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SUBMISSIONtothe

ASSESSMENTOFSTRATEGYANDMANAGEMENT,2016

MarsdenResearchFund

Summaryofkeypoints

1. ThisisasubmissiontotheAssessmentofStrategyandManagement,2016fortheMarsdenFund.CoordinatedbyIITP,thisjointsubmissionisfromtheleadingrepresentativebodiesfromNewZealand’sDigitalTechnologyindustryincluding:• TheInstituteofITProfessionals(IITP),theprofessionalbodyforthoseworking

withtechnologyandintheITindustry,withthousandsofmembersnationwide;• TheNZTechnologyIndustryAssociation(NZTech),thevoiceofthetechnology

sectorrepresentingover300tech-relatedcompanies;• InternetNZ,thevoiceoftheinternetcommunity;• NZRise,therepresentativebodyforNZ-owneddigitaltechnologycompanies;• ITServiceManagementForumNZ,thenetworkforITServiceManagement

professionals;• ProjectManagementInstituteofNZ,theassociationfortheproject,programme

andportfoliomanagementprofession;• TUANZ,therepresentativebodyforICTandcommunicationsusers• HealthInformaticsNZ,thenationalorganisationthatsupportsthefieldofhealth

informatics;• TestProfessionalsNetwork,theleadingforumforpromotingexcellencein

systemsandsoftwaretesting;• NZOpenSourceSociety(NZOSS),sharingthefreedomofopensourcesoftware,

openstandardsandopeninformation• CanterburyTechCluster,theorganisationhelpingCanterbury’stechsector

succeedathomeandworldwide.

2. ThisisthelargestgroupoftechnologyindustryrepresentativebodiestoevercometogetheronasingleissueinNewZealand,reflectingtheimportancetheNewZealandtechnologycommunityattributestodigitaltechnology-relatedresearch.

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3. Wewelcomethisreviewandtheopportunitytomeaningfullyengagewiththeprocess.Asnotedattheendofthissubmission,wearehappytoalsopresentordiscusswithyouinpersonorassistinanyotherwayintheinvestigationofthisissueorconsiderationofpotentialsolutions.

4. ThissubmissionprimarilyaddressesthefollowingareasfromtheTermsofReferencefortheaboveassessmentandreview:• 7.3(KeyDrivers):“…Inparticular,howtheFundensuresthatdifferentfieldsof

researcharetreatedinanunbiasedfashionacrosspanels.”• 10.6(ManagementoftheFund):Varioussections• 11.1(KeyQuestions):“How,andtowhatextent,doestheFund’soverallportfolio

ofresearchinvestmentcontributetonewknowledgeandotheroutputsthatgeneratelong-termbenefittoNewZealand?”

5. Thissubmissioniswithinthefollowingscopeofthereview:

• 10.1:Thenatureoftheresearchfundedintheinvestmentportfolio• 10.2:Thebalanceofresearchacrosstheinvestmentportfolio

6. Asoutlinedlaterinthissubmission,weholdseriousconcernsabouttheimbalance

andapparentstructuralbiaswithinoneparticularareaofthefund,whichhasledtoanevidencedsignificantunder-investmentinresearchwithinscientificdomainsrelatedtoDigitalTechnologiesandITsuchasComputerScience,InformationSystems,SoftwareEngineering,andInformationTechnology.

7. ResearchapplicationsfromthesedomainscomethroughtheMathsandInformationSciencespanel.HoweveronlyaslimproportionofthefundingthroughthispanelhasfundedCS/IS/SE/IT-relatedresearchinrecentyears.Mostyearsthispercentagehasbeen10-15%ofapprovedproposals,withanaverageover10yearsof17%.

8. Thiscomparesverypoorlyinternationally.Forexample,Australia’sequivalent

DiscoveryFundapprovesanaverageof46.5proposalsperyearindigitaltech-relatedareas(vsanaverageof1.5peryearinNZ).Intheircasethisisaroundthesamenumberasmaths.i.e.whencomparingtotheMarsdenFundMISpanel,around50%ofanequivalentdomainaredigitaltechareasinAustraliaversus17%inNZ.

9. InvestinginresearchintheareasrelatedtoITanddigitaltechnologiesprovides

significantandclearlong-termbenefittoNewZealand.WeareoftheviewthatafailuretoaddressthisissuenowwillresultintheFundbeingunabletoachieveitsoverallbalanceandbenefitobjectives.

