RESEARCH PAPER ‘GLOBAL INNOVATION INDEX’ · The Global Innovation Index measures the capacity...

RESEARCH PAPER ‘GLOBAL INNOVATION INDEX’

Research to the global innovation index

facing the countries the Netherlands and Singapore,

from students of the minor Innovation & Creativity

Project supervisor:

Kees van Kaam, teacher

[email protected]

Research group:

Group B4

Lea Jankovsky

Maarten van Kroonenburg

Geerd van der Kruijs

Janis Pawlitza

Larissa Willems

Research Paper ‘Global Innovation Index’ Group B4

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SUMMARY

In this research paper, the research will be explained on the subject of what countries like The

Netherlands and Singapore makes them innovative. In this report, the research to factors like

economy, politic, technology, etc. of the two countries have been discussed. At the end, the research

group wants to have more clarity on the composition of the global innovation index where all the

countries of the world are ranked on their innovation.

The purpose of this research is to provide a comparison between the Netherlands and Singapore on

an innovation level, and why one country is higher on the innovation index than the other. Ultimately, a

conclusion will give information about what factors contribute to a more innovative nation.

The objective of this research is to find why one country is more innovative than the other. With this

research we want to learn which factors are critical for a country to be more innovative then the other.

We can also want to clarify why one country is higher on the innovation index than the other country

is.

The question of this research is as follows:

“Why are there differences in the level of innovation between Singapore and The

Netherlands?”

In response to the question, the method desk research was used as research strategy. Many articles

and information from the Internet has been used to find an answer to the main question of the

research.

To answer this question there are several factors between Singapore and The Netherlands compared.

Innovation is something, which is hard to control by government. There is no receipt for stimulating

innovation in a country or a business but there are some very important factors that can help stimulate

innovation. These factors are:

-‐ The region needs to contain mature companies

-‐ Demand

-‐ Technological opportunities

-‐ Investment capital

-‐ Stable political systems


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PREWORD

We are students of the minor ‘Innovation and Creativity’ at Avans Hogeschool in Den Bosch and we

present to you a research about the innovation level of the countries: Singapore and The Netherlands.

The research is made as an assignment for the lecture ‘knowledge ring’. First of all we want to thank

Kees van Kaam for the accompaniment and secondly we want to thank ING for the research they

made about the innovation level of countries. The research is made with the use of more desk

research and less field research.

Group 4b Innovation & Creativity

‘s-Hertogenbosch, 11th October 2013


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CONTENT

SUMMARY 2

PREWORD 3

1 INTRODUCTION 5

2.1 Occasion 5

2.1 Relevance 5

2.1 Motivation 5

2.1 Objective 6

2 BACKGROUND INFORMATION 7

2.1 What is the Global innovation index? 7

2.2 Who has introduced the index? 7

2.3 Criteria for the index 7

3 RESEARCH QUESTION 8

3.1 Main question 8

3.2 Sub questions 8

4 METHOD 9

4.1 Instruments 9

5 RESULTS 10

5.1 What are the features of the two countries? 10

5.1.1 Demographic 10

5.1.2 Economic 11

5.1.3 Social cultural 12

5.1.4 Technological 13

5.1.5 Ecological 13

5.1.6 Politics 14

5.2 What kind of important (global) innovations did the two countries make in the past? 15

5.2.1 Singapore 15

5.2.2 The Netherlands 16

5.3 What is the relationship between a good economy and an innovative country? 20

5.3.1 Economy 20

5.3.2 Innovation 20

5.3.3 The relationship 20

5.3.3 The Netherlands and singapore 21

5.4 What defines the innovation capability of a country? 22

5.4.1 What where the crucial factors that stimulated the innovativeness for Singapore and The Netherland 23

6 CONCLUSION 25

7 REFLECTION 26

8 REFERENCES 27

ATTACHMENT 30


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1 INTRODUCTION

2.1 OCCASION

Today one of the most important investments for companies is innovation. Due to an increasingly

changing world, the behavior of the consumers changes quickly and it is a big challenge to live up with

the expectations. Companies are constantly under pressure to come up with new ideas for new

products to be able to keep up with the competition. But does this whole story count for a country

either?

A research about innovation as a country leads to the knowledge that there can be big differences in

the level of innovation between different countries. It is fundamental to point out that there are a lot of

countries that have problems to be innovative. Therefore it is essential not just to mention the

elements of the definition, but also to analyze keywords like industry, national, or global levels that are

beyond the firm’s control.

It is a big matter of relevance to look at these elements, to figure out the key factors of innovation. This

research primarily focuses on the level of innovation of The Netherlands and Singapore. The reason

why only these two countries are reported is the remarkable position of both countries in the

innovation-ranking list.

With this as a starting point, there is the need to take a look at the level of innovation. It is important to

realize why some countries have a high level of innovation or a low level of innovation or even no

innovation at all, to fully understand where innovation is coming from and what the conditions are.

Consequently there is a main question. Because of the economic crisis, it is interesting to search for

the question: is innovation a solution for a country to create economic growth.

2.1 RELEVANCE

The purpose of this research is to provide a comparison between the Netherlands and Singapore on

an innovation level, and why one country is higher on the innovation index than the other. Ultimately, a

conclusion will give you information about what factors contribute to a more innovative nation.

