New Zealand’s Performance and Trajectory in Dual-Use Technologies: Augmented Reality and Biomimicry

Date: 2025-06-08

Executive Summary

This report provides an in-depth assessment of New Zealand’s current performance and future trajectory in the dual-use technology domains of augmented-reality and biomimicry, with a focus on the contributions of leading organisations such as HIT Lab NZ and Scentian Bio Limited. These technologies, which straddle both civilian and defence applications, are increasingly important for national security, economic resilience, and technological sovereignty. New Zealand has demonstrated pockets of excellence and innovation, particularly in research and niche commercialisation, but faces significant challenges in scaling, integration, and international competitiveness. Strategic investment, targeted collaboration, and robust risk mitigation will be critical to realising the nation’s potential in these fields over the next five years.

Strengths

Research Excellence and Academic Leadership

New Zealand’s academic sector, notably through institutions like HIT Lab NZ, has established a strong reputation in augmented-reality research. The lab, based at the University of Canterbury, is internationally recognised for its pioneering work in human-computer interaction, spatial computing, and immersive technologies. The country’s universities foster a collaborative environment, supporting interdisciplinary research that bridges computer science, engineering, design, and psychology.

In the field of biomimicry, New Zealand’s unique biodiversity and environmental stewardship have inspired innovative approaches to technology development. Scentian Bio Limited, a biotechnology start-up, exemplifies this strength by leveraging insect olfactory systems for advanced biosensing—an approach with significant dual-use potential in security, health, and environmental monitoring.

Niche Innovation and Agility

New Zealand’s small size and agile innovation ecosystem allow for rapid prototyping and adaptation. The nation’s start-up culture, supported by government initiatives like Callaghan Innovation, has enabled organisations such as Scentian Bio Limited to pursue high-impact, high-risk projects that might be overlooked in larger, more risk-averse economies.

International Collaboration

New Zealand’s open economy and strong international relationships facilitate collaboration with leading global partners. Participation in multinational research consortia and access to international funding streams have enabled New Zealand entities to punch above their weight in technology development and deployment.

Weaknesses

Limited Scale and Industrial Capacity

Despite research excellence, New Zealand’s domestic market and industrial base are limited. The country lacks the manufacturing scale and supply chain depth necessary to rapidly commercialise and deploy dual-use technologies at scale. This constraint is particularly acute in augmented-reality hardware and advanced manufacturing for biomimicry-inspired products.

Fragmented Innovation Ecosystem

The innovation ecosystem, while agile, is fragmented. There is often a disconnect between academic research (e.g., at HIT Lab NZ) and commercial or defence end-users. Pathways for technology transfer, prototyping, and field-testing are underdeveloped, which slows the transition from laboratory to operational environments.

Funding Gaps and Risk Aversion

Venture capital and government funding for deep-tech and dual-use technologies remain modest by international standards. The risk appetite among investors is limited, resulting in undercapitalisation of promising ventures and a reliance on public grants, which are often short-term and project-specific.

Defence Integration Challenges

New Zealand’s defence sector is comparatively small and focused on peacekeeping, disaster response, and regional security. There is limited institutional experience in integrating cutting-edge dual-use technologies like augmented-reality and biomimicry into defence concepts of operations, procurement, and doctrine.

Notable Programmes & Investments

HIT Lab NZ

HIT Lab NZ has led multiple high-profile projects in augmented-reality, including:

• AR for Training and Simulation: Development of immersive training environments for emergency response, aviation, and maritime operations, with pilot programmes in partnership with the New Zealand Defence Force (NZDF) and Fire and Emergency New Zealand.
• Human Factors Research: Studies on cognitive load, situational awareness, and decision-making in AR environments, informing both civilian and defence applications.
• Industry Partnerships: Collaboration with tech companies and creative industries to develop AR applications for tourism, education, and healthcare.

Scentian Bio Limited

Scentian Bio Limited is at the forefront of biomimicry-inspired biosensing:

• Insect Olfaction Platform: Commercialisation of biosensors based on insect antennae, capable of detecting explosives, narcotics, pathogens, and environmental toxins at trace levels.
• Defence and Security Pilots: Ongoing trials with border security agencies and defence partners for rapid screening of hazardous materials.
• Agricultural and Environmental Monitoring: Deployment of biosensors for early detection of crop diseases and invasive species, supporting biosecurity and food safety.

Government and Sectoral Investments

• Callaghan Innovation Grants: Funding support for early-stage R&D in dual-use technologies, including AR and biomimetic sensors.
• MBIE Endeavour Fund: Investment in cross-disciplinary research projects linking universities, Crown Research Institutes, and industry.
• Defence Innovation Hub: Pilot programmes to accelerate the adoption of emerging technologies in NZDF operations.

Competitive Comparison

Australia

Australia’s larger defence budget, industrial base, and research infrastructure provide it with a significant advantage in dual-use technology development. The country’s Defence Science and Technology Group (DSTG) and Next Generation Technologies Fund have invested heavily in augmented-reality for training, command and control, and battlefield situational awareness. Australia also boasts a growing biomimicry sector, with strong links to mining, agriculture, and defence.

Singapore

Singapore’s Smart Nation initiative and robust defence-industrial complex have positioned it as a regional leader in AR and biomimicry. The government’s strategic investments in digital twin technologies, urban security, and bio-inspired robotics have yielded rapid commercial and operational uptake.

United States

The US remains the global leader in both augmented-reality and biomimicry, driven by massive R&D budgets, military demand, and a vibrant innovation ecosystem. Programmes such as DARPA’s augmented reality battlefield systems and the National Science Foundation’s biomimicry research initiatives dwarf New Zealand’s efforts in scale and ambition.

