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government departments’ investments in operational research.

These science envelope goals set out expectations that publicly funded RS&T will contribute to the development of New Zealand’s innovative capacity and to economic, environmental and social capacities.

The Foresight Project has created a strong focus on innovation needs and is building new relationships and networks across many sectors. The science envelope goals encompass these key directions. They will help to ensure that Government’s investment in RS&T is focused in areas that sectors have identified as critical to their futures.

2. A set of target outcomes, based on sector-identified innovation needs:

A set of 14 target outcomes has been developed. They describe desired future states for New Zealand. The sector aspirations expressed in Foresight strategies and submissions had a major contribution to the development of these outcomes.

The target outcomes will be the basis for research portfolios of contracted outputs that contribute to progress towards the science envelope goals. They act as a mechanism to actively ensure that research activities are not conducted in isolation.

3. A performance measurement system, linking RS&T investments to the science envelope goals:

The performance measurement system will increase the information available to Government to guide decisions on investment in RS&T. For each science envelope goal, several performance expectations have been identified. Together these form a set of 14 expectations linking RS&T investment to the four science envelope goals.

2. How public investment in research, science and technology can contribute to the development of a knowledge society

A. Becoming a Knowledge Society

The world economy is undergoing significant change, with an increasing emphasis on the ability to create, store, distribute and apply knowledge.

For New Zealand, the successful development of a knowledge society will involve moving to systems, services and products with higher levels of value added by knowledge.

Government aspirations for New Zealand focus on building an enterprise economy, creating a culture of innovation, enhancing the roles of individuals, families, communities and the private sector, maintaining and enhancing environmental quality and building national identity and cohesion. Collectively, they create a vision for New Zealand’s future as a knowledge society.

Context for public investment in RS&T is also provided by RS&T:2010 The Government’s Strategy for Research, Science and Technology to the Year 2010. This sets out the Government’s broad vision for RS&T in New Zealand and covers the public and private sectors. The vision is built around three goals:

• fostering societal values and attitudes that recognise science and technology as critical to future prosperity;
• ensuring an adequate level of investment in science as a component in national life which has cultural value in its own right; and
• maximising the direct contribution of science and technology to diverse social, economic and environmental goals.

B. The Foresight Project

The Foresight Project was designed to establish a shared sense of the knowledge, skills, technologies and competencies New Zealand will need, through:

• analysing the RS&T required to underpin and realise the strategic outcomes and competencies identified by various sectors;
• identifying a set of nationally relevant target outcomes and competencies to which public investment in RS&T will contribute; and
• developing a high-level statement that sets out how Government will allocate its RS&T investments to achieve the target outcomes and build competencies, and developing strategies and guidelines for particular investments and agencies involved in managing them.

This blueprint is one of the results of the Foresight Project. The framework for Government’s RS&T investment it outlines has been developed to ensure that New Zealand is able to play an effective part in the global knowledge economy.

This blueprint has been prepared by encouraging a wide range of groups across New Zealand to:

• think strategically about future directions for their sectors;
• identify their innovation needs and the contributions that RS&T can make to them; and
• make commitments to developing their own competencies and research capabilities.

These groups contributed to the development of the target outcomes through a consultation process that involved:

• public conferences in July and November 1998;
• analysis of the sector foresight strategies received in October and November 1998;
• publication of draft target outcomes in December 1998; and
• analysis of submissions on the draft target outcomes received in February 1999.

Approximately 140 sectors submitted strategies to MoRST in 1998. The target outcomes reflect the key aspirations which emerged across this set of submissions.

A draft set of target outcomes published in December 1998 drew approximately 130 responses from individuals and groups. These submissions enabled MoRST to reduce the number of target outcomes and to sharpen their focus and clarity.

C. The Innovation System

Traditionally, Government has seen its role in the science system as linear: to fund underpinning research and generate basic knowledge, which is then passed on for others to exploit. The increasing importance of knowledge in the economy and society, however, is creating pressure on Government to alter its role, in recognition of:

• the networked nature of innovation; and
• the critical role of RS&T within the innovation system.

The innovation system is characterised by flows, interactions, networks and people, rather than static structures. To reflect this, Government’s investment policy needs to move away from predetermined funding targets for the RS&T investment, in favour of a more flexible and adaptive approach.

Key elements of this approach are:

• a focus on Government’s role in promoting the integrity and capacity of the innovation system and delivering widespread net benefits over time. This