CMI working paper no. 17, 2018 · Source: ITU: Measuring the Information Society Report 2017 – Volume 1 2.1. Cross-border services As part of the aim of creating a Digital Single

Digitalization policies in the UK and the Netherlands

Anders Henten, Iwona Windekilde & Morten Falch

CMI working paper no. 17, 2018

Center for Communication, Media and Information technologies (CMI), Electronic Systems, AAU Copenhagen, Denmark

CMI Working Paper no. 17:

Anders Henten, Iwona Windekilde & Morten Falch (2018) Digitalization policies in the UK and the Netherlands

ISBN: 978-87-7152-101-6

Published by:center for Communication, Media and Information technologies (CMI)Department of Electronic Systems,Aalborg University Copenhagen, A.C. Meyers Vænge 15, DK-2450 Copenhagen SV Tel +45 99403661 E-mail [email protected] URL http://www.cmi.aau.dk

CMI Working Papers provide a means of early dissemination of completed research, summaries of the current state of knowledge in an area, or analyses of timely issues of public policy. They provide a basis for discussion and debate after research is completed, but generally before it is published in the professional literature.

CMI Papers are authored by CMI researchers, visitors and participants in CMI conferences, workshops and seminars, as well as colleagues working with CMI in its international network. Papers are refereed before publication. For additional information, contact the editors.

Editor: Anders Henten, co-editor: Jannick Sørensen.

Downloaded from http://www.cmi.aau.dk/publications/working-papers/

DigitalizationpoliciesintheUKandtheNetherlands

CenterforCommunicationMedia&Informationtechnologies(CMI)

AalborgUniversityCopenhagen

DK-2450CopenhagenSVDenmark

1DigitalizationpoliciesintheUKandtheNetherlands

2018

ReportpresentedattheDIGINNOworkshopinTallinn,Estonia,5-6June2018.DIGINNOisan

Interreg(BalticSeaRegion)EU-fundedprojectwiththeobjectiveofadvancingthedigital

economyandtospeeduptheprocessofmovingtowardstheBalticSearegionsingledigital

market.Theprojectaimstoincreasethecapacityofpolicymakers,industryassociationsand

industrialSMEstoenablefasterandmoreefficientuptakeofdigitalsolutionsbothinpublicand

privatesector.

Reportauthors:AndersHenten,IwonaWindekildeandMortenFalch


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Contents

1. Introduction................................................3

2. Currentperformance..................................5

2.1. Cross-borderservices.................................7

2.2. UnitedKingdom–currentperformance....8

2.3. Netherlands–currentperformance........10

3. UnitedKingdom........................................12

3.1. Businessstructure....................................12

3.2. Previouspolicyinitiatives.........................13

3.3. Currentpolicyinitiatives...........................15

3.4. Governanceofdigitalpolicies..................19

3.5. Cross-bordereGovernmentservices........20

3.6. Summary..................................................21

4. Netherlands..............................................23

4.1. Businessenvironment..............................23

4.2. Previouspolicyinitiatives.........................24

4.3. Currentpolicyinitiatives...........................25

4.4. Governanceofdigitalpolicies..................30

4.5. Cross-bordereGovernmentservices........31

4.6. Summary..................................................32

5. Conclusion................................................34


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1. Introduction

Thisreportisconcernedwithpoliciesfor

promotingandsupportingdigitalsociety

developmentsintheUKandtheNetherlands.

Theideaistofindandextractpolicyinitiatives

whichcanbeinspirationalforcountriesintheBalticSeaRegion.Thereasonforchoosing

theUKandtheNetherlandsisthatthesetwocountriesareconsideredasadvancedin

termsofpolicyformulationfordigitalsocietydevelopments.

Thetermdigitalhascometomeanallnewwaysofliving,producing,consuming,

interacting,etc.inthevariousaspectsofsociallifecomprisingindustryandgovernment

usingdigitaltechnology.Itisatermequivalenttowhathasformerlybeencalled

information,knowledgeornetworksociety.Thescopeisthusverybroad,however,in

thisreporttherewillbeemphasisprimarilyonpoliciesforenhancingtheexchanges

betweengovernmentsandbusinesses(G2B)withspecialfocusonSmallandMedium

sizedEnterprises(SMEs).

Thereportconcentratesfirstandforemostonpolicyinitiatives.Withadifferentiation

betweenpolicies,politicsandtheactualsocietaleffects,mostemphasisisonpolicies.

Thismeansthatwedonotexaminetheactualimplementationofthepoliciesinthe

formoflegislationandregulations,andwedonoteitherstudythedirecteffectsof

thesepoliticalinterventions.However,wedostudythedevelopmentofdigitalagenda

achievementsforthetwocountriesinordertocontextualizehowfartheyhavecomein

theirdigitaldevelopmentcomparedwithotherEuropeancountries.Furthermore,there

isspecialinterestonpoliciesforsupportingcross-borderbusinessactivities

transcendingthesecludednationalcontextsaimingatinspiringandthusstrengtheningtheregionalinteractionsbetweenthecountriesintheBalticSeaRegion.

Intermsofmethodologicalapproach,thematerialpresentedinthisreportisprimarily

basedonofficialreportsfromthetwocountries.Itiswell-knownthattheofficial

policiesofdifferentcountriesoftendonotdiffersignificantly.Thereisahighdegreeof

isomorphism,thereasonbeingthattherearemanysimilaritiesbetweencountriesand,

furthermore,thatcountriesinspireoneanother.Also,policyinitiativesareoftenguided

bycommissionedreportsfromconsultancycompanieswhomayhaveelaboratedsimilar

policyinputinothercountries.Inourselectionofpolicyinitiativestoreporton,we

thereforefocusonpolicydirectionsandinitiativeswhicharenotcommonforall

countriesbutwhichpotentiallycouldbeimplementedelsewhere.

First,thereisasectionontheactualcurrentperformanceofthetwocountriesinterms

ofachievementswithrespecttodigitalization.Theactualcurrentperformanceofthe


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twocountriesconstitutespartofthebackgroundforthepolicydirectionsandinitiatives

includingthedifferencesinpolicies.Theperformanceisobviouslyalsotheresultofpast

policiesbutwedonotwishtoclaimthatthereisnecessarilyadirectcausallinkbetween

thepoliciesandtheperformances.Theactualcurrentperformance,therefore,comes

firstinthereportandisfollowedbythedescriptionofthepolicydirectionsand

initiativesofthetwocountries.Theconclusioncomparesthesalientfeaturesofthe

policiesofthetwocountrieswithanemphasisonthepoliciesthatmostclearlycouldbeasourceofinspirationforothercountries.


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2. Currentperformance

ThissectionevaluatesthecurrentperformanceofUKandtheNetherlandswithregard

todigitalization.Theanalysiscancontributetomapthepointofdepartureforcurrent

digitalizationpolicies,butalsoasanindicatoroftheoutcomeofdigitalizationpolicies

implementedinthepast.Theanalysiswillprimarilybebasedoninformationfrom

internationalreportscomparingthelevelofdigitalizationacrosscountriesbytheuseofasetofquantifiableparameters.

Digitalizationisoneoutofalargenumberoftermsappliedtodescribetheongoing

transformationrelatedtotheuseofICT.DigitalizationreferstotheapplicationofICTin

anypartofthesociety.However,withsuchabroaddefinition,itbecomesdifficultto

quantifythelevelofdigitalizationandmakecomparisonsamongcountries.Inorderto

createamoreoperationaldefinition,anumberofinternationalorganisationshavecreatedtheirowndefinitionsbasedondifferentsetsofmeasurableandavailabledata.

