Innovation Economics: Alex Haryowiseno Future Christchurch: Strategies To Economic Recovery

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I N N O V AT I O N
E C O N O MI C S
ALEX HARYOWISENO FUTURE CHRISTCHURCH: STRATEGIES TO ECONOMIC RECOVERY
2 Future Christchurch | Innovation Economy
1. Innovation Economics
1.4. Perceived Barriers to Developing
Innovation culture
1.2. Connective Structure
1.3. Commercialization as a form of Knowledge
transfer
1.1. Innovation through the Built
Environment
Thesis Framework
Thesis Statement
2. Creating a Culture Based on
Innovation
2.1. New Zealand Within the Global Context
2.2. NZs Market Orientation
2.3. Christchurchs Industry Profile
2.4. Conclusion: Creating Innovation
Culture
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Table of Contents
3 Alex Haryowiseno
3.1. Sector Priorities
3. Fostering Connectivity & an
Innovation Ecosystem
3.2. A Measure of Innovation
3.3. An Overview of NZs Innovation Landscape
3.4. An Overview of Policies
3.5 Overseas models
3.6 Conclusion: Fostering Connectivity and an
4. Educated Workforce
5. Urban & Building Design
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Table of Contents
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4.1. The Importance of generating
an Educated Workforce ______________32
4.1. Graduate Concentrations
in Canterbury Universities ______________33
5 Alex Haryowiseno
Innovation Economics
The Innovation Economics doctrine is a theory
that puts the importance of technological
development and transfer of knowledge at
the centre of a nations economic growth.
Knowledge and its subsequent products are
seen as important factors alongside traditional
primary commodities, and have shifted from
being seen as independent forces unafected by
policies, to being a driving force that promotes
productivity and better use of resources.
The two key questions to be asked when
considering this are: Why should New Zealand
consider adopting this thinking into its
economic development strategy? And what is
this theorys signifcance in terms of creating a
strategy for Christchurchs recovery?
New Zealands orientation towards the primary
industries is widely known, with its agriculture
products as the countrys top export income
generators. The country has achieved this by
also associating these products with its clean
and green image. However, this reliance on
the exploit of natural resources has resulted
in the countrys inability to reverse the decline
in its prosperity since the 1970s, as seen in its
current position within the Organization for
Economic Co-operation and Development
(OECD). Sitting at 22nd out of the 33 registered
countries, New Zealand falls short in terms of
Gross Domestic Product (GDP) per capita
compared to the average OECD mark, as well
as countries such as Australia.
New Zealand currently generates $29,800
GDP per capita, 35% behind Australia and 20%
below the OECD average standard. One of
the key reasons for New Zealands decline in
GDP is the persistence of intense labour and
low-impact jobs. It is recorded that NZ workers
put in as much as 15% more working hours and
generate 20% less returns when compared to
the OECD average. In order to just maintain
this current position, New Zealand needs
to generate a minimum of $120,000 per
employment, given its current FTE number of
1,300,000 (1 FTE = 1 Full Time Employment).
Industry sectors such as tourism and winery,
although popular, manage to generate
$100,000 and $80,000 per job respectively.
This is again caused by their nature to employ
labourers for largely unskilled and low-impact
jobs. It is clear that we need to look beyond the
current orientation and invest in a sector that
has potential to prosper in the long term.
The key to generate value beyond the current
minimum would be to invest in sectors
which create high value commodities. The
science, technology, as well as the high value
manufacturing and services industry are
sectors that present us with this opportunity.
For example, in the scale of New Zealand,
Fisher & Paykell is currently the leader in
innovation as well as R&D. The company
currently employs 1,250 people and generates
$290 million in revenue per year. This accounts
for $232,000 generated per FTE, making it one
of NZs top earning companies.
In the scale of Christchurch, emerging
companies in the Information and
Communications Technology (ICT) sector
present an opportunity to progress in this
direction. ICT currently employs 4500 people
in Christchurch and generates over $ 850
million Gross Regional Product (GRP) per
year. This accounts for an average of $190,000
generated per FTE, 60% more value than
the minimum required for New Zealand to
maintain its current economic position.
Christchurchs existing secondary industry is a
large component within the citys employment
landscape. This has greatly infuenced the
development of its urban fabric. The industrial
line located in the southern part of the city
forms a transport network that connects the
industrial zones of Christchurch city to the port
in Lyttelton, where commodities are shipped to
overseas destinations. However, between the
period of 2005 and 2009, the manufacturing
industry experienced a signifcant decline
of 8% in terms of its recorded business units,
which led to a loss of 5,000 employments and
a $200 million decline in the citys GRP. It is
these facts that highlight an opportunity, one
where Christchurch could transition from a
manufacturing based economy to a knowledge
based economy. The recent Canterbury
earthquakes have also prompted investments
to be made towards the citys future, and it
is within this timeframe that an opportunity
to invest in innovation emerges. This could
have the added value of changing the citys
employment landscape.
In order to establish a knowledge based
economy, a critical mass in the form of an
educated workforce is needed. Christchurch
holds potential in fostering this new aspect
of economic growth, given that it produces
a substantial number of graduates from its
universities (around 25% of NZs graduates)
and is recorded to have over 10,000 people
that are currently being employed in the feld
Thesis Statement
7 Alex Haryowiseno
of science and research. These are aspects
which will be benefcial in creating the initial
talent pool needed to establish it as a city for
science, technology & innovation. However,
the declining number of students coming from
the technology and sciences feld, a fact that
was highlighted in multiple OECD reports,
remains an aspect that needs to be addressed,
given their role in creating the critical mass
needed in order to start and sustain the shift
towards innovation economics. By fostering
this educated workforce, the city will be able
to create a self-reinforcing cycle (Komninos,
2008) which creates a synergy with its
existing manufacturing sector. The emerging
industries in science and technologies serve
as potentials for development and could
increase the amount of technological export
products from New Zealand, while the existing
manufacturing industries also stand to beneft
from improved efciency as a result.
This thesis proposes to look at architectures
role in encouraging the regeneration of
Christchurchs economy through supporting
innovation and technological development.
Within the premise of this post-industrial
scenario, strategies that aim to direct
Christchurch towards an economy based on
knowledge as a primary commodity will be
proposed. As an urban strategy, potential areas
for regeneration will be located, particularly
within the citys existing industrial zones. By
utilizing existing facilities and the associated
transportation system within these zones,
the proposed centres aim to create synergy
between the emerging high value sectors with
the existing manufacturing sectors and bridge
the gap between the northern and southern
suburbs of the city.
The importance of maintaining an innovation
ecosystem, in order to enable the organic
process of knowledge and information
exchange between diferent sectors
(businesses, institutions, etc.), has been widely
discussed (Komninos, 2008) It is within the
premise of this ecosystem that innovation
can occur. The integration of competences
from various social areas, such as education,
science, politics and the public, is an
integral part of encouraging growth through
innovative means (Simmie, 2001). As such, the
research and design process will take stance
from an ecological perspective. Within this
methodology, architecture assumes the role
of contributing to the continuous provision
and adaptation of the built environment as
a framing system of social communication
and organized spatial relations (Schumacer,
2010). As an ecological system, Architecture
becomes the connective strand that creates
the possibility for innovation and exchange of
knowledge to occur.
The built environment operates as a catalyst
for these developments to happen but they
are dependent on the progression of other
economies within the city. Aspects such as
quality of life, progress of education and
advancement in sustainable practice will be
necessary in order to maintain the standard of
living to allow these environments to operate.
The interdependency of these diferent aspects
will also be looked at as part of the designs
ecological framework.
1. Innovation Economics
The concept of innovation economics
positions a nations advance of technological
development and knowledge transfer at the
centre of its economic strategy (Lambooy
& Boschma, 1998.). One of the fundamental
aspects to this doctrine is that higher
productivity, efciency and more efective
use of resources should be achieved through
higher levels of innovation.
In many cases within the worlds emerging and
developed countries, this would mean a shift
away from the traditional material economy
based on export and manufacturing, and into
a new paradigm which fosters innovation
capacity and knowledge based economy.
