Business support schemes:
Evaluation of the Techlink Programme

Outcome Management Services and Foundation? for Research Science and Technology Evaluation Unit, 2005.

Scope:

The Foundation’s strategy in investing TechLink is to assist firms to become fully informed on the role of technology in their economic decision making. TechLink is currently delivered via four main instruments: Technet services; SmartStart? services; Māori Collectives? investment; and Communications on technological innovation.

This evaluation focuses on the performance of the first two instruments. The following six stakeholder groups were identified and surveyed: Techlink users; TechNet? service providers; Smartstart consultants; Smartstart agents; Techlink management at the Foundation; Firms entitled to access Techlink funding/assistance and who have a technical need, but who have not made use of the program.

Summary:

TechLink is able effectively to complement other investments by the Foundation made to stimulate technological innovation in New Zealand. The TechLink schemes, SmartStart and TechNet, are well aligned with its objective.

SmartStart

• SmartStart delivers a practical service that is valued by its customers, NZ small and medium enterprises (SMEs). Each specific service is largely determined (within bounds) by the business and the consultant.
• Agents (principally economic development agencies) administering the scheme have good knowledge of the SME sector and minimal conflicts of interest.

Opportunities to improve performance:

• SmartStart has completed its pilot phase and there are now significant opportunities to exercise its full potential as part of wider working by the Foundation and NZ Trade and Enterprise to improve and integrate services. SmartStart expenditure is below target and the scheme remains small.
  • A quality assurance system is needed. The service quality is dependent on the business readily finding the right consultant.
  • Agents’ expertise in networking and building the service is underutilised. Agents are also best placed to manage compliance risk. The Foundation is current looking to agents to broadly promote technological innovation and high value-added initiatives.

TechNet

Benefits and impacts:

• TechNet is well regarded by businesses receiving the service. It gives businesses easy access to scientists able to provide technical information and problem solving. The quality of the expertise is high and the compliance costs are low.
• Services are mostly aligned to business growth opportunities, particularly development of new products, processes and services.
• TechNet is very efficient in reaching a huge spread of businesses- about 400 p.a. This generates contacts and networking opportunities for research organisations and for the Foundation

Opportunities to improve performance

• TechNet is underperforming in its current form.
  • TechNet is almost invisible the market and growth in activity is dependent on personal contact.
  • While individual scientists value the industry exposure that it brings, research organisations regard TechNet as marginal business.
  • It is not used by the Foundation to identify strategic investment opportunities.

Conclusions

TechLink is currently the only substantial dedicated source of funding for the exchange of technological questions and ideas.

Technical information networking is a challenging task that is not always well recognised in a service that has limited direct impacts. NZ businesses, being small and geographically isolated are relatively dependent on such networks. However, our research and development system, dominated by a diverse set of public research and related organisations is complex and can be difficult to access.

This evaluation points to opportunities to make SmartStart and TechNet more efficient through increased use of agents, larger grants to incentivise better performance, increased managerial oversight by the Foundation and parallel investment in information infrastructure.