AmCham Conference
Speech by Mrs M.J.A. van der Hoeven, Minister of Economic Affairs of the Netherlands, AmCham Conference, The Hague.
Introduction
Thank you very much for AmCham’s Priority Points for 2007. I have read the summary of your agenda and am delighted to report that your goals are very similar to Dutch Government goals when it comes to improving investors’ and entrepreneurial climate in the Netherlands.
Dutch and Americans have worked together for peace, freedom and commerce since 1609, when Captain Henry Hudson of the Dutch East India Company sailed up the Hudson River, looking for a shorter route to Asia. And the U.S. House of Representatives recently approved a resolution celebrating April 19th as Dutch-American Friendship Day resolution. Why April 19th? Because on that day 225 years ago John Adams became the first Ambassador of the United States to the Netherlands.
Mr Oberman, please allow me to dig deeper into your agenda and Priority Points. As noted, we agree on the majority of your agenda. Many of your priorities have been addressed by the second and third Balkenende administrations. While I can’t dwell on all of your priority points, let me stress that all are very important and they must remain high on our agendas.
I do want to explore your priority of increasing innovation, research and development intensity. We agree that innovation and R&D remain the most important inputs for continued economic growth. In this regard, I suggest that we must aggressively work on three things:
1. a more open, social and tolerant culture;
2. a top-notch knowledge infrastructure that attracts foreign R&D;
3. an attractive investment, academic and social climate so knowledge workers from abroad will settle down in the Netherlands.
1. Tolerance and openness
As I said, the first task is to expand tolerance and openness. We Dutch have always been famous for our attitude towards people with different backgrounds, religions, races and opinions. Immigration has been a well-known input into Dutch innovation for ages. I need only mention the Portuguese Jews, among whom Spinoza’s parents, that came to the Netherlands in the 16th and 17th century. Or the Flemish that gave an important stimulus to the textile industry of Leiden. Many of these immigrants flourished in Dutch society, contributing to innovation and higher productivity rates. And they started new businesses, such as V&D and C&A, companies that are successful to this day.
The same goes for the United States of America, where “The American Dream” is a byproduct of tolerance, openness, entrepreneurship and hard-work. The counties surrounding Washington DC – Montgomery in Maryland, Fairfax and Loudoun in Virginia -- are hotbeds of innovation and job-creation, and they have attracted top-notch talent from across the street, across the country and from across the globe. These and other prosperous places in the US are open to immigrants, and discrimination and suspicion of outsiders are almost non-existent. The richness of academic, cultural and material life in these areas stem from contributions and ambitions of international knowledge workers.
I regret to say that I am concerned about growing intolerance towards foreigners in Dutch society and feelings of mutual misunderstanding. Let me be clear: I do think it is appropriate to demand foreigners to adapt to our society, and I would hope and expect every resident of the Netherlands – irrespective of his roots - to fully integrate and participate in our society. Efforts to find a job, to learn Dutch, to learn about our history and culture.
But at the same time, all Dutchmen – whose families have been here four-hundred, forty or just 4 years – must respect the different backgrounds and cultures of our newest Dutchmen. Likewise, all Dutchmen must acknowledge the new immigrants’ efforts to integrate in our society and help facilitate that very integration. For instance: to offer them a job if they have the skills and knowledge needed.
In the words of Francis Fukuyama, the Netherlands must remain a high-trust society. Not only because this is the best way to deal with growing global competition and to meet the demand for more knowledge-based products. But also for ethical reasons of humanity, of civilization.
2. Top-notch knowledge infrastructure
Secondly, we have to work on our knowledge infrastructure. Recent World Economic Forum statistics show the Netherlands has surpassed the US in ICT-related innovation. 17 out of 25 of our most important R&D companies spent more on R&D in 2006 than in 2005. These are good, promising results, and we should applaud ourselves for them.
But other statistics are troubling. Fewer students in the Netherlands are choosing “hard” sciences as their course of study, as compared to other countries. The number of doctorates conferred in the Netherlands is among the lowest in Europe. Our aging society is thinning the ranks of essential researchers.
Therefore, we cannot rest on our laurels. We shall continue investing in the creation of new technology institutes. We shall co-operate with the provinces to start so-called National Economic Top Programs for Brainport Eindhoven, the Food Technology knowledge and industrial cluster in the eastern Netherlands and the international Energy Hub of Groningen. Schiphol and Rotterdam, our vital transportation links, will participate in the Urgency Programme Randstad. And the government will invest an extra 50 million euros to improve the infrastructure needed for better access to these five regions.
I am likewise finishing the value proposition for life sciences, which will be presented at the Bio Trade Show in Boston in just a few weeks, and I am preparing High Tech Connections III, to be held in San Francisco in September. High Tech Connections will focus on nano electronics, e-health, e-government and life sciences, amongst other things.
3. Attractive climate for knowledge workers
Thirdly, our climate for knowledge workers. As Richard Florida made clear in The Rise of the Creative Class, well-educated and creative people are sine quad non for economic growth. And, as Florida acknowledges in The Flight of the Creative Class, countries and cities have to compete for such people, since there is a shortage of these people and since they tend to wander across the globe. Today’s creative class is always looking for hot spots of art and excellence where they can exploit their talents, find new trends, and meet other interesting people. And it is the challenge of countries and municipalities to help create environments attractive to these people. Environments that are melting pots of cultures, talents and knowledge.
The Dutch government recognizes the increasing demand for highly-educated people. Our so-called ‘knowledge migrants facility’ -- through which 4000 highly-educated knowledge workers from outside the EU have accepted a job in the Netherlands without first applying for a workers’ licence – is one step in the right direction. But there remain too many red-tape type complaints about our immigration policies. We will streamline existing investigative procedures, and sponsors -- companies and educational institutions -- will get co-responsibilities concerning admission. Moreover, we plan to reduce admission procedures to only a few weeks.
Conclusion
Mr Oberman, ladies and gentlemen,
ONE - Tolerance and openness; - TWO - a top-notch knowledge infrastructure and – THREE - an attractive climate for knowledge workers. These, and your AmCham Priority Points, will remain high on my Ministry’s agenda. I very much appreciate your constructive advice to further improve our investment climate. And let’s keep in touch and keep working on a sound, tolerant and innovative Dutch society.
Thank you very much.