Growth in innovation economics is the end-
product of knowledge transfer, policies allowing
for entrepreneurship and innovation (R&D
expenditures, permits, licenses), technological
spillovers and contact between collaborative
frms, as well as systems of innovation that
create innovative environments (clusters,
agglomerations, metropolitan areas).
Empirical evidence worldwide points to a
positive link between technological innovation
and economic performance. For example,
Germanys fourishing Bio-tech industries
can be attributed to a national innovation
system where there exists such factors as R&D
subsidies to joint projects, network partners,
and clustering efect which facilitates close
contacts with research associates.
A shift towards innovation leads to a better
perception the quality of life, as shown in
the GE Survey for global innovation (2012).
Innovation is seen to have signifcant potential
in facilitating future advances in the felds of
healthcare, energy, environmental quality, as
well as improving the job market.
The following sections will look at the
necessary aspects required in order to
implement this economic theories, as well
as the perceived barriers currently faced by
New Zealand in order to establish itself as an
innovative country.
WORKFORCE
ATTRACTION
MARKET
INTERACTION
ORGANIZATIONS
&
POLICIES
INNOVATION
PROCESS
Adaptation of environment
Adaptation of environment
Conducive Innovation
Environment
Fig 1. Innovation Economics Diagram Fig 2. Diagram on the Perceived Efects of Innovation of Innovation
9 Alex Haryowiseno
1.2. Connective Structure
1.3. Commercialization as
a form of Knowledge transfer
1.1. Innovation through the
Built Environment
Innovation is serendipitous in its nature. As
such, it is important to consider that we can
not plan innovation as a linear process. Rather,
we can create environments within which
innovation can fourish as the result of the
organic process between its associated actors
(research institutions, small to medium sized
companies, government research facilities,
etc.). (Komninos, 2008)
The Agglomeration theory (close proximity
of businesses lead to a higher level of
competition and therefore a higher level
of productivity) is seen as a signifcant
contributor to innovation, and regions which
possess such urban confgurations, signifed
by the presence of high quality facilities
and attractive environments are in a better
position to attract and retain innovators and
brainworkers. (Lambooy & Boschma, 1998)
Local mechanisms such as meetings at
tradeshows, conferences, seminars and social
activities are also seen as contributors to the
exchange of knowledge in the region.
The discussion in regards to innovation
always emphasizes the importance of
cooperation - It attributes innovation to the
ability of organizations to collaborate and
advance collective learning and knowledge
sharing. There is a great need to promote
an awareness to innovation culture within
businesses, organizations & the general public.
Entrepreneurship, cooperation between
institutions, research facilities, as well as
companies all contribute to this to create
networks of synergy (Simmie, 2001.) In order to
Research is a crucial component of innovation;
but it becomes fertile by mobilizing various
capabilities within a wider system of
knowledge, risk taking & entrepreneurialism.
Converting scientifc knowledge into new
products and services, which is the core
process of innovation, is only feasible
under an environment rich in resources for
research, experimentation, fnancing and
entrepreneurialism.
In order to facilitate the organic nature of
the interactions, a conducive innovation
environment needs to be provided, one that
allows the 5 basic innovation functions to
operate: research, funding, technology transfer,
new product development, and innovation
supply networking (Komninos, 2008)
facilitate this connectivity, measure of business
clustering which is enabled by a consideration
of the urban fabric will be needed. This
facilitates increased ccolaboration between
organizations which can lead to higher levels
of productivity
Eforts to introducing Innovation to New
Zealands economy is currently met with
several barriers which can be classifed
into problems within 3 difering scales
of interaction: Culture, Connectivity and
Capability. In order to implement an economic
strategy based on innovation, it is necessary to
locate key areas of issues within these aspects,
as well as the possible solutions which can be
facilitated by a consideration of the urban and
architectural form.
1.4. Perceived Barriers to
Developing Innovation culture
1. The frst problem looks at New Zealands
National and Organizational Cultural
Barriers, which involves the current
interaction between New Zealand and the
global market. In order to establish innovation
as a key factor in the progress of the countrys
economy, several problems within this aspect
can be identifed:
New Zealands OECD ranking
A reliance on primary industries and the
exploit of natural resources
Relatively low support for the long-term
investment in R&D
2. The second problem looks at the issue
of Connectivity, which deals with the way
organizations operate and policies are
implemented to support the progress of
innovation. The following problems currently
needs to dealt with:
Lack of business and research clustering. Sub-
par networking and collaboration between
industries, universities and research facilities
A lack of advanced technology manufacturing
infrastructure
There is a need to turn more research projects
into commercial products
3. The third problem looks at Capability
issues, revolving around the workforce needed
to support the progress of innovation. Current
problems exist which revolve around:
Low mobility of R&D staf between
universities, CRIs and industry
Problems with the attraction and retention of
an educated workforce.
2.1.1 New Zealands decline in OECD ranking
The Organization for Economic Cooperation
and Development (OECD) report has high-
lighted New Zealands decline in economic
growth when compared to the OECD average.
Although NZ started out well above the OECD
average in the 1970s, its position continued to
fall down. It currently sits at 22nd out of 33
countries.
The entry of Britain into the European
Union and the resulting loss of free entry to
British markets for dairy products, and the oil
price shocks of the 1970s are also potential
explanations for New Zealands relative fall in
the real GDP per capita rankings during this
period.
Although New Zealand performs well in

2. Creating a Culture Based
on Innovation
The frst aspect necessary to introduce
innovation into to a countrys economic
development plan is situated within the global
realm - that is to determine the countrys
current position given its economic strategy,
and whether a shift towards an approach based
on innovation is needed
This step starts by looking at how New
Zealand is doing economically compared
to other countries in the Organization of
Economic Cooperation and Development
(OECD) (Section 2.1), an analysis of NZs
current market orientation will then be done
to determine whether it deters or supports
New Zealands progress (Section 2.2). A local
study based on Christchurchs existing and
emerging industries will then be carried out
to locate opportunities within the scale of the
city. (Section 2.3) A conclusion will then be
drawn out (Section 2.4)
2.1. New Zealand Within the Global Context
Fig 3. OECD ranking (1972 to 2009)
certain areas within the OECDs measure,
some aspects are lacking which ultimately
lead to the inability for the country to reverse
the decline in prosperity.
For example: New Zealand ranks as the 3rd
most democratic country and the 6th in terms
of its achievement in the feld of science,
however it currently sits on the 26th position
in terms of the rate of employment output.
The cause of this as well as its impact on the
nations economy will be discussed in the
following sections.
11 Alex Haryowiseno
2.2.1. A Measure of NZs Productivity
The decline in New Zealands relative
prosperity compared to other OECD
countries since the 1970s can be attributed
to its current economic orientation favoring
industries with intensive labour and low-
impact output.
This fact is shown in the diagram to the
right, which measures a countrys properity
in terms of the average number of working
hours and the amount of output generated per
person. It is clearly shown that New Zealand
is the second hardest working country out of
the list (putting around 15% more working
time compared to the OECD average), yet
generates one of the lowest output (We
achieve an output worth only 80% of what the
rest of the OECD countries achieve)
2.2.2. New Zealands Market
Orientation
New Zealand currently generates an average
of $29,800 GDP per capita. In order to just
maintain this rate (and thus its 22nd position
out of 33 countries), we need to generate
$120,000 from every one of our 1,300,000 Full
Time Employments (FTE). However, NZs
current economic orientation towards primary
exports in agriculture, forestry low-skilled and
low-impact employment makes this hard to do.
Popular industries such as wine and tourism
only generate around $100,000 and $80,000
per FTE. In order to prosper in the long term,
we need to consider other sectors which has
the ability to create high-impact employments.
2.2. NZs Market Orientation
Fig 4. Measure of productivity within OECD countries
Fig 5. Amount of revenue generated per FTE


TOP 3 COUNTRIES FOR NZ EXPORT:
Dairy Export (2007 - 2011) Meat Export (2007 - 2011) Wood Export (2007 - 2011)
Fig 6. NZs market orientation, showing increasing reliance on primary industry exports (
13 Alex Haryowiseno
2.2.3. Opportunities for Development
The key to generate values beyond the
current minimum amount will be to invest
in sectors which create high impact margins.