2.1 MOTIVATION

When we did some research on the Internet, we found a Global Innovation Index. This is a list with the

most innovative countries. We started to ask questions and we wondered why other countries were

more innovative than others. We would like to know the features of these countries en why they are

innovative.


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Because there were a lot of countries on the list we chose two countries with an economy that doesn’t

look like each other. We chose for Singapore and the Netherlands. Singapore is a very innovative

country and the Netherlands is in the middle of this list. We would like to know what the influences are

in a country that increases their innovation.

2.1 OBJECTIVE

The Objective of this research is to find why one country is more innovative than the other. With this

research we want to learn which factors are critical for a country to be more innovative then the other.

We can also want to clarify why one country is higher on the innovation index than the other country

is.


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2 BACKGROUND INFORMATION

2.1 WHAT IS THE GLOBAL INNOVATION INDEX?

The Global Innovation Index is part of a comprehensive research study that looked at both the

business outcomes of innovation and a government's ability to encourage and support innovation

through public policy.

2.2 WHO HAS INTRODUCED THE INDEX?

The index is published by Cornell University, INSEAD and the World Property Organization in

collaboration with the ‘international strategy-consulting firm’ Booz & Company and other partners.

2.3 CRITERIA FOR THE INDEX

The Global Innovation Index measures the capacity for innovation and the innovation performance of

the 142 most important global economies. It is computed as an average of two sub-indices: the input

sub-index and the output sub-index. The input sub-index describes the enabling environment for

innovation and the output sub-index measures actual achievements in innovation. Both sub-indices

are divided into different aspects. These different aspects are analysed in more detail in the following

part.


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3 RESEARCH QUESTION

3.1 MAIN QUESTION

The question of this research is as follows:

“Why are there differences in the level of innovation between Singapore and The

Netherlands?”

3.2 SUB QUESTIONS

To answer the main question, there are a number of sub-questions prepared, including the following:

1. What are the features of the two countries?

a. Demographic

b. Economic

c. Social-Cultural

d. Technological

e. Ecological

f. Political 2. Which kind of important (global) innovations did the 2 countries make in the past?

3. What is the relationship between, a good economy and an innovative country?

a. Potential investment area

b. Conclusion (Singapore and the Netherlands)

4. What defines the innovation capability of a country?

a. In which way does employment influence innovative countries

b. Conditions to be innovative

c. Space to be innovative


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4 METHOD

This chapter will explain how the results related to answering the question of this study were obtained

in more detail. There are various methods of applied research, including desk research and fieldwork.

In addition, the procedure of the fieldwork, the contributions of the respondents and the analysis of the

data obtained are discussed.

4.1 INSTRUMENTS

In response to the question, we have chosen to combine desk research as a research strategy.


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5 RESULTS

In this part the results of the research will be given, divided in the sub-questions that were already

mentioned. In some parts of the research you can find a reference trough footnotes, the figures can be

found in the attachments.

5.1 WHAT ARE THE FEATURES OF THE TWO COUNTRIES?

In this chapter the different features of Singapore and the Netherlands will be explained. The features

that have been researched are the demographic -, economic -, social -, technological -, ecological -

and political features. We used the DESTEP-model to research this.

5.1.1 DEMOGRAPHIC

In this part the characteristics of the population will be explained. The characteristics are divided in

population, age, income and purchasing power.

Singapore

Singapore counts 5.460.302 inhabitants. This is divided in multiple groups. The largest group

are the Chinese. They are 76.8% of the whole population of Singapore. The Malays are

13.9%, they are the second largest group in Singapore. The Indians are 7.9% and other

groups are the remaining 1.4%. 1

Age % Population Men Women

0-14 13,8% 338.419 314.704

15-64 77% 1.774.444 1.874.985

> 65 9,2% 196.101 242.084

The Netherlands

The population in the Netherlands has been growing steadily. In 1960, 11.5 million people were

counted in the Netherlands and in 2012, 16.7 million. This means there has been a population growth

of about 46% in the last 50 years.2 The Netherlands is one of the most densely populated countries in

the European Union with a total area of 41500 km3. The life expectancy of the Dutch people increases

year by year. On average the men will get 78.84 years old and women will get 83.08 years old.4

1 http://nl.wikipedia.org/wiki/Singapore#Demografie 2 http://www.tradingeconomics.com/netherlands/population 3 http://www.holland.com/global/tourism/article/facts-figures.htm 4 http://www.indexmundi.com/netherlands/demographics_profile.html


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5.1.2 ECONOMIC

In this part important information about the economy of Singapore and the Netherlands will be given.

Singapore

Singapore has a highly developed and successful free-market economy. Singapore has a growing

economy because of their export. They deliver several electronic products, information, technology

products, pharmaceuticals and they have a growing financial services sector. Singapore's economy is

ranked as the most open economy in the world, least corrupt, most pro-business and has low tax

rates5. Because of their free-market economy, and multiple laws to stay in control of this, Singapore

has the chance to grow their economy every year.

There isn’t much unemployment in Singapore. The unemployment rates:

Unemployment rate 2% (2012 est.) 2% (2011 est.)

Unemployment, youth ages 15-24 Total: 12.9%

male: 9.9%

female: 16.6%6

The Netherlands

The Netherlands is a country with an open economy. The economy is characterized by stable

relationships, relatively low inflation, sound financial policies and an important role as an European

transport artery. Food processing, chemicals, oil refining and the manufacture of electrical appliances

are the main industrial activities. The Netherlands also deliver a lot of agriculture and horticulture.

