Ara 1: Ki te whakarite heipūtanga mō tētahi taiōhanga mārohirohi mā te tūngongitanga, te tipuranga mahi me te hiki i te whakaputanga mahi
Direction 1: Create the conditions for a resilient economy through innovation, employment growth and raised productivity
Auckland already has a strong economic sector. However, it has a strong focus on domestic consumption, and productivity levels are low.
Innovation and entrepreneurship will strengthen Auckland's economy in a globally competitive environment, enabling the economy to better meet the needs of our growing population.
Innovation is a means of lifting productivity that leads to increased wages and the creation of new jobs, even as existing ones disappear. (Access "Jobs in advanced industries map", originally published June 2018.)
It is about new ideas and new ways of doing things in response to opportunities. In an economic sense, industry sectors, businesses and entrepreneurs innovate in a number of ways:
introducing a new or improved product, service or process
opening up a new market
adopting a new technology
changing the way they organise themselves.
The creative sector contributes to innovation and growth in other sectors as it generates creative capacity in business and services across Auckland as a whole.
Sustainable prosperity
Innovative business practices and technological advances can create the economy of the future. Competitive entrepreneurial activity can drive economic progress, but to be truly successful Auckland needs sustainable prosperity that puts people and the environment at the centre of economic progress.
To do this we need a socially responsible and environmentally sustainable economy that enables increased profit, productivity, resilience and job growth. Such an economy reduces environmental risks, supports green technology and mitigates the potential impacts of growth and development.
The ability to innovate becomes even more important if Auckland is to compete globally. Creating the conditions for innovation, employment growth and raised productivity requires collaboration between all stakeholders, including our neighbouring regions.
A big factor in raising productivity is the sophistication of the business sector. This is related to the quality of networks and supporting industries that a business has access to. A sophisticated business sector has greater opportunities for innovation in processes and products.
One of the other ways both productivity and resilience can be improved is through how we plan for business locations.
The city centre is expected to remain the primary business centre for Auckland. However, the multi-nodal modelThis model is based around large areas with high-density residential housing and high employment levels. of the Future Development Strategy emphasises three other 'nodes' as business assets. This includes Albany, Westgate and Manukau.
The rural 'nodes' of Warkworth and Pukekohe will continue to support their surrounding rural areas.
As our urban areas grow, they will provide local workers and better transport links to support more business opportunities.
There are also other economic places that represent significant opportunities for employment growth in locations across the city. These include large industrial areas and tertiary education institutions.
With the right supporting investment, these have the potential to make more jobs and educational opportunities accessible to more people. Though of a much smaller scale, job creation and economic performance is equally important at a local level.
Strong and thriving local economies will help ensure that Auckland’s regional economy becomes more resilient.
Businesses and entrepreneurs ultimately determine the levels of innovation. Central government, and to a lesser degree local government, need to ensure the regulatory environment is straightforward, flexible and responsive so firms can take advantage of emerging opportunities. Strategic alignment between local and central government policy is particularly important to create the conditions for enabling economic growth in Auckland.
Most importantly, Aucklanders need to be poised to take advantage of these conditions and be ready to participate in the economy as employers, as entrepreneurs and as workers.
