New Zealand's "best and brightest" high-tech companies are being snapped up by overseas buyers before they get the chance to grow, Labour says.
Economic Development spokesman David Cunliffe says 32 high-tech companies have been sold offshore in the last decade.
"Some of New Zealand's best and brightest young companies are being sold offshore very early in their life cycle for less than they would be worth if capital and export conditions permitted them to grow further before selling out," he said today.
"Our companies stand ready to be world leaders in eco-technology in the 21st century but this country will only see sustainable growth and jobs if entrepreneurs can more easily access long-term local capital."
Mr Cunliffe says government policies aren't working and changes must be made to help the young companies grow.
Labour is proposing:
- Tax reform and a universal KiwiSaver scheme to generate savings and create investment capital
- Monetary reform to create a "stable and realistic" exchange rate
- Research and development tax credits
- Export promotion assistance for young companies.