New Zealand has a productivity problem

This from an economist -- urging the Government to invest more money into research and development in today's Budget.

Otago University's Murat Ungor says New Zealand is not a competitive name on the market for innovation.

He says when people think of California they think of Silicon Valley - home of tech companies worth billions - like Google.

He says our only major international brands are dairy products, and we cannot get richer simply by exporting milk powder.

The Government's so far earmarked an extra 20-million dollars over four years into supporting digital technologies this Budget.