The real Dutch disease: the innovation paradox

The Dutch National Growth Fund Commission hit the nail on the head. “The Netherlands has a lot of world-class knowledge, but we don’t reap the economic and societal benefit, or at least not enough,” reads an evaluation published last June. TNO observed this phenomenon in 2012 and dubbed it “the innovation paradox.” At the time, Dutch organizations had top-notch expertise in solar energy, wind power and nanotech when these technologies were taking off commercially. Sadly, today the Dutch market position in these industries is marginal – at best.

The Dutch government is investing substantially in innovation through the Climate Fund and the National Growth Fund. These investments are very welcome and could – and should – address the innovation paradox as one of the central issues holding back the Dutch economy. Unfortunately, they don’t manage to do so – or at least not enough.