Christchurch as an attractive location for tech sector businesses

Clusters definitely work but they need a lot of energy. Research shows that there are certain success factors for tech clusters. Very successful clusters tend to happen in a region that has scientific preeminence within the cluster industry, new technology development occurring, major technology companies present, and start-ups occurring. The cluster really occurs then when a catalyst like a support organisation forms to bring it all together. Its hard to just create a successful cluster from a good idea without all of the ingredients.

NZTech is working hard to help support and amplify clusters that are in existence or forming. NZ is a small country so we feel the most successful clusters will be nationally connected.

@iandouthwaite your idea about forming groups at similar stages has legs. NZTech is doing this nationally through communities eg. New Startups, Early Stage Growth Companies, Listed Companies. These companies value the support, experience sharing, collaboration and capability building they can get by working closer together.

The skills & talent shortage is global, long-term and won't change fast no matter whet we all do. At the moment there appears to be very hot local competition for talent - to everyone's detriment except the individual IT guys. Yet it appears that the local Chch tech community is very collegial and connected so should be well placed to work together on this issue in new and novel ways. The only way you can really beat this as a region is to "hunt as a pack". Is it possible to create some form of local exchange market to enable your staff to build their work experience in a programmatic or planned way by moving between your companies? In other words, accept there will always be churn but manage it. Maybe create a single shared HR service to manage the "transfer" requests and to actively hunt internationally for talent.

@graememuller I am interested in NZTech getting businesses at similar stages together. We have heard from some of our focus groups discussions that connection between less and more experienced business people is something that many would value as they mature, and often where the connections don't exist. It is sometimes difficult to get more experienced founders/CEOs to participate in local networking activities - their networks maybe are more likely to be national or international. Has NZTech or people with knowledge of other countries like @phildriver, @theresebanks have thoughts about how to efficiently build these linkages and whether this is particularly valuable?

Our review of US tech cities highlighted the importance of a commercially orientated university or research institution in the mix. Christchurch is blessed with UoC, Lincoln and Otago medical school, CPIT + most of New Zealand's CRIs and the CDHB. We have world-class engineering and computer science departments. What opportunities could having a closer relationship between business and these institutions offer Christchurch? Clearly delivering high-quality graduates is important, but what practical things could be done to improve the value to the local tech sector, and future tech sector growth?

Closer and more frequent interactions between business and tertiary/ research institutions are certainly going to help grow the local sector. But how to achieve that? People in business and in the research sphere have their own immediate day-to-day tasks and challenges. Connecting with people from a different world for discussions that don't necessarily progress an immediate need is optional and so might not happen. Each party needs to see the longer term value in these relationships and make the strategic commitment to give them some priority, both at "corporate" level and individual staff member level. UoC's relationship with Tait provides a great role model. Post-earthquakes, UoC has given greater priority to engaging with and contributing to the local community, through student placements and academic research activities, and the level of these connections is growing as a consequence. Understanding each other's drivers and constraints is an important step - University's are better placed to help a business with longer term opportunities than with this week's immediate crisis. Academics have a range of personal motivations and professional goals. But, what to do? Mechanisms for getting academics/researchers to meet with business people and discuss common issues, match need with expertise, and get to know and understand each other is a good start. "Challenge workshops" where a business (or sector cluster) presents its technical issues or future strategy to a team of researchers, who then go away and ponder solutions, has proved productive. Finding the trigger(s) that will incentivize the researcher to take on the business-led research is important.

The one thing that will attract more large and successful tech businesses (which will attract capital and talent to grow small business) to Chc is the presence of large and successful tech businesses. Chc will be a great city, but there are many great cities in the world. The cities mission should be to build or attract 3 x $500M tech businesses in the next 5 years.

I hate to rain on the parade, but I think selling Chc lifestyle options to attract global talent won't work. If I'm a grad from a good school in Silicon Valley at the moment with a data science qualification my starting rem is $US250K and if it's a start up my stock options could make be rich - rich enough to do my own start up. So while being an hour from the beach and mountains in Chc is great, if I'm a tech entrepreneur it's going to be well down my list of "must haves".

We need to find a compelling career and commercial reason for the best talent to move to Chc.

What would encourage existing NZ businesses who are national to base more of their business in Christchurch to help with the "rising boats" analogy - if we need people and companies in tech to attract more companies and tech, can we start with what is already in NZ and what would they need to move people / head offices from Auckland to Christchurch? Can we reference lower costs/lower commute times? Can we convince Aucklander's that Christchurch is stable (fear of earthquakes still exists?) Can the housing market support the plans for additional people coming into the city - price pressure on housing and rentals is an issue already - can some of the activity already underway to support the city be accelerated? Could tech have a role in that?

Lower cost - I don't believe its cheaper, if it is, its in the rounding.

Lower commute - if you catch the bus in Auckland 20-40 minutes gets you most places from the CBD.

Stability - I can't recall the last time an Aucklander asked about the stability of Christchurch, I don't think its a concern

Housing - could be, but if I am a 25 yo entrepreneur the last thing on my mind is the cost of housing.

We need to stop focusing on being "cheaper" and "easier" - thats a race to the bottom. We need to find something that makes us a stand out "better" that means the best paid tech jobs and most expensive tech people in the country are in Chc. That means specialising and focussing on being good at one thing.

There are 2 parts to this question - attracting new companies to Christchurch and helping retain/grow companies that are already here. This post is only going to comment on the second part.

Companies that are already in Christchurch are usually due to their founders/history rather that something that caused them to relocate.

Jade/Wynyard, SLI, Tait, etc were due to where their founders were and wanted to stay. There are many other examples.

The question then becomes how do we help these companies grow strong from Christchurch and provide a reason to retain a large percentage of their team here as they grow.

We can attract capital from other places if the proposition stacks up. This really leaves people as the main thing to focus on.

We have a strong University presence with UC, CPIT, Lincoln and other training institutions. An increase in skilled people tho would be welcomed by most as recruitment is still challenging for businesses of all stages/sizes.

There are a number of activities to improve the Commercial focus of graduates from the universities and I see this as a critical item for Christchurch. More graduates with entrepreneurial ambitions, more support for early stage startups can only help improve our tech industry in Christchurch.