They are the third biggest country that exports such agricultural and horicutral goods.7

The unemployment rates for the Netherlands are higher than the Singaporian unemployment rates:

Unemployment rate 5.8% (2011 est.) 6.8% (2012 est.)

8.7% (2013 est.)

Unemployment, youth ages 15-24 Total: 6.6%

male: 7.1%

female: 6.2% (2009)8

5 "Country Rankings". 2013 Index of Economic Freedom. The Heritage Foundation. 2013. Retrieved 18 April 2013.

6 http://www.indexmundi.com/singapore/economy_profile.html 7 http://nl.wikipedia.org/wiki/Economie_van_Nederland 8 http://www.indexmundi.com/netherlands/economy_profile.html


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5.1.3 SOCIAL CULTURAL

In this part the values, education and the religion of Singapore and the Netherlands will be explained.

Singapore

Although Singapore is a high-developed country with a lot of western influents; the typical Asian

values are present. Politeness is their most treasured value. If you visit the country, your smile is the

most important thing. You have to show that it is a pleasure to be in Singapore. The inhabitants are

very proud of Singapore and they want to keep the country clean. You can’t throw something at the

ground; the fines are very high. Singapore has multiple cultural groups in their society. Because of this

there are a lot of different religions.

• Buddhism (42,5%) • Islam (14,9%; mainly ethnic Malays) • Christianity (14,6%) • Taoism (8,5%; mainly ethnic Chinese) • Hinduism (4%; mainly ethnic Indians) • Remainder (0,7%) • No religion (14,8%).

The Netherlands

Values that are important to the Dutch:

• Modest

• Tolerant

• Independently

• Self-reliant

• Education

• Hard work

• Punctuality

• Cleanliness and neatness9

• Honesty

• Family-oriented10

Religion

The Netherlands has no state religion, but over thirty per cent of the people are Roman Catholic,

about twenty per cent is Protestant, and over five per cent are Muslim. A large percentage of the Dutch

inhabitants are atheist.11

9 http://www.ediplomat.com/np/cultural_etiquette/ce_nl.html 10 http://www.mydestination.com/amsterdam/usefulinfo/6175164/dutch-customs-and-culture 11 http://www.indexmundi.com/netherlands/religions.html


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5.1.4 TECHNOLOGICAL

In this part the technological features and their technological development of the Netherlands and

Singapore will be explained.

Singapore

Singapore delivers information technology products. They are a high development country in

technology and Singapore has good research institutes in universities that supports the development.

Their focus is on materials, research and development in nanotechnology. Singapore does research

for the air companies, mobility and medical technology.12

The Netherlands

Research, development and innovation play an increasingly important role in the Netherlands. The

Netherlands are among the most productive countries in scientific publications. With 72 scientific

publications per 100 researchers, the Netherlands is one of the most productive countries (with

Switzerland) worldwide.13

5.1.5 ECOLOGICAL

In this chapter the ecological features of both countries will be explained. The focus will be at the

positive and negative environmental factors.

Singapore

Singapore is a high development country. They deliver a lot of technological products. Those products

have to be produced, because of this the emissions of CO2 is high. Singapore is also a country with a

high number of inhabitants. They have to feed and use a lot of energy. Their ecological footprint is

higher than most of the other countries in Asia.14

The Netherlands

For centuries, the Netherlands has had one big enemy - the water. More than a quarter of the Dutch

territory is below sea level. However, by a globally unique water protection program, the Netherlands

has dry feet since 20 years.15

12 http://singapore.nlambassade.org/zaken-doen

13 http://www.kooperation-international.de/buf/niederlande/bildungs-forschungs-und-innovationslandschaft/forschungs-und-innovationslandschaft.html

14 http://managing21.blogspot.nl/2012/03/bevolking-singapore-heeft-grootste.html 15 http://www.proplanta.de/Agrar-Nachrichten/Umwelt/Wie-Holland-das-Hochwasser-managt_article1371363156.html


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5.1.6 POLITICS

In this chapter the politics will be explained and also the law for companies.16

Singapore

Singapore is a republic with more aspects of a dictatorship instead of a democratic country but it is

very successful. They are not corruptive and they have an open economy.17

Singapore has a government that arranges a good working environment for the employees. The

employees have a workweek from about 44 hours. 8 Hours on Monday till Friday and on Saturday

they work for 4 hours. The employees can only work 72 hours more per month. The employees get a

150% above their salary if they work more than their normal hours.18

Singapore has a very strict law for the companies. Everything is documented. Because of this

Singapore is a very attractive country to start a business, especially for international companies.

Thereby it is easy to start a new company in Singapore.19

The Netherlands

The Netherlands is a parliamentary monarchy. The head of the state is the king, currently King Willem-

Alexander. He officially appoints the Prime Minister and the Minister, together they form the

government. 20

According to the Dutch law you are allowed to work a maximum of 9 hours a day and 45 hours a

week. However, a person is only allowed to work 2080 hours a year, although the average working

week is 40 hours. 21

When starting your business in the Netherlands there are rules and obligations you have to observe.