10. Giventhenatureoftheapparentstructuralbias,itisourviewthatthemost

appropriatewayofresolvingthismatteristosplitthecurrentMathsandInformationSciences(MIS)panelintoseparateMathsandStatistics(MAS)andInformationandComputerSciences(ICS)panels,therebyensuringadequateresearchinvestmentintheareasrelatedtodigitaltechnologies.

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TheNewZealandtechnologysector

11. NewZealand’stechsectorisgrowingfastandcontributingsignificantlytothecountry’seconomicsuccess.Thegrowthofthesectorleadstogrowthinhigh-wagejobs(withtechregularlyfeaturingasoneofthehighestpaidprofessions)andprovidessignificantlong-termeconomicandsocialadvantagetoNewZealand.

12. Recentresearch1showsthatthetechsectorisalargecontributortotheNewZealandeconomy–creatingmanyjobs,GDPandexports.Thereareover28,000companies,employingalmost100,000peopleor5%oftheworkforce.

13. Thesecompaniescreated$32binoutputin2015,whichgenerated$16.2bGDP,or

8%oftheeconomy.

14. Thesectoralsoexported$6.3bin2015,9%ofthecountry’sexports.Forevery4%growthinproductivityinthetechsector,itgenerates1%growthinGDP,or$2.7b.

15. Asidefromtechcompanies,theflow-onimpactfromdevelopmentswithinDigital

Technologies,andviatheITprofession,leadstosignificantimprovedproductivityandprofitabilityofcompaniesinothersectors,andeverydollarinvestedingrowingtechnologyproductivitybringsa$3ReturnOnInvestment(ROI).

16. Forexample,companiesthatmakesmartuseofinternetservicesare6%more

productivethanaveragefirmsintheirsector.Ifallfirmsmadebetteruseofinternetservices,itcouldpotentiallyliftGDPby$34b.

17. NewZealandiscompetingwiththerestoftheworld,anditisclearthatlong-term

visionary“blueskies”researchinvestmentintech-relatedscientificdomainssuchasComputerScience,InformationSystems,SoftwareEngineeringandInformationTechnologyresultsinasignificantandlong-termeconomicbenefittoNewZealand.

DigitalTechnologyandtheMarsdenFund

18. Asnotedabove,researchapplicationsfromscientificdomainsrelatedtothetechsectorgenerallycomethroughtheMathsandInformationSciencespanel.

19. Inlate2013IITPwrotetoMinistersStevenJoyceandAmyAdamsconcernedthat:…infouroutofthelastfiveyearsjust10%of“MathematicsandInformationSciences”researchfundingthroughtheMarsdenFund–intendedtofundbothmathematicsandICT-relatedfieldssuchasComputerScience–appearstohavebeenallocatedtoComputerScienceorICT-relatedfields–thevastbulk(88-90%)beingrestrictedtomathematicsandstatisticsinstead.

1NZTechnologyIndustryAssociation(2016).FromTechSectortoDigitalNation.RetrievedAugust1,2016,fromhttp://www.epageflip.net/i/693432-economic-impact-study-report-ebook

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Withoutresearchfundingthroughthecountry’sUniversitiesandPolytechs,oursectorisplacedinapositionofsignificantdisadvantagecomparedwithothercountriesandotherdisciplines.

20. Despiteattemptstocorrectthis,thissituationhasnotchanged.TheComputer

ScienceandInformationSystemscommunitiesrecentlynotedthat:TheCSIScommunitydoesaninformaldebriefwhentheMarsdenresultscomeout.Inthelatestsuchdebrief(2016firstroundresults)wenotedwellover45submissionstotheMISpanel,ofwhich4progressedtoround2.Evenmoreconcerning,itappearsthatallfourwereFastStarts(whicharesmaller,andwhichmeansthatnotasingleCSISnon-early-careerapplicationprogressedtothesecondround).In2015theinformaldebriefnoted78applications,6ofwhichprogressedtoround2.

21. ThegrantsawardedbytheMISpaneloverthelast10years,andtheproportionof

thesethatareforComputerScience,arelistedbelow:

Year GrantsAwardedbyMISPanel

Maths/CScrossover

CSGrants CSproportion

2006 8 0 2 25%2007 9 0 1 11%2008 11 1 4 36%2009 13 0 1 8%2010 8 1 0 0%2011 9 1 3 33%2012 10 0 1 10%2013 10 1 2 20%2014 11 0 0 0%2015 10 1 3 30%TOTAL 99 5 17 17%

22. Overthelastdecade,anaverageof17%ofthepanel’sapprovedproposalswerefor

ComputerScienceresearchers,orjust14%inthelast7years.It’sworthnotingthatnofundinghasbeengrantedtoInformationSystemsoverthatentiretime.

