Kiwi here - spent the first 25 years of my life in NZ (Taranaki and Wellington) but relocated to the USA (a year in the Bay Area, then just outside Seattle since 2007).

A few observations of factors that may be considered:

- Distance from markets impacts competitiveness of exports

- Distance from world / experience / culture / opportunities leads to exodus of young travelers (see "the Big OE", http://en.wikipedia.org/wiki/Overseas_experience) and braindrain

- "Tall-poppy syndrome" (http://en.wikipedia.org/wiki/Tall_poppy_syndrome) reduces visibility of or desire for success

- "She'll be right" culture (http://en.wikipedia.org/wiki/She'll_be_right); apathetic, relaxed, or optimistic?

NZ has a very strong entrepreneurial culture but perhaps the challenges above or wrong choice of markets to target make that less effective econony-wise than it could be? There's an interesting read on that at http://pando.com/2013/05/14/number-8-wire-entrepreneurialism....