Dutch industry must save Dutch industry

Yet another warning on worsening conditions for the Dutch industry was recently published by TNO (link in Dutch). It’s a succinct and mostly complete description of the current situation of and worries for the Dutch economy, along with a range of potential measures that could bring relief. It’s clear what needs to be done. Yet, it remains unclear how this can be put in motion and who is going to do this. Very few Dutch politicians appear to concern themselves with the issues at hand.

TNO’s report follows the narrative and structure of Draghi’s report while zooming in on the Dutch situation. We have a lot of knowledge but too little innovation, which isn’t helped by a structural lack of scale-up funding, high energy cost, complex and constantly changing rules, low productivity growth, low R&D investment and a lack of trained staff. Recent attention to defense technology can give a push to industry, but that’s not easily realized under these conditions.

In their clear, evidence-based overview, the authors should also have mentioned the peculiar fact that few Dutch women study technology and even fewer start a company. The lack of physical space and problems with nitrogen emissions and net congestion deserve to be mentioned – and solved – as well.

TNO’s emphasis on obtaining control points in international supply chains misses the point: we don’t need control points so much as we need big hairy audacious companies that spend on R&D like water and push their supply chain productivity like hell. World market leaders in large worldwide markets. Control points can (!) be a means to that goal, but commercial drive is the real necessity. Too much attention is being paid to technology and too little to innovation – to bringing new products and services to the market.

Yet, this isn’t the biggest issue with this or any other report on the Dutch economy. The real problem is that the Dutch politicians don’t appear to be bothered. The briefing TNO planned for the members of parliament was canceled due to a lack of interest. In the same week, a budget cut of 25 million euros for the Ministry of Economic Affairs was announced, which will lead to cuts in subsidies and the innovation support system. This isn’t going to help our goal of 3 percent R&D. We need to invest to earn money before we can spend it on political goals.

With this lack of attention to what needs to be done, the question of how to do this is never addressed. Or is it? As part of an assignment by the Ministry of Economic Affairs, the Dutch regional development companies (ROMs) such as BOM, Oost NL and Innovationquarter are building a Regional Enforcement Plan based on the National Technology Strategy (NTS). In fourteen value chains with excellent growth prospects, the ecosystem is analyzed in detail, and interventions are planned that will address specific issues and allow Dutch companies to seize international opportunities. The ROMs aim to plan interventions with smart goals that can be performed with and by innovative companies and other partners in the innovation support system. Anything from building local energy hubs for affordable clean energy and fostering international innovation and collaboration to creating or finding companies that solve white spots in value chains.

For this purpose, the ROMs are currently consulting companies and contacting other partners in the innovation support system, including the KIA-Key Technologies and KIA-ICT. Draft plans will be shared with participants. Want to share your opinion in one of these sessions? Check: Nationale Technologiestrategie (link in Dutch).