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To encourage small businesses to innovate and to expand our spearhead clusters

Interview with Mrs Hilde CREVITS, Deputy Prime Minister of the Flemish Government and Flemish Minister for Economy, Innovation, Work, Social Economy and Agriculture

What are the Flemish economy’s strengths? The Flemish economy is currently operating at full speed. The employment rate is at its highest, there is a record number of new companies being set up and we are seeing the highest level of investment ever in research and innovation. Our labour productivity is also among the highest in Europe and has achieved a top 3 position. Only Ireland and Luxembourg are ahead of us. A new, knowledge-driven wind is blowing. More and more companies are actively engaged in innovation. Our research institutions, which are among the very best internationally due to their strong scientific basis, have a major role to play in this.

What role does innovation play in the dynamics of Flemish companies? Peter Drucker, the godfather of modern management, once said: “Innovate or die”. All companies must dare to innovate because that is what makes the difference between blossoming and growing or languishing. Innovation allows companies to stay ahead of the competition, respond more quickly to the needs of customers and produce products and services more efficiently. This in turn creates more added value and increases our labour productivity even further. Innovation is about winning, in all areas. That is why I think it is important for our companies, especially our smaller companies, to embrace and apply new technologies such as artificial intelligence and cyber security even faster than they already are. This is why I am providing the necessary resources for this: 32 million euros a year for artificial intelligence and 20 million euros a year for cyber security. What are your economic and innovation priorities? My intention is to make economic and innovation policy more mission-oriented. We must pursue more transparent social objectives. A to-do list, as it were, with objectives that we have to achieve, but on a larger scale. We can see six broad projects. First of all, local entrepreneurship must flourish and we need to make our traders competitive in the current e-commerce environment by providing them with the necessary digital tools. Secondly, we guarantee the competitiveness and productivity of our manufacturing industry through a forward-looking, integrated industrial policy. Thirdly, we support our provinces and regions in their development based on regional specialisations. The fourth point is the digital lead that our researchers and companies have over the rest of the world, a project that is assisted via a Flemish agenda for digital entrepreneurship and innovation. Attention is also paid to the roll-out of the necessary infrastructure, such as 5G. The fifth project is the transition to a low-carbon economy and society, supported by an ambitious plan for climate-friendly innovations. Finally, and sixthly, there is the safeguarding of our space and raw materials, but also preventing waste by making full use of the circular economy through research and new business models so that we can also meet our needs in terms of water and raw materials in the future. © Rights reserved

What measures does the new Flemish Government intend to take to support innovative companies in Flanders? The concrete measures that we will take within the framework of the projects mentioned above are currently under development and I will first consult with the parties involved before we implement

Minister Crevits visiting ArcelorMittal in Ghent © Rights reserved © Rights reserved

Minister Crevits visiting the AZ Groeninge in Kortrijk on Science Day © Rights reserved © Rights reserved

them. Impact is an important principle here: our actions and spending must make a difference. That is why we will focus as much as possible on the instruments from which we can expect the greatest impact. An important aspect of this is to encourage small businesses to innovate and to expand our spearhead clusters. But we will not lose sight of the more general support measures. Stimulating entrepreneurship, easy access to funding and capital, strengthening our scientific basis and disseminating knowledge are just as important.

What means will you have to enforce these measures? In 2017, in Flanders we spent 2.89% of our regional GDP on research and development. This makes us one of the best in Europe. However, our ambitions are higher than that. We must be able to reach the 3% target by the end of this legislature. To do this, by the end of this legislature, I foresee a permanent increase of 250 million euros in the research and innovation budget and one-off investments of 195 million euros in research infrastructure.

What partnerships do you intend to develop in order to carry out your activities? When we talk about the economy and innovation, we automatically think of our companies and researchers. But I also want to consciously involve citizens and civil society more closely over the coming years by introducing a new innovation model for our society: the quadruple helix. By introducing everyone to innovation, we make everyone come to know and love it. This has a twofold benefit. The involvement of civil society can contribute to a greater social and economic impact for our excellent scientific research and our industrial R&D. Conversely, it is also necessary to generate a better understanding and greater trust in the work of scientists and technology managers, because new technologies often still give rise to fears and concerns. Trust is essential for the rapid dissemination and social acceptance of new technologies. Moreover, cooperation is essential in order to increase the resilience of our open economy in the face of international events, such as Brexit and other tumultuous trade relations. In your opinion, what are the most important challenges for Flemish companies to maintain and enhance their competitive position? When I talk to entrepreneurs, they often come back to the same three issues: mobility (traffic jams), wage and energy costs and employee skills. I try to respond to each of these points within my powers. To address the mobility issue, I support innovative projects on smart and connected vehicles and improved use of data on our mobility. In terms of salary and energy costs, support has been provided for energy-saving measures and we are focusing on technologies that can increase productivity. That is why it is important to speed up the roll-out of these technologies, especially for our SMEs. As far as skills are concerned, I believe in lifelong learning. Lifelong learning is the common thread running through the policy document on work. I will also shortly be launching a renewed STEM Action Plan 2020-2030. By doing this, we will encourage even more young people to take up scientific and technological disciplines.