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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

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