The competitiveness of Dutch economy is at risk

2013 – This report presents the summarized findings from the Erasmus Competition and Innovation Monitor 2012 – 2013 of the Rotterdam School of Management. The research team consists of Henk Volberda, Kevin Heij and Frans van den Bosch.
The questionnaire was completed by (a representative of) 540 companies in the Netherlands from various sectors. The companies are representing the manufacturing industry (25 %), the Business services (21 %), Construction (10 %), the Wholesale and Retail (9 %) and other sectors (35 %). 

Research Conclusions

  1. The long-term competitiveness is at risk, mainly due to a downward trend in investments in R&D and ICT. On the other hand there are good results/improvements for radical and incremental innovation as well as collaboration with external partners and workplace innovation. Workplace innovation improves results out of existing knowledge, but new knowledge is also necessary. Both are important;
  2. Dutch companies don’t collaborate much with research institutions, while that is critical to innovation success;
  3. For innovation there is an optimal appointment time for CEOs, namely 4-12 years. CEOs that are not too short and not too long on their post, score higher on: radical and incremental innovation and on workplace innovation;
  4. Family businesses are more innovative, but less efficient. The researchers associate a higher score on radical and incremental innovation for family businesses with more focus on the viability of the company in the long term. The strength of family companies  is: co-creation and management. Family businesses are working together with research institutions and other external partners and score better on (transactional ) leadership. They could improve their performance by investing more in smart working and in training of their employees;
  5. In companies in the manufacturing industry the researchers found more advanced management, and more co-creation than in service industries. However, companies in the manufacturing industry are more rigid, while service providers score better on flexible organization. Good opportunities there are for companies that combine making products and providing services;
  6. The regions ‘Achterhoek’ and ‘Twente’ are the epitome of innovation; in these regions companies score high on radical, incremental and workplace innovation. In East Brabant and North Limburg (the region Eindhoven) there is invested more than elsewhere in R&D and technology, and scores are high on radical innovation and dynamic management. North Holland (Amsterdam) is leader in investment in ICT. The companies in this region score well on dynamic management and on radical innovation;
  7. In terms of innovation capacity Dutch companies are a good example for Dutch subsidiaries of foreign companies. They score better on radical innovation and social innovation (dynamic management and flexible organization). Dutch companies can learn from foreign companies how to collaborate with external partners (co-creation).

Volberda, H., Heij, K., Bosch , F. van den (2013). The competitiveness of Dutch economy is at risk. Research report, Rotterdam School of Management, Erasmus University. The PDF in Dutch is attached.
See also Annex Elsevier innovation:

Topics : Innovation and Innovation capacity; Monitoring & Evaluation
Sector : Various
Source : Research report