A new long-term innovation instrument is needed to safeguard the Netherlands’ future earning capacity

A new estimate by TNO suggests that, under unchanged policies, achieving the target of investing 3% of GDP in R&D by 2030 is becoming increasingly unlikely, partly because the NGF is coming to an end. There is therefore a need for a structural, ‘NGF-like’ instrument that complements other targeted instruments, such as PPS-I, the National Agency for Disruptive Innovation (NADI) and the National Investment Institution (NII). This would enable the Netherlands to close the gap with neighbouring countries and overcome the innovation paradox. Commissioned by NXTGEN Hightech, TNO Vector examined the success factors of Dutch and international innovation programmes and identified seven building blocks

Long-term yet flexible

TNO Vector analysed three ongoing NGF programmes and three international programmes for public-private innovation collaboration. Successful programmes combine a clear strategic direction with long-term funding, substantial private co-investment, strong ecosystems and active programme management.

A timeframe of ten to fifteen years gives businesses and knowledge institutions the confidence to invest in knowledge, people and technology themselves. However, a long-term approach does not mean locking programmes into a fixed plan for ten years. Clear interim decision points, known as stage gates, can be used to steer programmes based on progress, quality and impact.

Seven recommendations

Based on their analysis, the researchers make seven recommendations:

• ensure long-term continuity
• make clear strategic choices
• adopt a programme-based approach
• put active, expert governance in place
• encourage private co-investment
• invest explicitly in ecosystems
• ensure alignment with other innovation instruments

A future instrument should therefore not operate simply as a grant scheme, but as an actively managed programme that brings together businesses, knowledge institutions, start-ups, scale-ups and government. Ultimately, no single instrument will determine success. What matters is the combination of strategic focus, long-term funding, collaboration and governance. Together, these can help innovations move more rapidly from knowledge development to application and market adoption.