4. Foster policy learning through better metrics, evaluation andexperimentation. 31The emphasis currently is on facilitating more systematic exchange and interactionamong key <strong>economic</strong> actors (firms, research providers, universities etc) because theknowledge system of which they are a part is an important determinant of <strong>regional</strong>productivity.Three of the most common categories of measures to build <strong>regional</strong> <strong>economic</strong> growthand linkages are:1. Real estate based projects: development of science parks and other industrialspaces designed to facilitate networking and technology development andtransfer through “co-location”.2. Cluster-type policies: initiatives to support existing or nascent groupings offirms by providing collective services and other measures to build cooperationwithin the cluster and to enable joint initiatives to export, market, etc.3. Linking research and industry: linking knowledge producers with users inorder to promote “systems” of technology and innovation diffusion and bettercommercialisation of innovation. 321.4.2 New Zealand policy and programmes<strong>Regional</strong> development has not been retained as a focus of the Government’s BusinessGrowth Agenda, however the current policy reflects aspects of the internationalparadigm shift, most explicitly in the formation of the New Zealand Food InnovationNetwork (open-access food development facilities), which capitalises oncomplementary <strong>regional</strong> strengths in Auckland, <strong>Waikato</strong>, Palmerston North andCanterbury.<strong>Regional</strong> development last became a focus of New Zealand government attentionduring the decade after the election of the Labour-led coalition in 1999. TheGovernment's goal for <strong>regional</strong> development at the time was for “sustainable, inclusivedevelopment in each region that sees <strong>economic</strong> growth that can be maintained overthe long term without compromising the environment and which helps to meet thesocial needs of people” 33 .The <strong>Regional</strong> Partnerships Programme was established as the Government's principal<strong>regional</strong> development programme in 2000 and ran for seven years, ceasing in June2007. The programme's objective was to build the <strong>economic</strong> capability of NewZealand's regions and it was delivered by New Zealand Trade and Enterprise.Under the <strong>Regional</strong> Partnerships Programme, 26 sub-regions were formed and fundedto develop <strong>regional</strong> <strong>economic</strong> development strategies and to build <strong>economic</strong>development capability. The <strong>Regional</strong> Partnerships Programme had three components:1. <strong>Regional</strong> <strong>economic</strong> development strategy – funding ($100,000 over threeyears) for a group of stakeholders within a region to produce an <strong>economic</strong>development strategy.2. Capability building – funding to develop the necessary expertise in the regionto implement the strategy (up to $100,000 per region over 12 months).31OECD (2011, p. 19).32OECD (2005, p. 9).33New Zealand Government (2000, p. 28).Page 10 Doc #: 2069885
3. Major <strong>regional</strong> initiatives – major projects (up to $2 million over three years)identified in <strong>regional</strong> strategies as being likely to help contribute to the region's<strong>economic</strong> growth objectives. They were intended to build on a comparativeadvantage and would result in increased level and quality of private sectorinvestment; the growth of quality, productive employment; and/or raisedrevenues and incomes (especially export revenues). They would be publicprivateinitiatives, led by businesses. A minimum <strong>regional</strong> contribution, in cashor kind, of 25 per cent was also required.The <strong>Regional</strong> Strategy Fund was established as part of refreshed policy in July 2007and the 26 sub-regions were replaced by 14 regions. The regions were encouraged todevelop comprehensive <strong>regional</strong> <strong>economic</strong> development strategies with input from theMinistry of Economic Development and its strategy development guidelines and toundertake further research to deepen understanding of region specific issues andstrategic priorities in order to reflect these findings in the published <strong>regional</strong> strategy.The <strong>Regional</strong> Strategy Fund could also support projects that implement the innovationand enterprise aspects of the strategy where these projects are not more appropriatelyfunded by other central government organisations. The <strong>Regional</strong> Strategy Fund has upto $750,000 available to each region over a three year cycle.The <strong>Regional</strong> Strategy Fund was complemented by the Enterprising PartnershipsFund, which could support commercially driven projects that helped to implement the<strong>regional</strong> strategy. Projects needed to align with national strengths, be of nationalsignificance and offer substantial <strong>economic</strong> development benefits, but were not limitedto large-scale projects. For example a mid-sized project with a total cost of $1 millioncould be supported by up to $700,000 of Enterprising Partnerships Fund funding. The<strong>Regional</strong> Strategy Fund was discontinued in June 2010.1.4.3 <strong>Waikato</strong> experienceUnder the former <strong>Regional</strong> Partnerships Programme, the <strong>Waikato</strong> region wasorganised into five sub-regions. These sub-regions were Thames-Coromandel, Central<strong>Waikato</strong> (which included Hamilton city, <strong>Waikato</strong> and Waipa districts), King Country(including Waitomo and Ōtorohanga), Taupō and South <strong>Waikato</strong>.The five <strong>Waikato</strong> sub-regions received a total of $11,559,070 under the <strong>Regional</strong>Partnerships Programme. This consisted of $803,245 for strategy funding, $2,401,775for capability funding and $8,354,050 for major <strong>regional</strong> initiatives. Major <strong>regional</strong>initiatives funded included: <strong>Waikato</strong> Innovation Park (Hamilton) was funded $2 million in 2002 Aviation <strong>Waikato</strong>, owned by The Katolyst Group, was funded $2 million in 2005 The New Zealand Clean Energy Centre (Taupō) was funded $2 million in 2006 Taupō Motor Sport Park was funded $2 million in 2006, and Waihi Heart of Gold Tourism Discovery Centre was funded $1.8 million in 2007.<strong>Waikato</strong> Innovation Park was awarded $4 million over 3 years from 2008 from theEnterprising Partnerships Fund. Half of this amount went towards the construction of anew 300m 2 building and the other half was for the support of business developmentservices.Under the 2007 changes to <strong>regional</strong> <strong>economic</strong> development policy, these sub-regionschose to work together as a single region. The region established a governancegroup 34 and gained funding through the <strong>Regional</strong> Strategy Fund to develop an34 The <strong>Regional</strong> Governance Group consisted of the following people: Philip Burton, (Communications and PromotionsManager, Hamilton City <strong>Council</strong> [Acting Chair]), John Birch (Director, Central Capital), Jerry Rickman (Chairman,Hamilton International Airport), Chris Williams (CEO, King St Advertising), David Wright (Company Director, Taupo),Mark Townsend (Farming Investor, past Fonterra Director), Steve Perdia (Business Development Manager,WINTEC), Sandra Perry (Economic Development Agencies of New Zealand representative for <strong>Waikato</strong>/Bay ofPlenty, CEO Business Development Centre), Chris Hale (Manager, Hauraki Coromandel Development Group),Amanda Scott (Development Manager, South <strong>Waikato</strong> District <strong>Council</strong>), David Hearn (Acting CEO North KingDoc # 2069885 Page 11