P3

Wide range of innovative products being developed in Auckland

P5 Exciting plans for the landmark Wynyard Quarter Innovation Precinct

P7 Case studies The appeal of Oktobor, SmallWorlds, Booktrack and Mark Sagar

AUCKLAND

Information and Communications Technology A n

i n v itati o n

to

inve st

IN

AUCKLA ND’S

DYN A M I C

I C T

SE C T O R

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

Creating a dynamic

innovation setting

The New Zealand Government, in its Business Growth Agenda, is backing innovation to improve competitiveness and increase productivity, and Auckland is the place to base your information and communications technology (ICT) business. New Zealand was ranked third in Asia Pacific, after Singapore and Hong Kong, on the 2012 Global Innovation Index, and 13th amongst 141 countries in the world. ICT companies are now among the highest achievers in New Zealand business, and the sector is third behind dairying and tourism for exporting, earning $7 billion a year.

Smart work in Auckland 1

Invest in Auckland

Statistics New Zealand said 46 per cent of all businesses in the country were engaged in innovation activity in 2011, and the activity was higher for telecommunications and computer

systems design companies - at 71 per cent and 74 per cent respectively. The Global Innovation Index 2012 reported that 43 per cent of the workforce in New Zealand was employed in knowledge-based services, ranked in the top 10 in the world, and Auckland has the largest share of the employment. New Zealand tertiary institutions produced almost 10,000 graduates in ICT and graphic and design studies, and 22 per cent of the graduates were from overseas.

Invest in Auckland

2

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

High performers

International investment

Exporting success

Seventeen businesses based in Auckland made the latest Deloitte Technology Fast 500 Asia Pacific Index of the region’s fastest growing technology companies. Four of them were in the top 100 with mobile phone network operator 2degrees having 3,762 per cent growth over three years, internet service providers 2talk and Tomizone having 542 per cent and 485 per cent growth respectively, and radio frequency identification (RFID) manufacturer Ensid Total Solutions had 468 per cent growth.

International companies are now taking a strong interest in our ICT industry and have made investments in smart Auckland firms.

Auckland also has successful export ICT companies. Orion Health provides electronic patients record and clinical workflow software. It has 600 staff operating in nine countries and 14 offices, mainly in United States, Canada, Britain, Spain and Australia. Orion is pursuing new market opportunities in Japan, China, Middle East and Europe.

Making a difference The ICT sector has competitive advantages: • New Zealand is an early adopter of technologies, and has a high level of start-up companies.

university of auckland is a leading education and research and development institution.

Strong growth in Auckland Auckland has a vibrant ICT sector. It has more than 6,700 companies, employing nearly 31,000 people and contributing nearly $4 billion or 7.5 per cent to the local GDP and 55 per cent of New Zealand’s ICT GDP. The sector has grown 80 per cent in the past decade, and is the most buoyant for employment, with half of the companies intending to increase staff. The sector is well supported by service organisations ranging from advertising and design to engineering and research and development.

3

Invest in Auckland

The fast expanding sector now ranges from wireless infrastructure and telecommunications to GPS systems, digital content, geospatial information systems, cyber security, film animation and interactive technology such as gaming and touch screen devices. Auckland ICT firms are developing leading edge solutions needed by businesses and consumers overseas. The firms have also attracted an international workforce of skilled technicians. Computer systems design and related services now employ more than 10,000 people and accounted for 69 per cent of the sector’s employment growth over the past decade, and employment in mobile and wireless grew 134 per cent. Mobile and wireless developments also generate 15 per cent of the sector’s growth.

• New Zealand’s demographics create a small but well-defined environment for market testing. Navico, the world’s largest marine electronics company, has made its Auckland operation the largest innovation division worldwide. • New Zealand is a leader in education, and it has a liberal social media policy. • The early deregulation of the telecommunications industry helped make New Zealand internationally competitive.

