Partnering with the University of Auckland, IBM has revealed its 2010 Innovation Index of New Zealand, which tracks innovation by sector over the past ten years.

The report covers innovation in 16 separate commercial and non-commercial industry sectors. Within the index, innovation is defined by tracking seven main components: R&D, patenting, Plant Variety Rights, trademarking, design registration, productivity, and organisational, managerial and marketing reforms.

The overall rate of innovation in New Zealand rose 13% between 1998 and 2000 before remaining flat until taking a sharp drop in 2008, likely due to the effects of the recession.

The only other country where IBM has conducted a similar index is Australia, which on average performed consistently higher in terms of overall innovation.

IBM New Zealand Managing Director Jennifer Moxon said, “Given the critical role that innovation plays in creating wealth and prosperity, it is concerning that the rate of innovation in this country has been virtually stagnant for the last decade.”

The industry with the highest rate of innovation was agriculture, forestry and fishing, with a 103% positive change from 1998 to 2008. Cultural and recreational services (which includes tourism and entertainment), on the other hand, saw a -32% change from 1998 to 2008.

Moxon said that creating an environment that stimulates innovation was not just up to the government, but would “require a collaborative effort”.

IBM Chief Technologist Dougal Watt said that there was no one factor in the flat rate of innovation, but said that in order to increase innovation New Zealand organisations need to “shift from an inward focus to a partnership focus” and create a national dialogue.