The science, technology, as well as the high
value manufacturing and services industry are
sectors which present us with this opportunity.
More emphasis needs to be put on potential
technology markets (e.g. Electronic parts in
Australia - Fig.6 )
For example, Fisher & Paykell is currently
the leading company in R&D. The company
currently employs 1,250 people and generates
$290 million in revenue per year. This accounts
to $232,000 generated per FTE, around 90%
more than the average amount generated
per FTE in New Zealand. In order to make
sustainable progress in the future
2.2.4. Current Level of Investment
in R&D as a Barrier to Innovation
The amount of R&D spent as a percentage of
a nations GDP can be seen as an indicator
of whether a country is leaning towards
prioritizing high-impact sectors. As such, the
relationship between the two can often times
be seen as linear (as seen in Fig. 8 - countries
which spend more on R&D generates more
GDP per capita because it is less focused on
providing low impact employments). The graph
shows that New Zealand is underperforming
when compared to other countries within this
respect. A need to better utilize the countrys
resources has been acknowledged, and one of
the ways to go forward is to improve efciency
and productivity through innovation and R&D.
There is a relatively low level of overall
expenditure on R&D as a percentage of GDP
(1.30% compared with OECD average of 2.33%).
NZ invests the least amount of R&D and
generates the least GDP per capita
Fig 7. Revenue generated per employee in top tech companies
Fig 8. Comparison of GDP to R&D investment (1981 - 2009)

2.3.1 Existing and Emerging Sectors
within Christchurch
Fig 9. Industry GRP Progression (2000 - 2009)
Fig 10. Industry Employment Count (2000 - 2009)
An analysis into the statistics of employment
and GRP per industry in Christchurch
shows that a majority of its employment
opportunities come from the manufacturing
sector. This industry also generates the second
highest amount of GRP for the city in 2009,
next to the property and business services.
However looking at the employment count
of this industry reveals that it has seen quite
a signifcant decline of around 15 % between
the period of 2006 and 2009 - a possible cause
of this is the increasing value of the NZD
between this period (0.59 to 0.75 index), which
limits exporter income .
Another analysis of the GRP per industry
values also reveal Christchurchs emerging
industries, notably in the health & community
services area, as well as the communication
services.
The health & community services experienced
and increase of GRP by 25% in the period
between 2000 and 2009, and is currently the
second largest employer in Christchurch next
to manufacturing.
The communications services (ICT) sector is
an interesting case of a high growth sector.
Although levels of employment remained
modest (around 4500 people) in the period of
2010, the industry generated a high amount of
GRP in 2009 and shows a signifcant growth
in this respect (GRP grew almost 50% within a
period of 10 years)
2.3. Christchurchs Industry
Profle
15 Alex Haryowiseno
2.3.2 Innovation Economy Vs.
Embedded Economy
In The Economies of Cities (2007) Sassen
brings forward an enquiry into the nature in
which innovation economics principles are
introduced into a citys development strategy.
An argument was made regarding the role
of the old material economy (manufacturing
industries, etc.) with regards to its newer
counterpart (High Value Manufacturing and
ICT, etc.).
Fig 11. Contribution of Services Sector to NZs
EconomySource: Stats NZ. (2009). International
engagement by New Zealand businesses. Wellington: Stats
Rather than abandoning a citys older sector,
a suggestion was made to create a synergetic
relationship between the two diferent
industry types. Introducing strategies based
on innovation has the potential to reverse the
role of manufacturing and service.
While the service of labour is traditionally
used in
a linear pathway to produce fnished
commodity through manufacturing, a reversal
in this methodology would create a self-
reinforcing cycle (Simmie, 2001) - which
means that manufacturing would beneft
the high value services as well as the ICT
sectors, whose products can be utilized to
further improve the efciency and product
quality of the manufacturing industry. There
is possibility that this process can be applied
to Christchurch to help create a powerful
innovation agglomeration.
This trend shows the increasing value of GRP
generated per capita within this industry. In
2010 the industry generates over $850 million
in revenue, adding up to $190,000 per FTE.
The survey of the industrys engagement with
the service export market also shows a strong
return,with IT (part of the ICT industry) placing
second in terms of income from overseas.
The decline in employment of Christchurchs
main industry, as well as the trend in emerging
sectors would suggest that a shift will be taking
place in the coming years which favours the
emerging high impact technology industry.
2.4. Conclusion: Creating
Innovation Culture
New Zealands decline in prosperity since the
1970s, triggered by the oil price shocks and the
loss of the British dairy market, has resulted
in its current position within the OECD. The
persistence of intense labour and low-impact
jobs in the country has prevented it from
reversing this overall negative trend.
In order to just maintain its current position
within the OECD ladder, New Zealand needs
to generate $120,000 from every one of its
full-time employment. Popular sectors such
as winery and tourism has been identifed, at
present, to be unable to fulfl this demand due
to its labour intensive nature.
One of the key solutions identifed which
may deal with this situation is to put higher
priority towards growing sectors which are
characterized by its high level of output.
The science, technology and high value
manufacturing services have been identifed as
examples of these R&D intensive sectors. Key
companies within this sector, such as Fisher &
Paykell have been recorded to generate over
90% more than the minimum value per FTE
needed for New Zealand.
One of the key barriers to developing this
sector at the moment is the low level of funding
towards R&D made by the government.
Although this is not the only source of funding
available within the innovation ecosystem,
government support can be crucial in enabling
basic research by companies.
Christchurch already has a strong base of ICT
industries to serve as a basis for introducing
more high output sectors. Introducing sectors
such as high value manufacturing and services
can also create a synergy with its current
manufacturing industries and both new and
existing companies will beneft from this.
3.1. Sector Priorities
In the ranking for sector priorities based on
funding and competitiveness, the Agriculture
and food industry is ranked as the most
competitive and received the most funding. The
clean energy, Creative industries, as well as the
Information, Communication and Technology
sector was shown to have moderate levels of
competitiveness and received relatively low
government funding. Section 2.3.1 talks about
the opportunity for Christchurch to beneft
from its ICT industry, where it currently
generates 60% above the average value for
1 FTE. The high technology sectors present
the emerging economies within New Zealand
and need to receive more support in order to
become internationally competitive.
The profle of funding by the Ministry of
Science and Innovation for its 8 Crown
Research Institutes shows a trend towards
prioritizing research in the Agriculture
sector (CRI Task Force, 2010). However, it
was addressed in the Powering Innovation
report (2011) that the government will be
increasing funding in the area of High Value
Manufacturing (which includes ICT). This is a
step in the right direction towards promoting
the high value industry in New Zealand.
Organizations and businesses in Christchurch
within this feld will stand to receive beneft
from further funding.

3. Fostering Connectivity and
an Innovation Ecosystem
The previous section discusses the importance
of aligning New Zealands priorities towards
high growth sectors in the global scale
interaction with other countries in order to
reverse its decline in prosperity. The next step
is to then consider the issue of enabling the
interaction between organizations within the
national scale, which would help develop these
high growth sectors.
Connectivity between organizations and
the presence of a conducive Innovation
Ecosystem are crucial in order to promote the
implementation of Innovation Economics.
It is important, therefore, to understand the
interaction between the current spread of
organizations with government policies
and existing industries to gauge whether
New Zealand and Christchurch provides
an environment which enables the organic
process of innovation to take place.
A general picture will frst be drawn by looking
at the current priority sectors for research
funding, assessing whether the money put
in by the government is being invested in
the most favourable sectors (Section 3.1).
A current measure of interaction between
business, government research institutions, as
well as the rate of R&D activities in businesses
will also be looked at to see whether there is a
sufcient level of connectivity between these
organizations (Section 3.2)
In order to better understand the structure
of organizations and policies involved in
enabling innovation, an overall picture will
also be drawn in Section 3.3 and 3.4. A study
on an overseas model will done (Section 3.5.)
and a conclusion will drawn (Section 3.6.)