• Smart Technologies (Canada) invested in touch screen firm NextWindow. The touch components are used in monitors sold by Dell, Hewlett Packard, NEC, Samsung and Sony. • SAP (Germany) took over Right Hemisphere which develops three dimensional (3D) software programmes for manufacturing and other processes. • Meredith Corp (United States) bought The Hyperfactory which specialises in mobile marketing and clients include Coca-Cola, BlackBerry, L’Oreal, Vodafone, Disney and Kraft.

Vista Entertainment Solutions has developed the latest ticketing and site management software for cinemas in 52 countries including New Zealand, Australia, United States, Canada, Mexico, Britain, India, China, Hong Kong, and Taiwan.

• Cornerstone Ondemand (United States) took over sonar6 which developed cloud-based human resources software.

Datacom, employing 3,300 staff in 13 offices, provides a full range of IT services including business applications and software, websites, intranets, contact centre outsourcing and cloud computing services. It operates in United States, Europe, Middle East, Africa and Asia Pacific. Endace has the cyberspace ability to respond efficiently to network problems in businesses, and its Recorders are trusted by some of the largest organisations in the world by giving their engineers network visibility and reducing costs. Endace has offices in Britain, Australia, Singapore, United States and Auckland.

Origins of international companies investing in the Auckland ICT sector

• Vocus Communications (Australia) owns Maxnet, a cloud-based data centre. • Enghouse (Canada) bought Zeacom, the contact centre software provider that employs 180 people in United States, Britain, Australia and New Zealand. • Live Orps (United States) owns Auckland-based contact centre software provider, Datasquirt, and has offices in Sydney, London, New York and Dusseldorf.

Multi-national presence A total of 16 multi-nationals have offices in Auckland and have helped create a workforce of skilled professionals.

Destinations for export

Companies including IBM, Fujitsu, Alcatel-Lucent, SAP, Oracle, Vodafone, Cisco, Nokia-Siemens Networks, HP, Fuji Xerox all attract an international workforce of skilled professionals to Auckland.

Invest in Auckland

4

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

World class precinct Tenants are signing up for an exciting multimillion dollar project, the Wynyard Quarter Innovation Precinct in downtown Auckland. The precinct, being established by Waterfront Auckland and Auckland Tourism, Events and Economic Development (ATEED), will rapidly grow the local ICT sector and capitalise on the good work already achieved by smart hightech companies. New and emerging businesses will operate alongside more established companies with an eye to increasing exports. More than 60 firms, including three multinationals, have expressed an interest in working at the Wynyard Quarter. The precinct is designed to foster collaboration and innovation – a place where talented entrepreneurs can swap ideas, discuss mutual problems and find new solutions. The goal is to make Wynyard Quarter an innovation hub of Asia Pacific. It will showcase New Zealand high-tech development at its very best. The precinct will include small and large companies, both domestic and international, research and development organisations, an incubator for new ideas and start-up firms, and specialised business support services.

above and right the innovation precinct will be the heart of wynyard quarter which features the headland park.

The precinct, 48,000 sq m in size, will be the heart of the Wynyard Quarter which will also have architecturally-designed residential, retail and other office space. The first stage of the precinct is under way with the refurbishment of two character buildings for anchor tenants. Wynyard Quarter Innovation Precinct office space:

48,000m 5

Invest in Auckland

2

At the

leading edge Auckland continues to be a breeding ground for hot emerging companies in mobile applications, gaming and film animation. The city is home to seven of the top 10 companies in the New Zealand Technology Investment Network (TIN) index. A recent Frost & Sullivan study on the unified communications market in New Zealand found that 30 per cent of organisations were looking to trial a tablet device in the next 12 months. Fifty nine games were being made in New Zealand in 2012, mainly online and mobile apps, and 99 per cent of the games are designed for international markets. Gaming has a strong market penetration in New Zealand, with 88.5 per cent of households having a device for playing games. Examples of hot emerging companies are: • Cactuslab is a multimedia studio that designs attractive and functional websites with content management tools, simple game development and secure e-commerce.