In some cases you will have to register your business at the Dutch Chamber of Commerce or the

Dutch Tax and Customs Administration. You may also need permits and licences to be able to render

your service and there may be certain professional requirements you will have to fulfil.22

16 http://issuu.com/mkbservicedesk/docs/zakendoenmetsingapore 17 http://nl.wikipedia.org/wiki/Singapore#Politiek 18 http://issuu.com/mkbservicedesk/docs/zakendoenmetsingapore 19 www.abnamro.nl/nl/.../Singapore_Poort_naar_Azi%25C3%25AB.pdf 20 http://www.amsterdam.info/netherlands/political-system/ 21 http://www.iamexpat.nl/career/main/environment 22 http://www.kvk.nl/download/Starting%20your%20own%20business_tcm14-264958.pdf


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5.2 WHAT KIND OF IMPORTANT (GLOBAL) INNOVATIONS DID THE TWO

COUNTRIES MAKE IN THE PAST?

5.2.1 SINGAPORE

In Singapore there is an agency called A*STAR (Agency of Science, Technology and Research).

"A*STAR in Singapore is the umbrella under which several research institutes and consortia are

housed.”

These institutes build intellectual capital and train researchers to work with universities and companies

to contribute to the scientific landscape in Singapore. A*STAR reports to the ‘Ministry of Trade and

Industry' and encouraging public-private cooperation in the triple helix. Inside A*STAR some 3,000

scientists working in two research divisions, namely biomedical and high tech.

"A * STAR is central to the development of Singapore's knowledge economy. The research and

innovations in research institutes and consortia of A * STAR bridge the innovation gap between

universities and industry."23

This could be seen as an innovation in the form of a business model. By disseminating many institutes

in Singapore, the entire knowledge environment is strongly promoted. And so many areas and

laboratories like ‘FusionWorld’ are developing big dynamic and interactive inventions.

Another example of a great innovation in Singapore is the 'GUSTO' project in which the influence of

lifestyle and diet of the mother on the development of metabolic diseases such as diabetes and

obesity is being investigated in children.

There are also new coatings being developed in the ports and industrial areas that are preventing the

depositing of dirt on ships and roofs. Nanotechnology is used in order to inhibit the growth of antibiotic

resistant bacteria.

Singapore is investing heavily in infrastructure, knowledge and innovation to remain a stable economy.

Among the world many companies as well as ‘think tanks’ and regional training institutions are

sensitive to, and work within the region of Singapore.

Every five years, a 'Science and Technology Plan’ is being presented, which forms the basis for the

growth strategy. It includes extensive investment programs, but also to improve of fiscal conditions

and aims to break any barriers.

23 http://www.agentschapnl.nl/sites/default/files/Innovaties%20uit%20Publiek-Private%20Samenwerkingen.pdf www.a-star.edu.sg/


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"Currently offering the sectors 'Water / Marine', 'High Tech, Life Sciences & Health' and 'Food &

Nutrition' most opportunities. By a proactive commitment brings the embassy partnerships established

in the 'golden triangle' of government, research institutions and companies. It makes good use of the

various areas of expertise in the economic team in the field of investment, trade and innovation."

The services and processes are the elements that make Singapore a rich and innovative country. As

mentioned above, there are four areas in which Singapore’ strong innovative work is carried out. Per

sector we’ve got some examples:

• Water / Maritime: Singapore is the busiest port in the world in terms of cargo handling with

around 140.000 ships a year at the port. The port is a regional hub for containers

transhipment, which is reflected in the number of cargo properly. There is a particular focus on

the development of Singapore as an international maritime centre and as a global hub for

shipping.

• High Tech: The focus is on research into materials and developments in nanotechnology, with

applications in aerospace, biomedical technology and mobility. Within the airline industry, for

example, there are lots of opportunities for companies and knowledge institutions with

research programs and expertise in composite materials.

• Life Sciences & Health: There is a budget of € 80 million for research into cancer, metabolic

disorders, infectious diseases and neuroscience. Cardiovascular diseases affect billions of

people in Asia in future generations. Singapore anticipates on this by the stimulation of

preclinical and clinical research for the industry.

• Food & Nutrition: Recently, several research initiatives have been launched, such as the

Clinical Nutrition Research Centre. Especially in the field of food safety, there are plenty of

opportunities for companies to develop such initiatives further by.24

Singapore did some technological innovations that travelled the world very fast. Think of the USB flash

drive, the Soundblaster soundcard and the mini capsule speakers.25

5.2.2 THE NETHERLANDS

According to the Global Competiveness Report 2011-2012, the Netherlands is one of the most

innovative and competitive nation around the world and are therefore located in the top ten. In addition

the Netherlands stand in the forefront considering the three subindizes frame conditions, efficiency

and innovation. Due to that the balance of competitive capability is shown.

In the Netherlands research, development and innovation plays a decisive role. In 2011 the

government defines top-sectors for research and innovation. These top-sectors are life sciences,

24 http://singapore.nlambassade.org/binaries/content/assets/postenweb/s/singapore/ambassade-van-het-koninkrijk-der-nederlanden-in-singapore/import/fenedex-artikel-ambassade-singapore-dec-2012.pdf 25 http://travel.cnn.com/singapore/shop/5-best-tech-inventions-singapore-rocked-our-world-423291


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chemistry, energy, logistic, water, high-tech systems, food, creative industries as well as gardening

and plant production.26

The High Tech Campus Eindhoven, which is also known as “the smartest square kilometres of the

Netherlands”, is the central point of Dutch knowledge and innovations. Today over 100 companies and

8000 researchers, developers and entrepreneurs are located near Eindhoven to develop new

technologies and products. Koninklijk Philips N.V is one of the greatest electronic enterprises

worldwide which was located in Eindhoven till 1997. The High Tech Campus is a perfect location

where companies can work together and share their knowledge to boost the innovation capability.

