Technology Diffusion in the Netherlands
This weblog aims at providing information about the diffusion of new technologies and services in the Netherlands.

The Technology Diffusion web-log is a part of the master’s course on ‘ Technology Policy ‘ at the University of Technology, Eindhoven , the Netherlands.

In this assignment we will discuss this subject area and pay particular attention to the policy interventions, by the government of the Netherlands.

Research Question:
Our Research Question, is on whether the Government of the Netherlands, has implemented policies that encourages the diffusion and adoption of Information Technology in the country. In this regard, our focus will be on the adoption of Broadband Technology.
Although the Netherlands ranks among the top European countries on Broadband adoption, not all sections of the society are involved.

In our work, we will try to identify some of those parts of the society where broadband adoption is yet to take-off. We will also recommend ways in which we think that can help the further diffusion of Broadband Technology into the society.

We hope that the information you will find here will contribute to your knowledge.

We welcome you and your comments.

Bobby

The aim of our web-log is to provide information on the diffusion of new Technologies in the Netherlands. Technology Diffusion is quite a large area and we simply do not have the resources to cover the entire spectrum of this subject.

We have published a number of materials, on various aspects to show how new technologies are diffusing in the Netherlands.
At a first look, the articles we have published here may seem unconnected, but the one single theme that runs through them is basically, the adoption of new Technologies by various entities that make up the Dutch society.

For the above mentioned reason, we decided to limit our research to the diffusion of Information and communication Technology (ICT). Within the domain of ICT, our major area of enquiry is the adoption of Broadband Technology.

We conclude that, while it is true that, the Netherlands ranks among top European nations, on the penetration of Broadband Technology.
However, some sections of the society are under represented in this advancement.
For example, in the large cities, there are some sections of the society that do not have broadband yet.
These include, Low income families, Elderly surviving on Welfare, the unemployed, new immigrants, etc.

One of the reasons why Broadband Technology has not yet widely penetrated the above mentioned groups, is that the initial capital outlay involved in purchasing broadband connection is steep.

There is also the problem of lack of knowledge as how to use computers and ultimately broadband Technology.

POLICY RECOMMENDATIONS:

- We think that the government can establish new policies that can further promote the spread of Broadband technology in the Netherlands.
For example, the government can introduce fiscal measures that can reduce the initial capital involved in acquiring a broadband connection.

- It should also create programmes where those who cannot afford to purchases computers due to financial constraints, can still be able to buy some, at a subsidized price.
One similar project that has been done in the past to encourage the use of computers, is the “PC PRIVE “project.
We think this programme should, with a few adjustments be encouraged and redirected towards the acquisition of Broadband Technology as well.

- Efforts should be made to encourage the training of people in ICT skills and broadband knowledge.

Further, there are a number of firms that provide Broadband Technologies in the Netherlands. Some of the companies include, KPN, Tiscali, Planet Internet, HetNet, etc.

Broadband Technology is important as a way of providing communication and other services to people. Every modern society today has it or is planning to acquire it, in the near future.

The methodology we used in this research is that of case study. We based our report on the studies carried out in the past, in this subject area.

One of the most impressive stylised facts of the previous decade was the economy-wide acceleration of ICT investment. This ‘ICT boom’ has given rise to many discussions about the potential of ICT to yield production externalities2 and the role of ICT in the resurgence of productivity in the US in the second half of the previous decade (see e.g. Jorgenson and Stiroh, 2000, and Gordon, 2000).
The debate has been fuelled by, among other things, the unclear empirical relation between ICT use and Total Factor Productivity (TFP) growth.
ICT can increase labour productivity growth through three wellknown mechanisms.

First, the rapid increase of technological progress in the ICT-producing industries can make a large contribution
to growth if these industries expand much more rapidly than other sectors – even if the ICT sector is relatively small (see OECD, 2001).

Second, ICT can stimulate labour productivity through the use of ICT in the production process. Product and process innovations and lower prices for ICT goods and services make the use of ICT as a production factor more attractive. This leads to higher capital intensity per working person (also known as capital deepening), which in turn encourages labour productivity.

There is also a third route, but this route has been heavily debated. Through technology spillovers or network effects, the use of ICT can also lead to (among other things) higher TFP growth.

ICT spillovers emerge when social returns on investment exceed their private returns – a case that seems to be rather relevant for investment in information technology because the
benefits of computer usage increase when more users adopt ICT.