• Booktrack creates synchronised soundtracks for e-books that automatically match music, sound effects and ambient sound to your reading speed, creating an immersive reading experience. Booktrack titles have been downloaded in more than 100 countries, and its partners include Park Road Post Production and Sony/ATV Music Publishing. • NinjaKiwi’s online Bloons game has been played well over one billion times, and a sequel, Bloons Tower Defence 4, has been added to more than one million iPhones and iPads. • SmallWorlds developed an inter-active social game and has passed seven million players. You can create your own online identity, decorate your virtual home, play games and make new friends in SmallWorlds cafes and clubs.

• SPARX is a self-help, 3D computer programme for young people to manage depression. The programme, which won a United Nations World Summit award, was developed by a team of specialists at University of Auckland and Metia Interactive designed the software. • Oktobor Animation delivers hundreds of minutes of top quality, computer-generated film animation. Its work has been seen in more than 400 million homes around the world in Nickelodeon’s television series, The Penguins of Madagascar, and Fanboy and Chum Chum. It has also provided the animation for the new Kung Fu Panda: Legends of Awesomeness and Robot and Monster.

Invest in Auckland

6

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

Case study: Oktobor achieves gold standard status Over the past two years, Auckland-based Oktobor Animation has quickly built its reputation by producing quality work for the American children’s television channel, Nickelodeon. During that time, Oktobor’s 130 talented artists have produced more than 800 minutes of computer-generated animation for the Emmy Award-winning shows The Penguins of Madagascar and Fanboy and Chum Chum, as well as Kung Fu Panda: Legends of Awesomeness, Robot and Monster, and Monsters vs Aliens.

BRUCE EVERETT, MANAGING DIRECTOR OF OKTOBOR ANIMATION

“We are now moving to the next phase and developing our own intellectual property.”

These series, and therefore Oktobor’s work, are viewed in more than 400 million homes around the world. “We are proud that Nickelodeon recently declared our business the Gold Standard by which they judge their other international studio partners,” said Bruce Everett, managing director of Oktobor Animation. “Our performance with Nickelodeon has given us international recognition.’’

Oktobor, which has an office in Los Angeles, is now attracting the attention of other major film studios including DreamWorks Animation. Oktobor completed the main titles (first 30 seconds) for DreamWorks’ new television series adaptation of How to Train Your Dragon, and are working with game developer RocketSnail games on a new animation and gaming pipeline. “We have developed our own software and automated processes, and we can be extremely efficient,” said Mr Everett. “Worldwide, we are amongst just a handful of animation production companies that achieve the quality of output and frames per artist that we do.” Oktobor is developing co-production opportunities in Asia and Canada, and has released its first commercial software product “MentalCore”, a professional tool for animators developed in-house, with support from New Zealand Ministry of Science and Innovation.

“We will continue to look after Nickelodeon and our other important United States studio clients, but we are now moving to the next phase and developing our own intellectual property,” he said. Oktobor works closely with New Zealand tertiary media educators and provides internships for students. Mr Everett said “the company is committed to keep operating in New Zealand but globally we are becoming known as a safe pair of hands”. “It’s a pleasure that as an export company bringing United States dollars into New Zealand we employ and train many young Kiwis each year, helping them break into the local film and television industry which is a vibrant and growing sector,” he said.

Bruce Everett, Managing Director of Oktobor Animation

above Oktobor’s work on Nickelodeon’s The Penguins of Madagascar gave them instant recognition. right the mentalcore toolkit DEVELOPED BY OKTOBOR.

7

Invest in Auckland

“Nickelodeon” and all related logos, titles, characters and other assets are trademarks of Viacom International, Inc. 2012 All Rights Reserved.

Invest in Auckland

8

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

Case study: Booktrack - Reading never sounded so good Reading never sounded so good. The volume of the music, sound effects and audio track layers can be lowered or raised depending on the reader’s preference. And if you lose your place on the page, you just tap on the word and the audio synchronises to where you left off.

brothers paul, left, and mark cameron have added an extra dimension to reading.

Many people slip into their private world, plugging in their iPod and listening to their favourite music while at the same time reading their latest novel. Auckland-based innovator, Booktrack, decided to blend the two activities, and the unique product quickly received international acclaim. Booktrack, founded by brothers Paul and Mark Cameron, developed patented technology to add synchronised movie-style soundtracks to e-books. The soundtrack adapts to the story line and the individual’s reading pace, creating an immersive and enjoyable reading experience. A New York University study has shown the experience increases comprehension and retention rates.