Anumberofdifferentcompositeindiceshavebeendevelopedinordertocomparethelevelofdigitalization.Themostwell-knownindicesinclude:

• E-readiness–DevelopedbytheEconomistIntelligenceUnit(notpublishedsince2010)

• ICTdevelopmentindex–publishedbyITU• DigitalEconomyandSocietyIndex(DESI)–publishedbytheEUCommissionas

partoftheDigitalAgenda.ThisindexincludesEUmemberstatesonly• NetworkedReadinessIndex–publishedbyWorldEconomicForum

Asthee-readinessindexhasnotbeenupdatedforsometime,wewillbaseouranalysis

ondatafromthethreeotherindices.Alltheindicesarecompositemeasurements

combininganumberofdifferentparameters.Ingeneraltheycombineparameterson

connectivity,usage(government,businessandindividual),andhumancapital.Itshould

benotedthatsomeoftheseparametersareverycrude,inthesensethattheirdirect

relationtodigitalizationisfarfromobvious.ForinstanceICTskills,whichisincludedin

theICTdevelopmentindexbyITU(ITU,2017)withaweightof20%,ismeasuredsolely

bythegenerallevelofeducation.NoindicatorsonICTskillsspecificallyareincludedin

thisindex.Onereasonmaybethatparametersincludedmustbedefinedaccordingtoavailabilityinthecountriesincludedintheanalysis.

Connectivityandaccessisanimportantelementinallindices,asthisareaiswell

coveredbyreliabledatafromITUandotherinternationalorganisations.Connectivityis

arelevantparameterindevelopingcountries,butmaybelessrelevantincountrieswith

closeto100%coverageofbasicICTfacilities.Inadditiontoconnectivity,ICTskillsand


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usagebycitizens,businessandgovernmentsarealsoincluded.WorldEconomicForum

doesalsoincludeparametersonregulationandbusinessenvironment.Inspiteof

differencesindefinitionsandweightingofparametersapplied,theoutcomesofthe

rankingsaresimilar.

Itisnotablethatallindicesfocusondemandsideindicators.Indicatorsrelatingtothe

productionandoperationoftheICTsectoritselfarenotincluded.Forinstancethereare

noindicatorsonproductionofICTgoodsandservicesintermsofvalueaddedand

employment.ThiscontradictswiththescopeofmostnationalICTandInformation

Societyplans,wherestrengtheningoftheICTsectorisincludedasanimportantpolicy

goal.Thesupplysidemustthereforebetakenintoaccountinanoutputassessment.

Fortunately,OECDprovidesextensivestatisticalinformationonthesupplysideintheir

OECDITOutlookreports.OECDdoesnotconstructacompositeindexforrankingof

OECDcountries,buttherankingsforeachofthesupplysideparametersarequite

differentfromtherankingsfortheindiceslistedabove.Onereasonforthis(butnotthe

onlyone)isthatthereisnouniquerelationbetweenthelocationoftheICTmanufacturingindustriesandtheuseofICT.

Theapproachofperforminganoutputanalysisdoesnotenableanassessmentofa

particularpolicyinstrument.Astheanalysisonlydealswiththeoutcomeatthenational

level,acausallinkbetweenpoliciesandresultsisnotestablished.Thiswouldrequirea

detailedanalysis,wheretheanalysisofdigitalizationpoliciesissupplementedby

detailedanalysesonhoweachpolicymeasurehasbeenimplemented.Digitalizationis

anongoingprocessinallcountries,andgrowthrateswithintheareaofICTaregenerally

high.Itisthereforenotdifficulttoprovethatpolicieshavebeensuccessfulbylookingat

theoutcomeinaparticularcountry.Acountry’spolicycanonlybecharacterizedasa

bestpractice,ifthecountryperformswellincomparisonwithothercountries.Thisisthereasonforincludingrankingsintheanalysis.

Itshouldbekeptinmindthattheoutcomedependsonmanyotherfactorsthan

digitalizationpolicies.Thenationalcapacityfordigitalizingtheeconomydependson

humanandeconomicresourcesavailable,andthenationalrankingsofdigitalizationare

closelyrelatedtoincomelevels(fig1).Therefore,ahighrankingcannotbeattributed

directlytoasuccessfulpolicyimplementationalone.Stilltherankingsprovideagood

indicator,whencomparingcountrieswithsimilarincomelevels.Thelevelsof

digitalizationdoesnotvaryalotforcountrieswithsimilarrankings,sooneshouldnot

drawtoostrongconclusions,whenacountryimprovesitspositionsbytwoorthreeplaces.


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Figure1:ICTdevelopmentIndexandGNIperinhabitant

Source:ITU:MeasuringtheInformationSocietyReport2017–Volume1

2.1. Cross-borderservices

AspartoftheaimofcreatingaDigitalSingleMarket(DSM),eGovernmentActionPlans

havebeenissuedbyEUinstitutions.ThelatesteGovernmentActionPlanisthe2016-

2020plan(Commission,2014).WhiletheeGovernmentActionPlan2011-2015

contributedto‘theexchangeofbestpracticesandtheinteroperabilityofsolutions

betweenMemberStates,…citizensandbusinessesarenotyetgettingthefullbenefit

fromdigitalservicesthatshouldbeavailableseamlesslyacrosstheEU’(European

Commission,2016).Thee-GovernmentActionPlan2016-2020,thereforehasputspecialemphasisoncross-borderinitiatives.

Inordertofollowtheprogressinfacilitatingdigitalcross-bordergovernmentservices,

theEuropeanCommissionin2017publishedafirstbackgroundreportentitled

‘eGovernmentBenchmark2017–Takingstockofuser-centricdesignanddeliveryof

digitalpublicservicesinEurope’(EuropeanCommission,2017).Oneofthetop-level

benchmarksinthisreportwascross-bordermobility,indicatingtheextenttowhich

customersofpublicservicescanuseonlineservicesinanotherEuropeancountry.Four

keyenablersareanalyzedinthisreport:Onlineavailability,usability,eID,and

eDocuments.Scoresforindividualcountriesarenotgenerallypublishedinthisreport,

butfromtheindicationsprovided,theUKaswellastheNetherlandsseemstobedoingrelativelywellcomparedwithotherEUcountries.


2018

RelatedtotheConnectingEuropeFacility(CEF)program(CEF,2018)havingtheaimof

enablingthedevelopmentoftheDigitalSingleMarketfiveCEFBuildingBlockshave

beendeveloped(CEFDigital):eDelivery,eID,eTranslation,eInvoicing,andeSignature.

OntheCEFwebsite,uptakedevelopmentsinthesefivebuildingblockscanbefollowed

fortheindividualEUcountries.WithrespecttothefiveBuildingBlocks,theUKandtheNetherlandsaregenerallyalsoamongthemoredevelopedcountriesintheEU.

2.2. UnitedKingdom–currentperformance

UnitedKingdomispositionedasnumber7outof28countriesintheEUDigitalProgress

Report(ECProgressReport,2017)rightafterthethreeNordicEUcountriesandthe

Beneluxcountries.IntheITUICTDevelopmentindexandintheWorldEconomicForum

NetworkReadinessIndex(Baller,etal.,2016)theyarerankedasnumber5.UnitedKingdomisthusamongtheleadingcountrieswithregardtodigitalization.

UnitedKingdomhasatelecommarketwithahighlevelofcompetitionandahigh

penetrationofbroadbandservices.Almostallhouseholdsarecoveredwithbroadband

(99.97%)and87%ofthehouseholdshaveafixedbroadbandconnection.43%havea

bandwidthofmorethan30Mbps.TheaveragespeedisreportedbyAkamaitobe14.9

Mbps(Akamai,2016).Thereare,however,challengesforthefuturerolloutofNGA

networks.Thelevelofinvestmentsintelecommunicationsaspercentageofrevenuesis

amongthelowestwithintheOECDarea(OECD,2017)andtheshareofFTTH/Bconnectionwasonly0.5%in2016(ECProgressReport,2017).

Table1:ConnectivityinUnitedKingdomandinEU

Source:(ECProgressReport,2017)


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ThelevelofICTskillsinUKishigh:69%ofthepopulationpossessbasicdigitalskills,and

UKhasmoreICTspecialiststhanmostotherEUcountries.However,inspiteofahigh

growthinemploymentofICTprofessionals,thereisstillashortageoflabourwithICT

skills.

Thecitizensmakeextensiveuseofonlineservicessuchasshoppingandentertainment.