Fig 12. Sector priority diagram
17 Alex Haryowiseno
In a survey of businesses between the years
2007 and 2009, it was found that existing staf
members and costumers were the primary
source of business information. In contrast,
tertiary institutions and CRIs ranked the
lowest in terms of providing information
to businesses. This suggests a lack of
connection between industries and research
institutions and facilities. There is a clear lack
of communication structure between these
institutions and business which needs to be
addressed. An opportunity to promote better
connectivity arises from this situation, because
these organizations currently represents
untapped potentials in contributing towards
the advance of businesses. (For example,
Christchurch universities generate 20% of
New Zealand graduates and research projects
which ofers potential help for companies
trying to expand their R&D activities)
3.2.1. Source For Business Innovation
3.2.2. Level of Innovation Activities
There is a relatively low ratio of Small to
Medium sized Enterprises (SMEs) in New
Zealand which engage in R & D activities
when compared to large companies (100+
staf members).
A conducive innovation ecosystem should
involve equal interaction by both SMEs
and large corporations, and this low rate of
R&D activity may be caused by an absence
of innovation culture and awareness and an
overall reluctance by business to take risk.

Overall trend of decline (especially in small & medium enterprises)
3.2. A Measure of Innovation
Fig 13. Source of business innovation
Fig 14. Trend in business innovation (by size - number of employees)
3.3. An Overview of NZs
Innovation Landscape
Tertiary Institutions
Tertiary institutions in New Zealand are
comprised of three main bodies: Universities
(Auckland University, Otago University, etc),
Polytechnics (Unitec, etc.) and the Wananga.
These institutions are one of the leading
sources of research projects, and is connected
to ofces which organizes the turning of
intellectual properties into commercial
products.
Crown Research Institutes are publicly funded
research facilities which conducts projects
based on industry sector needs.
Their range of expertise varies from felds in
agriculture, geology, to ICT
In order to better understand the way the
innovation system operates within the
country, it is necessary to break down the
structure of innovation into its main actors.
As it currently stands this comprises of three
types of organizations: Research Facilities
(Tertiary Institutions, Crown Research
Facilities and Independent Research
Organizations), Centres of Research
Excellence which aims to create a synergy
between the diferent research facilities,
and fnally funding agencies and ofces,
which provide the initial investment for
these facilities to conduct research, as well
as services which turn completed research
projects into proftable products.
Crown Research Institutes
3.3.1. Breakdown of Organization
Types
19 Alex Haryowiseno
Independent Research
Organizations
Privately funded research organizations of
difering felds of expertise
Centres of Research Excellence
(CoREs)
The Centre of Research Excellence is a
relatively new typology within the main
bodies of New Zealands innovation feld.
It represents the interaction between
tertiary institutions with publicly funded
Crown Research Institutes. Eight centres of
excellences exist through New Zealand, each
focusing on a specifc feld of interest.
Funding Agents
Government funding agencies. Each one of-
fers funding and incentives based on their
own felds of interest. A number of organi-
zations, such as the Ministry of Science and
Education holds annual investment round, in
which applications can be made to secure a
contract with the organization
Crown Research Institutes (red dots on the
New Zealand map)
Eight CRIs were established in 1992 as
government owned businesses with a
scientifc purpose. Each institute is based
around a productive sector of the economy or
a grouping of natural resources.
1. AgResearch
A life sciences research organisation with an
increasing emphasis on product development
and commercialisation of Agricultural Bio-
technology.
2. Institute of Environmental Science and
Research Ltd (ESR)
Provides specialist science solutions related
to public health, environmental health and
forensic science. (Micro-biology)
3. GNS Science (Institute of Geological and
Nuclear Sciences Ltd)
the New Zealand Crown owned research
institute that focuses on geological resources,
environmental and industrial isotopes, and
natural hazards.
4. Industrial Research Ltd (IRL)
Undertakes development and research
commercialisation in areas of ICT and
advanced material construction
3.3.2. Research Organizations Spread

Fig 15. Map of NZ research organizations
21 Alex Haryowiseno
1. Building Research Association of New
Zealand
company supplying research, testing,
consulting and information to the building
industry
2. Cawthron Institute
marine, freshwater and aquaculture research
3. Cement and Concrete Association of
New Zealand
4. CRL Energy Research
Energy and environmental consulting
company
5. DairyNZ
Industry body funding R&D and technology
transfer
6. Fert Research
The New Zealand Fertiliser Manufacturers
Research Association
7. Harmonic
NZs Information and Communications
Technology Research Institute
8. Heavy Engineering Research
Association (HERA)
9. Malaghan Institute of Medical Research
10. Beef and Lamb (formerly Meat and
Wool) New Zealand
11. New Zealand Leather Research
Association
12. New Zealand Plant Breeding and
Research Association
13. Transport Engineering Research NZ
14. Information Technology and
Communications
5. Landcare Research
Research focuses on six areas: biodiversity
and ecosystem processes, greenhouse gases
and carbon storage, sustainable business
and government, biosecurity and pest
management, rural land use and urban
environmental management.
6. National Institute of Water and
Atmospheric Research (NIWA)
Provides a scientifc basis for the sustainable
management and development of New
Zealands atmospheric, marine and freshwater
systems and associated resources.
7. Plant and Food Research
A science company formed in December
2008 through the merger of HortResearch
and Crop & Food Research. Provides R&D that
adds value to fruit, vegetable, crop and food
products.
8. Scion
Provides research and technology solutions
to all levels of forest and wood products
industries, including biomaterials science,
alternative species and plantation resources.
Scion has recently extended its focus beyond
wood to meet the growing consumer demand
for renewable materials and products from
plants.
3.3.3. Independent Research Institutes
3.3.6. Clustering Mechanism
The importance of urban clustering has
been identifed as benefcial to a citys
eforts in harnessing its knowledge resource
potential (Komninos, 2008). The clustering
phenomenon is described as the building of
systematic relationships between companies
and institutions, based on their involvement
in specifc felds of expertise.
The close linkages between organizations
within urban clusters facilitates cooperation
as well as improvement in competition and
productivity.
Recent studies have highlighted the nature of
this potential as an aspect that is generated
through the collective transfer of knowledge
between organizations which are located
within close prozimities (Nonaka and
Takeuchi,1995)
Fig 16. Map of Christchurchs research organizations
23 Alex Haryowiseno
General Engineer
Manufacturing Engineer
Mechanical, Automation,
Precision Engineer
Metal Engineer
Several typologies have been identifed with
respect to a clusters life-cycle:
Potential clusters comprise of a collection of
organizations concentrated around a region.
However, the are still lacking in synergy which
results in a low level of interaction.
Emerging clusters are a concentration of
organization which have just started to realise
common opportunities through their linkages
and operate around a core activity.
Established clusters are those which
have gained critical mass (the amount
of organizations necessary to facilitate
cooperation and colaboration), and are able to
develop relationships inside and outside of the
cluster around the use of common infrstructure
and services.
Fig 17. Map of Christchurchs specialized manufacturing clusters
Declining clusters are those thich have reached
their peak and have to adapt to changes in
order to sustain itself.
A preliminary study to identify Christchurchs
existing urban clusters reveals the broad
spread of organizations participating in
research activities.These organizations are
mainly focused on the study of energy and
agricultural products. Although the city shows
great promise in its high value manufacturing
and services (as discussed in section 2.3.),
there is currently little research infrastructure
and facilities which supports this feld.
There is however, a trend for engineers
and mechanical manufacturers to gather
in Middleton - Waltham, as well as the
Bromley suburbs. This existing cluster of
manufacturers and consultancy services
represents a emerging cluster which may be
helpful in creating the critical mass required
to implement a strategy to further the felds
progress in the future. The current lack of
research infrastructure opens up possibilities
for organizations specializing in this particular
feld to be introduced in Christchurch.
Diagram of Displaced Businesses
25 Alex Haryowiseno
3.3.3. Private Organizations
A business incubator dedicated to support
Small to Medium sized enterprises (SMEs).