Philips changed the business model to open innovations due to fast changing market conditions. Open

innovation means that companies combine extern and intern sources for the development and

commercialisation of new products and technologies. With this business model it is possible to be less

susceptible to market fluctuations or sharing the high development costs.

In 2003, Philips invested about 500 Million Dollars in the High Tech Campus Eindhoven to create an

ecosystem for high-tech companies. The goal was to create a place where people and companies

come together to share their knowledge and inspire each other. They brought all the company

canteens together at one location. They set up cafes, shops, restaurants and wellness centres to

make it a great working place. Companies consider the Campus as the most fertile location for

research and development activities.

Hearing how Philips even put an effort in an innovative working surrounding, it is imaginable that the

company had a worldwide success with global innovations. Even years ago Philips was an innovative

leading company. To name a few succesfull innovations: 1963 they were introducing the compact

cassette and the cassette recorder, 1976 they delivered the first colour television to Europe and in

cooperation with Sony they introduced the first compact disc in 1979 in Eindhoven, at a press

conference titled "Philips Introduce Compact Disc". Besides that they were the first company which

introduced the compact energy saving fluorescent lamp which was called the SL-Lamp in 1980. In

addition they made a big step for the medicinal sector. The research laboratory in Hamburg created

the first pictures of a human head in the world in 1984. They made this happen with the help of

magnetic resonance tomography, which is a diagnostic technique without X-ray beams.

Today they are developing high-efficiency solar cells, 3D television and mobile brain scanning

equipment.27

Another big innovation from the Netherlands was the telescope that appeared for the first time in the

Netherlands arround the year 1608. The individuals Hans Lippershey, Zacharias Janssen and Jacob

Metius developed the telescope. Galileo heard about the Dutch telescope in 1609, improved it and

26 http://www.internationales-buero.de/en/1021.php

27 http://www.hightechcampus.com/news/article/phenomenon_called_high_tech_campus/?utm_source=www.google.nl&utm_medium=organic&utm_content=/url


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made the instrument famous. The invention rapidly spread through Europe. It counts as the prototype

of modern scientific instruments and was called the Scientific Revolution of the seventeenth century.

The telescope was a big and important innovation in the time because it was the first extension of one

man’s senses, with which it was possible to see unsuspected phenomena in the heaven. Besides that

it helped shift authority in the observation of nature from men to an instrument, which was a big step.28

The telescope shows how important the Dutch knowledge and innovations were for other countries

and how it helped to develop them.

The Japanese developed “Rangaku” in the period of 1641-1853, which means “Dutch Learning” and

refers to the body of knowledge. For 212 years this was the only way for Japan to keep up with the

European scientific Progress and it helped the development of the Japanese medicine, anatomy,

engineering, meteorology and chemistry.29 Through Rangaku, Japan learned many aspects of the

scientific and technological revolution occurring in Europe that time. The Dutch traders were the only

European foreigners tolerated in Japan and the Japanese purchased, translated and analysed

scientific books from the Dutch from different sectors. They obtained medical sciences, physical

sciences, electrical phenomena, chemistry, mechanical sciences such as clocks and pumps,

geography, biology and optical sciences. In this way they received demonstrations of Western

innovations, such as the flight of a hot air balloon in the 19th century. From all European nations the

Dutch were the most economically wealthy and scientifically advanced nation. This is the reason why

they had a privileged position to transfer Western knowledge to Japan. Through this knowledge a

small market for Western curiosities, developed in Japan and the Japanese started ordering

telescopes, clocks and maps for example. Through the optical sciences the telescope found his way to

Japan in 1614 by the English man John Saris. This telescope followed the invention of the telescope

by Dutchman Hans Lippershey. After 1640, the Dutch continued to inform the Japanese about the

evolution of telescope technology and until 1676 more than 150 telescopes were brought to Japan.30

The Dutch people invented a lot of products and methods in almost every sector, from communication

and multimedia to medicine, technology and engineering. A notable innovation in the sector of

transport was the first navigable submarine, which was the first one to address the problem of air

replenishment while submerged. This submarine was invented by the Dutchman Cornelius Drebbel in

1623 while working for the English Royal Navy. He covered a wooden frame with greased leather to

make a watertight, steerable craft for the Royal Navy. It was a decked-over rowboat, propelled by

twelve oarsmen, which made a submerged journey down the Tomas River and could reach a depth of

about fifteen feet. However, there are no authentic pictures of this boat and there are no real

explanations of how it worked. People are guessing that the boat has almost-neutral buoyancy,

28 http://galileo.rice.edu/sci/instruments/telescope.html 29 http://www.metafilter.com/53544/Rangaku-Dutch-Learning 30 http://archive.ifla.org/IV/ifla64/036-101e.htm