Inspiteofawell-developedbankingsector,theuseofelectronicbankingservicesisclosetotheEuropeanaverage.

WhenitcomestotheuseofICTinGovernmentandbusinesses,theUKisclosetothe

Europeanaverage.40%oftheenterprisesarevisibleonsocialmedia,whichisthe

highestpercentageinEU.UKcompaniesalsomakeextensiveuseofcloudservices.

Regardingallotherparametersonbusinessuse,theUKisaroundorbelowtheEU

averageaccordingtotheDESIindex.Itshould,however,benotedthatintheanalysis

fromWorldEconomicForum,theUKranksattheverytopwithregardtoICTusefor

business-to-businesstransactions(2outof139)andbusiness-toconsumerInternetuse(1outof139).

TheGovernmentperformswellwithregardtoprovisionofopendata,butisbehindinotherareasofe-government.

Table2:IntegrationofDigitalTechnologyinUnitedKingdomandinEU


TheperformanceoftheICTsectorisnotdirectlyincludedinmeasuresondigitalization

oftheeconomy.StillitgivesanindicationontheroleofICTintheeconomy.IntheUK,

theICTsectorstandsforaround3.5%ofthetotalemployment,whichisabovethe

OECDaverageof3%.Thisisinparticularduetoahighshareofemploymentgenerated


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bytheprovisionofITandotherinformationservices,whichisamongthehighestamong

theOECDcountries.ThiscorrespondswithastrongpositioninexportsofITservices.

Theywerein2016the6thlargestexporterwithaworldmarketshareof5%(upfrom

2.5%in2008).

2.3. Netherlands–currentperformance

TheNetherlandsispositionedasnumber4outof28countriesintheEUDigitalProgress

Report(ECProgressReport,2017)rightafterDenmark,FinlandandSweden.IntheITU

ICTDevelopmentindextheyarerankedasnumber7,andintheWorldEconomicForum

NetworkReadinessIndextheyarerankedasnumber6.TheNetherlandsisthusamongtheleadingcountrieswithregardtodigitalization.

TheNetherlandsisthebestconnectedcountrywithintheEU.100%ofthehouseholds

arecoveredwithbroadbandand98%arecoveredwithNGA.95%ofthehouseholds

haveafixedbroadbandconnection,and68%haveabandwidthofmorethan30Mbps.TheaveragespeedisreportedbyAkamaitobe17.2Mbps(Akamai,2016).

Table3:ConnectivityinNetherlandsandinEU


ThelevelofICTskillsintheNetherlandsishigh.69%ofthepopulationpossessbasic

digitalskills,andthecountryisamongtheleadersinthisarea.Whenitcomestothe

numberofICTspecialistsinallsectorsoftheeconomy,theNetherlandsiswellabove

theEuropeanaverage(5%oftheworkforcecomparedtotheEUaverageof3.5%).Stillthereisashortageoflabourinthisarea.

Almostallhouseholdshaveacomputer(97.6%)andthereisahighpenetrationof

internetbankingservices(91%)andelectronicshopping(79%).TheNetherlandsisalso


2018

amongthemostadvancedcountrieswithregardtodigitalizationofpublicservices(ranks3inEU).

Table4:IntegrationofDigitalTechnologyinNetherlandsandinEU

Source:EuropeanCommission(2017)

WhenitcomestotheuseofICTinbusinesses,thepictureismoremixed.Theuseofe-

invoicingandSMEssellingonlineareontheEUaverage,andinspiteofthefactthat

manyusershaveusede-shoppingthee-commerce,turnoverisslightlybelowtheEU

average.Ontheotherhand,theGovernmentperformswellintheprovisionofe-governmentservices(ranks3inEU).

TheperformanceoftheICTsectorisnotdirectlyincludedinmeasuresondigitalization

oftheeconomy.StillitgivesanindicationoftheroleofICTintheeconomy.Inthe

Netherlands,theICTsectorstandsforalittlelessthan3%ofthetotalemployment,

whichisslightlybelowtheOECDaverage.80%oftheemploymentintheICTsectoris

generatedbytheprovisionofITservicesandotherinformationservices.Althoughthe

employmentintheDutchICTsectorisbelowtheOECDaverage,theNetherlandshasa

substantialexportofICTmanufacturedgoodsandservices.AsanexporterofICTgoods,

Netherlandsranksasnumber10withaworldmarketshareofaround2.5%.InEurope

onlyGermanyhasahighermarketshare.WithregardtoexportsofICTservicesthe

Netherlandsperformsevenbetter.Withaworldmarketshareofalmost8%,theyarepositionedasnumberthree.OnlyIrelandandIndiaperformbetter.


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3. UnitedKingdom

3.1. Businessstructure

TheUKisthefifth-largesteconomyintheworldandthesecond-largestinEuropeafter

Germany.ThecurrentpopulationoftheUnitedKingdomisapproximately66million.

Thetotallandareais241,930km2andthepopulationdensityintheUnitedKingdomis

275perkm2.TheGDPpercapitaispresently36.700Euro.

TheUKisrankedseventhgloballyintheWorldBank’sEaseofDoingBusinessIndex(The

WorldBankGroup,2017).MajorsegmentsoftheUKindustryincludeenergy,mining,

manufacturing,andconstruction.ManufacturingremainsasignificantpartoftheUK

economy.Theautomotiveindustry,theaerospaceindustry,thepharmaceuticalindustryandcreativeindustriesplaysanimportantroleintheUKeconomy.

ServicesisthesectorthataccountsforthelargestpartoftheBritisheconomy–in2017,

servicesaccountedfor79%ofeconomicoutput,theproductionsectorfor14%,constructionfor6%andagriculturefor1%.(HouseofCommons,2018)

AccordingtobusinessstatisticsreportpublishedbytheHouseofCommonsLibrary,in

2017,therewere5.7millionbusinessesintheUK.Over99%ofbusinessesareSmallor

MediumSizedbusinesses–employing,allinall,15.7millionpeople(60%percenttotal

businessemployment),andachievingaturnoverof£1.8trillion(47%oftotalUKbusinessturnover).

OftheseSMEs,theoverwhelmingmajority(95%)aremicro-businesses,employing0-9

people.Thesebusinessesaccountfor54%ofSMEemploymentandjustunder40%of

turnover.Mediumbusinessesrepresentlessthan1percentoftheSMEpopulation,but

accountfornearlyaquarterofSMEemploymentand30percentofturnover.

Since2010,32%ofthegrowthinthenumberofmicro-businesseswasinthe

professionalandtechnicalservicessector,and14%inICT.Forsmallbusinesses,

accommodationandfoodserviceswereresponsiblefor41%ofbusinesscountgrowth,

withhealthadding14%andretail13%.Mediumcompaniesprovidedgrowthinthe

healthsector(33%)andtheeducationsector(32%)whichinitselfmorethandoubledinsize.(Sage,2017)

Eventhough,SMEshaverecordednotablegrowthinemploymentandturnoverthere

hasbeennocorrespondingriseinproductivity.SMEproductivityhasrisenbyaround

2.5%between2007and2016.ThereportrevealsthatacrosstheUK,productivityvaries

significantlyandthisrepresentsthelargestchallengeforUKgovernment.The

productivityvariesnotjustbetweenNorthandSouthorurbanandruralareas,butalso


2018

betweensectors,andwithinregionsthemselves.Moreover,thelargertheSME,themoreproductiveittypicallyis.

Thelaborproductivityperformanceofthe12UKregionsandcountriesrelativetothe

UKaveragefor2016waspresentedinthereportpublishedbyOfficeforNational

Statistics(Statistics,2018).Thereportrevealedthattheonlytworegionswith

productivityabovetheUKaveragewereLondonat33%abovetheUKaverageandthe

SouthEastofEngland,withproductivity6%abovetheUKaverage.InScotland,

productivityin2016wasmarginallybelowtheUKaverage,whilstinWalesandNorthern

Ireland,productivitywas17%belowtheUKaverage.Theregionsofthenorthand

MidlandsofEngland(NorthEast,NorthWest,YorkshireandTheHumber,EastMidlands

andWestMidlands)hadproductivitylevelsbetween7%and15%belowtheUKaverage.

