Strategic focus needed to future-proof New Zealand’s economy

A newly released report from Boston Consulting Group (BCG) on the Future of NZ Inc: What will New Zealand be known for in 2050? examines how New Zealand can remain competitive in a rapidly changing world. The report highlights that while traditional economic strengths such as dairy, tourism and film have supported the country’s prosperity, they are no longer sufficient to drive sustained growth. It warns New Zealand’s economic trajectory is being challenged by declining productivity, talent shortages, climate risks and technological disruption.

Part of an ongoing investigation into the future of New Zealand, the report argues that rather than continuing a broad-based approach, New Zealand must concentrate investment in a few high-value industry ecosystems where it has a strong competitive advantage. It identifies five potential ecosystems with significant global growth potential:

• • Agriculture 4.0, which advances sustainable and technology-driven food production
  • Space and Satellites, which focuses on developing componentry, launch systems and geospatial analytics
  • Green Technology, which expands expertise in renewable energy, carbon sequestration and clean technology
  • Future of Medicine, which drives innovation in biotechnology, health IT and medical devices
  • Creative Industries, which strengthens New Zealand’s role in film, gaming and digital content.

The report emphasises successful industry ecosystems require coordination across government, businesses, research institutions, universities and investors. It highlights international examples where targeted investment has enabled smaller economies to develop globally competitive industries. New Zealand’s historic underinvestment in research and development and fragmented public sector support have made it difficult to build scale, but a more strategic approach could help position the country as a leader in these future-focused sectors.

The BCG report presents a clear message: New Zealand cannot rely on past strengths to secure its future. Focused, strategic investment in key industries is essential to ensuring long-term prosperity.

This is a governance challenge as much as an economic one. For directors, this means actively considering how their organisations can contribute to and benefit from these emerging opportunities. Businesses need to align long-term strategy with emerging opportunities, embedding innovation and sustainability into decision-making. Boards will also need to play a key role in guiding organisations through an era of heightened disruption ensuring adaptability, supporting skills development and engaging with policy settings that enable growth.

Considerations for directors:

• • Long-term strategic focus is critical – Boards should consider how their organisations align with New Zealand’s future economic direction and where they can contribute to high-value industry ecosystems.
  • Innovation and R&D investment must increase – New Zealand lags behind OECD peers in R&D spending. Directors should support greater investment in innovation to drive sustainable competitive advantage.
  • Talent attraction and retention require urgent attention – Skills shortages are a growing challenge, and businesses must take an active role in workforce development to ensure access to the expertise needed for emerging industries.
  • Collaboration is key – Success will require greater coordination between industry, government, universities and research institutions to build the ecosystems necessary for long-term growth.
  • Resilience and adaptability will determine future success – Boards must ensure their organisations are positioned to navigate technological change, climate risks and shifting global trade dynamics.

 

* AI assisted