23. Thiscomparesverypoorlywithothercountries.Forexample,theAustralianResearchCouncil’sequivalentDiscoveryFundfunded42researchproposals2intheInformationandComputerSciencesareain2016(comparedwith1-2inNewZealand),andalso42researchproposalsinMathematicalSciences.

24. SoinAustralia,50%ofsuccessfulresearchproposalsintheequivalentofNZ’s

combinedMISPaneldomainareawereDigitalTechnology-related,comparedwith

2AustralianResearchCouncil(2016).SchemeRoundStatisticsforApprovedProposals-DiscoveryProjects2016round1.RetrievedAugust1,2016,fromhttps://rms.arc.gov.au/RMS/Report/Download/Report/a3f6be6e-33f7-4fb5-98a6-7526aaa184cf/5

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17%withinNewZealand’sMarsdenFund.InpreviousyearsthiswasevenmorepronouncedinAustralia.Forexample,2015:40DT-relatedvs37Maths;2014:52DTvs42Maths;2013:52DTvs43Maths.

25. The2012PBRFassessmentinterimreportindicatesthatthesubjectareasofStatistics,PureandAppliedMathematics,andCS/ISrespectivelyhad72.1fundedEvidencePortfolios(EPs),118.9fundedEPs,and271.13fundedEPs.Inotherwords,thethreecommunity’srelativesizesare15-16%(statistics),23-26%(mathematics),and59-61%(CS/IS).

26. Notincludingfast-startapplications,lookingattopresearchers,the2012PBRFalso

showedStatisticshad12A-rankedEPs,mathematicshad31.5,andComputerScienceandInformationSystemshad23.01.Sowhileitcouldbearguedthat“mathsandstats”hasdisproportionatelymoreleadingresearchers,bythesenumbersatleast35%offundedresearchfromtheMISpanelshouldbebeingundertakenbyCS/ISresearchersonaverageovertime.

27. TheapparentbiasagainstCS/ISresearchersalsolikelyleadstoareductionofA-

rankedresearchersovertimeandit’slikelythatthenumberofA-rankedEPsinCS/ISwouldbehigherwithoutthisstructuralbias.Forexample,accordingtoarecentreleasefromtheRoyalSocietyofNewZealand3:

ArecentevaluationconductedbyresearchersatMotu–aneconomicandpublicpolicyresearchinstitute–hasfoundthatMarsdenfundingsignificantlyincreasesthescientificoutputofthefundedresearchers.Comparedtosimilargroupsthatdonotreceivefunding,ateamthatisgivenMarsdenfundingshoweda6-12%increaseintheiracademicpublicationsanda13-30%increaseinthepapersthatcitetheirwork.

28. Howeverputtingthataside,evenatthecurrentrelativesizeoftheresearch

communitieswewouldexpectaround60%oftheMISpanelfundingtofundresearchfromwithintheDigitalTech-relatedcommunities.Atworst,takingjustA-graderesearchersasameasure,iftherewasnostructuralbiaswewouldseeanaverageof35%+offundingfromtheMISpanelgoingtoDigitalTech-relatedscientificdomains.Thecurrentlong-termaveragelevelof17%ofresearchfundingtoDT-relatedfieldsdemonstratesastructuralbiasinthepanelfunding.

29. Anecdotally,onlyasmallnumberofproposalsfromDigitalTech-relateddisciplines

progresstoround2,fewerthanotherscientificdomains.Thismeansthatmostaren’texaminedbyexternalreviewerswhoareexpertsintheresearchdomain.Giventhebroadareacoveredbythedigitaltechnologiesdomains,wedon’tbelieveapanelofresearchersprimarilyoutsidethedomainareinapositiontoadequatelyassessthequalityofresearchproposalsinthisverybroaddigitaltechnologiesarea.

3RoyalSocietyofNewZealand(2015).Setforsuccess:researchersreceive$54millionfromMarsdenFund.RetrievedAugust1,2016,fromhttp://www.royalsociety.org.nz/2015/11/05/set-for-success-researchers-receive-54-million-from-marsden-fund/

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30. OneofthekeydriversforthecurrentassessmentoftheMarsdenFundistoexplore“howtheFundensuresthatdifferentfieldsofresearcharetreatedinanunbiasedfashionacrosspanels”.TheevidenceaboveshowsthatthisiscurrentlynotbeingachievedintheDigitalTechnologies-relatedfields.