AssmallbusinessesarecriticaltotheUK’seconomy,themainfocusofvariouspoliciesis

onliftingtheproductivityoftheSMSs.TheUKstrategiesfocusonthestrengtheningthe

followingsectors:automotive,aerospace,financialandprofessionalservices,creativeindustriesandlifesciences.

3.2. Previouspolicyinitiatives

Overthelastyears,theUKgovernmenthasrecognizedtheimportanceofthedigital

economyandhasbeenactiveinvariousdigitalizationactivities.Mostoftheinitiatives

havebeenfocusedonopeningupexistinggovernmentservicesanddeliveringthem

online.Thearrivalof“DigitalPublicManagement”exposedthechallengesand

opportunitiesfordigitally-deliveredgovernmentservice,andledtomajorinitiatives

suchastheUKGovernmentDigitalService(GDS),amodelthathasbeencopiedinthe

USA,Australia,andelsewhere(Brown,2017).

Thereleaseofnewpoliciesaimedatstimulatingthedigitaleconomyandaccelerating

adoptionofdigitaltechnologiesacrossUKgovernmentitself.In2005,thePrime

Ministercommissionedthestrategytoseizetheopportunityprovidedbytechnologyto

transformthebusinessofgovernment.Thestrategywasdirectedatprovidingoveralltechnologyleadershipinthreekeyareas:

1. Thetransformationofpublicservicesforthebenefitofcitizens,businesses,

taxpayersandfront-linestaff.

2. Theefficiencyofthecorporateservicesandinfrastructureofgovernment

organisations,thusfreeingresourcesforthefront-line.

3. Thestepsnecessarytoachievetheeffectivedeliveryoftechnologyforgovernment.


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InJanuary2007,aspartoftheTransformationalGovernmentstrategy,anannualreport

waspublished,statingthat,insteadofhavinghundredsofgovernmentwebsites,most

governmentinformationistobeavailablethroughtwomainwebsites–Directgov(for

citizens)orBusinesslink.gov.uk(forbusinesses).

TheBusinessLinknetworkoperatedviatheUK’snineRegionalDevelopmentAgencies

(RDA).Eachofthegovernment-fundedagenciesencompassedaBusinessLinkservice,

designedtoadvisebusinessesonissuesrelatedfromstartinguptointernationaltrade

rules.Allnineoftheregionalagencies,whichhadcostthegovernment£154m,were

officiallyshutdowninlate2011aspartofthegovernment’sbudgetdecision.TheUK’s

ninegovernment-fundedRDAswerereplacedby38LocalEnterprisePartnerships(LEP)

acrossEngland.LEPsweresetuponavolunteerbasisbetweenlocalauthoritiesand

localprivatesectorbusinesseswithoutanypublicfunding.Itwaslaterdecidedthatthe

LEPswouldbesupportedbythegovernment(Startups,2013).Theyplayacentralrolein

determininglocaleconomicprioritiesandundertakingactivitiestodriveeconomic

growthandjobcreation,improveinfrastructureandraiseworkforceskillswithinthe

localarea.LEPboardsareledbyabusinesschairandboardmembersarelocalleaders

ofindustry(includingSMEs),educationalinstitutionsandthepublicsector(LEP,2018).

On30March2011,theCabinetOfficepublishedthe“GovernmentICTStrategy”,

confirmingtheUK'sdeterminationtomoveitspublicsectorawayfrombeinglocked-in

onlarge-scalesinglesupplierproprietarysoftwaresolutions.Thestrategydocument

intendstofocusonanopenapproachtoICT,mandatingopenstandards,re-aligningthe

playingfieldforopensourceandencouraginggreaterSMEparticipationingovernmentICTcontracts(EU,2014).

InNovember2012,thefirstversionofthe“GovernmentDigitalStrategy”waspublished

anditwasupdatedinDecember2013.Thisstrategycontained16actionsandfocused

onhowthegovernmentwillbecomedigitalbydefault,whichwasdefinedas“digital

servicesthataresostraightforwardandconvenientthatallthosewhocanusethemwill

choosetodosowhilstthosewhocan’tarenotexcluded.”(Office,2012)The

GovernmentDigitalServicewasestablishedinresponsetoMarthaLaneFox’sreport,

“Directgov2010andbeyond:revolutionnotevolution”,whichincluded

recommendationsforthefutureofDirectgov.TheGovernmentDigitalServiceworkedin

threecoreareas:transforming25highvolumekeyexemplarsfromacrossgovernment

intodigitalservices,buildingandmaintainingtheconsolidatedgov.ukwebsite–which

bringsgovernmentservicestogetherinoneplace,changingthewaygovernment

procuresITservices.Atthisstagetherewasnoplantoextendgov.uktocoverlocal

authorities’digitalservices.However,therewasanacknowledgementwithinthe

GovernmentDigitalStrategythatinordertoprovidepublicservicesdigitallybydefault,


2018

allpublicbodieswillneedtoworktogether,becausemostpublicservicesareprovidedbylocalorganizations(Office,2012).

TheGovernmentDigitalStrategycommittedeachgovernmentdepartmenttocarrying

out16actions.Moreover,corporatepublishingactivitiesofall24ministerial

departmentsand331otheragenciesandpublicbodieshavebeenmergedintoasingle

website,gov.uk.Thenewsite,gov.ukhasbeenbuiltbytheGovernmentDigitalService

(GDS),whichispartoftheCabinetOffice.Thereleaseofgov.ukwasthefirstphasein

thecreationofasingledomainforgovernment,addressingtheneedsofcitizens

previouslyservedbytheDirectgov.ukandtheneedsofbusinesspreviouslyservedby

businesslink.co.ukwebsites.Thecreationofgov.ukhasbeenakeyelementintheDigital

byDefaultagenda.

3.3. Currentpolicyinitiatives

Since2017,aseriesofnewdigitalgovernmentinitiativeshasbeenpublished.Themost

importantarethefollowingfourdocuments:theUKgovernmenttransformation

strategy2017to2020,theUKDigitalStrategy,theUKindustrialstrategy,andtheDigital

EconomyBill.

TheUKgovernmenttransformationstrategy2017to2020

TheGovernmentTransformationStrategy(GTS,2017)waspublishedon9February

2017andwasbuiltonthe2012GovernmentDigitalStrategy.Thisstrategychartsthe

directionofthedigitallyenabledtransformationofgovernmentandrepresentsthenext

stageofdigitally-enabledtransformation.Ithas3broadcomponents,whichtogetherformthescopeofthisstrategy(GTS,2017):

• transformingwholecitizen-facingservices-tocontinuetoimprovethe

experienceforcitizens,businessesanduserswithinthepublicsector

• fulldepartmenttransformation-affectingcompleteorganizationstodeliver

policyobjectivesinaflexibleway,improvecitizenserviceacrosschannelsand

improveefficiency

• internalgovernmenttransformation,whichmightnotdirectlychangepolicy

outcomesorcitizen-facingservicesbutwhichisvitalifgovernmentistocollaboratebetteranddeliverdigitally-enabledchangemoreeffectively.

ThisstrategysetsouttheGovernment’sobjectivestoharnessdigital(thetechnologies,

culture,skillsandtoolsoftheinternet-era)totransformtherelationshipbetween

citizenandstate.Thestrategysetsoutfivepillarsforthefuturedirectionofgovernment

(Gummer,2017):


2018

1. Createsharedplatforms,componentsandreusablebusinesscapabilities:

continuingwithgovernmentasaplatform,reducingduplication,costand

increasingefficiencyacrossgovernment.

2. Makebetteruseofdata:ensuringthatgovernmentdataisproperlymanaged,

protectedand(wherenon-sensitive)madeavailableandsharedeffectively.To

acceleratethetransformationofgovernment,andensurethatgovernmentwill

retainpublictrustandconfidenceinuseofdata,anewChiefDataOfficerfor

governmentwillbeappointed.