9

Invest in Auckland

“Never before have books been more accessible, yet reading rates have declined rapidly and we have brought a whole new dynamic to the reading experience,” said Paul Cameron, Booktrack Chief Executive. “People come away and say that’s an enhancing and enjoyable experience. “Nowadays, with videos and games the entertainment choices are very competitive, and we are bringing reading back to the forefront,” he said. Booktrack includes original and licensed music, some of it performed by the New Zealand Symphony Orchestra, with all soundtracks mixed and produced by Academy Award-winning audio team at Park Road Post Productions (Lord of the Rings fame). Authors such as Salman Rushdie are working with composers to create the appropriate soundtracks for their books. The Cameron brothers spent four years developing their product and Booktrack was launched commercially in August 2011, backed by a group of notable investors. They included Americans Peter Thiel, founder of PayPal, and Mark D’Arcy, director of Global Creative Solutions at Facebook.

Case study: SmallWorlds is a big global game Booktrack won the most innovative software product and mobile technology categories at the 2012 New Zealand Hi-Tech Awards. American newspaper Huffington Post named Booktrack one of the 10 hot companies to watch over the next year.

LEFT Players have the chance to build and decorate their own home, and create their own lifestyle. BELOW Co-founder Mitch Olson wants to make SmallWorlds a $100 million business.

Mr Olson said online games have become a mainstream activity, with half of Facebook users playing games. 22 of the top 25 selling applications on smartphones are also games.

The soundtracks can be downloaded on iPhones, iPads, laptops, personal computers and Android tablets. Booktrack was a top 10 book application in 20 countries by downloads within weeks of being featured on Apple’s iTunes store. Booktrack now has sales offices in New York and San Francisco, while the research and development is still completed at home in Auckland. “We will remain a New Zealand-based company with a global focus,’’ said Paul Cameron. ”The opportunities are massive. You can apply the soundtrack to any text whether it’s a book, blog or letter, and we just want people to participate and enjoy a new reading experience.”

“While we always continue to refine and improve our product, our focus has shifted to market development and building long term brand and distributor partnerships,” said Mr Olson. SmallWorlds has made a big impact overseas. The Auckland-based online games company has 10 million registered players around the world, and is growing at a rate of half a million a month, after launching in 2008. SmallWorlds is a next generation interactive game where players build and decorate their own homes, run businesses, make new friends, go shopping and have different adventures. Players enter a constantly growing and evolving 3D virtual world, developing their own spaces and experiences. “The game is like a virtual sandbox that provides players with the tools to discover new identities for themselves – such as an artist or interior designer,” said SmallWorlds’ co-founder, Mitch Olson.

e-book readers can get immersed in their own world.

Teenagers are especially drawn to SmallWorlds’ endless opportunities to explore different personal characteristics and talents, and find their niche within the community.

Mr Olson said “we built a complex internet product that’s incredibly easy to use – you don’t have to download anything – and it’s free to play. While access to SmallWorlds is free, many players subscribe to the VIP Club which unlocks additional game features. Players also purchase virtual currency for buying items such as clothing, furniture and collectibles to further enhance their gaming experience. Five per cent of the players are spending $40 a month on average and SmallWorlds is aiming for annual revenue of more than $100 million. The game attracts between 1 million and 1.5 million players on any given month, and 60 per cent of players are based in the United States. SmallWorlds translated its game into Portuguese and launched in the Brazilian market, attracting 1 million players in the first 14 weeks. The product is fully localised on this website, and players can build their own Copacabana Beach resort.

SmallWorlds linked up with a large media company to successfully launch in Brazil, and it plans a similar approach for the rest of South America and in Europe. Mr Olson also sees further opportunity in North America and Asia, as well as closer to home in Australia and New Zealand. SmallWorlds is expecting to have its game proudly displayed on the latest mobile phones in 2013. “We see the next 12 to 18 months as the time when SmallWorlds can really come into its own,” said Mr Olson.

