Hon Jim Anderton

8 July 2004 SPEECH NOTES BRIEF

Celebrating the success of DataCol in the Canterbury Innovation Incubator

EDITED HIGHLIGHTS and background

Jim Anderton gave a speech to the Canterbury Innovation Incubator this afternoon to celebrate the successful exit of DataCol New Zealand from the Incubator on Thursday 8 July.

Since December 2001, when DataCol joined the Canterbury Innovation Incubator as its first tenant, it has increased its staff from three to more than 20, generated a multimillion dollar contract and made the Deloittes Fast 50 two years running.

"The innovation incubator is a great example of innovation and partnership in Canterbury business.

"It demonstrates the value of the incubator approach to helping grow and internationalise New Zealand businesses.

…..

"I can’t stress enough the importance of helping our high tech companies to grow.

"New Zealand exports the lowest proportion of complex manufactured goods in the developed world – by far.

FULL TEXT SPEECH

Successful business leaves Canterbury Incubator to go it alone
Economic Development
08 July 2004
Topic: Jim Anderton's Speeches
Canterbury Innovation Incubator - Datacol exit function
2.30PM Thursday, 8 July 2004
Canterbury Innovation Incubator

SPEECH NOTES

Datacol director Grant Thomson, CDC CEO Chris Pickerill, Canterbury Innovation Incubator chief executive Stephen Hampson

When I was first invited to an ‘exit function’ I had to double check the invitation.

I’m used to going to lots of openings - but one wants to be sure an ‘exit’ isn’t some kind of euphemism.

I’m delighted that it’s a symbol of growth.

Nevertheless, I’m reminded of an old story about three guys sitting around discussing their mortality.

They start to talk about how they would like to be remembered at their funeral.

The first one says, ‘well if I could listen in at my funeral I would want to hear people say he was a great friend a great family man.’

The second guy says, ‘I would like to hear that I was a wonderful husband and a person who made a huge difference in the children of tomorrow’.

The third guy thinks for a while and says, ‘I guess I'd like to hear someone say 'Look - he's moving!’

A few years ago, there was a commitment made to life in the Canterbury economy.

It was a commitment made by some Canterbury businesspeople, along with the Council and people with an interest in economic development.

Their innovation and determination has for many years been an inspiration to all New Zealand.

It’s been a demonstration of the gains that can be made from partnership.

It’s helped to give talented businesspeople every opportunity to succeed.

The innovation incubator is a great example of innovation and partnership in Canterbury business.

It demonstrates the value of the incubator approach to helping grow and internationalise New Zealand businesses.

I’m delighted to be here to celebrate this significant milestone.

DataCol, which leaves the incubator today, is a great local success story about 'growing and going.'

DataCol founder and managing director Grant Thomson arrived at the Canterbury Innovation Incubator in 2001.

He had a handful of staff and a small team of meter-reading contractors.

Now he has 22 staff and about 140 contractors.

They are feeding in data from some 6 million readings a year around New Zealand for four electricity retailers.

DataCol plans to take its turnover above $20m in three years.

The company has featured two years running in the Deloitte Fast 50 companies index, with annual turnover growing by 565% in 2002 and 300% last year.

That’s impressive growth.

I want to congratulate you on your success, and the vision, talent and determination that has made it possible.

DataCol’s success is also a real testament to the support offered to the company by Canterbury Innovation Incubator.

It’s support was in a range of areas: IP protection and negotiation, bank loan negotiations, technology development planning, strategic planning and preparation to become investment-ready.

Innovation is important because successful businesses are foundations on which we build and generate wealth.

If we want higher living standard for all New Zealanders, we need to create a high-value, job-rich economy based on the unique talents and creativity of New Zealanders.

We can’t increase our living standards by being simply a low-cost producer of commodity goods.

The key to high value businesses - and therefore high value jobs and a higher value economy - is innovation.

This incubator accelerates the growth of emerging high-tech companies in Canterbury.

Its business incubation is world-class and internationally recognised.

It’s become a focal point of Canterbury’s growing technology sector.

It hosts a number of clusters and industry networks.

They include the Canterbury Software Cluster, Electronics South, Nutraceuticals Cluster and many others.

I can’t stress enough the importance of helping our high tech companies to grow.

New Zealand exports the lowest proportion of complex manufactured goods in the developed world – by far.

We’re getting much better, and I’m positive about the future.

The success of initiatives such as this incubator helps to explain why.

Canterbury Innovation Incubator makes a significant contribution to Canterbury by providing this supportive environment. It’s a credit to the founding partners:

Canterbury Development Corporation,
Orion,
The University of Canterbury,
Lincoln University,
Christchurch Polytechnic Institute of Technology,

And the commercial sponsors:
New Zealand Trade and Enterprise,
Telecom,
Canon,
Microsoft,
and Hewlett Packard.

Over the past year Canterbury Innovation Incubator has enjoyed incredible success.

It’s grown from nine resident companies to eighteen.

It now involves more than 70 people.

The government has funded the incubator programme through New Zealand Trade and Enterprise since 2001.

A programme has been designed to assist the establishment of a network of incubators around New Zealand.

Just last month, in the latest funding round, the Government strengthened its commitment.

A combined $2.7 million of funding was allocated to boost eleven business incubators.

This is an increase on last year by half.

It’s only five years since I used to be in opposition and I was told government has no place working alongside business.

There is no shortage of people who continue to say it today.

It’s up to you whether you want it to continue.

To me, the success of firms coming through the incubators, and the importance of that success to New Zealand, is proof the policy of partnership is right.

The government is here to stand with you and play our role in partnership.

It’s a partnership that will help to improve the growth and survival rates of even more new companies.

It’s fostering innovation and real job growth.

Since we launched the programme through New Zealand Trade and Enterprise the incubator network in New Zealand has generated 25 successful company graduations.

It’s raised more than $16 million in capital to fund their continued growth.

Incubator residents are creating an average of 110 new jobs each quarter - that’s every three months.

When we support incubators the benefits don’t accrue just to the individual companies.

They also generate returns for their regions and the entire economy.

My congratulations to you all for the excellent work you’re doing to help grow your region and our economy.

I would like to pay particular tribute to Datacol for its success sin reaching this point.

I look forward to hearing of your continued success as you stretch your wings and make your mark overseas.

I wish you all the best for your future success.

ENDS

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