3. BusinessTransformation:developingend-to-endservicesthatmeettheneedsof

theirusersacrossallchannels,incoordinationwithafundamentalrethinkof

back-officeoperations.

4. GrowtheRightPeople,CultureandSkills.

5. Buildbettertools,processesandgovernanceforcivilservants:transformingtheinsideoftheCivilServicetobecomeanorganisationthatisdigitalbydefault.

TheUKDigitalStrategy

InMarch2017,theSecretaryofStateattheDepartmentofCulture,MediaandSports,

launchedtheGovernment’sUKDigitalStrategy(SecretaryofStateforCulture,2017).

TheStrategybuildsontheIndustrialStrategygreenpaper(Government,2017),applying

itsframeworktothedigitaleconomywithparticularregardstogrowth,technologyand

innovation.ThestrategysetsouttheGovernment’sgoalsfordigitalinfrastructure,

creatinganadvancedskillsbase,encouragingtheuseofdigitaltoolsandimproving

accesstodigitalservices.Itaddressesopportunitiesforbusinesses,researchanddevelopment.

TheUKDigitalStrategyoutlinesthesevenmainaimsandinitiativesdesignedtokeep

theUKattheforefrontofthedigitalrevolutionpost-Brexit.TheUKDigitalStrategyhassevenstrands(SecretaryofStateforCulture,2017):

1. Connectivity-buildingworld-classdigitalinfrastructurefortheUK

2. Skillsandinclusion-givingeveryoneaccesstothedigitalskillstheyneed

3. Thedigitalsectors-makingtheUKthebestplacetostartandgrowadigital

business

4. Thewidereconomy-helpingeveryBritishbusinessbecomeadigitalbusiness

5. Cyberspace-makingtheUKthesafestplaceintheworldtoliveandworkonline

6. Digitalgovernment-maintainingtheUKgovernmentasaworldleaderin

servingitscitizensonline

7. Thedataeconomy-unlockingthepowerofdataintheUKeconomyandimprovingpublicconfidenceinitsuse


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Strands3,4,6areofparticularimportancefortheSMS.

IncontrasttothepreviousgovernmentDigitalStrategy,localgovernmentswere

recognizedasanimportantandintegralpartnerincrossgovernmenttransformationandeconomicgrowth(Blackwell,etal.,2016).

IndustrialStrategy:buildingaBritainfitforthefuture(DepartmentforBusiness,2017)

TheUKindustrialstrategyisacriticalpartofUKplanforpost-BrexitBritain.Themain

objectiveoftheindustrialstrategyis“toboosttheproductivity,earningpowerand

qualityoflifeoftheBritishpeople”.TheUKGovernmentidentified5pillarsasthemost

importanttodriveforwardUKindustrialstrategyacrosstheentireeconomy:ideas;

people;infrastructure;businessenvironment;andplaces.ThosepillarsframetheUK

Governmentapproach,andacrosseachofthem,thegovernmentsetsoutaprogramofnewpolicies(table5).

Table5:TheUKindustrialstrategy:keypolicies

Pillars KeypoliciesIdeas

• Raisetotalresearchanddevelopment(R&D)investmentto2.4percentofGDPby2027

• IncreasetherateofR&Dtaxcreditto12percent• Invest£725minnewIndustrialStrategyChallengeFund

programmestocapturethevalueofinnovationPeople • Establishatechnicaleducationsystem

• Investanadditional£406minmaths,digitalandtechnicaleducation,helpingtoaddresstheshortageofscience,technology,engineeringandmaths(STEM)skills

• CreateanewNationalRetrainingSchemethatsupportspeopletore-skill,beginningwitha£64minvestmentfordigitalandconstructiontraining

Infrastructure • IncreasetheNationalProductivityInvestmentFundto£31bn,supportinginvestmentsintransport,housinganddigitalinfrastructure

• Supportelectricvehiclesthrough£400mcharginginfrastructureinvestmentandanextra£100mtoextendtheplug-incargrant

• BoostUKdigitalinfrastructurewithover£1bnofpublicinvestment,including£176mfor5Gand£200mforlocalareastoencouragerolloutoffull-fibrenetworks

Businessenvironment

• Launchandroll-outSectorDeals–partnershipsbetweengovernmentandindustryaimingtoincreasesectorproductivity.ThefirstSectorDealsareinlifesciences,construction,artificialintelligenceandtheautomotivesector

• Driveover£20bnofinvestmentininnovativeandhigh


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potentialbusinesses,includingthroughestablishinganew£2.5bnInvestmentFund,incubatedintheBritishBusinessBank

• Launchareviewoftheactionsthatcouldbemosteffectiveinimprovingtheproductivityandgrowthofsmallandmedium-sizedbusinesses,includinghowtoaddresswhathasbeencalledthe‘longtail’oflowerproductivityfirms

Places • AgreeLocalIndustrialStrategiesthatbuildonlocalstrengthsanddeliveroneconomicopportunities

• CreateanewTransformingCitiesfundthatwillprovide£1.7bnforintra-citytransport.Thiswillfundprojectsthatdriveproductivitybyimprovingconnectionswithincityregions

• Provide£42mtopilotaTeacherDevelopmentPremium.Thiswilltesttheimpactofa£1000budgetforhigh-qualityprofessionaldevelopmentforteachersworkinginareasthathavefallenbehind

Source:(DepartmentforBusiness,2017)

InthisIndustrialStrategytheUKGovernmentproposedanumberofGrandChallenges

toputtheUnitedKingdomattheforefrontinfourareasseenashavinggrowth

potential:artificialintelligence;cleangrowth;anageingsociety;andfuturemobility

fromdriverlesscarstodrones.TheUKgovernmentworksincollaborationwiththegovernmentsandbusinessesofScotland,WalesandNorthernIreland.

TheDigitalEconomyAct2017

TheDigitalEconomyBillreceivedRoyalAssenton27April2017andisnowknownas

theDigitalEconomyAct2017(Act,2017).TheDigitalEconomyAct2017isanActof

Parliamentaddressingkeyissuesrelatingtoelectroniccommunicationsinfrastructure

andservices.TheActincludesprovisionsaboutelectroniccommunications

infrastructure,restrictingaccesstoonlinepornography,onlinecopyrightinfringement,

datasharingamonggovernmentdepartmentsandpublicauthorities,functionsofOfcom,regulationoftheBBC,andregulationofdirectmarketing.

Asstatedonwebsite(Act,2017),theActwill:

• empowerconsumersandprovidebetterconnectivitysothateveryonehas

accesstobroadbandwherevertheylive

• buildabetterinfrastructurefitforthedigitalfuture

• enablebetterpublicservicesusingdigitaltechnologies

• provideimportantprotectionsforcitizensfromspamemailandnuisancecalls

andprotectchildrenfromonlinepornography


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3.4. Governanceofdigitalpolicies

TheUKhasacentralizedsystemofgovernmentwithdevolution.Devolutiondealsarea

corecomponentofcentralgovernment’sbroaderpolicytodecentralisepowertolocal

areas.Priortodevolution,theUnitedKingdomwasoneofthemostcentralisedstatein

Europe.Since1997,theUKhasanasymmetricmodelofdevolution.Asaresultof

devolutionthepoliticalandadministrativepowersofthedevolvedlegislatures-Scotland,WalesandNorthernIrelandhavechanged.

However,thecentralgovernmentstillsubstantiallydirectsmostgovernmentactivity.

ThePrimeMinisterleadsthegovernmentwiththesupportoftheCabinetandministers.

TheUKGovernmentconsistsof25ministerialdepartments,20non-ministerial

departmentsandmorethan300agenciesandotherpublicbodies.Departmentsand

theiragenciesareresponsibleforputtinggovernmentpolicyintopractice(GOV.UK,

2018).AtDepartmentallevel,thereisawiderangeofnationalagencieswhichhave

specialistfunctionsinrelationtoissueslikeprocurement,ITandfinance;somehave

expertoradvisoryroles,etc.

