Decrease in investments in R&D

Description:

Following discussion as part of 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 sufficiently skilled technological employees, the main drivers of the succesful realisation of this goal comprises the sufficient investment in R&D by both public and private research institutions and the efficient and successful cooperation between thse public and private instituations.

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

Should Philips and/or the other Top7 corporates decide to relocate their R&D to another country, this would thus 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.

Enablers:

TAx benefits for corporate R&D investments, top universities with market focus generating sufficient numbers of new ideas and skilled researchers, positive living environment for technically skilled foreigners (housing, healthcare, visa, general bureaucracy).

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..), reallocation of Philips headoffice and R&D centers outside Holland.ability to be Innovative and Productive.

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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