By analysing the innovation system we have identified a number of failures in the Dutch biotech sector. These include (1) over regulation, (2) lack of venture capital, (3) low acceptance of biotech products, (4) not enough qualified personnel and (5) insufficient linkages between the research and the business world. These failures are not unknown, the ministry of Economic affairs, to a large extent, recognises the same. On its website, it proposes measures to deal with some of these failures.
The government has started to lessen the administrative burden resulting from extensive biotech regulations. As mentioned, this is mainly focussed on SME’s: SME’s are exempted from certain payments, and they are provided guidance. Second, to deal with the lack of venture capital, subsidies are available for biotech starters. This helps reduce the risk of setting up a business in this field. The lack of linkages, third, is mainly adressed by stimulating entrepreneurship. The government hopes this will result in more researchers setting up their own business.
The other failures seem to be lower on the government’s priority list. Actions to win the population’s hearths for biotech products are only just beginning. There are public debates about the acceptance of biotech product but large scale campaigns (e.g. Postbus 51) are not yet available. Also, the problem of insufficient personell is not yet widely recognised by the government. Although the government is stimulating people to study exact sciences, this is not tailored to biosciences. Furthermore, the existing beta-initiatives are not at all successful.