The organization provides access to various
funds as well as connections to angel investor
networks. It was named as one of the worlds top
10 business incubators by Forbes magazine.
An organization which serves as a platform
for business investors to generate capital
for investment in SMEs. Angel investors are
afuent individuals who invest capital in
exchange for a companys convertible debt or
ownership equity.
3000.org.nz is an initiative with a goal to help
set up 3000 New Zealand based businesses by
the year 2020 in order to raise the countrys
presence in the international market. It serves
as a platform for pitching ideas to better NZs
innovation ecosystem.
The New Zealand Knowledge Bank is a
knowledge and information portal proposed
by Sir Ray Avery in order to focus the sum
knowledge of NZs innovation ecosystem
and provide a conduit for International
Trade and Knowledge exchange. It aims
to improve the countrys global innovation
index by creating a high density collection
of research information to be accessed by
businesses.
Power House is a seed-stage investment
house specialising in emerging technologies.
Its sector focus is on engineering, clean
technology, agri- and bio-sciences, software,
innovative foods and healthcare devices.
The intellectual property powerHouse
commercialises comes from Universities and
Crown Research Institutes and from private
sector businesses. It is based in Christchurch.
Private organizations also play an important
role to creating a conducive innovation
ecosystem. The presence of these organization
play a major role in helping SMEs, because of
the amount of investment they make during
the initial stages of the business projects.
The following list provides a examples of
these organizations which can help SMEs
in particular and can serve as a catalyst to
attract companies to locate themselves within
their proximity to form a productive business
cluster.
What incentives support the R&D feld in New
Zealand at the moment?
Technology Development Grants:
Assists frms that conduct signifcant amounts
of R&D. The grants cover 20% of project costs
to a maximum of $2.4M.
TechNZ Project and TechNZ Capability:
Provides 1:1 funding
Technology Transfer Vouchers:
designed to give frms that lack existing R&D
capacity access to research organizations.
Pre seed Accelerator Fund:
Helps commercialization of research projects
These incentives provide an opportunity
for SMEs to conduct in R&D activities, and
thus plays an important part in enabling
Christchurchs emerging companies to
undertake the activities necessary during the
critical initial development stages
3.3.4. Incentives 3.3.5. Christchurchs Technology Hub
It was announced on the 3rd of April 2012 that
funding has been allocated in the construction
of a new IT hub for Christchurch.
The $1.8m investment into the Enterprise
Precinct and Innovation Campus (EPIC)
will come as two grants from the Ministry of
Science and Innovation and NZTE
The Christchurch City Council granted the
use of the site on the corner of Manchester
and Tuam streets, rent free for fve years. The
site was originally the location of a para rubber
store
The rest of the fnance would come from the
Bank of New Zealand, and be paid back with
the grants and rent from tenants.
The bank had naming rights for the hub
and would be a tenant as well. It will take
approximately 20 weeks to build and another
month to ft out - It is aimed to be occupied by
August of 2012.
The EPIC initiative is broken down into two
stages which corresponds with both a short
and long term approach.
The short term stage of the project (EPIC
Sanctuary) will house sixteen companies that
are currently displaced from the CBD by the
Earthquake.
In the long term phase of the project (SIGMA
Stage), the project is expected to attract more
than 700 FTEs, representing a value of $3

Source: http://www.stuff.co.nz/business/rebuilding-christ-
church/6687155/IT-hub-set-for-central-Christchurch
million per annum in rent. Given the current
value of the ICT sector in Christchurch of $
190,000, the introduction of this project could
bring in an additional $133 million in GRP to the
city when its fully up and running. Comparing
these values to the level of initial government
investment ($1.8 million), alongside the cost of
providing a rent free site to the project for fve
years ($40,000 per year totaling to $200,000
over fve years - this is how much money the
government would have made if it were to
follow through initial plans to turn the site into
a car parking lot), the EPIC project is viable
in terms of generating a return which would
beneft both the city and in promoting the
advance of the technology industry
27 Alex Haryowiseno
Comparison between diferent models
Source: www.idealog.co.nz
Source: www.aktnz.co.nz
The EPIC initiative can be classifed as an
Innovation incubator model, where its main
focus is placed towards getting displaced
businesses back into the CBD, as well as
investing in new start up companies and
engaging students in universities by providing
them mentorship and working spaces. The
initiative works under the supervision of
two parent companies, Cerebral Fix and
Efectus, which oversees the development of
the initiative. The approach of gathering the
critical mass needed (in the form of 16 SMEs)
before proceeding to the realization of the plan
can be described as a bottom up incubation
approach.
This is taken into contrast with the
development of Wynyard Innovation Precinct,
where investment was frst made into turning
the precinct into a signifcant public space.
This, in theory would attract SMEs to locate
themselves within close proximity to this area.
This approach can be described as a being
top down, and has come under criticism in
relation to the high rent price which the initial
investment in public amenities has created
Wynyard Innovation Precinct
Wynyard Innovation Precinct
3.4.1. The Knowledge Wave

In 2001, They University of Auckland, in
partnership with the labour party, held a
conference which was intended to addresses
the long term economic development plan
for New Zealand. A focus on the growing
knowledge sector was emphasized, with
workshops held to establishes key policies
which would help foster the emerging sectors
such as science and technology. The following
are some of the highlights from the workshop:
Innovation and creativity
- Provide extra resources for education in
priority areas, e.g. ICT
- Ensure cross-fertilisation between industry
and research providers to ensure R & D is
relevant;
- Encourage growth of New Zealand venture
capital industry;
People and capability
- Liberalise immigration rules to attract
immigrants with skills in industry, academia
and the arts;
- Establish specialist centres of excellence in
our leading research institutions.
Sustainable Economic Development
Strategy:
- Active foreign direct investment attraction&
pursuing free trade agreements;
- Build a young entrepreneur system;
- Create specialist industry clusters
capable of international leadership through
consultative and collaborative local processes.
Entrepreneurship:
- Create a venture capital industry body;
- Upgrade the status of science and
technology in NZ
3.4.2. National Development Policies

3.4. An Overview of Policies
29 Alex Haryowiseno
Fig 18.
3.4.3. Global Innovation Survey

A comparison between the 2001 Knowledge
wave workshop outcome, the GE Global
Innovation survey and the current National
Economic development plan provides
a comparison between past aspirations,
perceived ideal conditions, as well as current
eforts to improve New Zealands progress on
innovation.
In the survey of the worlds executives and
CEOs with regards to innovation actors, a
majority supports the idea where an ecosystem
is established based on the synergy between
diferent public and private organizations.
The synergy would include the cooperation
between government as well as private
investors to encourage the growth of SMEs
as well as large companies. The need for
better industries access to tertiary institution
and government research facilities is also
addressed.
New possible modes of innovation were also
discussed where it is yet again identifed
that innovation depends on the partnership
between several diferent players. The need
for more efcient use in R & D funding, as well
as greater awareness of innovation culture is
also important to boost innovation activity of
smaller enterprises.
A majority of the points addressed within
this survey is actually in line with the
2001 Knowledge Wave workshop outcome
(Promotion of science and technology, synergy
between diferent industries and organizations,
prioritizing high value sectors such as
Information Communication Technology,
etc.). However, the implementation of these
workshop outcomes has largely been lacking.
Over the past 10 years, there is still an apparent
lack of synergy between government research
facilities, tertiary institutions as well as
industries; and the emphasis of government
funding is still largely on New Zealands
primary sectors. It is only recently that
National has introduced new policies to better
support the technological sectors such as ICT
and High Value Manufacturing.
Although the recent introduction of policies
in support of these high impact sectors
represents a step towards the right direction
for Christchurch (in support of its growing
ICT industry), a consideration also needs to be
made in how this money is spent. An adequate
infrastructure is needed for the city in order
for developments to be made within this feld
(investment in internet connection to facilitate
transfer of knowledge among other things)
3.4.4. Past, Present, Future
3.5. Overseas model
Finland ranks second in the OECD in R&D
investment (3.45% of GDP). Investment is
mainly made in the areas of electronics
Research & Development, while the traditional
industries (wood and metal) account for less
than 16% of the nations GDP. A continuing
increase in R&D spending since 1990, from
$600 to $1400 per person has seen the level of
GDP per capita increase from $20,000 to over
$ 37,500 in 2009.
