It's great to be in Christchurch again.  I was here in April with the Prime Minister for the opening of NZi3.  At that time we were very impressed with the way NZi3 is working as a "hothouse" of ICT research, bringing together researchers and business.

That type of collaboration is a great example of the Canterbury innovation system in action.  The level of cooperation achieved by researchers, business and local government is a tribute to many of the people in this room.  I congratulate you on the way you've identified your strengths and worked together to achieve them. 

And that brings me to IZON.  Here's a company that has made a deliberate decision to locate in Canterbury because the innovation environment here makes it an ideal place for the firm to put down roots and grow.

It is a privilege to be at the launch of IZON's world-first nanotechnology units.

IZON is a superior science and technology company. Hans and his team have developed an underpinning technology. Their strategy has been to collaborate with researchers in New Zealand and overseas to test the device and help define the most promising avenues to explore first.

As you have heard, they have identified viral detection as a promising first application.

Nanotechnology is a rapidly emerging field of science and technology. Heralded by some as the next "industrial revolution", it has applications in areas such as electronics, medicine, food and agriculture, energy, and environmental management.

It is interesting to note that all 3 of New Zealand's Nobel laureates have been chemists or physicists.  Perhaps then it is no surprise, that as a  country we continue to be innovative in these areas, despite our strengths in the biological sciences. 

Currently, New Zealand has a relatively small investment in nanotech R&D. We expect it to grow as more research incorporates nanotechnology.  A number of New Zealand research teams and institutes already have a strong focus on nanotechnology, including the  MacDiarmid Institute, the Riddet Centre, and the University of Auckland.

Recently, Chris Hartshorn, a New Zealander working at Lux Research in the United States spoke at a nanotech workshop in Wellington.  He noted that the best return on investment is in "nano intermediates" or products that involve or contain nanomaterials rather than simply creating the nanomaterials themselves.

We need to look beyond the materials and think of their potential applications. We need to find market niches - where do we have the superior science and technology, what areas are the big companies not focusing on?

The Foundation for Research, Science and Technology has been an important supporter of IZON, investing close to $1 million through the TechNZ scheme.  The awarding of this funding illustrates the strong growth potential of the technology.  It has enabled the research to move from a promising proof of concept to the product we are launching today.

New Zealand is a small country, but our science funding system is complex.  As the Minister of Research, Science and Technology, one of my priorities is to make our funding system simpler.  This will make it easier for researchers and industries to collaborate on R&D, and potentially lead to more successful product launches like this.

To the IZON team, congratulations on your success.  Growing a business is always risky.  I know that years of effort have been required to take your initial concept and turn it into a product.  I wish you well for your future research endeavours.