Opening General Electric

Toespraak | 26-09-2011

Ladies and Gentlemen,

Thank you for coming today to the city of Rheden. Situated on the banks of the IJssel river and lying in the shadow of national park Veluwezoom, Rheden is blessed with great natural beauty. During its one thousand-year-old history, the city has transformed itself from a centre for the production of bricks to a home for high-tech companies like General Electrics.

But we are not here to talk about nature and history. We are here to celebrate innovation and look at the future of high-tech systems. Innovation and technology are part of the foundation of modern life. They have pushed the boundaries of what is possible in areas like health, power generation, communications and manufacturing. These advances have resulted in more prosperity for our people.

And yet, we are facing tremendous challenges. The global and European financial markets are in flux. Emerging economies like China, India and Brazil are becoming stronger. Natural resources are becoming scarce. The seas are rising. And the global population is growing at a rapid pace.

It is not hard to feel pessimistic, but I believe there is real chance to turn adversity into opportunity. At times like these, the world needs our expertise, ingenuity, products and services. And it will secure our own prosperity.

This, however, requires us to continuously strengthen our economy. We have to invest in our competitiveness and connect knowledge with entrepreneurship. We must turn expertise into exports. And we have to create appropriate conditions for entrepreneurship, with an additional focus on exceptional industries, like high-tech. Industries that excel in terms of their products and services, as well as their ability to compete globally. Industries that are supported by policies that allow them to tackle the challenges I just mentioned.

And indeed, our high-tech companies are thriving rather than surviving. This fills me with great pride! Consider companies like ASML and NXP in the area of chip making, Philips in lightening and medical devices, Thales in radar and FEI in electro microscopes. These blue-chip firms work with specialised SMEs and research organisations to create vibrant ecosystems in which knowledge and discoveries are shared. This approach to open innovation is typically Dutch.

But it’s not just Dutch companies that excel. The Netherlands continues to be a popular destination for foreign investments, ranging from European headquarters and distribution centres, to manufacturing sites and R&D centres. They are drawn to our investment climate, our cosmopolitan business culture and our ability to functions as the gateway to Europe.

General Electrics is one of the companies that has its operations in the Netherlands for these and other reasons. It operates several sites throughout the country and employs several thousand people. About 150 of these work here in Rheden, which is General Electric’s centre of excellence for gasturbine maintenance for Asia, Europe, Middle East and Africa. The expansion of the companies’ facilities mirrors its ambition to increase capacity from 140 to 200 engines a year.

General Electric’s expansion can serve as an example of how to respond to the economic crisis. While we will take tough decisions where needed, we also need to remain optimistic. We need to formulate ambitious goals and take the bold steps that will realise them. This means the private sector and academia need to invest in innovation, in people, in facilities and co-operation.

In order to improve our national investment and entrepreneurial climate we need first-rate economic policies. As of next year, for example, we are enabling companies to deduce taxes on R&D-related investments. This measure has a €250 million budget that will grow to €500 million by 2015. In addition, the government will use 2.5% of its budget to source innovative products and services.

But that isn’t enough. Additional and more specific policies are needed to serve our so-called top sectors. Innovative sectors like high tech, that need regional economic networks and new clusters to move to the top of the international heap. Because their efforts will be doomed to failure without the availability of public goods – access to emerging markets, for instance, which is indispensable if we are to increase our exports. It is obstacles like these that our ‘top sector’ policies aim to remove.

So what kind of measures do we take? First, we are gradually shifting research funds to these top sector industries. Second, we will encourage these industries and research institutions to agree on specific innovation contracts for those funds. Third, we will offer venture capital for promising start-ups and fast-growing companies. And, fourth, we will continue to facilitate exports by engaging in economic diplomacy, such as trade missions to China, India, Brazil and the US. This focused and coordinated approach will increase chances of achieving marketable innovations.

Exceptional industries also need exceptional human capital. And the reality is that students who enter the work force do not always have what companies need. We want to change this by bringing business and education together. We have earmarked €32 million to set up Centres for Innovative Craftsmanship and Centres of Expertise. Here, entrepreneurs will work with schools to design curricula and organise internships.

We need these measures because a lot is at stake. To illustrate the importance of the high-tech sector: in 2009, the high-tech industry – including materials - generated a production value of over 70 billion euros. And the industry employs almost 400 thousand people. In addition, this sector helps us to meet social challenges and to increase people’s quality of life in areas like mobility, food, care for the elderly and, in the case of General Electrics, the sustainable production of energy. To cut a long story short: high-tech systems are crucial to the future prosperity of the Netherlands.

Ladies and gentlemen,

The Netherlands has a long history in High Tech. I only mention Anthony Fokker, Huub van Doorne and brothers Anton and Gerard Philips, who laid the foundations for world-class technology companies that today compete globally. It is my hope that similar giants will be among today’s scientists and entrepreneurs. I hope they will feel inspired and supported by the concerted efforts of government, business and academia. And I hope that, like General Electrics, they will make the investments necessary for them to realise their ambitions.

To General Electrics I extend my heartfelt congratulations on this milestone. I hope you will continue to be an integral part of Dutch business and society and that you will achieve your goals. We value your contribution and hope your expansion will pay off.

Thank you