Publication > Part III: Policies for the future > Policy areas
In cities, people come together to benefit from each other. In cities, new technologies are developed. Cities are meeting points for people from within and outside. Together they stimulate the economy.
Good infrastructure is an important factor determining the location of a business. A second factor is regulation, including the tax system. Other factors like the knowledge economy and the welfare state add to the attractiveness of a city.
Excellent education for all children and an early start at school are crucial to maintain our competitiveness. Next, the ability to contribute to the knowledge economy implies that communication in English is crucial. The exact design of the education system is scenario specific.
Science creates knowledge. The main motive for the government to invest in science is that for a considerable part of scientific research a market does not exist. Few firms are willing to pay for fundamental research, but societies assign intrinsic value to science. The government's strategy depends on the target of knowledge creation: performance or utilisation. To benefit society at large, it is important that knowledge has a free flow. The establishment of a European Research Area and a unified patent system are necessary steps.
Technological progress results for the most part from innovation activities of private firms. Private incentives for innovation may differ from socially desired incentives, which could demand government intervention. This intervention has to look for seizing opportunities and make sure to not waste money.
Job opportunities and income varies widely across workers. Specialised workers have great opportunities to excel, but also run a high risk of unemployment. Workers in cities have better opportunities than those outside cities.
Workers on the labour market run the risk of losing their jobs. The opportunities for workers to cope with job uncertainty are retraining, job mobility or moving to another city. The government may support workers via employment protection, retraining programs and social security, at the risk of removing the incentives for workers.
In their interventions, governments have to choose between flexibility and security, between the ability to benefit from opportunities and insurance against negative shocks. Employment protection improves security but limits job-to-job mobility. Home ownership, and the protection of home owners, limits the flexibility of workers to respond to shocks.
Policy areas
Place of business
In a future where firms are able to choose where to locate, favourable location conditions are important. A city or country with good facilities and infrastructure and a business-friendly regulation is able to attract economic activity. But a city with poor infrastructure and inefficient regulation may loose competitiveness.In cities, people come together to benefit from each other. In cities, new technologies are developed. Cities are meeting points for people from within and outside. Together they stimulate the economy.
Good infrastructure is an important factor determining the location of a business. A second factor is regulation, including the tax system. Other factors like the knowledge economy and the welfare state add to the attractiveness of a city.
Knowledge economy
Knowledge is of increasing importance for production and will become more important in the future. The knowledge economy builds on education, science and innovation.Excellent education for all children and an early start at school are crucial to maintain our competitiveness. Next, the ability to contribute to the knowledge economy implies that communication in English is crucial. The exact design of the education system is scenario specific.
Science creates knowledge. The main motive for the government to invest in science is that for a considerable part of scientific research a market does not exist. Few firms are willing to pay for fundamental research, but societies assign intrinsic value to science. The government's strategy depends on the target of knowledge creation: performance or utilisation. To benefit society at large, it is important that knowledge has a free flow. The establishment of a European Research Area and a unified patent system are necessary steps.
Technological progress results for the most part from innovation activities of private firms. Private incentives for innovation may differ from socially desired incentives, which could demand government intervention. This intervention has to look for seizing opportunities and make sure to not waste money.
Labour market
The labour market in the Netherlands of 2040 may be scattered or highly clustered; it may be highly specialised or employ workers with general skills.Job opportunities and income varies widely across workers. Specialised workers have great opportunities to excel, but also run a high risk of unemployment. Workers in cities have better opportunities than those outside cities.
Workers on the labour market run the risk of losing their jobs. The opportunities for workers to cope with job uncertainty are retraining, job mobility or moving to another city. The government may support workers via employment protection, retraining programs and social security, at the risk of removing the incentives for workers.
In their interventions, governments have to choose between flexibility and security, between the ability to benefit from opportunities and insurance against negative shocks. Employment protection improves security but limits job-to-job mobility. Home ownership, and the protection of home owners, limits the flexibility of workers to respond to shocks.