The following discussion of Finland as a
possible model for creating innovation
ecosystem follows a similar structure in
enquiry with regards to its innovation culture,
ecosystem and workforce.
Fig 19. Comparison of Innovation Level Between Finland & New Zealand

Fig 20. Finnish Science & Technology System
3.5.1. Finlands Innovation Culture
Finland is one of the worlds leader in the feld
of innovation and R&D. They were, however,
faced with a similar post-industry situation
in the early 1990s, where their manufacturing
sector plunged into decline. As a model of
transformation towards an economy based on
innovation, Finland shifted from its reliance
in the traditional industry and shifted towards
a strategy favoring the use of knowledge
resources. In order to do this, managed to
increase the number of researchers in science
and technology from 16,000 in 1990 to 40,000
in 2000.
New Zealand is now faced with a similar
challenge of generating a greater mass of
educated workforce needed in order to shift
towards innovation economy. In order to catch
up to the OECD standard, it is estimated that
the country needs to boost its number of active
researchers from 4,000 to 20,000 people.
The frst step towards is to create a culture
based on innovation where the importance of
scientifc knowledge and technology is more
recognized.
31 Alex Haryowiseno
Fig 19. Comparison of Innovation Level Between Finland & New Zealand
Finlands Strategic Centers of Excellence
(SHOKs) -
Finlands SHOKs are public private
partnerships established in the early 2000s,
tasked with speeding up the innovation
processes and boosting private sector initiated
research in partnership with publicly funded
research.
There are six centres, based around particular
areas of industry:
- forest cluster
- information and communication industry and
services
- metal products and mechanical engineering
- energy and the environment
- built environment innovations
- health and well-being.
Companies and research units work in close
cooperation, carrying out research that has
been jointly defned in the strategic research
agenda of each Centre. The research aims to
meet the needs of Finnish industry and society
within a fve-to-ten-year period.
R&D activities are also encouraged by the
countrys policies. Some of its newly introduced
ones include:
- Boosting R&D spending to 4%
- Creating incentives for higher education
institutions to engage in co-operation with
companies.
- Introducing an R&D tax incentive scheme for
companies
- The most important funding targets are
research infrastructures, basic R&D of tenure
tracks for researchers, felds of education,
research and innovation activities of the
highest international
level and other selected focus areas, SHOKs
and internationalisation.
3.5.3 Finlands Educated Workforce
The awareness for R&D culture in Finland
is refected in the progression of university
graduates in the feld of science and technology
(a 500% increase in the period 10 years). In
comparison, it is recorded in 2006 that NZ
produced 51 PhD graduates in engineering ,
while Finland produced 300. An increase in the
amount of researchers is necessary in order to
eventually create the critical mass needed for
an efective innovation ecosystem
3.6 Conclusion: Fostering
Connectivity and an
In order to start implementing strategies for
the advance of innovation and high output
sectors in New Zealand, consideration has
to be made regarding the existing structure
and connection between the associated
organizations and businesses, as well as the
relevant policies that are currently put in place.
Funding continues to be an issue in research
facilities specialising in high output sectors.
It is evident that the Science, ICT and High
Value Manufacturing sectors that require a
substantial amount of investment in R&D have
received little funding over the years. Given
its potential in the existing ICT industries,
Christchurch has little support in terms of
relevant research organizations. Primary
sectors such as agriculture and forestry
are mainly prioritized. It is only recently
that the government has introduced more
funding towards research in the high value
manufactures.
Connectivity between the relevant
organizations is also an issue, where it was
shown that a declining trend in the investment
towards R&D by companies of all scale is taking
place. Out of these activities, universities
and Crown Research Institutes (the primary
research organizations within the country) are
shown to have a relatively low impact towards
these businesses.
These issues regarding connectivity need to
be dealt with in order to create an innovation
ecosystem that will support the introduction of
high output sectors.
A focus towards investment in these areas by
establishing relevant research organizations
as anchors for R&D activities can be helpful in
forming the necessary agglomeration in order
for these emerging sectors to fourish.
3.5.2 Finlands Innovation Ecosystem
Fig 22. Rate of NZ Graduates by Faculty
The attraction and retention of an educated
workforce is crucial in the process of creating
the critical mass needed for New Zealands
innovation ecosystem. This fact has been
illustrated in the previous section in the
case of Finland, where it was shown how
the country has managed to overcome the
hurdles of transitioning into a post-industrial
economy by increasing its number of
knowledge workers fve fold in the span of ten
years.
New Zealand is faced with a similar position.
It needs to increase the amount of knowledge
workers from 4,000 people to 20,000 in order
to progress forward in the OECD standard.
The New Zealand skill defcit is a phenomenon
that has been identifed in a number of OECD
reports. An ongoing issue related to this
is the country shortage of talent working
in the feld of applied sciences. This fact is
illustrated on fgure 22, where it a trend can
clearly be observed that graduates this area
has not seen any signifcant increase since
1998. Meanwhile, PhD graduates in the feld
of social sciences, business and commerce
has been steadily increasing in the period
of 1998 to 2006. Within this time, the feld
experienced an increase of about 110% in
graduates.
Within the feld of science (Fig. 22), we can
again observe the lack of progress in the
number of graduates in engineering and
architecture. Although the increase in the
number of researchers generated from the
biological science area since
4.1 The Importance of an
Educated Workforce
Fig 23. Rate of NZ Graduates In Science Faculties
33 Alex Haryowiseno
2001 is encouraging (this is mainly caused
by the New Zealand governments push
towards bio-tech to make further investment
on New Zealands experience in the
agriculture industry), it is now known that
feld has generated minimal returns for New
Zealands economy since its introduction.
(This is shown by the fact that the TIN100
report, which lists the 100 top earning
companies in New Zealand only features 2
bio-tech companies).
4.2 Graduate
Concentrations in
Canterburys Universities
The trend towards the social sciences feld
is again shown in the data for Lincoln and
Canterbury university, where it is shown that
graduates in the science and technology
area makes up 16% and 26% of the total
in the respective universities.This poses
an opportunity for Christchurch city to
invest more towards creating the educated
workforce necessary to fuel its growing high
value manufacturing and ICT sectors.
The knowledge worker is a crucial part in
innovation-based economies and a better
alignment is needed between tertiary
educations and associated industries to
generate the educated workforce in order for
New Zealand to close the skill defcit gap.
Fig 24. Graduates by Faculty - Lincoln University
Fig 25. Graduates by Faculty - Canterbury University
Funding Agencies
Fig 26. Diagram of Urban Design Factors
5. Urban Design
35 Alex Haryowiseno
5.1. Architecture as Catalyst
The urban design needs to address the
following issues:
At the scale of global interaction
1. Market Led Research - as opposed to Blue-
skies research
2. Establishing Global Partnerships - to
expand the product market and sharing of
knowledge and technologies.
3. Synergy with Existing Industries
At the national scale, involving organizations
& policies
4. Connectivity - cooperation between related
frms, funding agencies, as well as end users.
5. Greater awareness to innovation culture
& entrepreneurship - Encouraging Small and
Medium Sized Enterprises (SMEs) to invest in
R&D
6. Implementation & Commercialization of
Technologies - Ensuring contribution to the
economy & transfer of knowledge
At the local scale, involving the educated
workforce
7. Attraction and Retention of Workforce
- What attracts people and what makes them
stay? - Strong cultural setting, provision
of higher education and connectivity to
industries, better infrastructure
Fig 26. Diagram of Urban Design Factors
Structuring Key projects & Incentives as a possible catalyst for development
Phase
Knowledge
Facilities
e.g. Knowledge Bank
Government
Incentives
Funding
Agencies
Key
Anchor Projects
Lifestyle
Facilities
Government
Research
Facility
Independent Research
Facility
Large
Companies
Small - Medium
Companies
Government
Incentives
Sequence of
Projects
Christchurchs Industrial Urban
Fabric
The implementation of an economy based on
innovation brings forward the opportunity
to establish a synergy between the citys
manufacturing industries and the more
knowledge intensive, service based industries
commonly associated with emerging global
cities.
