SWOT analysis

Strengths

The strengths of the Dutch guidance are pointed out in OECD in 2002.

Single European currency, the Euro

Stable macroeconomic environment

The extent and quality both of labour market information and of consumer information

Physical and digital infrastructure

Share of higher employed in the labor population

The emergent market in career guidance and information services created by the policy of decentralization and marketization: still limited and fragile, but with potential for development.

Small share of government R&D expenditure on defense

Weaknesses

The potential weaknesses of the Dutch guidance system are also pointed out in OECD, 2002 report. Innovation surveys indicate that the share of innovative services and products in the Netherlands is below the European average. In the Amsterdam region, entrepreneurs complain that much of the innovation taking place in SMEs is too traditional. Process innovation geared at raising cost efficiency rather than product innovation aimed at opening up new markets.

Share of R&D-investment by firms in the region

Incoming R&D-investment by foreign firms

Venture capital

Disjointed nature of innovation system

The lack of accountability, monitoring and quality assurance: this is particularly evident in relation to schools, but is an issue in all sectors.

The lack of clarity regarding the role of government within a decentralized and marketised system

High tariffs on agricultural products (38,7% of the value of imports)

Opportunities

Knowledge and innovation are two key economic drivers and a strong and effective innovation system is a main building block of the future economic growth and well-being. This is an opportunity to respond to in order to become a more knowledge-based and innovative economy. For the Netherlands labor productivity is key and that means the government has keep investing in knowledge in order to stay close to the technological frontier in order to maintain its competitive advantage.

Sense of urgency for innovation in national and regional political circles

Structural changes in the world economy

Changing demand patterns, like ageing and sustainability

Threats

The risk is that politicians are looking for short term solutions or are looking for attractive looking solutions without real insight into efficiency or effectiveness. These might be solutions the citizens do not really need.

Economic effect of the crisis on investment

Governmental complexity

Blockades in the regional housing market and mobility

Increasing competition

Decreasing funding members and social partners