Show political courage and abolish the innovation subsidies. It is not the first time that the subsidy funds are not being used (FD, August 5). If we really want to break through this incredibly complex and inefficient system, we need to abolish the subsidies.

Subsidies are provided on the condition that the industry, universities and research institutions work closely together. That in itself is a laudable intention, but the government determines the final content of the innovation programs, targeting the long term. So, in order to get the money, the research objectives of universities and research institutions are focused on the major themes and multi-year research, while industry with its much greater dynamism struggles to introduce its own innovation goals.

Medium-size innovative companies are the victims
The business world is expected to bear at least 50% of the total investment costs to be eligible for subsidies. The government stimulates large research projects and also universities and research institutions benefit from long-term research programs. This means that the costs for a medium-sized innovative company can hardly be recovered. In order to be eligible for subsidies, strange and forced consortiums come into being of companies whose interests are so diverse that real collaboration and innovation no longer exist. The overheads are large and the economic impact is too low.
Once a collaboration has been established and the project has been funded, a discussion arises about the intellectual property of the jointly developed information. In many cases, as a company you have to pay licenses on the knowledge you have contributed yourself.

Stimulate entrepreneurship
Thanks to the present system, the gap between business on the one hand and the universities and knowledge institutions on the other hand is increasing. This certainly applies to the medium-sized companies where many innovations take place which lead to the achievement of economic value.
Abolish the subsidies, make fundamental knowledge developments at universities freely accessible again, assess the knowledge institutes in the actual application of their knowledge, encourage entrepreneurship and allow intellectual property to serve the interests of business. Also bring back the technical development credit.

This is opposed by the many consultants who have a direct interest in the subsidy system and the many officials in their ministries who are too busy thinking of all the conditions, without involving business. In today’s world, innovation takes place precisely at the boundaries of companies, the boundaries of sectors, the borders of countries.
The subsidies are issued within the frameworks of ministries, with the result that you are almost forced to divide a subsidy application into three pieces. One piece for the Ministry of Agriculture, one piece for the Ministry of Economic Affaires and one piece for the Ministry of Education. This is impossible. It misses the target.