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

Plenty of research Auckland’s universities and research facilities are completing a wide range of research and development in the ICT industry.

Case study: Making animation more human

Research and Science facilities in Auckland (presence: 2011)

Year founded Examples

Website

Institution In a laboratory at The University of Auckland, Dr Mark Sagar and his team are digitally building the face of a baby. The inter-active face has a life-like brain and sensory system, and it will emotionally react to you when you walk into the room. Dr Sagar has established the Laboratory for Animate Technologies at the university’s Auckland Bioengineering Institute, and is taking animation to a new level. He is also working with the university’s Centre for Brain Research, Department of Psychology and School of Architecture. After spending seven years at Weta Digital, he wanted to create live interactive models rather than passive characters anchored to actors’ performances. “I’ve always been interested in making animations driven by computational intelligence. We are exploring the next generation of computer interaction,” he said. “We are embodying computational models of brain function which affect behaviour, and integrating these with face simulations. The result is an animation that responds to you, so you feel like you are connecting with a live emotional entity” said Dr Sagar. For his doctorate, in engineering, he developed an anatomically correct virtual eye and showed how lifelike human features could be created on a screen by combining computer graphics with mathematics and physiology. Dr Sagar believes his technology can add life and emotional appeal to a wide range of sectors involving human-machine interaction, including

The University of Auckland

education, healthcare robotics, interactive entertainment, video games, toys and marketing.

Invest in Auckland

1883

For distance learning, the technology could add emotional interaction to the material, increasing memory retention and creating more engaging content, said Dr Sagar. “The technology could transform public spaces by creating a dynamically responsive environment which responds to the vibe of the people flowing through it. Trends in technology show increasingly natural interaction. As digital characters in any media form become more ubiquitous, people will want increasingly sophisticated yet natural behaviour which we will have the means to provide”, he said.

• Centre for Software Innovation: Wide range of research across the industry through direct consultancy, programmes and contract research.

auckland.ac.nz

• Auckland Bioengineering Institute: A cross faculty focussed on biology and human physiology. Several advanced software tools and frameworks support its research activities such as the Laboratory of Animate Technologies. (2001)

colab.org.nz

csi.ac.nz abi.auckland.ac.nz/uoa

A creative technology centre focussed on innovation through new technologies. AUT University

1895 / 2000

Dr Sagar and his growing team are presently developing prototypes and exploring commercial partnerships. “We are looking to do some spectacular things but the developments can also have social value,” he said.

• AUTEL – AUT Enterprises Limited – wholly owned subsidiary of AUT that engages with industry, investment and commercial networks to bring new technologies to market. (2005)

enterprises.aut.ac.nz

• Industrial Information and Control Centre. (2008)

kedri.aut.ac.nz

i2c2.aut.ac.nz geo-informatics.org

• Geoinformatics Research Centre. (2007) • Knowledge Engineering and Discovery Research Institute. (2002)

During his time at Weta and Sony, Dr Sagar’s pioneering work in computer-generated faces for films such as Avatar, King Kong and Spider-Man 2, resulted in two Scientific and Engineering Academy Awards, a branch of the Academy awards recognising movie science and technological achievements.

Massey University (Albany campus)

1926

• Social Informatics Group: research to understand the human dimension of community and business computing; the adoption and diffusion of technology within society and the effect of the digital divide.

massey.ac.mz sig.massey.ac.nz

New Zealand, Australia and South Africa are to co-host the world’s most powerful radio telescope - the $NZ2.5 billion Square Kilometre Array (SKA) project. New Zealand’s representative on the SKA organisation’s board, Melanie Johnston-Hollitt, says involvement with the project is hugely exciting. “It’s basically a large supercomputing facility which houses the massive amounts of data from the SKA project as a sort of central repository for scientists around the world to access it.” Dr Johnston-Hollit says that could attract other industry groups who may build similar data centres here, which would give this country a significant economic boost. Science and Innovation Minister Steven Joyce says much of the huge amount of data generated will be analysed in Australia and New Zealand which will require broadband and storage infrastructure. Mr Joyce says being involved in the project will give scientists a huge boost on the world stage.