More: http://www.cpb.nl/nl/pub/cpbreeksen/cpbreport/2003_3/s2_2.pdf

Broadband and Grids Technology in the Netherlands

The enormous increase in computing power, storage capacity and network bandwidth of the past decades demonstrates that a digital revolution has only just started on a world-wide basis, and especially in Europe.
Information is becoming the fuel of our knowledge society and our ability to digest this information, to understand and to share it will determine scientific, economic and social progress.

Grids and Broadband technology will play an essential role in this respect.
The Netherlands is rated in the top 5 countries in the world for IT companies, research and investment. Looking at the Dutch IT R&D environment,
Broadband and Grids can easily be identified as a focus area in which the Netherlands has a lot of expertise. Our R&D companies, knowledge, and infrastructure in this area place the Netherlands in the top echelon of “wired” countries in the world.

More: http://www.hightechconnections.org/2005/broadband.pdf

In May 2004 the Action Plan Competing with ICT Competences was published and sent to parliament by the Minister of Economic Affairs and the Minister of Education, Culture and Science. The action plan was accompanied by a decision by the Dutch Cabinet to establish an ICT Research and Innovation Authority. This authority is a central steering and co-ordinating organization, which task is to strengthen and focus research in ICT and to ensure that ICT research is better utilized for the development of concrete new ICT products. The establishment of the ICT Research and Innovation Authority is a core element in the Action Plan Competing with ICT Competences.

The action plan consists of the following four action lines:
- Strengthening and focusing ICT research. The ICT Research and Innovation Authority will formulate a strategic agenda for ICT research in the Netherlands and will ensure a structural strengthening of strategic concentrations of ICT research at universities and research institutes.

- Speeding up innovation in the field of ICT by increasing the utilization of ICT research in new ICT products. This involves an improvement of the interaction between public knowledge institutes and business enterprises and the valorization of the results of ICT research. The ICT Research and Innovation Authority has been assigned a specific task with respect to the valorization of research results. Furthermore, the TechnoPartner program will be utilized for the promotion of spin-offs from public knowledge insitutes.

- Stimulation of ICT applications in SMEs. This action line is aimed at a wider use of (new) ICT applications in SMEs. This will be promoted by informative activities (seminars, workshops and individual advices), in which (new) advanced ICT products will be brought to the attention of SMEs by intermediary organizations.

- Strengthening the international position of the Netherlands in the field of ICT research. This action line involves, among other things, the stimulation of Dutch participation in international programs such as Information Society Technologies (IST) and Eureka.

More: http://www.netherlands-embassy.org/article.asp?articleref=AR00001606EN

Information and communications technology (ICT) has turned into the key technology of
the past decade. The rapid diffusion of the Internet, of mobile telephony and of
broadband networks all demonstrate how pervasive this technology has become. But how
precisely does ICT affect economic growth and the efficiency of firms?

More: http://www.itu.int/wsis/newsroom/background/docs/ap/pilat.pdf

As with most technologies, information and communications technologies (ICT) have made their way first to economically advantaged people who live in the cities of economically advantaged regions and nations.

Despite the rapid diffusion of these technologies, especially the Internet, the promise of their trickling-down to all corners of society remains mostly unfulfilled.

No nation can claim that all of its citizens have full connectivity. That is why most countries, including the most connected, have launched nationwide strategies to tackle the differences in connectivity.

Indeed, universal access to ICT, meaning that ICT is accessible to all people in all places, is considered one of the myths about these new technologies.

More: http://www.bk.tudelft.nl/users/fernande/internet/JUT2.pdf

This report reviews the status of diffusion of ICT to business in the Netherlands,
by examining the available indicators and describing the policies aimed at increasing ICT uptake in firms.
This area was designated as the focus policy domain for this series of peer reviews.
It is one of the five pillars of the ICT policy framework, that was used in the Information Technology Outlook Policy.

More: http://www.oecd.org/dataoecd/38/48/34695844.pdf

This article describes the availability of broadband services in the
Netherlands. This particularly concerns broadband services for
the consumer/end user such as access to the Internet.

More: http://www.ivir.nl/publications/vaneijk/broadband.pdf

With almost one-third of households in the Netherlands and Belgium connected to the internet via broadband at the end of 2004, the Low Countries are Europe’s broadband leaders, but there are differences in PC and online penetration, market competitiveness, and competitive focus predict a two-speed future for both countries, according to a report from Forrester Research.

more : http://www.dmeurope.com/default.asp?ArticleID=8053