The Impact of Firm Size on the Process and the Role of SME in Creating Essay

The Impact of Firm Size on the Process and the Role of SME in Creating Innovation in New Zealand - Essay Example The paper tells that New Zealand bases much of its support to research and development by awarding the sector the necessary support it deserves. This is evident in 2010 when the expenditure in R&D reached a whopping $2,444 million and $ 2,161million in 2008 most of which led to innovative findings. The research and expenditure represented 1.31% of the GDP representing an increase over the years. The total business expenditure on research and development in the year 2010 was estimated to be around $1,013 million an increase of 8% of the 2004 allocation. In the year 2010, the experimental research got most of the funding followed by applied research and basic research in that sequence with the latter getting the least funding. This is quite opposite in the last decade when basic applied research used to get more funding than other type of research. Most of these research funding come from the government and businesses with minor funding coming from universities, oversees and other fund ing sources. The government is very supportive in matters relating to research and development and this is evident in the year 2010 when it contributed about 46% of the money mean for research and development. This is higher compared to 28% of the government contribution in R&D in the year 2008. From all the sectors funded by research, the New Zealand business sector got 38% of the research funding in the year 2010 representing a decrease of 41%. Most of the research personnel in New Zealand had a bachelor’s degree or higher making most of their research to be of high quality and of international recognition. New Zealand environment, Economic and Culture The new Zealanders exhibit strong cultural ties that were weakened by the British Empire during colonial rule. Of late, the New Zealand culture has been broadened by globalization and immigration from various parts of the globe, the European and the Maori are the two main ethnic groups in occupying the region together with ot her tribes but in minority status. New Zealand is a geographically isolated country with unique natural environment across its landscape making it a very beautiful country. The country experienced a long period without human habitation. Its richness in biodiversity boast over 80,000 species of native animals plants and fungi some of which have not been found anywhere in the world. The country’s population is just about four million people with a good population growth rate which offers good market for its innovative services. Most of the people in New Zealand live in urban areas most of which are within beautiful coastlines with beautiful beaches. The population density is low making it a sparsely populated country which consists of two main islands with several small islands in beautiful environment. Environment dominates almost every aspect of New Zealand life thus they take great efforts to conserve it in ways that protect economic wellbeing, social systems and cultural we alth. The SME sector employs about 31% of the country’s population making it very significant for the economy and to the government in matters of development. Most of these SMEs are largely managed and operated by their owners who are motivated by the view of making profits. Just like other SMEs in the world, the SME in New Zealand lack specialist staff at their managerial levels like big businesses and companies. The self employed in this are about 10.5% of the workforce with 5 or fewer employees accounting for about 12%.