ENTERPRISE AND INNOVATION
Entrepreneurial and industrial
policies in the Netherlands
Luuk Klomp
Dutch Ministry of Economic Affairs
08-03-2005; 05004.ppt
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ENTERPRISE AND INNOVATION
Contents
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•
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Industry policy in the Netherlands
Renewed instruments for entrepreneurs
Budgetary system in the Netherlands
Conclusions
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.
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ENTERPRISE AND INNOVATION
Industry policy (2): strategy
• Improving the business climate and
framework conditions
• Boost innovation
• Integrated and tailor made approach
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ENTERPRISE AND INNOVATION
Industry policy (3): barriers to
development & policy measures
1. Increasing regulatory pressure
–
–
Lessen the administrative burden with 25% by 2007
Business impact assessments
2. Labour costs and inflexibility labour market
–
Making the labour market more flexible (e.g. make it
possible to work longer)
3. Fiscal climate
–
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Step-by-step reduction of the corporation tax rate
from 34,5 % in 2004 to 30% in 2007
ENTERPRISE AND INNOVATION
Industry policy (4): barriers to
development & policy measures
4.
Innovation
–
–
5.
Specific bottlenecks for sectors and target
groups
–
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Innovation vouchers
Fiscal measure for process innovation
Continuous dialogue with industry through
established contactpoints
ENTERPRISE AND INNOVATION
Contents
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•
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•
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Industry policy in the Netherlands
Renewed instruments for entrepreneurs
Budgetary system in the Netherlands
Conclusions
ENTERPRISE AND INNOVATION
Renewed instruments (1): vision
• One size fits all → more flexibility and custommade
• Less, more effective and simpler instruments
• Less and smarter counters
• Substantial reduction administrative burdens
• Focus and mass
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ENTERPRISE AND INNOVATION
Renewed instruments (2): policy mix
Programme
Package
Basic Package
General conditions
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Renewed instruments (3): basic package
Bank or
participation
company
(high-tech)
starter
fast
grower
Information and
advice
innovating
entrepreneur
Guidance
Credit
Guarantee
Entrepreneurs
plaza
Brokerage
Participation
Capital
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starter
on foreign
market
Workshops,
etc.
capital intensive
entrepreneur
Information & advice
ENTERPRISE AND INNOVATION
Renewed instruments (4): programme
package  fostering excellence
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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
ENTERPRISE AND INNOVATION
Contents
• Industry policy in the Netherlands
• Renewed instruments for
entrepreneurs
• Budgetary system in the Netherlands
• Conclusions
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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
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ENTERPRISE AND INNOVATION
Budgetary system in the Netherlands (2):
VBTB indicators on entrepreneurship
Indicator
Value NL
(2003)
Target figure
Number of
entrepreneurs as a %
of tot. pop.
10,9%
At least 10%, 0.5 point
above EU15 (11,3%)
Start-ups as a % of
working pop.
0,55%
10% higher than growth
of working pop. (1,12%)
€ 66 mil.
€ 56 mil.
Reduction of
administrative burden
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ENTERPRISE AND INNOVATION
Contents
• Industry policy in the Netherlands
• Renewed instruments for
entrepreneurs
• Budgetary system in the Netherlands
• Conclusions
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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
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ENTERPRISE AND INNOVATION
Conclusions (2)
• Permanent need for indicators  ‘prove’ the efficiency
and effectiveness of instruments
• Challenge is to find indicators that are:
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–
–
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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.
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