NZ's ICT sector worth $3.4bn to GDP

New Zealand’s ICT sector contributed more than NZ$3.6 billion ($3.39 billion) to the nation’s GDP during 2016, according to the New Zealand Ministry of Business Innovation and Employment’s latest annual report into the sector.

During 2016 New Zealand’s ICT sector consisted of over 11,000 companies employing nearly 30,000 people, the report shows. This includes 54 computer system design companies that employ more than 100 people.

These companies also invested NZ$436 million in R&D over the past year, more than any other sector of the economy. Exports from the sector have meanwhile grown to be close to NZ$1 billion.

New Zealand Economic Development Minister Simon Bridges said the findings of the report are a testament to the strength of the local ICT sector.

“New Zealand’s ICT sector is rapidly maturing. There are more firms in the sector — both large and in start-up phase. And there are more investors — both local and international. This is clear validation of New Zealand’s ICT sector by the market,” he said.

The report was released to coincide with the launch of the government’s new ProjectR initiative, which will aim to support research and development into virtual, augmented and mixed reality technologies.

“With our continued commitment to the sector, including our nationwide rollout of ultrafast broadband, we are seeing New Zealand firms develop and commercialising cutting-edge technologies, competing with the best and brightest globally,” Bridges said.

“Our strong emphasis on innovation and growth, diversification of the economy, and providing an economic environment in which entrepreneurs and investors feel confident about starting and growing new smart businesses is paying off.”

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