Knowledge based economy requires institutional innovation

International comparisons show that the Dutch knowledge based economy is performing well. In order to ensure that this will also be so in the future, and there where possible, make improvements, institutional innovation is required, which is innovative governmental policy through for example new rules and regulations for schools and universities.

This is one of the conclusions by Centraal Planbureau (Netherlands Institute for Economic Analysis) in its recently published book, where it describes education, scientific research and commercial innovative research as the three pillars under the knowledge based economy.

Strengths of the Dutch knowledge based economy
Compared to other countries the Netherlands perform well in:

I. education:
a. high average education
b. high percentage of professional or scientific degrees
c. above average result of Dutch students in comparable international tests

II scientific research:
a. high research production per researcher
b. the business community contributes substantially in the costs, indicating that scientific research is important to the business community

III innovative research
a. high level of immaterial investments
b. high percentage of innovative companies

?and the weaknesses?
Not all over the picture is very bright:

I education:
a. high percentage of youngsters leaving school early
b. under privileged groups are not keeping up
c. shortage of teachers

II scientific research
a. at the patent office hardly any Dutch companies are registered
b. scientific research does not appear to be an important source of information to innovative companies

III innovative research
a. low R&D expenses for Dutch companies

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(source: CPB)

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