had sought out global best<br />
practice and endeavoured to<br />
build on the shoulders <strong>of</strong> giants<br />
- creating a market-driven, but<br />
research-focused, partnership<br />
with customers built in.”<br />
The aim was to build a<br />
structure with the right ingredients<br />
to deliver outcomes and<br />
increase business expenditure<br />
on R&D through growing<br />
confidence in its value, added<br />
Begbie.<br />
PlantTech had managed to<br />
secure some excellent talent,<br />
said Begbie, and the real journey,<br />
the scientific and innovation<br />
journey, had now begun.<br />
“PlantTech’s mission is<br />
not to develop solutions and<br />
present these to a customer,”<br />
he said.<br />
“Nor is it simply to collaborate<br />
with partners to jointly<br />
create a solution, though that is<br />
part <strong>of</strong> the job. It is to build the<br />
skills, capabilities and capacity<br />
for companies to accelerate<br />
their own growth.”<br />
More innovation and<br />
improved wellbeing<br />
Science Minister Megan<br />
Woods, who is a former business<br />
manager for Crop & Food<br />
Research and its successor<br />
organisation Plant and Food<br />
Research, began by acknowledging<br />
PlantTech’s founding<br />
shareholders and particularly<br />
Priority One for its vision and<br />
engagement during the institute’s<br />
establishment phase.<br />
The government’s vision<br />
was to build a better New Zealand<br />
for all its people, she said.<br />
“A prosperous, sustainable<br />
future for New Zealand is one<br />
which means high-quality jobs<br />
for all New Zealanders, higher<br />
wages, lower environmental<br />
impact, more innovation, and<br />
improved wellbeing.<br />
“Science and innovation<br />
will help us achieve this vision<br />
by generating leading-edge<br />
ideas and knowledge that our<br />
industry and public services<br />
can apply.”<br />
Woods said PlantTech -<br />
supported by a start-up investment<br />
<strong>of</strong> $8.4 million through<br />
the government’s Regional<br />
Research Institute Fund - was<br />
positioned as an agri-tech<br />
innovation centre, focusing on<br />
the horticultural industry.<br />
“The <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> is a<br />
regional powerhouse for the<br />
horticulture industry, with the<br />
fifth largest regional GDP and<br />
second highest GDP growth<br />
rate - it is the perfect home for<br />
PlantTech,” she said.<br />
“PlantTech shareholders’<br />
commitment to R&D investment<br />
in this region, the University<br />
<strong>of</strong> Waikato’s new campus<br />
in Tauranga, and growing GDP<br />
and strong export streams, creates<br />
the perfect environment<br />
for an advanced R&D hub.”<br />
This would continue to<br />
drive economic development,<br />
high skill jobs, and higher<br />
wages for the area and New<br />
Zealand, she added.<br />
“Through robotics, autonomous<br />
systems and AI research,<br />
PlantTech will ensure the horticulture<br />
industry remains ahead<br />
<strong>of</strong> shared challenges such as<br />
environmental sustainability,<br />
labour shortage, productivity,<br />
climate change, and biosecurity,”<br />
said Woods.<br />
“This also gives us the<br />
chance to become a global<br />
leader in supporting customised,<br />
precise and automated<br />
production systems that are<br />
accessible to all scales <strong>of</strong> business<br />
– not only benefiting the<br />
New Zealand horticulture sector,<br />
but also impacting global<br />
markets with home-grown<br />
technologies.”<br />
It is an absolute pleasure<br />
for me to <strong>of</strong>ficially launch<br />
PlantTech Research Institute<br />
here today.<br />
PlantTech’s research and<br />
close collaboration with<br />
industry partners will be an<br />
important part <strong>of</strong> ensuring<br />
science and innovation help<br />
create a sustainable future for<br />
New Zealand.<br />
High tech potential<br />
Woods also acknowledged the<br />
presence at the launch <strong>of</strong> opposition<br />
leader Simon Bridges,<br />
the MP for Tauranga.<br />
Bridges told the <strong>Bay</strong> <strong>of</strong><br />
<strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> he was<br />
excited to see PlantTech come<br />
together.<br />
“Although it has had plenty<br />
<strong>of</strong> parents, this is a little bit my<br />
baby,” he said, having signed it<br />
<strong>of</strong>f during his tenure as Minister<br />
<strong>of</strong> Economic Development.<br />
“When I think about<br />
PlantTech I think about the<br />
humble kiwifruit, which could<br />
have been an ordinary commodity<br />
at 30/40 cents a dollar<br />
and now sells in the world market<br />
at $10-15,” he said.<br />
“PlantTech is going to continue<br />
to be grow our ability to<br />
increase value in the horticulture<br />
space, and it’s got to be<br />
good for the BOP.”<br />
Barry O’Neil, president <strong>of</strong><br />
Horticulture New Zealand,<br />
who was among the guests,<br />
told <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong><br />
Continues page 6