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floating just awash, with a downward-sloping foredeck to acts as a sort of diving plane. Like modern

submarines, the boat would be driven under the surface by forward momentum. When the rowers

stopped rowing, the boat would slowly rise.31

Another, more actual innovation of the Netherlands is the Project “MariTIM” which is carried out by a

cooperation between the Netherlands and Germany. The Dutch maritime industry wants the ships to

be smarter, cheaper, cleaner, safer and easier to operate. The objective is to be among the world’s top

three in 2015. According to this they are focusing on goals like availability and maintainability of

process installations, systems and structures on floating production platforms, orientation, deep-sea

activities (up to 3 kilometres deep), reduction of the ‘environmental footprint’, new designs from a

material scarcity perspective and quantify safety.32

The “MariTIM” project is the first maritime project where researches and networking will be clustered

and coordinated. The specialization of this technological collaboration is the development of innovative

and environmental compatible gear systems for ships. There are three innovation projects for different

kinds of ships and areas of operations. These are the development of innovative light weight

constructions of sailing rotors for small coastal vessels; researches of technological, infrastructural and

judicial requirements for the introduction of liquid gas gear in sensible areas; and the system

comparison and development of new motorisation concepts for the European river barge of the future.

They are proud to say that with this project they made it happen to have a unique, cross-border

maritime cooperation on a European level.33

Last but not least it is to mention that the Netherlands constantly trying to never to stop innovations.

For example, in the sector of Agri-food, which means that the food or drinks are developed with added

nutrients, the Netherlands excel in innovations. 12 Of the 40 largest food and drink businesses are

established in the Netherlands or have research and development activities there. By investing in

knowledge and innovation they are aiming to strengthen the international position.

Also in life sciences and health sector the Netherlands in one of the world’s top players. Due to the

aging population or the higher occurrence of certain diseases this market is growing and leaves room

for investments.

31 http://www.tno.nl/content.cfm?context=thema&content=innovatiegebied&laag1=892&laag2=907&item_id=907 32 http://www.mariko-leer.de/projekte/maritim/ 33 http://www.government.nl/issues/entrepreneurship-and-innovation/investing-in-top-sectors


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5.3 WHAT IS THE RELATIONSHIP BETWEEN A GOOD ECONOMY AND AN

INNOVATIVE COUNTRY?

In this part the relationships between a good economy and the level of innovation within a country are

compared.

5.3.1 ECONOMY

The economy of a country is based on a set of processes that involves its culture, values, education,

technological evolution, history, social organization, political structure and legal systems, as well as its

geography, natural resource endowment, and ecology, as main factors. 34

Since 2008 the world is in an economical crisis. As a result of the crisis the confidence in banks and

specific companies has been falling. People don’t invest anymore and this has got consequences for

the innovational level worldwide. As for the innovational level, there is a ranking for the economic

status of countries worldwide. In this report the: World Economic Forum will be used35.

5.3.2 INNOVATION

The innovation of a country is based on: institutions, human capital and research, infrastructure,

market sophistication, business sophistication (input pillars), knowledge and technology outputs and

creative outputs (output pillars).36 To be innovative it is important that there is money for investments

of course. That’s why there are not many “third world countries” on the global innovation list.

5.3.3 THE RELATIONSHIP

There are a lot of methods to measure the economy of a country. But there is no direct way to

measure the economy by using an innovation ranking, because of a wide variety of factors. The

Global Innovation Index and the economy ranking of WEF are making a bargain.37

After the beginning of the crisis in 2008, innovation is seen as the method to bring the economy back

to life. Innovations can build a stronger, cleaner and more inclusive economy is a statement that is

believed by many economists. The high-classified economic persons aren’t predicting solutions for the

crisis only by innovation, but combined with the knowledge economy and durability there are great

chances to get out of the crisis. There is more pressure to come up with good innovations for the

34 http://en.wikipedia.org/wiki/Economy 35 http://www.weforum.org/issues/global-competitiveness 36 http://www.globalinnovationindex.org/content.aspx?page=framework 37 http://www3.weforum.org/docs/WEF_GCR_Report_2011-12.pdf


21

different countries, to stay competitive and preserve their economic position worldwide. Most countries

realize this fact and create innovation policies and finances to make this possible.38

5.3.3 THE NETHERLANDS AND SINGAPORE

The economy of The Netherlands and Singapore is very dependent on their export this is not

something new. The Netherlands is relying on their export for over 500 years. The busiest port of

Europe is Rotterdam for example and the Port of Singapore is in the top five of busiest ports of the

world.

Besides the export Singapore’s economy is strong because of their business-friendly culture.

Singapore has one of the freely economies in the world; this means that the policies and institutions of

Singapore are supportive for economic freedom. The cornerstones of economic freedom are freedom

of expression, voluntary exchange, freedom to compete, and security of privately owned property.

Because of the good features of Singapore, the innovative companies will automatically settle

themselves in Singapore, which is making the country’s economy doing very well. Singapore’s

geographical location is a big plus for them as well. It is located in East Asia in a region that is making

positive economic progresses. Singapore is described as the “the undisputed oil hub” in the oil

increasing continent Asia because of their strategic geographical place in Asia.

Finally it is all about what the companies are doing in the countries. In Singapore there are 7000

multinational corporations from Europe, Japan and the USA and about 3000 companies from China

and India, a large amount of foreign direct investors.39

The Netherlands is in the top 20 global economic countries in the world. The agricultural sector is

enormous. The country is very small, but despite that one the Netherlands is one of the biggest

exporters of agricultural products in the world. According to the experts, the possibilities the dutches till

have to focus on export; the prediction is that the export focus will stay there in the future.

