Decrease in investments in R&D

Description:

Following a discussion at the European Lisboa conference (2000), the government of The Netherlands has set itself a target to become one of the most competitive and dynamic knowledge economies of the world. In order to realize this goal, the government wants to increase R&D spending to 3% of GDP vs. current spending of 1.8% only (2004). Besides the availability of adequately skilled technological employees, the main drivers comprise, on the one hand, of stimulating sufficient investment by both public and private research institutions, and the efficient and successful cooperation between these public and private instituations on the other hand.

Currently (2004) the combination of public and private R&D spending in NL is estimated at c. €9bn. The amount of private research is estimated at €4bn and is concentrated within a Top 7 of multinational companies: in total these corporations provide 65% of the total private R&D investments in the Netherlands. Within these Top7 corporations, Philips accounts for €1billion.

Should Philips and/or the other Top7 corporations decide to relocate their R&D to another country, this would thus result in a significant reduction in the R&D efforts and technology development capabilities for the Low Lands.

Enablers:

-tax benefits for corporate R&D investments,
-top universities with market focus generating sufficient numbers of new ideas and skilled researchers,
-possitive living environment for technically skilled foreigners (housing, healthcare, visa, general bureaucracy),
-sufficient number of top academics willing to work and live in The Netherlands,
-role of the European Union to link and activate network of European universities, institutes and corporate R&D centres.

Inhibitors:

-declining numbers of technological savy employees,
-low quality and/or low market focus of research from universities,
-unpleasant living conditions for foreign scientists (housing, healthcare, admin..),
-relocation of R&D centers outside The Netherlands,
-relative high wages and extensive secundary employment benefits for researchers in The Netherlands compared to researchers from emerging countries,
-increased level and number of top universities and institutes in emerging countries.

Paradigms:

Should Philips and/or the other Top7 corporates decide to relocate their R&D to another country, this would result in a significant blow to the R&D efforts (in total estimated at c. €9b in 2004) and thus technology development capabilities for the Low Lands. More specifically, this would severaly hamper the switch from the Dutch society into a high tech innovative country.

Experts:

Onderwijs Cultuur & Wetenschap, 'Wetenschaps en Technologie indicatoren 2003' Economische Zaken, 2004 EU, Innovation Scoreboard 2001

Timing:

The existing downward trend is ongoing since early 1990's. Since the Lisboa Agenda in 2000 little progress has been made. No clear estimates appear available as to the anticipated number of technological savy students and employees; nor have detailed estimates been made as to the technies need by what date.

[===Web Resources:=== Retrieved from "http://scenariothinking.org/wiki/index.php/Decrease_of_Technology_Students"

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