The signifcant decline of Christchurchs
manufacturing industries over the past fve
years poses a potential post-industrial scenario
where the primary source of employment in
the city would continually shrink. Being a city
that is heavily reliant on this particular sectors,
it is important to address this decline in the
citys long term plan.
For further architectural intervention to
be implemented into Christchurch, it is
crucial to frst understand the impact that
the manufacturing sector has had on the
development of the citys urban form. The
illustrations on the left show exactly this,
where the industrial zone highlighted in the
second diagram has created a fragmentation
between the northern and southern parts of
the city. The presence of these industrial zones
highly infuence the employment landscape of
the city, as well as the overall profle of suburbs
closely located to this linear development.
The negative efect that these zones have had
on the adjacent suburbs will be discussed in
a later section of the thesis. This brings out
an opportunity to address the unfavourable
situation and propose a defragmentation of
the urban fabric.
37 Alex Haryowiseno
Christchurchs Transport Network
Infrastructure
The current form of Christchurchs urban
fabric is infuenced by its nature as a city that
relies on the manufacturing sector as its main
source of generating Gross Regional Product
(GRP) and employment.
As a result of this, investments were made
earlier in the citys timeline towards a rail
infrastructure network, which to this day still
serve the citys manufacturing and agricultural
sectors.
The diagram shown to the left shows the route
of this network, which extends from outside of
the citys boundaries from the greater area of
Canterbury, where agricultural commodities
are shipped from, and through the industrial
zones of the city.
Throughout this network, several freight
terminals are located along the suburbs of
Sockburn, Middleton and Ferrymead, for the
purpose of loading and unloading of goods.
The transport network then reaches its fnal
destination at Lyttleton seaport, where the
cargo gets shipped to overseas destination.
The existence of this infrastructure network
remains a big infuence to the development
of satellite towns across Christchurch, as
expansions of the current industrial zones are
currently being planned in outer suburbs such
as Islington and Southwood.
HORNBY MIDDLETON
WIGRAM/
SOCKBURN
RICCARTON
SOUTH
ADDINGTON
SYDENHAM/
CBD
WOOLSTON
BREAKDOWN OF INDUSTRIAL ZONES
39 Alex Haryowiseno
ISLINGTON HORNBY WIGRAM/ SOCKBURN
330 Land Titles
Average Land Title: 6467 m2
Building : Land Ratio - 0.20
323 Land Titles
501 Land Titles
MIDDLETON RICCARTON SOUTH ADDINGTON
508 Land Titles
454 Land Titles
300 Land Titles
41 Alex Haryowiseno
SYDENHAM BROMLEY WOOLSTON
2203 Land Titles
292 Land Titles
265 Land Titles
Industrial Land Plot Progression
The data collected from contructing a catalogue
of the main industrial zones is compiled in the
diagram above, which shows the progression
of average land title size from the industrial
zone closest to the CBD (Sydenham), to the
outer suburban areas such as Hornby.
The diagram clearly shows an overall trend of
increasing average land plot size as we move
towards the citys fringes. This trend shows
characteristics that is similar to urban sprawl.
As land availability is being exhausted in the
central areas of the city, more land is being
opened up in the fringe areas with increasing
land plot sizes. This is currently happening
in suburbs such as Islington, as well as new
settlements in Southbrook.
43 Alex Haryowiseno
Industrial Building to Land Plot Ratio
An understanding of the building to land plot
ratio is also important in understanding the
pattern of land use that is taking place within
the industrial zone.
Through mapping the catalogue data, we can
observe an overall decline in the building
to land ratio, despite the increasing size of
average land titles. In outer industrial zones
in Hornby, the building area only takes up
roughly 0.21 of the overall land plot size, which
leads to the appearance of residual spaces
within these areas.
When taking into account the overall size of
the citys industrial zone (approximately 14
sqkm), the current trend would create roughly
7 to 8 sqkm of residual spaces.
Preliminary Employment Landscape
Mapping
The next step to better understand the citys
orientation as a primarily manufacturing
based city is to perform an analysis of the citys
employment landscape. Using data obtained
from the census, it is possible to map the
availability of diferent types of professions
throughout the city.
A preliminary study of this dataset uses data as
a percentage of the population within the 113
suburbs in Christchurch. This method points
out a number of interesting trends regarding
the spread of high and low impact occupations
as identifed by the New Zealand Standard
Cassifcations of Occupations (NZSCO). An
initial analysis of these diagrams reveals that
people employed in low impact professions
such as operating machineries reside in
suburbs that are closely in line with the citys
freight infrastructure network.
However, the nature of the data set created a
set of discrepancies which shows an uneven
spread of population in fringe suburbs such
as McLeans Island, Kennedys Bush and
Cashmere.
The diagrams on the following pages resolves
this issue by mapping the data based on
population density, which ofsets the error
margin.
45 Alex Haryowiseno
Field Mapping: Identifying Emergent
Intensities in the Urban Fabric
The study of Christchurchs urban fabric and
current trends in its employment landscape
has revealed an opportunity to propose a post-
industrial scenario for the city, which involves
the utilization of its existing infrastructure
network, as well as identifying potential sites
within its industrial zones that has the potential
to attract the critical mass needed to support
the development of high value industries.
In order to further this approach, multiple
sets of diagrams were drawn out which map
out the population density (people/ square
kilometer) in relation to a number of positive
and negative indicators.
The frst few sets of diagrams illustrate the
existence of a critical mass in Christchurch,
which is comprise of people with tertiary
level education (Bachelors, Post-Graduates
& Doctorates) and people with high impact
profession (employees which mainly utilize
their knowledge in day to day work activities;
these are identifed as Professionals, Managers
& Technicians)
Negative indicators such as a disproportionate
ratio of unskilled labour workforce in certain
suburbs is also identifed.
BACHELORS POST GRADUATES DOCTORATES
106 p/ sqkm
(average density)
FIELD MAPPING: EDUCATION DENSITY
40 p/ sqkm
(average density)
7 p/ sqkm
(average density)
47 Alex Haryowiseno
COMBINED EDUCATION DENSITY
The combined education density diagram
is an amalgamation of the three previous
indicators for tertiary level education in
Christchurch (Bachelor, Posr-Graduates and
Doctorates).
It is a positive indicator for the availability
of an educated workforce that is crucial in
forming the critical mass needed to support
the development of high value industries.
The feld diagram shows that there is a
positive trend towards suburbs located in the
north western, as well as the southern areas
from the CBD. People with Bachelors, Post-
graduates and Masters degrees are mostly
found in suburbs such as St. Albans, Merivale
and Edgeware, while a majority of doctorates
can be found in West and North-Western
suburbs such as Avonhead, Fendalton, Upper
Riccarton. This is likely due to the fact that
the University of Canterbury is located within
very close proximity to these suburbs, and
serves as a knowledge focal point for this
particular demographic.
152 p/ sqkm
(average density)
low high

PROFESSIONALS TECHNICIANS MANAGERS
FIELD MAPPING: HIGH IMPACT WORKER DENSITY
150 p/ sqkm
(average density)
121 p/ sqkm
(average density)
130 p/ sqkm
(average density)
49 Alex Haryowiseno
HIGH IMPACT WORKER DENSITY
The high impact worker density diagram
is a positive indicator for the availability
of employment which largely involves
knowledge intensive activities - a crucial
component in the development of high value
industries. The classifcation of employment
within the previous diagram is in accordance
to the standard classifcation of the Australian
and New Zealand Standard Classifcation of
Occupations (NZSCO).
High impact workers, in this case, are
classifed as people who actively employ their
knowledge in their day-to-day work activities.
The employment types that are generally
identifed within the NZSCO with respect to
this are professionals, technicians (associate
professionals) and managers.