United Kingdom

The UK’s Defence and Security Accelerator (DASA) and Catapult Centres have fostered significant advances in AR and biomimetic technologies, particularly for homeland security, critical infrastructure protection, and medical applications.

New Zealand’s Position

New Zealand is competitive in niche research and early-stage innovation, particularly through organisations like HIT Lab NZ and Scentian Bio Limited. However, it lags in scaling, integration, and sustained funding compared to regional and global peers. The country’s open, collaborative approach is an asset, but without greater investment and strategic focus, it risks being a technology adopter rather than a leader.

Opportunities for Collaboration / Export

Regional Defence Partnerships

New Zealand’s participation in the Five Eyes intelligence alliance and close defence ties with Australia, the US, and the UK provide opportunities to pilot and export dual-use technologies. Joint exercises and interoperability initiatives can serve as testbeds for AR-based training and biomimetic sensing platforms.

Indo-Pacific Security Initiatives

The growing focus on Indo-Pacific security, including maritime domain awareness and disaster response, aligns with New Zealand’s strengths in AR-enabled training and biomimetic environmental monitoring. Exporting solutions to Pacific Island nations and Southeast Asian partners could enhance regional security and resilience.

Commercial Export Markets

• Agriculture and Biosecurity: New Zealand’s reputation in agricultural technology positions it to export biomimicry-based sensors (e.g., from Scentian Bio Limited) to global agritech markets.
• Creative Industries: AR applications developed by HIT Lab NZ have potential in tourism, education, and entertainment, sectors where New Zealand has a global brand.
• Health and Environmental Monitoring: Biomimetic sensors can be marketed to international health agencies and environmental regulators.

Research Consortia and Funding

Participation in EU Horizon Europe, APEC, and other multinational research programmes can provide funding and collaboration opportunities, accelerating technology development and market access.

Risks & Mitigation

Talent Retention and Brain Drain

Risk: New Zealand’s best researchers and entrepreneurs are often attracted to larger markets with greater resources.

Mitigation: Expand targeted fellowships, innovation visas, and returnee programmes to retain and repatriate talent. Foster stronger industry-academia linkages to provide clear career pathways domestically.

Intellectual Property (IP) Leakage

Risk: Open collaboration and limited domestic commercialisation capacity increase the risk of IP being exploited overseas.

Mitigation: Strengthen IP protection frameworks, incentivise local manufacturing and licensing, and negotiate favourable terms in international partnerships.

Supply Chain Vulnerabilities

Risk: Reliance on imported components and manufacturing exposes New Zealand to supply chain disruptions, particularly in crisis scenarios.

Mitigation: Develop strategic reserves, support local manufacturing where feasible, and diversify supplier networks.

Security and Ethical Risks

Risk: Dual-use technologies can be misused or proliferate to hostile actors.

Mitigation: Implement robust export controls, end-user vetting, and ethical oversight for sensitive technologies. Engage with international norms and best practices.

Funding Instability

Risk: Fluctuations in government and private funding can undermine long-term R&D efforts.

Mitigation: Advocate for multi-year funding commitments, public-private partnerships, and innovative financing mechanisms (e.g., defence bonds, sovereign wealth investment in tech).

Outlook (5-year)

Augmented Reality

New Zealand is expected to maintain its position as a leading research hub in augmented-reality, primarily through HIT Lab NZ and university-led initiatives. Over the next five years, the focus will likely shift from proof-of-concept projects to operational deployments, particularly in training, simulation, and remote assistance for defence, emergency response, and critical infrastructure.

The commercial AR sector will grow modestly, driven by applications in tourism, education, and healthcare. However, without significant investment in hardware manufacturing and integration, New Zealand will remain dependent on international suppliers for core AR components.

Biomimicry

Biomimicry will continue to be a field of strategic opportunity, with Scentian Bio Limited and similar ventures advancing biosensing and environmental monitoring technologies. The next five years will see increased adoption of biomimetic sensors in agriculture, biosecurity, and health, with pilot deployments in defence and border security.

Export opportunities will expand, particularly in the Indo-Pacific region, but scaling production and maintaining IP control will be ongoing challenges. New Zealand’s environmental credentials and unique biodiversity will remain a source of inspiration and competitive advantage.

Defence and Security Integration

The NZDF and security agencies are expected to increase their engagement with dual-use technology providers, moving from exploratory pilots to operational integration. However, the pace of adoption will be constrained by budgetary pressures, procurement cycles, and limited institutional experience in technology-driven transformation.

Strategic Recommendations

• Increase Investment: Substantially increase public and private investment in dual-use technology R&D, with a focus on scaling and commercialisation.
• Strengthen Ecosystem Linkages: Bridge gaps between research, industry, and end-users through innovation hubs, testbeds, and procurement reform.
• Enhance International Partnerships: Leverage alliances and export markets to accelerate technology adoption and market access.
• Mitigate Risks: Implement robust talent retention, IP protection, and supply chain resilience measures.

Conclusion

New Zealand possesses world-class capabilities in augmented-reality and biomimicry research, anchored by organisations like HIT Lab NZ and Scentian Bio Limited. The nation’s agility, creativity, and international outlook are significant assets. However, realising the full potential of these dual-use technologies will require addressing structural weaknesses, scaling up investment, and fostering deeper integration between research, industry, and defence. With targeted action, New Zealand can secure a distinctive and valuable role in the global dual-use technology landscape over the next five years.