Recent productivity growth has been sluggish in the Netherlands. Baumol suggests that future productivity performance might be hampered by inadequate arrangements and institutions between the four sectors that drive innovation and growth: large firms, small firms, the universities and the government. In this paper we present the facts and figures of innovation and growth performance in the Netherlands. We also discuss Dutch innovation policies. While our findings show that the Netherlands still ranks highly in terms of actual levels of productivity and innovation, the developments in both areas are reason for concern. A structural reform of the industry-science interface in the Netherlands could lead to an improvement in the situation for the Netherlands in the medium term.

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De Economist
Erasmus School of Economics

Klomp, L., & Roelandt, T. (2004). Innovation performance and innovation Policy: The case of the Netherlands. De Economist, 152(3), 365–374. doi:10.1023/B:ECOT.0000036576.40882.13