Download Top sector approach

Dutch Enterprise
Policy: Topsector
approach
OECD CIIE-meeting, 26-27
March 2015
Henry van der Wiel
Ministry of Economic Affairs
26 March 2015
Modern industrial policy: Dutch enterprise policy
• Permanent effort to maintain an internationally competitive business
environment
 In 2011 launch of a new enterprise (or industrial) policy with 2 pillars
• Generic instruments: excellent framework conditions for all
enterprises
 Focus: a) strengthening innovation framework, b) red-tape reduction, c)
improving access to finance and d) ensuring better match between education
system and labour market
•
Eg. tax incentives for innovation & entrepreneurship, reducing administrative burden,
financing (innovative) entrepreneurship
• Sector specific: Top sector approach
 Comprehensive sector agenda’s through Public Private Partnerships: knowledge,
industry and government
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Ministry of Economic Affairs
23-5-2017
Top sector approach: What has changed?
• New form of industrial policy
• Industry representatives are at centre of coordination instead of
government => bottom-up
• New forms of governance
 Network approach/eco system=> triple helix
 Role of government: bringing stakeholders together (solving coordination problems
and asymmetric information)
• More focus of public resources on top sectors
 Most specific (sector) subsidies disappeared
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Ministry of Economic Affairs
23-5-2017
Share top sectors in Dutch economy, 2012
100%
80%
60%
Share Others
Share Topsectors
87
40%
57
20%
0%
4
25
Value added
R&D-expenditures
Export (reexport excluded)
Ministry of Economic Affairs
23-5-2017
Modern industrial policy: top sector approach
• 9 top sectors: Knowledge-intensive (R&D), export oriented,
potential to make important contribution solving societal
challenges worldwide
• Demand-driven: comprehensive sector agenda’s through public
private 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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Ministry of Economic Affairs
23-5-2017
Top sector approach: PPPs
• To use their resources effectively, businesses, knowledge
institutions and government (triple helix) work closely together
and coordinate their efforts.
 Top Consortia for Knowledge and Innovation (TKI)
• User inspired research channel towards societal and business
needs
 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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Ministry of Economic Affairs
23-5-2017
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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Ministry of Economic Affairs
23-5-2017
M&I measurment: annual Enterprise Policy Monitor
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Ministry of Economic Affairs
23-5-2017
Main facts & figures Dutch enterprise policy
9
R&D effort
2011
2012
2013
private
1,08%
1,14%
1,14%
Total
1,90%
1,97%
1,98%
Ministry of Economic Affairs
23-5-2017
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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Ministry of Economic Affairs
23-5-2017
Top sector approach: Growing positive appreciation
• Quote SG OECD Gurria: “Top sector approach is very encouraging
and 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 Enterprise
Policy by Dialogic (May 2015)
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Ministry of Economic Affairs
23-5-2017
Challenges top sector approach
• OECD Reviews of Innovation Policy: Netherlands 2014 => enhance
benefits 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 10
Field Labs (test facilities), investing in skills
 Direct relationship Next Production Revolution
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Ministry of Economic Affairs
23-5-2017