The economic performance of the New Zealand economy is something of an enigma. Although ranked number one (of 144 countries) for four important 'growth fundamentals ' New Zealand is 'middle of the pack ' when it comes to economic growth, productivity and innovation. So what is missing in this story of New Zealand performance? Using three iterations (2005, 2007 and 2009) of the Business Operations Survey, the paper seeks to answer the question using a bivariate probit regression (biprobit) approach applied to samples in excess of 2,000 unit record observations of New Zealand firms. The results suggest that factors such as firm size, high perceived quality product, investment/R&D capability, major technology change, application of formal IP protection and new export markets are systematically and positively related to innovation; while many external issues such as those related to geography, market structure, business environment, appear to have little influence. At the firm level, innovations in New Zealand are highly dependent on the firms ’ internal ability to develop new technologies and market demand. (Small) size does matter in New Zealand where ultimately government may need to be involved to maintain a viable (minimum) scale for domestic R&D.

This conceptual paper examines the diffusion of innovation theory and the technology acceptance model, and explores the factors influencing the decision to engage in technology adoption in firms. This is done by using the theory of organisational decision-making to identify concepts and constructs which relate to the decision to adopt. The paper aims to identify the genesis of adoption decisions in particular where owners are themselves the managers and provide leadership for the organization. There are different rates at which countries adapt and utilize technologies and there are lessons to be learned from a developing country and cultural perspective. In taking an A priori look at this disparity it may be felt that this is caused by differences in resources (human, financial, technical and technological), target markets, and the level of technology acceptance. The roles of leadership, ownership and culture are therefore explored to a greater extent than previous research.