Tertiary & Industry Collaboration Unitec and IBM

Before returning to New Zealand, Dr Sagar was the co-director of Research and Development at Pacific Title/Mirage and LifeFX Inco in Los Angeles, and then joined Sony Pictures Imageworks as the special projects supervisor. mark sagar

11

International Collaboration

Source: Entity websites

IBM to establish the first IBM New Zealand unitec.ac.nz Delivery Centre at Unitec’s Mt Albert campus. The Delivery Centre will open in February 2013 and will employ full-time and parttime professionals, and Unitec graduate and current students. IBM anticipates that the Delivery Centre will employ up to 400 people within the next two years.

Invest in Auckland

12

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

QUALITY LIVING

Auckland’s place in the sun Northland

The Mercer Quality of Living 2011 Survey ranked Auckland first in the Asia Pacific region and third in the world behind Vienna and Zurich. Mercer said the top ranking cities are in politically stable countries with good international relations and relatively sustainable economic growth.

Auckland

A great place

Bay of Plenty Waikato

to live

Hawke’s Bay / Gisborne

MATRIX: COST OF LIVING VS QUALITY OF LIVING (AUCKLAND VS PEERS) (Force rank; 2010 or 2011)

Canterbury

Otago / Southland

NEW ZEALAND POPULATION DISTRIBUTION BY REGION (% of people; 2011) Northland - 4% Auckland - 34% Waikato - 9% Bay of Plenty - 6%

Hawke’s Bay / Gisborne - 4% Wellington - 11%

Canterbury - 13% Otago / Southland - 7%

Source: Statistics New Zealand (regional populations estimates); Coriolis analysis

Invest in Auckland

Vienna

Zurich

Auckland

Munich Düsseldorf

4 6

Copenhagen Geneva

8

Vancouver

Bern Sydney

12

Amsterdam

14 16 18

Luxembourg

20

Toronto

Montreal Nuremberg

24

Singapore

26

Dublin

Canberra Stuttgart

28

Paris

30 32

Honolulu San Francisco

Adelaide

Oslo

34

Calgary Helsinki

Boston

Brisbane

London

38

Lyon

Barcelona

40

Milan

42

10

15

20

MORE EXPENSIVE

Lisbon

Madrid

44 5

Wellington

Ottawa

Stockholm

Perth

Brussels

22

Hamburg

Berlin

Melbourne

36

Taranaki - Manawatu - 8%

Nelson / Marlborough - 4%

13

2

10

Quality of living ranking (force rank: 2011)

The biggest city in New Zealand, Auckland provides a high quality of life at a low cost compared with overseas cities.

Wellington

Nelson / Marlborough

LESS LIVABLE

Auckland has a present population of 1.5 million and is expected to grow a further one million by 2040. Backed by a 30-Year Plan, Auckland is preparing for this next phase of expansion.

MORE LIVABLE

Taranaki / Manawatu

25

30

35

40

45

50

55

60

Chicago 65

70

75

80

85

90

95

100

105

Cost of living ranking (force rank: 2010)

110

115

120

125

130

135

140

145

150

155

160

165

LESS EXPENSIVE

Source: Mercer Consulting “2011 Quality of Living worldwide city rankings”; Mercer Consulting “2010 World cost of living for expatriates”

Invest in Auckland

14

AUCKLAND ICT SEC TOR

COMPETITIVENESS

AUCKLAND ICT SECTOR

AUCKLAND BERLIN VANCOUVER

Easy to

do business New Zealand, and Auckland, was rated in the top three for ease of doing business, according to the 2012 World Bank Group survey. Starting a business, and protecting investors was ranked first, dealing with construction permits second, getting electricity and registering property third, and arranging credit fourth. The survey was conducted amongst 183 countries. Business costs are competitive. Prime office lease rates are more than a third cheaper than Sydney, and industrial rates sit around a favourable $100* per sq m. Industrial land values range between $350 and $450 a sq m.

*All monetary values are quoted in NZ dollars.