Singapore The Netherlands

R&D intensity: 11th

Productivity: 20th

High-tech density: 16th

Researcher concentration: 4th

Manufacturing capability: 10th

Tertiary efficiency: 20th

Patent activity: 53rd

R&D intensity: 18th

Productivity: 4th

High-tech density: 5th

Researcher concentration: 26th

Manufacturing capability: 60th

Tertiary efficiency: 51st

Patent activity: 40th

Innovative detail rankings40

38 http://www.nu.nl/economie/3361552/investeren-in-innovatie-oplossing-economische-crisis.html 39 http://en.wikipedia.org/wiki/Singapore#Economy


22

This table shows exactly what the main spears of the both economies are. Singapore is doing very

well in researcher concentration and manufacturing capability. The Netherlands qualities are in

Productivity and High-tech density instead.

Innovation is not the most important factor in a countries economy, but fact is that when the world is in

an economic crisis, as it is nowadays, it is important to invest in innovation. It’s logical, because when

there is no money, you have to be creative and innovative to come up with the right solutions.

Singapore is doing very well on the expertise of innovation and economy. In both of the rankings of

2013 the country is placed in the top 10. The Netherlands fall from place 5 on the economic ranking to

place 8 in 2013 and the WEF says one of the four reasons for the downturn is; “the low budget that

the country is making available for innovation”.41 This only adds up to the conclusion we already

made.

5.4 WHAT DEFINES THE INNOVATION CAPABILITY OF A COUNTRY?

In this chapter we will describe what defines the innovation capabilities of a country and why one

country could be more innovative than the other. We will look at three factors to see if that influences

the ‘innovativeness’ of a country.

To answer this question we first have to look at what factors does stimulate innovation. A research

from the Faculty of Entrepreneurial Business, Union University, Belgrade42 shows us the factors, which

stimulate a business to innovate. In summary these are the most crucial factors to stimulate

- New industries need to innovate more to compete with mature industries. Companies in the

new industries need to make radical innovations to change the market and sell their products.

This means it is important to have big, mature companies within your country to stimulate

innovation for the smaller companies.

- Demand is an unavoidable factor for innovations. A business will not innovate new products

and processes if there isn’t any demand for the new products. This means it is important for a

government to stimulate the demand for goods on a market to stimulate innovation.

- Technological opportunity’s is the most important factor for innovations. For a company

technological inventions and resources create the foundation to innovate products and

processes. Technical universities and companies with big Research & Development

departments are crucial to stimulate a countries innovations

- Investment capital is important to finance the innovations. Without it is very hard for

companies to make these innovations happen (both in process innovations as in product

innovations). This investment capital can come from more than one source, for instance:

40 http://www.bloomberg.com/slideshow/2013-02-01/50-most-innovative-countries.html#slide41 41 http://www.volkskrant.nl/vk/nl/2680/Economie/article/detail/3503354/2013/09/03/Nederland-uit-top-5-van-meest-concurrerende-landen.dhtml http://www.globalinnovationindex.org/userfiles/file/GII-2009-2010-Report.pdf 42 http://facta.junis.ni.ac.rs/eao/eao200801/eao200801-03.pdf


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Banks, business angels, private investors and companies. It is crucial to have a healthy

investment environment

- This leads to the last crucial factor for more innovations, which is a stable political system.

This does not mean their needs to be a democratic system, but the political system must be

stable. Without a stable government the investment environment can’t be healthy, so investors

will not take the risk to invent in a company, which is in such a country or region.

But we have to put a side note to this list. If a region or a country has optimized these factors, does not

mean that this region or country will be innovative. These factors can create the right circumstances to

stimulate innovations. There still are countries that have optimized every factor and are not innovative

and there are countries, which only have half of the list, optimized but are amongst one of the most

innovative countries. There are a lot of factors that influence the innovativeness of a country and it is

very complicated to just give a shortlist on how to stimulate it. These factors need to be adjusted on

the specific needs of a country. The success of a government depends on how good they can adjust

these factors to the needs of the country. 43

When we look at what we have examined so far. We can make some conclusions on what specific

factors created the right circumstances for The Netherlands and Singapore to be as innovative as they

are now.

5.4.1 WHAT WHERE THE CRUCIAL FACTORS THAT STIMULATED THE

INNOVATIVENESS FOR SINGAPORE AND THE NETHERLANDS?

What is interesting to see in the study we have did so far is that The Netherlands and Singapore both

are economically well-situated countries that are very small in size. Compared to countries such as

America or China, The Netherlands and Singapore relatively have small amounts of inhabitants but

both are still amongst the highest innovative countries there are.

It is safe to conclude that size does not influence the innovations in a country. Both countries have a

stable political system and have good healthcare and low unemployment rates. Technologically both

countries are focussed on different things but they have big companies that have huge R&D

departments and very sophisticated universities.

However the history of both countries is completely different. The Netherlands has been one of the

most innovative countries in the world since the 17th century. Singapore started to be more innovative

in the 20th century after they separated from Malaysia.

Another conclusion that is safe to make is that innovation does happen overnight. It takes time to get

the right atmosphere for an innovative country.

