Last week professor Shaun Hendy was in Tauranga talking about New Zealand's economic future.

It was heartening to see a full house when he spoke at the Tauranga Art Gallery for the Venture Centre's inaugural event.

It's also heartening to hear professor Hendy talk sense about what needs to happen to lift our country out of its precarious dependence on the land.

New Zealand's over-reliance on dairy in particular and primary industries in general leaves our economy in a vulnerable state.

While other similarly-populated countries have invested and continue to invest in research and development in knowledge-based industries, we continue to focus on land-based products.

Denmark, for example, had traditionally been a big exporter of pork but has made a deliberate strategic investment into pharmaceuticals. As a result, its economy is now far more productive.

Knowledge-based businesses are essential for this city to shake off its ‘$10 Tauranga' moniker. We need value added jobs here.

The good news is we have a city that understands this. Many of the people I talk to are working towards a vision of Tauranga as a knowledge hub, or in professor Hendy's words 'an innovation ecosystem”.

Unfortunately, central government support lags behind local initiatives.

The policies the Government has in place favour the primary sector, not manufacturing. That's why manufacturers and various other sectors have welcomed Labour's policy announcements around the economic upgrade – policies that focus on encouraging investment, innovation and industry.

A Labour government will increase the investment pool available for NZ businesses. It will renew the research and development tax credit and drive a culture of collaboration. It will work with businesses and regions to build sustainable industries.

In fact, Labour's vision for New Zealand's economic future sounds a lot like professor Sean Hendy's – and that's exciting for those of us who share the goal of a vibrant NZ economy and a progressive, high-wage Tauranga.