15

Invest in Auckland

Top 10 cities in AsiA-Pacific for select components of competitiveness ranking by the Economist Intelligence Unit 2012

Prime (CBD) office rent:

MELBOURNE

$385 $408 $583 $591

MUMBAI SHANGHAI SYDNEY SINGAPORE BEIJING NEW YORK LONDON CENTRAL

Institutional effectiveness

$1,031 $1,076 $1,255 $1,467 $1,515 $1,562 $1,848 $2,488 $2,811

HONG KONG TOKYO

Human capital

Auckland - 95.9

Hong Kong - 82.4

Sydney - 94.8

Auckland - 76.4

Melbourne - 94.7

Singapore - 69.8

Singapore - 87.8

Melbourne - 68.9

Hong Kong - 85.3

Sydney - 68.7

Taipei - 77.5

Bangkok - 66.7

Tokyo - 76.3

Taipei - 66.1

Osaka - 76.3

Kuala Lumpur - 65.9

Nagoya - 76.3

Shenzen - 65.7

Fukuoka - 76.3

Delhi - 64.8

Competitiveness ranking of major Asia-Pacific cities by the Economist Intelligence Unit 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Singapore Hong Kong Tokyo Sydney Melbourne Seoul Auckland Taipei Beijing Shanghai Kuala Lumpur Osaka Nagoya Shenzhen Incheon

70 69 68 63 63 61 57 57 56 55 55 53 52 52 50

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Bangkok Fukuoka Busan Guangzhou Delhi Mumbai Tianjin Bangalore Jakarta Dalian Chengdu Suzhou (Jiangsu) Manila Chongqing Qingdao

49 48 47 47 47 47 45 45 44 44 44 43 43 43 42

31 32 33 34 35 36 37 38 39 40 41 42 43 44

Ahmedabad Hangzhou Pune Hyderabad Almaty Hanoi Chennai Kolkata Ho Chi Minh City Surabaya Colombo Karachi Bandung Dhaka

42 42 40 39 39 39 38 38 37 36 36 36 35 28

Source: The Economist Intelligence Unit “Hot Spots” city competitiveness report

Cost effective Generally, salaries in New Zealand are 20-30 per cent lower than in Australia, and there’s no Payroll Tax. Salary Comparisons (NZ$)

Auckland median

Sydney median

Melbourne median

$60,000 $80,000

$90,500 $110,000

$87,000 $116,000

$45,000 $85,000

$71,000 $155,000

$64,700 $149,000

$65,000 $90,000

$110,000 $130,000

$103,600 $155,000

Information Technology Programmer Systems Analyst Procurement Purchasing Officer Contract Manager Sales & Marketing Sales Representative Marketing Manager Accounting & Finance Internal auditor Financial Controller Note: Based on AUD1 - NZD 1.2947 Source: Hays Salary Survey Guide

$75,000 $130,000

$116,500 $200,600

$123,000 $175,000

world bank ease of doing business index: top 35 countries (index rank; 2011) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Singapore Hong Kong New Zealand United States Denmark Norway United Kingdom South Korea Iceland Ireland Finland Saudi Arabia Canada Sweden Australia Georgia Thailand Malaysia Germany Japan

21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Latvia Macedonia Mauritius Estonia Taiwan, China Switzerland Lithuania Belgium France Portugal Netherlands Austria United Arab Emirates Israel South Africa

New Zealand ranking on select index sub-components:

1st Starting a business 1st Protecting investors Dealing with

2nd construction permits 3rd Registering property 4th Getting credit

Source: World Bank “Ease of doing business index”

Invest in Auckland

16

AUCKLAND ICT SEC TOR

AUCKLAND ICT SECTOR

Workable time zones

HONG KONG

auckland

New Zealand is the first country to greet the sun each day. Workers start two hours ahead of Australia, while the business day covers the afternoon on the United States west coast, much of Asia’s day and morning in Europe.