Following the trend of the educational spread
shown in the previous pages, there is a strong
correlation between the north-western and
southern parts of the city in the spread of the
educated workforce - The suburbs there the
people with tertiary qualifcation are living
in are also the ones showing the highest
concentration of high impact workers.
Managers and Professionals are primarily
located in afuent suburbs such as St. Albans,
Merivale and Edgeware, while people who
are employed as technicians and associate
professionals show a greater tendency to
reside in the northern parts of the city, as well
as the eastern fringe areas of the CBD (The
diagram shows a strong concentration in
Linwood and Edgeware)
402 p/ sqkm
(average density)
low high
FIELD MAPPING: LOW IMPACT WORKER DENSITY
LABOURERS MACHINERY
95 p/ sqkm
(average density)
58 p/ sqkm
(average density)
51 Alex Haryowiseno
LOW IMPACT WORKER DENSITY
Density of low impact workers give us a clear
indication on the spread of non-knowledge
workforce. These are the percentage of the
citys overall working population that has
a minimal engagement with knowledge
intensive activities, and can be divided into
main employment groups which comprise
of labourers, machine operators, clerks,
salespersons (In accordance with NZSCO
classifcations).
The two preliminary diagrams analyses the
availability of the two major employment
groups (labourers and machinery operators)
that play a large part within the citys
manufacturing sector, the primary source of
employment for Christchurchs population.
A trend emerges in both diagrams where it
is shown that a majority of the low impact
workers are living in suburbs adjacent or
within close proximity to the freight line and
industrial zones.
Areas such as Riccarton, Hornby and
Linwood shows a strong correlation between
the availability of labourers and machinery
operators to the proximity of nearby industrial
zones in Middleton and Bromley.
Although disproportionate ratios in this
aspect can be seen as negative indicator to
the overall employment landscape of a city,
the presence of this labour based workforce is
an aspect that can work in synergy with the
citys existing knowledge workforce, as the
two types of workers are both necessary in the
development of a citys high value economy.
153 p/ sqkm
(average density)
low high
30000+ 50000+
343 p/ sqkm
(average density)
138 p/ sqkm
(average density)
FIELD MAPPING: INCOME DENSITY
53 Alex Haryowiseno
ABOVE AVERAGE INCOME DENSITY
435 p/ sqkm
(average density)
low high
The income density diagrams portrays the
intensity of Christchurchs population whose
average annual income exceeds the citys
mean value of $23,400.
There is an overall spread of people with
$30,000+ income throughout the city. However,
the majority of people whose income exceeds
$50,000 mark are primarily located once again
in the north western suburbs.
BASIC COMMUNICATION ACCESS INTERNET ACCESS
660 p/ sqkm
(average density)
435 p/ sqkm
(average density)
FIELD MAPPING: AVAILABLE COMMUNICATION METHOD
55 Alex Haryowiseno
low high
1100 p/ sqkm
(average density)
COMMUNICATION METHOD DENSITY
The density diagram to the left illustrates the
availability of certain types of communication
network infrastructure in the city. It is
broken down into two primary types: basic
communivation network (telephone, fax, etc.)
and access to internet.
The northern suburbs shows the greatest
connectivity, while suburbs in the eastern
part and some areas adjacent to the industrial
zones have the least amount of internet
connectivity.
The availability of these communication
network is crucial in developing high value
industries, as a large part of the communication
process within this industries goes beyond the
local scale which would require the availability
of high speed broadband networks.
FIELD MAPPING SUMMARY
Through mapping positive and negative
intensities within the urban fabric, several
sites of interest can be identifed in relation to
Christchurchs industrial zones and the future
development of innovative and high value
industries.
Positive intensities in aspects such as tertiary
education, high impact profession type and
income level point towards the availability
of an educated workforce in the city that is
necessary in order to form the critical mass for
an economy based on innovation. Suburbs in
the northwestern (Merrivale, St Albans, etc.)
and southern parts (Sommerfeld, Spreydon,
etc.) of the city has been identifed as areas
which contains the highest numbers of
graduates and educated workers, as well as
the highest level of connectivity (according to
the available methods of communication).
Negative intensities such as the
overabundance of low impact workers in
certain areas have also been identifed. In
general, the eastern suburbs (Aranui, Bexley),
as well as those that are located adjacent to the
freight line (Riccarton West, Hornby South)
contains the highest numbers of graduates
and low impact workers, as well as the least
amount of access to the internet.
57 Alex Haryowiseno
DEFRAGMENTING
CHRISTCHURCHS URBAN
FABRIC
The investigations in the previous pages
point towards an opportunity to address a
post-industrial scenario for Christchurch.
This has the potential of addressing the issue
of its declining manufacturing sector and the
potential shift in its employment landscape.
Areas of interest within the city has been
identifed through the mapping of positive
intensities. The urban strategy seeks to utilize
the critical mass available in the northern
and southern parts of the city, as well as
the existing manufacturing and transport
infrastructure within the industrial zones. The
industrial line is located in the ideal position
in this case, where it sits at the optimal place
to attract critical mass from both points of
interest.
By reintensifying the void that these areas
have created and repurposing them for
the development of high value , there is an
opportunity for a defragmentation of the citys
urban fabric.
Four centres of regrowth are proposed
thoughout this industrial line, each with
their own focuses (Bio-tech, Construction
Technology, ICT and an expansion hub for
future redevelopments)
Literature
Burdett, R., Sudjic, D. (2007).The Endless City.
London: Phaidon Press, Inc.
Carrillo, F. J. (2006). KnowledgeCities: Ap-
proaches, Experiences, and Perspectives. Amster-
dam: Elsevier.
Cooke, P., Schwartz, D. (2007). Creative Regions.
London and New York: Routledge.
Cooke, P., Lazzeretti, L. (2008). CreativeCities,
Cultural Clusters and Local Economic Develop-
ment. UK: MPG Books, Ltd.
Edensor, T., Leslie, D., Millington, & S., Rantisi,
N. (2010).Spaces of Vernacular Creativity. London
and New York: Routledge.
Komninos, N. (2008). Intelligent Cities and
Globalisation of Innovation Networks.London and
New York: Routledge
Nonaka, I. and Takeuchi, H. (1995) The Knowl-
edge-creating Company, Oxford: Oxford University
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Sassen, S. (2007).The Economies of Cities.In
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Schumacer, P. (2011).The Autopoiesis of Archi-
tecture.Chichester: J. Wiley.
Simmie, J. (2001). Innovative Cities. London and
New York: Spon Press.
Online Journals
Hamilton, G. Economic Development Action Plan.
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org.nz/
Innovation Policies and Funding in New Zealand:
How Effective Are They.(2011 report). Wellington:
Ministry of Economic Development
Kesting, S., Lin, J. & Pringle, J. (2010).Identify-
ing Emerging Industries.Retrieved from www.
mwa.govt.nz/news-and.../indentifying-emerging-
industries.pdf
Lambooy, G. &Boschma, R. (1998).Evolutionary
Economics and Regional Policy.Presented at the
38th Congress of the European Regional Science
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Little, S. (2010).Role of Innovation in Economic
Growth in a New Zealand Context. Wellington: The
Treasury. Accessed on the 14th of March 2012
from http://www.treasury.govt.nz/publications/
media-speeches/speeches/innovation-ecogrowth
Statistics New Zealand. (2009). International
engagement by New Zealand businesses: Key re-
sults from the Business Operations Survey 2007.
Wellington: Stats NZ
Rosenberg, N.Innovation and Economic Growth.
Retrieved 22nd of March 2012 from www.oecd.
org/dataoecd/55/49/34267902.pdf
Raine, J., Teicher, M. & OReilly, P. (2011).Power-
ing Innovation.Wellington: Ministry of Science &
Innovation. Accessed on the 14th of March 2012
from www.msi.govt.nz
Neville, J. (2010). How to enhance the valueof
New Zealands investment in Crown Research
Institutes. Wellington: MSI. Accessed on the 2nd
of April 2012 from www. msi.govt.nz
BIBLIOGRAPHY

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