43 http://www.ifpma.org/fileadmin/content/Publication/2012/CRA_Policies_that_encourage_innovation_in_middle-income_countries_Web.pdf


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Lets look at the critical factors that made the countries successful.

Singapore

Singapore’s main reason for financial and innovation successes can be found in the three giant44

investment projects that they started when they became independent from Malaysia in 1965. One of

these giant projects was to invest in an artificial island called Jurong that supported manufacturing

activities. This island attracted Shell and they build their biggest petrochemical facility they have. With

Shell, Singapore attracted more and more foreign investments and companies.

To stay attractive to foreign companies and investors, Singapore created a very easy and cheap tax

system and builds a huge casino-and-leisure complex: Marina Bay Sands. Which costed around $3

Billion. With the money they earned they invested in high-tech campuses and a highly innovative

scholar system. This ensured the local people would get proper schooling and work for the technical

highly advanced companies within their country.

A smaller, but still critical factor is their strategic location. This strategic location made them a trading

outpost to the British in the 19th century and gave them the opportunity to build one of the biggest

harbours in the world.

These factors created the perfect environment to attract innovative people and companies that make

Singapore one of the most innovative countries of the world.

The Netherlands

The crucial factor for the Netherlands to be as innovative as they are today is their silver and golden

centuries in the 16th and 17th century. These centuries laid the foundation for a very rich country that

could invest in good schooling systems and have the most important harbour of Europe.

Rotterdam, the main harbour of Europe, still attracts a lot of foreign companies, which bring loads of

employment and money with them. As we learned earlier on in this paper, foreign mature companies

and money are two of the most important factors to create a good atmosphere for innovations.

Next to that, Philips still is one of the most technically advanced companies in the world. Phillips

contributed a lot to innovative Holland. They invested in a lot of small companies and created the

University of Eindhoven, which is seen as one of the best technical universities in the world.

The crucial factors for Singapore and The Netherlands both are very different but still created the right

atmospheres for very innovative companies. As mentioned before it is very hard to get everything right

to be innovative as a country, but the government can create the right conditions for innovative

companies.

44 http://www.nationmultimedia.com/opinion/Can-we-learn-from-the-success-of-Singapore-30206631.html


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6 CONCLUSION

With this document we wanted to answer the question: “Why are there differences in the level of

innovation between Singapore and The Netherlands?”. To answer this question we compared several

factors between Singapore and The Netherlands.

Innovation is something, which is hard to control by government. There is no receipt for stimulating

innovation in a country or a business but we found out there are some very important factors that can

help stimulate innovation. These factors are:

-‐ The region needs to contain mature companies

-‐ Demand

-‐ Technological opportunities

-‐ Investment capital

-‐ Stable political systems

When we compare Singapore and the Netherland we see that both countries have these factors. But

what I interesting is that the Netherlands have these factors for over 200 years and Singapore only

started by creating these factors since 1965.

When Singapore became a free country they immediately started to invest in the giant three projects.

These projects were very modern when they started it, which leaded to a very fast growing economy

and the attraction of a lot of foreign innovative companies. Local students wanted to work for these

innovative companies and so Singapore became very innovative. This is also known as: ‘Law of the

handicap of a head star’. Which means Singapore has a lot of benefits of the already very innovative

companies that came to Singapore.

The silver and golden century of the Netherlands brought a lot of wealth and money to the country

which caused a natural growth in technological advanced companies. The growth of innovation

companies took a very long time and the companies had to find out everything themselves. This took

a long time and the Netherlands has to cope with economical and demographical issues. These

issues leaded to less growth in innovation compared to Singapore.

This conclusion is based on the bigger factors we have found during our research. There are more

small factors contributing to the differences in innovation but there was not enough time (and room in

this research) to research all the circumstances that made the differences in the level of innovation.


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7 REFLECTION

The first part of our group work was to find a suitable topic for our final paper. We did a mind map

about all the insights of innovation. This was the easiest way to find the right topic.

The right topic was found quickly, and we agreed on it fairly quickly. Of course, there were also

discussions about the individual sub questions that should be included in our paper. Therefore, each

of us thought about individual sub questions. We discussed the several sub questions and made a

decision. Now it was possible to create the research plan. The next step was clarified quickly too.

Each group member was given a sub question to work out and we could start with the individual desk

research. Everyone had to deliver their product before a certain deadline. When everyone had finished

his part, the parts were put together. Since there should be a flowing text, one group member had to

read and correct the complete text.. Everyone has corrected its part again and one last final check was

performed. Finally, the conclusion could be written and the layout will be created for the final paper.

Looking back on the project itself, we should have gotten more time to work out the main question in

more detail so we could use more field-research. With more field-research we could have come to new

insights in what a government could do to make a country more innovative, but due to a lack of time

we weren’t able to properly do this.

Group work

The group work was very pleasant. Of course, we not always agreed immediately, but in a group of six

different characters from different countries that is not a very strange thing. Everyone has different

views and opinions on specific things. When finding a topic we all quickly agreed and we also split up

the work fairly easy and quick. Thereby almost everybody was present a group meeting, if not we

made special appointments. There were no major problems during the cooperation.


27

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9. ATTACHMENT

Global Innovation Index 2013 according to the Johnson Cornell University, INSEAD and WIPO (the

world intellectual property organization.

Source: The global innovation index 2013, The local dynamics of innovation.

http://www.globalinnovationindex.org/content.aspx?page=data-analysis

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