Social innovation is of pivotal importance to top-priority economic sectors in the Netherlands
Rotterdam School of Management, Erasmus University (RSM) and Panteia/EIM have measured the innovative strength of those Dutch economic sectors that receive top priority from the government. On the basis of their findings, they have published The Innovation and Competitiveness Monitor for Top-Priority Sectors 2012-2013.
From the Dutch-language report, which can be downloaded here, it appears that the Dutch governmental policy for economic focal points concentrates too much on technological innovation. The report has as its most important findings:
Social innovation is crucial to improving innovative strengths and corporate performance of companies in top-priority sectors
The Innovation and Competitiveness Monitor for Top-Priority Sectors 2012-2013 shows that 23% of innovation success results from technological innovation. The same study, however, also shows that no less than 77% of innovation success depends on social innovation, which means a new way of managing, organising and working. Those companies in top-priority sectors that are flexibly organised, have got entrepreneurial management, invest in expertise/skills and work together with knowledge centres and knowledge companies achieve more radical innovation (+36%), more incremental innovation (+29%) and have a better corporate performance (+21%).
In its policy toward top-priority sectors, the Dutch Ministry of Economic Affairs must pay more attention to social innovation
The policy for top-priority economic sectors and other existing policy tools used by the Dutch Ministry of Economic Affairs focuses too heavily on “hard” innovation, namely investment in technological innovation, such as investment in Research & Development plus patents. Given the excellent return on investment of social innovation and the large number of small and medium-sized companies in the top-priority sectors, a strong focus on “soft” innovation is vital, though. Tools aimed at promoting entrepreneurship, novel ways of organising company operations, expertise/skills and co-creation with external parties can considerably boost the innovative strength of the 9 top-priority sectors. The Economic Affairs Ministry’s current Human Capital policy does not do enough in this respect. The recently concluded Innovation Contracts between companies, research institutions and government focus on investments in technological innovation in particular.
The energy and chemical sectors are socially innovative, while the creative industry is lagging behind
Among top-priority sectors, the energy and chemical sectors attain above-average scores on technological innovation, social innovation, innovation success and labour productivity. By contrast, the creative industry does fairly badly on social innovation.
The chemical sector boasts most top-level companies, while the Agro & Food sector is falling behind
Among the top-priority sectors, especially the chemical industry is characterized by production innovations that are new to the market or sector. But the agriculture & food sector is home to relatively many adaptors and followers. This sector often adopts existing technological innovations.
Leadership and expertise/skills are crucial to innovation in top-priority sectors
Within social innovation, the multipliers leadership and smart work have the strongest effect on corporate performance, 36% and 35%, respectively. Companies in top-priority sectors therefore ought to pay more attention to the development of talent and leadership qualities.
Most of the competition seen by companies in top-priority sectors comes from the Netherlands
42% of companies in Dutch top-priority sectors say that the strongest competition is home-grown.
