Debate over improving productivity through innovation

In 2003, for the third consecutive year, the Dutch economy continues to lag behind the EU as a whole. Attention is increasingly turning to improved labour productivity as a solution, especially as continuing wage moderation does not seem to be having the desired effect. A wave of relocations of high-quality production and research and development from the Netherlands to other countries has fuelled the debate, which has been prominent during 2003. The social partners and government alike see improving the Dutch climate of innovation as one of the most important factors in the drive to raise productivity. However, policy on innovation has yet to crystallise.