Thegovernmentisthedriverofdigitalizationpoliciesdevelopment.Thekeyplayerfrom

thepublicsectoristhePrimeMinister,responsiblefortheoverallorganisationofthe

executiveandtheallocationoffunctionsbetweenministers.TheCabinetOfficeholdsoverallresponsibilityforthegovernment'sefficiencyandreformagenda.

In2012,theMinisterfortheCabinetOfficewasaccountableforthedevelopmentofthe

“GovernmentDigitalStrategy”.TheMinisterfortheCabinetOfficewasresponsiblefor

launchingaplanfortheimplementationofthegovernment’snewICTstrategyacrossall

Governmentdepartmentsandforanannualreviewprocesstotrackdepartments’

progressagainsttheactionsinthisstrategy.Accordingtothedocument,byDecember

2012,eachdepartmenthadtopublishtheirowndepartmentaldigitalstrategyexplainingwhatactionstheywouldtaketocontributetothisstrategy.

ThemaindepartmentswhichsupportdigitalizationinUKare:theDepartmentfor

Digital,Culture,Media&SportandtheGovernmentDigitalService(GDS).ChiefDigitalandInformationOfficer(CDIO)isresponsibleforthedigitaltransformationagenda.

In2015,thegovernmenthasannouncedaseriesof“devolutiondeals”betweencentral

governmentandlocalareas.Overtheyears,therewillbemorepowerdevolvedtocity

regionsthroughtheimplementationof"devolutiondeals".TheUKgovernment

promisedthatthenewdealswillgivecitiesandtheirsurroundingareascertainpowers

andfreedomto:takechargeandresponsibilityfordecisionsthataffecttheirarea,do


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whattheythinkisbesttohelpbusinessesgrow,createeconomicgrowthandtodecide

howpublicmoneyshouldbespent.Thegovernmenthasconcludeddealsinareas

includingGreaterBirminghamandSolihull,BristolandtheWestofEngland,Greater

Manchester,LeedsCityRegion,LiverpoolCityRegion,Nottingham,Newcastleand

SheffieldCityRegion.Intotal,30dealshavebeengranted,26inEngland,3inScotland

and1inWales(BBC,2016).Thespecificpowersweredevolvedordelegatedtolocal

institutions,includingmayors,combinedauthoritiesandotherlocalbodies,buttheyvaryacrossdifferentpartsofthecountry.

On4May2017,metromayorswereelectedforthefirsttimeinsixEnglishcity-regions

wherelocalandcentralgovernmenthadearlieragreedthetermsofdevolutiondeals.

Theyhavepowersandresponsibilitiestomakestrategicdecisionsacrosswholecity

regionsandareresponsiblefordigitalization.AspartoftheMayor’sDigitalStrategies,

thenewpositionofaChiefDigitalOfficer(CDO)forthecityregionshasbeencreated.

TheCDOisresponsibleforleadingdigitisationandtechnologyinitiativesacrosscityregions.

Inrecentyears,theBritishgovernmenthasmadetargetedinterventionstosupport

varioussectorsindigitaltransformationeffort.Foursectorsbeingtargetedbythe

governmentare:lifesciences,construction,artificialintelligenceandtheautomotiveindustry.

TheUKGovernmenthavealsointroducedanumberofprogrammesaimedspecifically

atclosingthegapindigitisationbetweendifferentsectors.Thecreationofanetworkof

technologyhubsisprobablytheonewiththehighestprofile.In2017,theGovernment

announcedplanstocreateanewnationalnetworkofregionaltechhubsinareasacross

thecountry,includingBelfast,Cardiff,EdinburghandBirmingham.TheUKGovernment

alsoannouncedthatTechCityUKandTechNortharetobecomeanational

organisation.ElevenregionalhubswillformthebackboneofanationaldigitalnetworkandhelptheGovernmentachieveaimsoutlinedinitsIndustrialandDigitalStrategies.

3.5. Cross-bordereGovernmentservices

TheeGovernmentBenchmarkreportpublishedin2017(EuropeanCommission,2017)

presentsthepriorityareasoftheeGovernmentandevaluatesthoseareasin34

countries(EU28+).Accordingtothisreport,theUKperformsgenerallyverywellonthe

“businesscrossbordermobility”(overallscore:UK:92;average65),andquitewellon

“usercentricity”(overallscore:UK:82;average80).TheUKisfallingbehindwhen

comparetoEU+averageon“citizencrossbordermobility”and“keyenablers”(overall

score:UK:22;average52).Thedeploymentofkeytechnologicalenablerssuchas

“AuthenticSources”seemstobeconsiderablylaggingbehind(UK:6)


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TheeGovernmentbenchmarkforthe“BusinessCrossbordermobility”indicatestowhat

extentEUbusinesscanuseonlineservicesinanothercountry.Cross-borderservice

deliverydimensionencompasses4mainareas:onlineavailability,usability,eIDcross

borders,eDocumentscrossborders.

• Onlineavailability:indicatesifaserviceisonline.Rangingfromoffline(0%),only

informationonline(50%),fullyonline(100%).UKscored89%(EU+:73%)

• Onlineusability:indicatesifsupport,helpand(interactive)feedback

functionalitiesareonline.UKscored100%(EU+:29%)

• eIDCrossBorders:indicatesifanationaleIDfromcountryAcanbeusedin

countryB.UKscored83%(EU+:79%)

• eDocumentsCrossBorders:indicatesifeDocumentscanbetransmittedfromcountryAtocountryB.UKscored100%(EU+:43%)

Whencomparing“BusinessCrossbordermobility”(UKscore:92%)with“CitizenCross

bordermobility” (UK score: 22%) dimensions, significant differences can be observed

betweenthose.

TheeIDASRegulationintheUK(UKRegulations,2016)cameintoforceonthe22ndJuly

2016.TheElectronicSignaturesRegulations2002havebeenreplacedwiththenewset

of regulationswhich are based on the eIDAS regulation and cover E-signatures, trust

services and electronic identification. In August 2016, The Department for Business,

EnergyandIndustrialstrategypublishedaguidewhichexplainedthechangesmadeto

UK lawonelectronic signatures and the requirementsof thenewRegulation. TheUK

government initiative forestablishingasingletrusted loginacrossvariousgovernment

digital services isGOV.UKVerify. Currently, only 15 government services can be usedwithGOV.UKVerify.

3.6. Summary

TheUKGovernmentplaysasignificantroleinsupportingthedigitaleconomybytakinga

leadincreatingandexecutingnumerousactionsthroughvariouspolicies.Eventhough

devolutionintheUKhasenabledanewapproachtogovernmentandpolicymaking,theUKgovernmentretainscontrolovermostkeyaspectsoftheUK.

Previously,mostoftheUKgovernmentactivitiesfocusedonopeningupexisting

governmentalservicestoonlineactivities.Therecentlyannouncedpoliciesfocusonthe

UKgovernmentdigitaltransformationitself,thetransformationoftheUKeconomy

towardsdigitaleconomyandtheindustrialstrategiesaimingtoincreasesectors

productivity.


2018

SincetheUKgovernmenthasannouncedaseriesofdevolutiondealsbetweencentral

governmentandlocalgovernments,thereismorepowerdevolvedtocityregions

throughtheimplementationofdevolutiondeals.Allofthedealstransferpowers,

fundingandaccountabilityforpoliciesandfunctionspreviouslyundertakenbycentral

government.Thespecificarrangementsvaryineachcase,astheyarenegotiatedand

agreedseparatelybasedonlocalproposals.Alldealsseektosupportbusiness,economicgrowthandkeyindustriesofthefuture.

Recentlytherearesomeimportantactivitiestakingplaceatnationalandlocallevel.At

nationallevel,theUKGovernmentfocusesontheICTsectoritself,butalsorecognizes

theroleofdigitalasanimportantfactorenablinggrowthinotherindustriesacrossthe

UK.Thecreationofaglobalandnationalnetworkoftechnologyhubs,targeted

interventionstosupportvarioussectors,investmentininnovativeandhighpotential

businesses,andappointmentofanewChiefDataOfficeraresomeofthevitalinitiatives

takenbythegovernment.Atlocallevel,keyinitiativesinclude:creationoflocal

industrialstrategiesandlocalfundingmechanism,collaborationthroughLocal

EnterprisePartnershipLEPtohelpsmallbusinessesincreasetheirdigitalpresence,and

anappointmentofnewChiefDigitalOfficers(CDO)formainsixcityregions.

