APPENDIX TO THE NATIONAL REFORM PROGRAMME 2011: involvement of local
and regional authorities
A.
Introduction
This appendix provides information about the way in which local and regional authorities
in the Netherlands, 12 provinces and 418 municipalities, (will) implement the
Europe2020 strategy. The EU2020 objectives have been translated into national
objectives by the national government. The European Commission has indicated that it
considers the involvement of regional and local partners very important. However,
municipalities and provinces were not involved in the adoption of the national objectives.
The contribution of local and regional authorities to the realisation of the EU2020 agenda
is significant. They initiate policies and implement adopted European policies. Local and
regional authorities are responsible for a large part of the economic structures in their
cities and regions. It is important that, next to the implementation of an economic cluster
policy, Member States as well as the European Union also allow cities and regions,
financially and in regard to policies, to conduct their own regional and economic policies.
Provinces and municipalities in the Netherlands have a strong commitment to implement
the new Europe2020 strategy. A study conducted by Buck Consultants International,
commissioned by the local and regional government umbrella organisations, IPO and
VNG, shows that innovative power in the Netherlands is firmly established, especially in
the regions1. The use of instruments is attuned to the potential of local and regional
markets that operate in an international, national and regional context.2 A tailor-made
and place-based approach, including regional networks, is pivotal in this regard and has
proved its success, also in the Netherlands. In the next few years, provinces and
municipalities in the Netherlands would like to see European support for this approach by
granting them direct access to European funds.
B.
Specific implementation priorities (theme-based)
Where the implementation of the Europe2020 objectives and guidelines is concerned, the
contribution of local and regional authorities in the Netherlands to the implementation of
EU guidelines is significant. This appendix focuses on five areas using several concrete
examples.
1. Strengthening Research & Innovation, organizing the knowledge triangle
Provinces and municipalities encourage cooperation between knowledge institutes and
companies for the transfer and application of knowledge. In many cases, they act as
initiators of knowledge programmes or innovation networks: they bring parties together,
provide substantial financial support in the form of grants or guarantees, or they
facilitate business plans using a place based approach. As the programs evolve, local
government intervention changes from a stimulating role to facilitating growth.
1
Buck Consultants International, De Lissabonstrategie in de Nederlandse Regio’s en Gemeenten, August 2009,
IPO publication no. 284
2
See OECD, National place-based policies in the Netherlands, August 2010: The place-based policies initiated
over the last years have contributed to Strengthening regions in the Netherlands, e.g. by improving quality of
place, infrastructure and other determinants of regional competitiveness. As such, they have strengthened the
structural economic perspectives of Dutch regions and thus of the national economy?
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In the 'Bedrijfslevenbrief’ dated 4th of February 2011, the national government
announced a new policy regarding Research and Innovation. Local and regional
authorities are pleased that this new policy – in cooperation with all the involved
ministries - means that strengthening the economy of the Netherlands will be a coherent
effort. Another important plus is that policies are linked to concrete demand. In these
times of economic and financial crisis, the policy of granting subsidies is shifting to
facilitating, but investments in research, development and valorisation remain
indispensable. The national government emphasises its supporting role for the priorities
of 9 so-called top industries. Besides this specific policy, a generic policy is required to
provide more room for regional markets by deregulation and facilitating initiatives, etc.
Innovation does not stop at top industries, but is a necessity for all of the Netherlands.
Like the Social and Economic Council of the Netherlands (SER)3 local and regional
authorities recommend that the national government should forge a stronger link
between the new policy of the “Bedrijfslevenbrief” and the need for a more sustainable
economy. It is on a regional level that comparative gains can be made in public-private
partnerships.
Local and regional authorities are ideally equipped to establish the required relationships,
for instance through their cross-sectoral approach. Finally, local and regional
governments argue that the new policy of the national government should pay more
attention to SMEs.
Further development of initiatives by provinces and municipalities will benefit from:
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Involving all triple helix partners (including the business community, more specifically
SMEs) in setting up so-called Innovation Partnerships to prevent new knowledge from
being shelved and not leading to new products or process innovations.
Room for provinces and municipalities in the regulations and programming of new
financial programmes - focused on providing customised regional excellence/smart
specialisations, linking up with the regional and place based approach.
In addition to granting subsidies, creating more opportunities for credit facilities such
as the use of financial engineering where public and private funding meet.
More programme funding to encourage bottom-up initiatives, whereby the
government, as a partner, audits programmes instead of paying for them.
To enable contributions by various (cross-border) programmes to a regional strategy
defined for a given coherent region (functional region).
2. Efficient use of natural resources and reduction of C02 emissions
Working on climate is not a cost item, but an activity that generates revenue and will
lead to a sustainable future. The regions play a crucial role in achieving European and
national climate targets and a sustainable economy.
Within the framework of the European goals regarding the reduction of CO2 emissions,
provinces and municipalities in the Netherlands are working on a transition to sustainable
energy management (savings, making maximum use of renewable energy, efficient use
of fossil fuels). At the local and regional level, considerable investments will be made in
networks (the so-called smart grids), generation and utilization of renewable energy in
urban and regional transport (renewable electricity, biogas, etc.) and the built
environment (city heating and cooling, renewable energy) in the coming years. At the
same time, house owners, housing associations (and tenants) are encouraged to invest
in energy saving measures in newly built areas as well as in existing buildings.
