Call to government: spend more on innovation tenders and competitions!

The CPB has again published a study on promising innovation policy and how it can be designed. The previous study dates from 2016 and too little has been done with those findings. That is why the CPB has again examined the innovation policy of the Netherlands in 2020. What could be better?

The report concludes that little has happened with the 2016 recommendations, which amounted to the Dutch government doing more to encourage Research & Development (R&D) can do. This instead of simply placing responsibility on companies. With updated figures, the CPB shows that the government must do more to stimulate innovation policy in the Netherlands. The 'market' itself initiates too little R&D and deserves support.

If the Dutch government focuses more on targeted policy instruments, companies will be inclined to invest more in innovation. This is beneficial for the entire economy because it reduces so-called knowledge spillovers created. Companies use each other's inventions and innovations and this improves the entire economy.

What then are these policy instruments? For example, the Dutch government can invest more in innovative tenders and competitions. The CPB research shows that companies will spend more on R&D if they receive more subsidies and encouragement from the government.

This research and the findings include the comment that the corona crisis may change innovation policy for the better.
To read more about this appeal to the government, see it entire report.