Generally,thereisamovementtowardssupportingregionswhichhaveahugeroletoplayindeliveringtheindustrialstrategyanddigitalization.

Atraditionalapproachtosectorsupportremainsimportantaspartofgovernmentstrategyandispracticedatanationalandregionallevel.

LookingattheUKeGovernmentperformanceacrossEUpolicyprioritiesandnarrowing

thefocusonthebusinesscrossbordermobility,itcanbenoticedthattheavailability,

usability,eIDandeDocumentofcrossborderservicesaregettingclosertothe100%landmarkandfollowthevisionofaDigitalSingleMarket.


2018

4. Netherlands

4.1. Businessenvironment

TheNetherlandsisacountrywitharelativelylargepopulation(app.17mill.)onasmall

landarea(41.543km2).Itisaverydenselypopulatedcountrywithlargeand

widespreadurbanandsemi-urbanareas.TheGDPpercapitaispresentlyapp.40,000

Euro,whichplacesthecountryamongthe10richestOECDcountries.

ManymultinationalcompanieshavesettledintheNetherlands,andthecountryisalso

hometoanumberofmultinationalcompaniesheadquarteredintheNetherlands.

However,aswithmostothercountries,farthelargestpartofcompaniesconsistsof

microorsmallenterprises.Outoftheapp.1.45millioncompaniesintheNetherlands,

app.1.1millionarecompanieswithjustoneemployedperson,andalittlelessthan300,000arecompanieswith2-9employees(CentraalBureauvoordeStatistiek,CBS).

Since2011,theDutchgovernmenthasdefined9topsectorsintheDutcheconomywith

thepurposeofspecificallysupportingandstrengtheningthesesectors,whichare

consideredtohavestrategicimportancefortheNetherlands.The9sectorsinquestion

areagricultureandfood,creativeindustries,chemicalindustry,energy,hightech,

horticultureandstartingmaterials,lifesciences&health,logistics,andwater.CBShas

calculatedthat23%ofallenterprisesbelongedtooneofthe9topsectorsin2015,and

thatallenterprisesbelongingtothe9topsectorsaccountedfor20%ofallemployees.

Thismeansthatthecompaniesbelongingtothetopsectorsingeneralareofthesame

sizeasothercompaniesintheNetherlands.Thesectorsarenotspecificallychosenon

thebasisofthesizeofcompanies.TheyarechosenverymuchofthebasisofR&Dexpenditures(app.75%)andexportvalue(almost40%).

EveryyeartheHeritageFoundationfromtheUSmeasureswhattheycallthe‘economic

freedom’ofcountries.Inthe2018IndexofEconomicFreedom(HeritageFoundation,

2018),theNetherlandsisranked17onaglobalscale.Amongthe44countriesin

Europe,theNetherlandsisno.10.Theparametersonthebasisofwhich‘economic

freedom’ismeasuredaretheruleoflaw,governmentsize,regulatoryefficiency,and

openmarkets.TheNetherlandscanthusbeconsideredasacountrywitharelatively

liberalapproachtoguidingmarkets.However,thefactthattheNetherlandsdoesnot

figureamongthe10countrieswiththehighestdegreeof‘economicfreedom’isthat

marketsintheNetherlandsarealsoregulatedtoalargedegree.Itisaregulatedliberal

marketwitharelativelyhighdegreeofpublicintervention–aswillalsobevisibleinthedescriptionofthepoliciesfordigitalization.


2018

4.2. Previouspolicyinitiatives

InlinewithmanyothercountriesinEuropeandelsewhere,theDutchMinistryfor

EconomicAffairsin1994issuedanActionProgram‘ElectronicHighways’,whichwasthe

firstDutchgeneralpolicyinitiativeintheICTfield.Thisactionprogramfollowedatrend

amongmanycountrieswiththeUSinitiativesregardingtheInformationSuperhighway

andtheEUinitiativesstartingwiththe1993WhitePaperonGrowth,Competitiveness

andEmployment(theso-calledDelorsWhitePaper(CEC,1993).Theemphasisinthese

nationalandmultinationalpolicyinitiativesdifferedabitdependingonthegeneral

social,economicandbusinessenvironmentsinquestion,buttheoveralldirectionwas

thesame,andtheDutchprogramwasnoexceptionputtinganemphasisonthedual

needforupgradingtheinfrastructureandforpromotingservicesandtheuseofICTsforvarioussocialandbusinesspurposes.

TheActionProgrambytheDutchMinistryforEconomicAffairswassupportedbyother

ministriesintheNetherlands,whichwasanindicationofthegeneralgovernment

supportfortheinitiative.ICTpolicieshavesincethefirstinitiativein1994beenoneofthespearheadpolicyareasforDutchgovernments.

SincethefirstActionProgram,therehavebeenanumberoffollow-upprogramsand

initiativesandadditionalinitiativesundertheDigitalDeltaumbrella.Thespecificfocus

areashaveobviouslychangedovertime,presentlywithaspecialinterestin,for

instance,bigdata,privacyandartificialintelligence.However,thereisagreatdegreeof

continuityinthepolicyinitiatives,whichisalsosupportedbythegeneralpolitical

consensussurroundingICTpolicies.Thecontinuityandconsensuscanbeseeninthe

continualfocusonimprovingframeworkconditionsfortheproductionandmarketingof

ICTbasedproductsandservicesandfortheuseofICTsinbusinessesandsocietyat

large.Theoverallpolicyapproachputsfocusonpublicinstitutionsmobilizingsocietal

activitiestopromotedigitaldevelopmentsbyimprovingframeworkconditionsbutalso

bymeansoftargetedfinancialsupportwhenneeded.

Inareportpublishedin2003bytheSwedishInstituteforGrowthPolicyStudies(ITPS,

2003),comparingICTpoliciesintheUKandtheNetherlands,themajorfinding

regardingtheNetherlandswasthatICTpoliciesintheNetherlandsfollowingthegeneral

policytraditionintheNetherlandsarerelativelyde-centrallygeneratedandexecuted.

Aswillbediscussedinsub-section4.4on’governanceofdigitalpolices’,therecanbe

advantagesaswellasdisadvantagesofsuchdecentralizedapproaches.Aprimary

advantagecanbethatpolicyinitiativeswillhaveagreatertendencytobewell

embeddedinthesocialcontextinwhichtheyareimplemented,whilethedisadvantage

canbeapossiblelackofcoordination.TheITPSreport(2003)discussesthesedownsides


2018

whicharebelievedtobeageneralfeatureofDutchpoliciesfordigitalizationsinceitsearlystages.

Inapaperfrom2009byPoelandKool(Poel,etal.,2009)entitled‘Innovationin

informationsocietypolicy:rationale,policymixandimpactintheNetherlands’,the

intersectionbetweenICT/informationsocietypoliciesandinnovationpoliciesare

analyzed.Thepaperdiscusseshowinnovationpoliciestoagrowingextenthavebecome

importantandhowtheyinterrelatewithICT/informationsocietypoliciesintheEUas

wellasintheNetherlands.Thepaperarguesthattheinclusionofinnovation

perspectivesprovidesbetterandmorefocusedpoliciesfortheICT/informationsociety

policyarea.Thepaperalsodiscussesthelargenumberofpolicyinitiativesinthe

Netherlandswhencountinginitiativesrelatingtothevariousbusinesssectorsaswellas

atdifferentlevelsofgovernment.Theargumentisthataninnovationperspectiveforpoliciescanhelpenhancethecoordinationofpolicyinitiatives.

Thereisthusanalmost25yearlongtraditionforpolicyinitiativesfordigitalizationin

theNetherlands.Agreatdegreeofcontinuityinthepolicyapproachescanbeobserved

andthesameappliestotheconsensusaroundthesepolicyinitiatives.Thereisadual

focusoninfrastructureissuesaswellasthedevelopmentanduseofICT-basedservices.