31. Inconclusion,significantscientificresearchinvestmentinthedigitaltechnologies

sectorclearlygenerateslong-termbenefittoNewZealand,howeverthedomainsofComputerScience,InformationSystems,SoftwareEngineeringandInformationTechnologyaresignificantlyunder-representedinfundingfromtheMarsdenFundgiventheirresearchcommunitysizeandquality.

32. Thissituationcannotcontinueunabatedandwearethankfulforthisassessmentof

theMarsdenFundsoitcanbeconsideredandhopefullyaddressed.Thefinalsectionofthissubmissionoutlinesasolutiontothisissuethatwestronglyendorse.

Reasonandthewayforward:DigitalandInformationSciencesPanel

33. Weareoftheviewthatthelikelycauseofthestructuralbiasagainstdigitaltechnologies-relatedresearchfundingisthecurrentMarsdenFundpanelstructure,whichcombinesMaths/StatisticsandDigitaltech-relatedresearch.

34. Whilethiswasanappropriatematchingintheearlyyearsofcomputerscience,itisnotappropriateinmoderntimes;computersciencehasmovedintoafulldisciplineinitsownrightandonlyaportionhassignificantandmajorcross-overwithmaths.Theotherdigitaltechnology-relateddisciplinessuchasInformationSystemsaresignificantlyremovedfrommathsasascientificdomain,soapanelprimarilymadeupofmathematicianswouldhaveaverydifficultjobassessingthequalityofresearchintheseareas.

35. ThecurrentMISpanelhasonethirdComputerSciencepanelmembersandtwo

thirdsMathsandStatisticspanelmembers.TheproportionofComputerScienceresearchershasgenerallynotgonehigherthanthis.GiventhesizeofthecollectiveComputerScience,InformationSystems,SoftwareEngineeringandInformationTechnologyscientificdomains,itissimplynotpossibleforapanelwiththismakeuptoadequatelyassessthequalityofresearchinalloftheseDT-relateddomains.

36. WeareoftheviewthattheonlywayofaddressingthissituationisfortheMarsden

Fundtorecognisethatthedisciplineshavechangedandthescientificdomainsof“maths/stats”and“informationsciences”(asreferredtointhepanel)arenolongerappropriatetobehousedwithinasinglepanel.

37. Theevidenceshowsaclear(andwebelieveunintended)biasagainstdigital

technology-relatedresearchdomainswithintheMISpanel,overalongperiodoftimeanddespiteattemptstoaddressthatwithinthecurrentstructure.Thiscannotcontinue.WethereforeproposethattheMathematicsandInformationSciences

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panelbeseparatedintotwodistinctpanels,beingMathematicsandStatisticsandInformationandComputerSciences.

38. WefurtherproposethatthefundingoftheMISpanelissplitevenly50/50between

thesetwonewpanels,toensurethebiasagainstdigitaltech-relatedresearchfundingisredressedandfundingofthisimportantscientificdomainsupportedtoanappropriatelevel.

39. Weunderstandthatmanyresearchersinthedigitaltechnologiesdomainshavelost

confidenceintheMarsdenFundandthiswouldalsosendastrongmessagethatthisresearchdomainisvaluedbytheFund.

Moreinformation

40. Weareveryhappytoprovidefurtherinformationaboutanyaspectofthissubmissionandwouldwelcometheopportunitytodiscussitinperson.PleasecontactIITPChiefExecutivePaulMatthews(ceo@iitp.nz,021705212)inthefirstinstanceifyouwouldliketodiscussthissubmissionfurther.

Co-signerslistedonthefollowingpage

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Signedonbehalfoftheorganisationslistedonthefrontofthissubmission.YourssincerelyPaulMatthews GraemeMullerChiefExecutive ChiefExecutiveInstituteofITProfessionalsNZ NZTechnologyIndustryAssn

CraigYoung JordanCarterChiefExecutive ChiefExecutiveTUANZ InternetNZ

VictoriaMacLennan KimMundellCo-Chair ChiefExecutive NZRise HealthInformaticsNZ

JamesDobson RodgerPerkinsPresident ChairProjectManagementInstituteofNZ TestProfessionalsNetwork

CliveKeylard MichaelTrengrovePresident ChairITServiceManagementForumNZ CanterburyTechDavidLane President NZOpenSourceSociety