Universities as catalysts for New Zealand’s start-up and innovation ecosystem

Darsel Keane

Universities are the bedrock of innovation and entrepreneurship, shaping the future by transforming knowledge into impactful technologies and start-ups that drive global progress. The world’s leading innovation hubs often have a university at their core, serving as breeding grounds for cutting-edge technology, entrepreneurial talent, and high-impact start-ups.

Stanford University has been pivotal to Silicon Valley, nurturing giants like Google and Tesla, while MIT anchors Boston’s biotech and robotics industries. In Canada, University of Waterloo powers the Waterloo-Toronto Corridor. In the UK, Cambridge and Oxford lead in biotech and AI. Across Asia, Tsinghua University drives China’s Silicon Valley, and NUS, the National University of Singapore supports Southeast Asia’s tech sector. Australian universities, such as Sydney and UNSW, are critical to MedTech and AI innovation.

Despite their global rankings, New Zealand’s universities, face challenges related to scale and funding. Addressing these barriers with strategic investment and policy reform is essential to unlocking their full potential and increasing the pace of innovation. A well-resourced university and science system is critical to maintaining New Zealand’s competitive edge in the global marketplace. More can and should be done across New Zealand’s education, university, and science system to develop an innovative and prosperous economy.

To overcome these challenges and drive high-impact innovation, the University of Auckland has spent the past two decades building a vibrant entrepreneurial ecosystem. At the core of this ecosystem is the Centre for Innovation and Entrepreneurship (CIE), offering over 15 programmes designed to nurture entrepreneurial talent and support the creation and growth of start-ups.

UniServices, which establishes partnerships with industry and manages a $40 million fund, invests in start-ups emerging from the university community. Additional initiatives, such as Cloud 9, MedTech IQ, the New Zealand Product Accelerator, and the Newmarket Innovation Precinct (NIP), further strengthen this ecosystem. Together, these efforts develop talent, create start-ups, commercialize research, and provide critical R&D support to industry.

At CIE, optimism about New Zealand’s future is palpable. This year alone, we will support close to 100 early-stage ventures and over 7,000 people to develop their innovative capabilities. Every day, students and staff are engaging in creative, entrepreneurial pursuits that will shape tomorrow’s economy.

In the past 21 years, CIE has helped ignite hundreds of ventures, creating thousands of jobs across 195 countries and raising over $4.2 billion in capital. These ventures address global challenges in cleantech, MedTech, agritech, and deep tech. Notable examples include Tectonus (seismic engineering), Alimetry (gut health diagnostics), and Toku Eyes (AI eye health).

Alumni ventures like Kami, Auror, and Zenno Astronautics further highlight the University’s role in fostering industry-changing innovation. These entrepreneurs are creating the companies that New Zealand needs, building global businesses, and generating high-value jobs.

Many of these ventures were founded 5-10 years ago. Building and growing global technology companies takes time, underscoring the value of long-term investment in university ecosystems and the critical importance of developing talent.

The path forward

Beyond start-up creation, the University of Auckland plays a crucial role in developing the talent that powers New Zealand’s innovation ecosystem. Tens of thousands of participants have honed their entrepreneurial skills through CIE programmes, becoming leaders in industry, government, and NGOs. These graduates are driving innovation, bridging the gap between research and real-world application, and contributing to the country’s growing economic prosperity.

While New Zealand has made significant strides over the past two decades, there is still much more to be done. The following priorities, with a focus on the education, university, and science systems, could further advance New Zealand’s innovation ecosystem:

1. Create a national innovation strategy

Many countries have developed national innovation strategies to boost economic growth, competitiveness, and technological advancement. These strategies typically focus on enhancing research and development (R&D), fostering public-private partnerships, supporting entrepreneurship, and creating frameworks for the commercialisation of innovation. New Zealand must adopt a cohesive national strategy to align its efforts across sectors and drive long-term growth.

2. Embed innovation and entrepreneurship across the education system

Innovation and entrepreneurship must be embedded at every level of New Zealand’s education system, from primary to tertiary education. Early exposure to STEM education and entrepreneurial thinking is critical for preparing students to thrive in a rapidly evolving economy. For example, the Global Entrepreneurial Student Spirit Survey in 2021 revealed that only 7 percent of University of Auckland students preferred to start their careers as entrepreneurs—well below the global average of 21.2 percent. This suggests the need for a cultural shift within education, where entrepreneurial skills and mindsets are encouraged and valued from a young age.

3. Expand university innovation programmes nationally

Universities across New Zealand, either through a national approach or locally embedded efforts, should establish and grow opportunities similar to the University of Auckland’s Centre for Innovation and Entrepreneurship (CIE). These programmes help develop students’ and staff’s innovative capabilities and support the creation of ventures. By scaling such initiatives nationwide, more students and faculty will have the resources to engage in entrepreneurial activities and launch successful start-ups.

4. Foster talent development and diversity

To fuel New Zealand’s innovation ecosystem, developing a diverse talent pipeline is essential. Universities should prioritise entrepreneurial education and targeted training programmes that align with industry needs, especially in high-demand fields such as software development, AI, and MedTech. Programmes that promote diversity and inclusion, particularly for underrepresented groups like

Māori, Pasifika, and women, will ensure New Zealand’s innovation ecosystem benefits from a wide range of perspectives and capabilities.

5. Increase investment in research commercialisation

New Zealand must boost funding and incentives for the commercialisation of university research. Aligning academic incentives with successful translation of research into market-ready solutions will encourage more breakthroughs to move from the lab to the marketplace. Expanding initiatives like UniServices, with greater funding, can accelerate the development of start-ups and spinouts capable of scaling globally.

6. Enhance funding for R&D across the science system

The science system requires additional government investment in R&D to close the gap with other leading innovation economies. While research funding should also support blue-sky, high-risk research, increased R&D spending will ensure that universities have the resources to conduct high-impact research that can be commercialised. Furthermore, enhancing collaboration between science and industry will ensure that innovations are relevant and meet market needs, boosting New Zealand’s competitiveness on the global stage.

As we look ahead, New Zealand’s success depends on continued investment in universities, strengthened industry partnerships, and nurturing the next generation of entrepreneurs. By prioritising quality and commercialisation in higher education, we can ensure that New Zealand competes globally and leads in shaping the innovations that will drive future economic and societal progress.

Darsel Keane is Director of the University of Auckland Business School’s Centre for Innovation and Entrepreneurship (CIE).