New Zealand's top 200 technology companies (the “TIN200”) have set a new milestone this year, recording just over $10 billion in combined revenues with more than $7.3 billion sourced through exports.
The TIN200 companies, which are ranked by revenue, now contribute the equivalent of 10% of all New Zealand exports, highlighting the integral part the sector plays in the country's economy.
This places it third behind the contributions of dairy and tourism as a source of offshore revenue.
Two-thirds of the offshore revenue growth can be attributed to a robust 18.8% increase in TIN200 revenues in the North American market.
These are some of the key findings of the thirteenth annual TIN Report, an analysis of the performance of the top 200 New Zealand-founded high-tech companies in the areas of information and communication technology (ICT), high-tech manufacturing and biotechnology.
The report, which is produced by Technology Investment Network (TIN) and sponsored by New Zealand Trade - Enterprise, Callaghan Innovation, Spark, EY and AJ Park, was presented at an awards ceremony held at St Matthew's in Auckland.
“This has been a defining year for the TIN 200 companies”, says Greg Shanahan, TIN managing director.
“We've seen a sustained increase of around 8% in both revenue growth and exports but more significantly, the real story is in the integral part that the technology sector now plays in the country's economy.
TIN200 companies created 4,352 new jobs to employ over 43,000 staff globally with an average salary of just under $84,000.
“The broadening economic impact of this growth is creating opportunities throughout New Zealand society,” says Shanahan.
Māori participation in the tech sector is growing and for the first time this year, the TIN Report covers the performance of Māori-owned or Māori-investment backed tech companies.
Māori companies contributed an estimated $94 million to total TIN200 revenue.
TIN200 growth has been concentrated outside of Auckland, with other regions outpacing the country's commercial hub.
This year has seen Hamilton, Wellington and the South Island regions leading TIN200 growth.
These regions each grew by over 10% and collectively accounted for more than 60% of total TIN200 revenue growth, but only 40% of the total TIN revenue.
Additional key findings of this year's TIN Report include:
• US offshore revenue for the TIN200 increased nearly 19% to nearly NZ$2.4 billion. The European market grew 3.1% and the Asia market 5.3%
• Healthcare remains the largest secondary sector in terms of revenue for the TIN200 at nearly NZ$1.8 billion
• Companies with over $20 million revenue grew at twice the rate of companies below NZ$20 million. The 90 companies with revenues NZ$20 million and over grew at 8.4%, compared to just 3.8% revenue growth for the 110 companies with under $20 million in revenue
Top 10 Companies by Rank
Fisher - Paykel Appliances
Fisher - Paykel Healthcare