Generally, it is important to use natural resources more efficiently. Local and regional
authorities support biomass conversion projects that emphasise technological innovation,
3
More chemistry between green and growth. The opportunities and dilemmas of a biobased economy (SER December 17,
2010).
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knowledge building, (inter) national cooperation and ensuring sustainability criteria. In
addition, local and regional authorities invest in intelligent decentralized heat and energy
systems and energy storage. Municipalities and provinces continuously seek new forms of
financing, including European instruments such as EIB and ELENA and their own
instruments, such as revolving funds. The aim is to combine these in an intelligent and
productive way, thus creating an effective, efficient and broad-based range of
instruments. Thanks to the support of local and regional authorities, many regions in the
Netherlands have successfully acted as co-locations of the first three Knowledge and
Innovation Communities (KICs) of the European Institute for Technology (EIT) in the field
of climate change, adaptation and mitigation (KIC Climate), renewable energy (KIC
InnoEnergy) and the future of the information and communication society (KIC IT Labs).
Further development of these province and municipality instruments will benefit from:
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Strengthening cooperation between academic institutions and companies in regard to
the theme climate. Climate measures can be achieved more effectively through
innovations.
Cutting red tape that stands in the way of a more sustainable economy (for example,
enabling small-scale, local power generation and expanding the possibilities of
converting waste into new raw materials)
EU policy regarding environment and climate through measures dealing with local
issues to ensure a level playing field. Measures for the built environment and spatial
planning should allow local and regional authorities to a more tailor made and place
based approach.
3. Improving the business environment, reducing administrative burdens and
strengthening the industrial base.
In the light of knowledge valorisation it is very important to keep innovative companies
in the Netherlands. Local and authorities actively foster a favourable investment climate
for businesses. This includes easily accessible locations for businesses, attractive housing
and recreation facilities and the reduction of administrative burdens. Investing in broad
area development to enhance the living environment is an important tool for attracting
and retaining knowledge workers. To stimulate market development, provinces and
municipalities sometimes even act as a launching customer, for instance for the
construction of broadband or creating sustainable transport systems in cities.
The further development of these initiatives by provinces and municipalities will benefit
from:
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Room and financial support for provinces and municipalities to work on an optimal
living/working environment and a vital social environment as a prerequisite for
economic growth.
A Reduction of the administrative burden of the General Block Exemption Regulation
regarding state aid (Algemene Groepsvrijstellingsverordening; AGV). The financing of
innovation must, in principle be notified as state aid to Brussels and the AGV enables
exemption. However, the AGV is very burdensome and therefore difficult to use.
4. Improving the operation of labour markets by investing in employability, mobility and
social inclusion
Municipalities manage the local and regional labour market in the Netherlands. They
bring relevant parties in the region together (governments, businesses, education) to
create a favourable economic environment and effective cooperation for the proper
functioning of the labour market. Municipalities also invest in activating people with
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difficult regular access to the labour market. In this way, municipalities ensure that
employers have sufficient and qualified personnel at their disposal. Currently, discussions
are still taking place with the government about the content of the new law Wet Werken
naar Vermogen (Work according to Ability Act) and the conditions in which municipalities
are required to implement this act. Local and regional partners endorse the objective of
the government to activate everyone who has a social security benefit to order to make
them participate in contributing to society and having a greater chance to stop receiving
a social security insurance benefit and obtaining their own independent income.
However, there is great concern about the proposed budgetcuts which will put adequate
reintegration assistance, training or activation under pressure. Without adequate funding,
municipalities are unable to activate people and provide them with adequate assistance
by supervision or training.
The further development of these initiatives of municipalities will benefit from:
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Adequate resources to support people to find work, keeping people in employment
and maintaining a safety net for those who are unable to work.
Sufficient policy room for municipalities to implement the Ability to Work Act.
An adequate link between education and the labour market and encouraging
employers to employ people with difficult regular access to the labour market.
5. Education, of great economic and social importance
Local and regional authorities have many direct tasks and responsibilities in the field of
education. Education is the foundation of a thriving economy and a socially balanced
society. Education plays an indispensable role in the (re) training of personnel for
employment in health care, "green jobs" and education itself: important areas where
future shortages are expected. Policies and projects for youth and education have a
direct effect on areas such as community development, poverty reduction, integration,
security policy and work and income.
Municipalities in the Netherlands are responsible for reducing the number of school
dropouts. The approach to prevent people dropping out of school without a start
qualification is bearing fruit. The efforts at a local level have resulted in a sharp fall in
school dropouts. To meet the EU target of 8% school dropouts will require a follow-up to
the covenants of the 'Tackling dropout" programme which will expire at the end of 2011.
Devoting attention to primary and higher education gives local and regional governments
the opportunity to continue to invest in innovation, talent development and quality. The
concept of "The Netherlands as a Knowledge Country" cannot be sustained without the
continuous development of higher and university education, including close cooperation
with (international) institutions where people with higher education can find jobs. A
major concern is maintaining access to higher and university education to enable
students to move on to these education levels and adequate funding to make it possible
for this to happen. In addition, attention should be paid to the internationalisation of
Dutch education. Finally, higher education is THE place to promote entrepreneurship. It is
therefore important that the accessibility of higher and university education is preserved
by enabling students to move on to these levels and sufficient funding to make this
possible.
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