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Dutch Innovation Policy Wednesday, 27 June, 2012 Jasper Wesseling Deputy Director-General Entrepreneurship and Innovation Ministry of Economic Affairs, Agriculture and Innovation The Netherlands. Structure of the presentation. Strengths in innovation performance Challenges
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Dutch Innovation PolicyWednesday, 27 June, 2012 Jasper WesselingDeputy Director-General Entrepreneurship and Innovation Ministry of Economic Affairs, Agriculture and InnovationThe Netherlands
Structure of the presentation • Strengths in innovation performance • Challenges • R&D-profile of the Netherlands • Ambitions • Innovation policy/Top Sector approach • Some generic instruments
1. Netherlands’ Strengths • Geographic position • Strong technological clusters like high tech, food, water and chemistry • Overall competitiveness (increased to 7th position in Global Competitiveness Report) • Scientific Excellence
2.1 Challenges: international aspects • Growing international competition • Changing international balance of power: BRIC-countries: Brazil, Russia, India and China (state capitalism) • Global share of traditional EU tradepartners diminishes • International shift of business and knowledge centers
Societal challenges Knowledge Infrastructure Economic Topsectors 2.2 Challenges: societal and economic • Societal challenges are the markets of tomorrow! • Markets of tomorrow ask for technology of tomorrow • Technology of tomorrow originates from today’s knowledge combined with strategic vision about tomorrow’s opportunities
3.1 R&D-innovation profile Netherlands • National effort in R&D: • 1,82% GDP in R&D (position 11, EU-27) • Above average public R&D-effort (0,96% GDP) • Below average private R&D-effort (0,86% GDP) • Qualitative highgrade research: • Publications: international scientific peer reviewed journals: 2e position, OESO • Patent applications: 2e position EU • Utilization: • New/improved products: 9% of turnover (EU 13%)
3.2 R&D-profile (Eurostat 2008) Labour Productivity (2008, GDP per hour, EU15=100) Private R&D expenditure (2008, % GDP)
4. Ambitions • Top 5 position knowledge economies (in 2020) • To increase the Dutch R&D efforts to 2.5% of GDP (in 2020) • To establish Top consortia for Knowledge and Innovation (TKI) to which public and private parties contribute more than € 500 million, at least 40% of which is financed by the business sector (in 2015)
High tech Life Sciences Agro-Food Companies Logistics Water Creative Industry Energy Science & Education Government Chemicals Horticulture Head Offices 5. Top Sector ApproachTwo track policy • A. Generic: More scope for entrepreneurs • Fiscal measures, less subsidies • Less regulation, lower tax burden • B. Specific: Focus on strengths • Sector approach, demand driven • Integral approach
5.1 Top Sector Approach • Ministry of Economic Affairs, Agriculture & Innovation has overall responsibility for: • Agendas • Process • Monitoring • Criteria Top Sectors • Strong international market position • Solid knowledge base • Collaboration between entrepreneurs and knowledge institutes • Potential contribution to societal challenges
5.2 Main policy measures: Top sectors • Integral agenda for action for each sector: • Innovation: R&D collaboration, specialization, demand driven • Foreign policy: economic diplomacy, trade and investment promotion • Sector pre-conditions: procurement, spatial planning, taxation • Education and training: focus on business needs, exchange programs, knowledge migration • Cross sectoral themes: • Biobased economy • ICT • Nanotechnology • Human capital agenda for science and technology
5.3 Main policy measures – Innovation in top sectors Topconsortia for Knowledge and Innovation (TKI): Governed by industry, public knowledge institutes and government • Demand-driven roadmaps, programmes and projects • Gearing university and applied research more towards top sectors • Streamline knowledge infrastructure and institutions But also: • Bonus of 25% based on private contributions to TKI for extra R&D • More scope under R&D Promotion Act (WBSO): labor costs • Research and development deduction (RDA): materials and labs
6.1 Human Capital in Top Sectors • Excellent research and researchers in The Netherlands • Two way street: • The Netherlands open for international talent e.g. President’s programme • The world open for Dutch talent • Excellent study environment
6.2 Foreign policy & Top Sectors Focus on foreign policy for Top Sectors: • Economic diplomacy • Development aid (increased involvement of businesses (water, food) • Strategic acquisition • Network of embassies and attachés