9:00

WEST COAST USA

EAST COAST USA

GREENWICH MEAN TIME

5:00 14:00 17:00 21:00 (4 hrs behind)

(19 hrs behind)

(16 hrs behind)

(12 hrs behind)

Auckland is globally connected

Strong business support The ICT industry has access to entrepreneurial programmes, funding, and research and development. The Government is establishing a high-tech innovation centre called Advanced Technology Institute (ATI), allocating $166 million over the next four years. The ATI will support firms to grow through science and technologybased innovation and commercialising ideas. The Ministry of Business, Innovation and Employment (MBIE) is also providing $115 million of co-funding a year for business research and development (R&D). This programme features technology transfer vouchers to work with external research organisations, project funding up to 50 per cent, technology development grant, and capability funding to engage world class experts on R&D work.

AUCKLAND CONNECTIONS TO ASIA-PACIFIC REGION AND OTHER DESTINATIONS Existing connections

Other support programmes include supporting entrepreneurs in the digital technology sector, and Microsoft New Zealand’s BizSpark Plus. Microsoft has teamed up with incubators, and The ICEHOUSE, to help new firms fast-track their business.

H GR

E AT

BRI

TA IN

CO

NN

EC

TI

ON

S

W

IT

CO

N

WIT

NS

W

• A company is resident in New Zealand if it is incorporated here, has a head office or a centre of management here, and its directors exercise control of the company here whether or not the director’s decision making is confined to New Zealand. • There is a value-added Goods and Services Tax (GST) of 15 per cent, and a supplier of final goods and services must register for GST if income exceeds $60,000. • You pay Resident Withholding Tax (RWT) on interest earned from bank term deposits and investments.

- Investors must have the approval of the Overseas Investment Office (OIO) to buy or take a shareholding in sensitive land, a business worth more than $100 million and a fishing quota. • Under the Securities Markets Act 1988, if an investor directly or indirectly purchases 5 per cent or more shares in a listed company, then the investor must file a substantial security holder notice with the company concerned and with the New Zealand Stock Exchange. • You can go online to start a company, first reserving its name and then completing the incorporation applications and returning the signed consent forms. business.govt.nz/companies • No capital gains tax. • No gift, stamp and estate duties.

E

ER

TH

IC

H M

I

Invest in Auckland

• All companies, whether resident or non-resident, are taxed at a rate of 28 per cent.

- Investor Plus for minimum investment of $NZ10 million and Investor for minimum investment of $1.5 million.

A

IT

DD

17

• New Zealand has Double Tax Agreements with 37 trading partners, removing double taxation on the same income in different countries.

• Investors wanting to gain residence in New Zealand need to meet criteria within two categories:

&P AC

TIO

IA

EC

AS

NN

H

REG I O

IONS

The three Auckland universities have established commercial arms – Auckland Uni Services, AUT Enterprises, Massey University’s E-Centre – and helped grow innovation. The market capitalisation of university start-ups has grown from $76 million to $860 million over six years, and the number of staff employed by these companies has increased to 492 full-time equivalents, from 198.

• New Zealand has a simple and competitive taxation system. There is no capital gains, no gift, stamp and estate duties, 100 per cent foreign ownership is permitted, and there is no restrictions on inflow and outflow of capital (including profits and dividends).

IFIC

CO N N E C T

Key investment points

LE

EA

ST

&

AU

ST

CO N N E

RA

LIA

CT I O

NS

W

N ITH

CO N N E C T I O N S W I T H

.A

M

SOUTH

AMER

I CA

Invest in Auckland

18

Key contact to find out more Auckland Tourism, Events and Economic Development (ATEED), an Auckland Council organisation, is committed to building long term business relationships and developing a co-ordinated, sustainable, competitive advantage for the local economy. Whether your company wants to expand or relocate to Auckland, or you want to invest directly into projects, ATEED will make sure you have all the assistance you need. Our investment specialists will put you in touch with the right contacts and agencies, and ensure you have the support to succeed in Auckland. ATEED is located on Level 8, 139 Quay Street, Auckland, New Zealand, and you can contact: Suzanne McKinnon Investment Specialist Telephone: +64 9 365 0536 Mobile: +64 21 243 1373 Email: [email protected]

www.investauckland.com