Speech by the Minister of Economic Affairs, Agriculture and Innovation, Maxime Verhagen, at the opening of the academic year 2011-2012 at Wageningen University and Research Centre, on 5 September 2011 Working together on Dutch earning potential 1
[Introduction] Thank you Mr Dijkhuizen. You have spoken of your own institution with great praise. And so you should. Wageningen University and Research Centre has every reason to be proud of its accomplishments. I see Wageningen as a shining example at this time of uncertainty and change. It shows us how we can meet new challenges and shape modern society. By taking responsibility and joining forces. Next week, I will present the new government policy to stimulate entrepreneurship and innovation in the Netherlands. Its basic aim is to safeguard our future prosperity. We will do that linking our economic strengths and our outstanding knowledge infrastructure to the challenges facing society today. We already excel in transforming public funding into high-quality knowledge. Now we want to excel in transforming that knowledge into revenue. It is no accident that I am standing here today at the opening of the academic year. For the origins of this new policy lie right here in Wageningen. 2
Ladies and gentlemen, We face tremendous challenges. The Western economies are once again making heavy weather. The European and American debt crises are re-igniting prophecies of a double dip. Growth is slowing even in the most dynamic emerging markets. At the same time, we are witnessing shifts on an unprecedented scale. Countries like China, India and Brazil take an increasing share of global income. And complex issues are challenging our wealth and well-being, from shortages of food, water, energy and raw materials to climate change and CO 2 emissions, loss of biodiversity and an ageing population. We can still stay in the driving seat. We can still decide our own future. We can still safeguard our prosperity. Of course, change is by definition unsettling. The question is: what is the best way to deal with it? 3
Some want us to retreat behind our dikes. To close our borders. But that is not the Dutch way. In fact, it is against our own interests. Our choice is to submit to change or to shape change. We are an entrepreneurial society. We face up to new challenges with an open mind. And we do so together, devising innovative approaches tailored to new realities. That is how we have shaped change throughout our history. That is how we became one of the world s strongest and most prosperous economies, and one of its most stable societies. Here in Wageningen, you know all about meeting challenges and shaping change. This institution has not had an easy ride. On the contrary. When the first College of Agriculture was founded in Wageningen in 1876, Dutch farming was in deep crisis because of cheap grain imports from America. While France and England resorted to protectionism, Holland did not. We chose to innovate, to improve our production methods and to boost our efficiency. 4
That is how we became world leaders in agriculture and food. And as Mr Dijkhuizen rightly said, Wageningen played a vital role in this process. The secret of Wageningen s success has always been your open attitude to the world; your capacity to embrace change and meet challenges; your ability to develop and use knowledge; your talent for mobilising energy and for getting academics, researchers, entrepreneurs and civil servants to join forces. Your winning formula is the famous golden triangle a wellchosen theme for today s celebration of the new academic year. The Netherlands is famous for its polder model of consultation and consensus. The way you work here is a polder model for knowledge and innovation. 5
[Strengthening our earning potential] The concrete challenge now facing the Netherlands is: how do we strengthen our earning potential? We need to realise that today s social challenges are tomorrow s growth markets. They are a source of income. That means turning the Chinese market into our market. That means developing new products the world desperately needs: green energy, agri-sector techniques to help us feed nine billion people by 2050, and modern care for an ageing population. These are just a few examples of the growth markets of the future! What do we need to do now to conquer these new markets? I will first look at what we can learn from Wageningen, here in the golden triangle. And at what needs to change in the world of research. Then I will talk about our new approach to higher education. Because that s going to change radically. To build a strong economy we have to get a bigger return on the billions we invest in education. 6
[Polder model for knowledge and innovation] My ambition for the Netherlands is a place in the world s top five most dynamic knowledge economies, with investment in knowledge rising to 2.5 per cent of our national product. By 2015 I want to see half a billion euros invested in public-private initiatives. We can only achieve this aim if we mobilise all the knowledge we have. We have an excellent store of knowledge. But we do too little with it. And that s a great waste. Because failing to exploit knowledge means throwing away money, talent and opportunities. What we need to keep in mind is that ground-breaking solutions to society s challenges rarely come from government. Instead they come from society itself: from businesses, inventors and local initiatives. For the Netherlands to be truly strong, we all need to roll up our sleeves. And we can be inspired by what has been happening here, in Wageningen s golden triangle, for over a century. 7
Here in Wageningen I see a unique partnership between academia and the cutting edge of industry. I see a place where scientists, businesses and government work together to realise a common vision: a sustainable agri-food sector which leads the field globally, and of which society can be proud. A sector driven by innovation. A sector that seeks ambitious solutions to the challenges facing society. A sector that generates income around the world, using ever more efficient production methods that reduce demand for dwindling resources and space. Here, you show that high-quality basic research and enterprise can go hand in hand. Here, researchers and entrepreneurs are in constant dialogue. Here, you are working on many lines of research. One involves sustainable algae production as a replacement for oil both as a source of energy and as a raw material for plastic. Another involves enriching dairy products to improve health. Another involves a smart chip that can change the use-by date on packaging when, say, meat has been left out of the fridge for too long. 8
But are your researchers on a private-sector leash? Does this joint approach undermine the quality of your basic research? Absolutely not! Look at the rankings for academic publications, in which Wageningen scores so brilliantly. It is this sector-driven partnership that appeals to me. A partnership in which the initiative and the energy come from the knowledge institutions and the entrepreneurs themselves. With the government in an active facilitating role. This approach makes full use of the power of society. And it is this approach that I have in mind for the top sectors of the Dutch economy. This government is focusing on nine sectors that revolve around knowledge and innovation. In recent months, businesses have got together with government bodies, universities and knowledge institutions to produce a rapid flow of concrete proposals to strengthen competitiveness in these top sectors. The response has revealed a mine of energy and creativity. This is inspiring! And motivating! 9
