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We like to think that we can box above our weight and go head-to-head with any other western nation when it comes to the world of hi-technology.

At a very basic level that's possibly true -- but the reality is that, as a nation, we're performing very poorly when compared to our peers.

As reported in this story, we're actually doing rather poorly and rank right down there with Slovenia, Portugal, the Czech Republic and other countries that have previously been considered to be far from "advanced".

So what's going on?

Why is the nation that bought the world things like the Hamilton Jet, the electric fence, Ghost software, Linc, NavMan and a long, long list of other world-beating innovations, languishing so low in the OECD performance list?

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Well you don't have to look very far to see why we're so lame.

As you move up the list of high-performers, you notice a change in the investment mindset of every-day folks.

Here in New Zealand, when you talk to a Kiwi about what investments they have, the odds are very high that they'll tell you about their own house and the rental property they bought last year.

As an American the same question and they'll tell you about their stock portfolio.

While the citizens of many other countries further up the list are investing their money in *productive* ventures such as VC funds, business and commerce - the good old Kiwi seems far more interested in sticking their money into non-productive things like property.

Yes, property investments do show a good long-term return -- but they do not generate any increase in the nation's wealth and that means they simply broaden the gap between rich and poor within the country.

Investments in companies working on innovative products and ideas that can generate significant export earnings *do* have the potential to significantly increase the national wealth -- and that's something every citizen reaps benefit from.

Unfortunately the Kiwi mindset of playing safe by buying property seems so deeply entrenched in our culture that no matter how hard our best and brightest tout for funding, a great many of them are still forced off-shore to either obtain their funding or to pursue their development activities.

It's about time that Kiwis woke up to the fact that they're shooting themselves in the foot by having such a short-sighted attitude to investment and surely government (especially one that purports to be focused on spreading the wealth) should be working on ways to educate people into more productive investment strategies.

Although I don't have any evidence, I would strongly suspect that there are now more people in NZ with property investments than ever before -- yet we are told that it's now harder than it has been for a long time for low-income Kiwis to buy their own home. Do you see why?

As far as I can see, the only way to dig ourselves out of this hole is for government to make technology investments more attractive to the public by way of tax incentives (a 150% R&D tax write-off perhaps?) or some other means.

This would help keep our greatest and most innovative people and ideas here where they can boost our wealth by creating strong export revenues and push us back up that OECD list, well above our current classification of "low middle income".

Lighten Up
Have you ever wondered what happens when you try to send really odd items by mail? Well here's a site that documents the results when the US Postal Service were put to the test.

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