Title: Raw material access and sustainability as a principal driver for innovation in the New Zealand seafood industry

Authors: Andrew Jeffs, Shantha Liyanage

Addresses: National Institute of Water and Atmospheric Research, PO Box 109-695, Auckland, New Zealand. ' Business School, The University of Auckland, Private Bag 92019, Auckland, New Zealand

Abstract: The introduction of the quota management system for wild fish stocks in New Zealand 20 years ago has resulted in a dynamic of innovation development in the national seafood industry. Innovation activity has resulted in dramatic developments in sourcing new raw materials, increases in efficiency of production, and widespread vertical integration of seafood enterprises which resulted in strong economic growth in the sector. By contrast, most wild capture fishing industries worldwide have been in decline due to over exploitation of fish stocks during this same period. The greater certainty in raw material supply and focus on sustainability provided by the quota management regime has enabled seafood enterprises to shift their attention from competing to secure sufficient raw material toward increasing their returns by investing in innovation. Overall, this study may help to act as an exemplar for encouraging innovation in seafood and other industries based on renewable natural resources.

Keywords: aquaculture; economic growth; innovation; New Zealand; quota management system; seafood industry; sustainability; raw materials; sustainability; sustainable development; wild fish stocks; vertical integration.

DOI: 10.1504/IJLC.2005.007999

International Journal of Learning and Change, 2005 Vol.1 No.1, pp.80 - 95

Published online: 24 Oct 2005 *

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