Babe Ruth's Secret and Government Investment in Business

I had a great afternoon today, where first hand I got to hear how the Government's investment in the private sector is delivering some staggering innovation in the primary products industries.

But what was Babe Ruth's secret, and how does it relate to gvernment investment in business in 2013?  Read on.

The Ministry for Primary Industries (MPI) is leading the charge through a programme known as Primary Growth Partnership, or PGP.   According to the MPI website, the PGP programmes "are primarily business-led and market-driven innovation programmes that work across the primary industry value chain. The PGP is about boosting productivity and profitability, and delivering long-term economic growth and sustainability across the primary sectors, from producer to consumer."

The government will match funding up to dollar for dollar, although in many cases industry is providing the majority of funding.

Why is the government investing?  In is their goal to help industry realise a potential annual benefit of $7 billion per year to NZ Inc by 2025.

Miraka, participating in PGP through Whai Hua.

One of the reasons I think this is such a valuable programme is that in was started with a long term objective in mind.  How often do we complain that the 3 year cycle of general elections can stop governments from working on long term strategic programmes of work?  Given the PGP initiative started in 2009, this is a case where the government has chosen to work on a 16 year horizon.

Today's presentation summarised 4 new PGP participants' programmes.  One was about doubling the value of premium beef products through the selective breeding of cattle to produce high value marbled beef.  Another was about producing high value immune enhancing dairy products for Asian and domestic health conscious consumers.  Yet another was aimed at improving the productivity of mussel farming through selective breeding (I didn't know that this industry, today, relies 100% on an unmanageable mussel breeding cycle), and the last focused on seed and nutritional technology.

There are many more PGP initiatives under way - 14 in total - and some are already starting to yield.

I was inspired hearing the Minister, Nathan Guy, talk with passion, and industry participants sharing their ideas and strategies for growing our economy. 

There are significant hoops for industry participants to jump through to access MPI funding, but these hoops, while improving the likelihood, still don't guarantee success. 

This is the kind of innovation we need from industry, supported by government.  I hope we celebrate the success of these programmes rather than focus on the one or two that may not realise their goals.

I do wonder how the public, no doubt influenced by a merciless media, will respond when one project doesn't come off?  Or two projects, or possibly even three?  

As one author has said, using an analogy from baseball, "if you want to swing for the fences, you have to be willing to strike out."  Babe Ruth broke 3 world records in the 1923 season.  Most home runs, best batting average and most strike outs.  It is no coincidence.

It is time we licensed our innovators, complete with government funding, to strike out from time to time.  We need them to swing for the fences.

Cheers!