New Technology or Business Skills
New technology or business skills are a factor under section 17(2)(a)(ii) of the Act. This factor will apply where an investment will result in the introduction of new technology or business skills into New Zealand.
Business skills include:
- technical qualifications
- experience
- processes
- corporate standards (for example ISO)
- first example of particular skill/expertise - for example “world leader".
Business skills also include the particular business attributes or expertise an individual can contribute to an investment or the investing entity. For example, the investment may involve the placing of an overseas entity's employee/shareholder within the New Zealand operations. This individual may have technical skills or knowledge and experience that is not available in New Zealand.
Technology includes:
- processes/systems (operational)
- machinery
- intellectual property
- IT systems.
The technology or business skills must be introduced into New Zealand as a result of the investment - they must not already be in New Zealand.
Report
The OIO requires a report detailing the extent to which the overseas investment will, or is likely to, result in the introduction of new technology or business skills into New Zealand.
The report should detail:
- the nature of the technology or business skills that are “new” to New Zealand
- how the overseas person will acquire, or has acquired, the technology or business skills
- when the technology or business skills will be introduced. Any uncertainties or contingencies relating to the achievement of the benefits claimed under this factor (i.e. that they are dependent on Resource management Act 1991 approval for a new factory etc) should be detailed
- the capital expenditure (if any) required to introduce the technology or business skills
- how the technology or business skill impacts on the investment. The introduction of new technology typically results in a more efficient allocation of resources and increased productivity. Accordingly, if the investment met the technology/business skills factor, it would typically also meet the productivity factor, and
- what benefits will or are likely to accrue to New Zealand (or any part of it) or group of New Zealanders as a result of introducing the technology or business skills.