And it strengthens my belief that true innovation and fresh ideas come not from central government but from society. This approach is based on a fundamental choice for less government and more society. A choice that will allow us to keep our polder model and our many institutions in step with the times. Because many institutions from the Social and Economic Council to trade unions, housing corporations and broadcasting associations are under pressure. I see the government s top-sector approach as a polder model for knowledge and innovation, building on our tradition of partnership and consultation. Our polder model has ensured harmonious labour relations while also allowing our economy to be modernised. Time and again we have used it to boost our earning potential in a changing world. And to provide secure prospects at times of uncertainty. In other words, our polder model is a great good. It can still help us achieve our ambitions. 10
But at present our focus is still on reaching labour agreements. This must shift to a focus on the main growth factor of the future and that is knowledge. Universities and research institutes will play a key role in this process. If we get the right partners around the table, if we establish new contacts, if we all play our part, we can harness society s energy, creativity and knowledge. Just as Wageningen has been doing for so many years. And as we are doing with the top sectors now. Next week I shall present my response to the top-sector proposals. I will then invite their representatives to sit down with the government to take this approach forward with drive and ambition. My expectations are high, thanks to the shining example set by Wageningen -- together with other successful approaches, like that of the Brainport in the southeast of the Netherlands, aimed at high-tech and other key sectors. 11
[Radical new approach to higher education] Ladies and gentlemen, In the field of education, too, Wageningen is an inspiring example. For years you and other agricultural institutions have been working closely with businesses in the Green Knowledge Cooperative. It s a partnership from which all parties benefit. Talent is deployed where it is most needed. Courses are tailored to the needs of stakeholders. And businesses can respond to exciting new developments in research. For a strong economy we need to mobilise all talent. We need top-quality education and we need students to excel. After all, the pupils and students of today are the researchers, entrepreneurs and engineers of tomorrow. The Netherlands needs more bright graduates and skilled professionals to boost our earning power with their knowledge and ideas. That is one of the government s top priorities. 12
This is why the approach to higher education in the Netherlands is going to change radically. The aim is both to foster more talent and to profit from that talent. The bar needs to be raised, both for students and for universities. We want to get more out of every euro that we invest in higher education. So for students, selection will be stricter, courses will be more intensive and greater demands will be placed on performance. For their part, universities and colleges will have to specialise more. This is the only way to distinguish themselves internationally. Do we really need courses in law, psychology and business administration in every town in the country? At the end of the day, we also need to deploy all that talent. How can we ensure that we train people for professions that are in demand? How can we ensure that courses tie in better with the needs of business and society? 13
We ve been debating this for a long time now. Initiatives have been taken to improve the match between supply and demand. Yet the business, education and research sectors fail to see the urgency of this problem. One exception is agricultural education. So this is an important theme on the agenda that I will soon be fleshing out with representatives from the top sectors. We can only turn higher education around if we take joint responsibility. The government will play its part, as you will see on Budget Day. We are making sweeping cuts, but on the whole the education ministry will be spared. The savings from any cuts to higher education will be used to improve the quality of higher education. So what do I expect of you? I expect students to do their best to shine. I expect universities and colleges [of higher professional education] to produce graduates who stand an excellent chance of getting a job. 14
And I expect businesses to help provide education that responds to commercial needs. By setting up scholarships and work placements, by helping with curriculum programming and by making employees available for practical training in the classroom. For the Netherlands to grow stronger, we need to be aware that the choices we make as individuals have an impact on society as a whole. We have somewhat lost sight of that fact, after fifty years of sheltering under the umbrella of a prosperous state. But the challenges we face today mean that we can no longer passively rely on that protection. 15
The great thing is that if we all take responsibility, we all benefit. Young people who invest in education that makes them attractive to employers will have greater job security and more interesting careers, while at the same time contributing to the Netherlands earning potential. Companies that invest in education will reap the reward in the form of skilled professionals. And not only will they become more competitive the Netherlands will too. And universities that invest in top courses will attract the brightest students. [Conclusion] Ladies and gentlemen, Let s get back to what I see as the crucial question. How do we ensure that we can continue to earn a good living in the future? And how do we offer people bright prospects at times of uncertainty? 16
The new policy on industry and the top-sector approach provide answers to those questions. The Netherlands is very well placed to conquer the world s growth markets. But if we are to cash in on this prospect, we need to get better returns from research and education. To do this, every one of us will have to play their part in building a strong economy and in helping to solve the challenges facing society. To do this, we need society to take more initiative and we need more teamwork. We need a government that facilitates and does not create obstacles. To do this, we need a polder model for knowledge and innovation, so that more universities and research institutions can follow Wageningen s example. Because here you are producing top-quality research, top-quality education and top-quality students. By attracting students from around the world you are helping to build a strong economy and a strong society. 17
This is how we can ensure that the Netherlands is able to tie into growth markets and continue to generate income. This is how we can provide a sustainable and stable future for generations to come. A future with jobs and pensions, clean water and clean air, lighting and heating, good schools and good hospitals. And, last but not least, healthy and sustainable food production. Thank you. 18