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ENTERPRISE AND INNOVATION. Entrepreneurial and industrial policies in the Netherlands Luuk Klomp Dutch Ministry of Economic Affairs. ENTERPRISE AND INNOVATION. Contents. Industry policy in the Netherlands Renewed instruments for entrepreneurs Budgetary system in the Netherlands
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ENTERPRISE AND INNOVATION Entrepreneurial and industrial policies in the Netherlands Luuk Klomp Dutch Ministry of Economic Affairs 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Contents • Industry policy in the Netherlands • Renewed instruments for entrepreneurs • Budgetary system in the Netherlands • Conclusions 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Industry policy (1): revival • Industry policy in the ’70s and ’80s: • Protecting industries & picking winners • Industry policy in the ’90: • Governments almost completely stepped back • Industry policy today: • Key areas, industry contacts within Ministry, more thematic approach, regional networking, etc. 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Industry policy (2): strategy • Improving the business climate and framework conditions • Boost innovation • Integrated and tailor made approach 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Industry policy (3): barriers to development & policy measures • Increasing regulatory pressure • Lessen the administrative burden with 25% by 2007 • Business impact assessments • Labour costs and inflexibility labour market • Making the labour market more flexible (e.g. make it possible to work longer) • Fiscal climate • Step-by-step reduction of the corporation tax rate from 34,5 % in 2004 to 30% in 2007 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Industry policy (4): barriers to development & policy measures 4. Innovation • Innovation vouchers • Fiscal measure for process innovation 5. Specific bottlenecks for sectors and target groups • Continuous dialogue with industry through established contactpoints 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Contents • Industry policy in the Netherlands • Renewed instruments for entrepreneurs • Budgetary system in the Netherlands • Conclusions 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Renewed instruments (1): vision • One size fits all → more flexibility and custom-made • Less, more effective and simpler instruments • Less and smarter counters • Substantial reduction administrative burdens • Focus and mass 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Renewed instruments (2): policy mix Programme Package Basic Package General conditions 08-03-2005; 05004.ppt
Renewed instruments (3): basic package (high-tech) starter Entrepreneursplaza Information and advice GuidanceBrokerage Workshops,etc. Bank or participationcompany Credit Guarantee Participation fast grower innovating entrepreneur starter on foreign market capital intensive entrepreneur Information & advice Capital 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Renewed instruments (4): programme package fostering excellence • Focus on high-potential areas • Strong emphasis on public-private cooperation • Custom-made and demand driven programs • Open to challengers • Mix of grants, credits and guarantees • Governance: large role for agency in developing and implementing programmes in cooperation with public and private parties 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Contents • Industry policy in the Netherlands • Renewed instruments for entrepreneurs • Budgetary system in the Netherlands • Conclusions 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Budgetary system in the Netherlands (1) • VBTB: From Policy Budget to Policy Justification • VBTB concerns a budgetary process which aims to bring effective and efficient (measurable) policy into place 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Budgetary system in the Netherlands (2):VBTB indicators on entrepreneurship 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Contents • Industry policy in the Netherlands • Renewed instruments for entrepreneurs • Budgetary system in the Netherlands • Conclusions 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Conclusions (1) • Renewed instruments in areas of entrepreneurship and industry policy put firms at the forefront • There is an awareness of the risk of government failure, i.e. avoid picking winners or unconditionally support declining industries • Much attention is paid to easy access to information and financial instruments and to instruments aimed at fostering excellence 08-03-2005; 05004.ppt
ENTERPRISE AND INNOVATION Conclusions (2) • Permanent need for indicators ‘prove’ the efficiency and effectiveness of instruments • Challenge is to find indicators that are: • Linked to specific instruments • Give an indication of the outcome / impact of policies • Are available for a set of EU or OECD countries • Availability over time, preferably within a time-lag of one year • Official statistics have to be combined with indicators from other sources. We are interested in best practices from other countries. 08-03-2005; 05004.ppt