dutch enterprise policy: topsector approach · • linking to smart industry/emerging technologies...

Dutch EnterprisePolicy: Topsectorapproach

OECD CIIE-meeting, 26-27March 2015

Henry van der Wiel

Ministry of Economic Affairs

26 March 2015

2

Modern industrial policy: Dutch enterprise policy

• Permanent effort to maintain an internationally competitive businessenvironment

In 2011 launch of a new enterprise (or industrial) policy with 2 pillars

• Generic instruments: excellent framework conditions for allenterprises

Focus: a) strengthening innovation framework, b) red-tape reduction, c)improving access to finance and d) ensuring better match between educationsystem and labour market• Eg. tax incentives for innovation & entrepreneurship, reducing administrative burden,

financing (innovative) entrepreneurship

• Sector specific: Top sector approachComprehensive sector agenda’s through Public Private Partnerships: knowledge,

industry and government

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Top sector approach: What has changed?

• New form of industrial policy

• Industry representatives are at centre of coordination instead ofgovernment => bottom-up

• New forms of governance Network approach/eco system=> triple helix

Role of government: bringing stakeholders together (solving coordination problemsand asymmetric information)

• More focus of public resources on top sectors Most specific (sector) subsidies disappeared

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Ministry of Economic Affairs3

Share top sectors in Dutch economy, 2012

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0%

20%

40%

60%

80%

100%

Value added R&D-expenditures Export (reexport excluded)

25

87

57

Share Others

Share Topsectors

Modern industrial policy: top sector approach

• 9 top sectors: Knowledge-intensive (R&D), export oriented,potential to make important contribution solving societalchallenges worldwide

• Demand-driven: comprehensive sector agenda’s through publicprivate partnerships (knowledge – industry – government):

• Each top sector has action plan with clear ambitions: Innovation (agenda’s for user inspired (collective) research)

Human capital (Human Capital agenda, Focus on supply of sufficient S&T-graduates(‘Techniekpact’))

Regional involvement (campuses, cooperation central government & regions)

Internationalisation (trade missions, economic diplomacy)

Regulation (remove specific regulatory barriers, introduce incentives (Euro I-VI,light bulbs))

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Top sector approach: PPPs

• To use their resources effectively, businesses, knowledgeinstitutions and government (triple helix) work closely togetherand coordinate their efforts.

Top Consortia for Knowledge and Innovation (TKI)

• User inspired research channel towards societal and businessneeds

2014: 19 TKIs

• Allowance to stimulate participation of firms in TKI

40% (25%) for each private euro up to 20 000; 2014: ‘in kind’ possible

MIT stimulate SME’s to participate in Top sectors/TKI

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Three main goals of enterprise policy

1.The Netherlands in the top five knowledge economies in the world(by 2020);

2.Raising the Dutch R&D effort to 2.5% of GDP (by 2020);

3.To establish Top Consortia for Knowledge and Innovation (TKI)with more than 500 million euros in public and private funding,and at least 40% by the private sector (by 2015).

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8

M&I measurment: annual Enterprise Policy Monitor

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9

Main facts & figures Dutch enterprise policy

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R&D effort 2011 2012 2013

private 1,08% 1,14% 1,14%

Total 1,90% 1,97% 1,98%

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Main facts & figures top sectors

• It is too early to assess the impact of top sector approach

• Period 2010-2013: on average perform better than rest of economy

Higher productivity level: €107.000 (top sectors) vs €83.000 (all sectors)

More firms innovate: 50% (top sectors) vs 39% (all sectors)

Perform twice as good on growth in value added, also higher productivity growth

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Top sector approach: Growing positive appreciation

• Quote SG OECD Gurria: “Top sector approach is very encouragingand I wished more countries had this policy”

• WEF: “Excellent innovation capacity, sophisticated businesses,focus on public private partnerships, integral approach”

• Forthcoming review of all (financial) instruments of our EnterprisePolicy by Dialogic (May 2015)

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Challenges top sector approach

• OECD Reviews of Innovation Policy: Netherlands 2014 => enhancebenefits top sectors approach Representation smaller companies;

Extending coverage to other sectors (tourism, retail);

Identify possible new areas of strength (see below)

• Linking to societal challenges Triple helix focuses on the societal challenges of today and tomorrow

• Linking to smart industry/emerging technologies Smart industry agenda: Not a new form of industrial policy, but an integral part of

our Top Sector & ICT Human Capital policy => Awareness, speeding up with 10Field Labs (test facilities), investing in skills

Direct relationship Next Production Revolution

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dutch enterprise policy: topsector approach · • linking to smart industry/emerging technologies...

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