Furthermore,theissueofcentralizationvs.decentralizationisacontinualtrendinDutchdigitalizationpolicies.

4.3. Currentpolicyinitiatives

ThemostrecentoverviewofpolicyinitiativesfordigitalizationintheNetherlandsisthe

‘DigitalagendafortheNetherlands–innovation,trustandacceleration’,publishedby

theDutchMinistryofEconomicAffairsin2016(MEA,2016).Itisstatedinthispolicydocumentthattheshorttermactionpointsdealtwithconcern2016and2017.

Inthispolicydocument,itisexplainedthatthegeneralroleofgovernmentregarding

digitalizationisthefollowing–‘stimulatingthedevelopmentandapplicationof

knowledge,educationandlifelonglearning;safeguardingofhigh-qualityandsecure

digitalinfrastructure;andprivacyprotection’(MEA,2016).Itisalsoacknowledgedthat

‘asignificantproportionofdigitallegislationandpolicyisofEUorigin’(MEA,2016).This

appliestoallEUcountries,astheEUforlong,startingwiththeDelorsWhitePaperfrom

1993(CEC,1993),hasissuedpolicyinitiativesintheareaofinformation/network/digitalsocieties.

TheMEAdocument(MEA,2016)furtherexplainsthatwiththewidespreadsocietal

implicationsofdigitalization,theroleofgovernmentgoesfurtherinthisareathanthe

merestimulationofframeworkconditionsandsafeguardingofpublicinterests.Public

authoritiesalsohavetheroleofbuyersofinnovativesolutions,thussupporting


2018

developmentsintheICTfield,andtheroleofprovidersofdigitalservicestobusinesses

andthepublicatlarge.ThisallcontributestothedigitalizationofsocietysaystheMEAdocument(MEA,2016).

Themorespecificshort-termactivitiesthattheMEAdocument(MEA,2016)focusesonarethefollowing:

1. Education,knowledgeandinnovation

2. Openandhigh-speedinfrastructure

3. Securityandtrust

4. Morescopeforentrepreneurs5. Digitisationofsectors(industry,healthcare,energyandmobility)

Inthepresentreport,emphasisison‘morescopeforentrepreneurs’and‘digitisationof

sectors’.However,thereisalsoabriefmentionof‘openandhigh-speedinfrastructure’.Wewillstartwiththeinfrastructurepolicy.

TheNetherlandshaveforcenturiesbeenanareafunctioningasaportinandoutof

NorthernEurope.InternationaltradehasbeengoingthroughtheNetherlandsand

internationalcompanieshavesettledtherepartlybecauseofthiscentraleconomic

position.InadditiontotheseaportsandSchipholairport,theMEAdocument(MEA,2016)seesareliableandhigh-speednetworkasa‘thirdmainportintheNetherlands’.

Indeed,thebroadbandinfrastructureintheNetherlandsisatahighlevelin

internationalcomparisons.The2017‘Europe’sDigitalProgressReport(EDPR)’forthe

Netherlands(EC,2017)reportsthatthereis98%NGA(NextGenerationNetwork)

coverageintheNetherlandsby2016,andthatsubscriptionstofixedfastbroadband(>

or=30Mbps)is68%(June2016)and85%tomobilebroadband(June2016).Oneofthe

reasonsforthewidespreadNGAinfrastructureisthehighcoverageofcablenetworksintheNetherlandsinadditiontothefixedtelephonenetwork.

Variousinitiativesforfurtherenhancingthecommunicationsinfrastructurearelistedin

theMEAdocument(MEA,2016),andtwoofthesearementionedhere:Localinitiativesforupgradingthebroadbandinfrastructureandtheestablishmentofa5GFieldLab.

Thelocalinitiativesareconcernedwiththeroleofthecentralgovernmentininforming

municipalitiesaboutbroadbandpotentialsandfacilitatingprocessesregardinglocal

improvementsofbroadbandinfrastructuresincludingtheprovisionofclaritywith

respecttoopportunitiespermittedwithintheEuropeanstate-aid-rules(MEA,2016).

Also,citizens’initiativeswillbesupported.Theintensionisto‘intensifytheseeffortsby

forminganHigh-SpeedInternetKnowledgePlatformandbytakingstockofthedemand


2018

foranationalumbrellaschemeforpublicfundingofbroadbandprojectsbydecentralizedgovernmentbodies’(MEA,2016).

A5GFieldLabhasbeenestablished.5Gnetworkswillbethenextstepinthemobile

field,anditwillbeimportanttoexploreallthenewpotentialsthat5Gwillallowfor.In

differentcountries,amongthemtheNetherlands,initiativeshavebeentakento

establish5Gresearchcenters/fieldlabs/cooperativeinstitutionsforpromotingthe

applicationsof5Gtechnology.5Gnetworkswillbedeployedbytelecomoperatorsinall

Europeancountries.Itis,however,notcertainthatbusinessusersof5Gtechnologies

willnecessarilytakeoptimaladvantageofthepotentialsoffered.Initiativeslikethe5G

FieldLabintheNetherlandsare,therefore,important.TheMEAdocument(2016)

reportsthat‘toincreaseinnovationinrelationto5G,businessesandgovernmentbodies

intheNetherlandshaveinitiateda5GFieldLab’.Itisfurtherstatedthat‘overthenext

fewyears,the5GFieldLabwillenablebusinessestogainexperiencewithinnovative

applicationsforagriculture,healthcare,energy,thelivingenvironment,trafficandlogistics’.

IntheMEAdocument(MEA,2016),specialattentionispaidtoentrepreneursandSMEs

ingeneralinthesectionon‘morescopeforentrepreneurs’.Theconceptsusedinthe

documentarestart-upsandscale-ups,addressingnewcompaniesaswellascompanies

whichareinthelikewisevulnerablephasesofscalingup.Buildingontheideaofthe

Netherlandsasaninternationalport,oneoftheinitiativesistheStartupDeltaandits

followupinitiativeStartupDelta2020.Theaimistomaintainandimprovetheposition

oftheNetherlandsasalocationforstart-upbusinesses.Tothatpurpose,fiscalsupportmeasuresareamongthetoolsused.

Also,digitaltoolsareimportantforsupportingSMEs.AsiswrittenintheMEAdocument

(MEA,2016),digitaltoolslowerthetransactioncostsforbusinessesandgive

entrepreneursmoretimetoruntheirbusinesses.Toenhancethepossibilitiesfor

businessestocommunicatedigitallywithpublicauthorities,citizensandbusinesses

havetheright-asof2017-todigitallyconductalltheiraffairswiththegovernment

digitally.Othermeansofcommunicationarealsopossible,butdigitalcommunications

hasbeenmadearight,whichputsemphasisonthedemandsideofthedevelopmentof

digitalmodesofcommunication.

Inordertofacilitatedigitalcommunicationsbetweenbusinessesandgovernment‘the

Dutchgovernmentpromotesdigitalserviceprovisiontobusinessesbymeansofa

government-wideGenericDigitalInfrastructure(GDI)’(MEA,2016).Thisinfrastructure

mustbeusedforgovernmentinformationaswellasdata-exchanges,i.e.forone-way

informationprovisionaswellastwo-waycommunications.Asthisisageneric

infrastructureforalldifferentkindsofcommunicationsfromdifferentpartsof


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governmentandwithdifferentbusinessareas,standardsareofcrucialimportanceand

thestandardstobeusedshouldbeopenstandards.ItisemphasizedthatthefacilitiesandstandardsfortheGDIshouldbetechnology-independent.

Thegoalisthustoavoidthatbusinessesarefacedwithaplethoraofdiverse

communicationfacilitiesandstandards.Atthesametime,thedocumentobservesthat

theAnswersforBusinesswebsite(answersforbusiness.nl),whichwaslaunchedatthe

beginningof2014,andwhichwasanattempttocentralizecommunicationswith

businesses,isonlyaccesseddirectlybybusinessestoalimitedextent.Other

governmentwebsitessuchastheonesmaintainedbytheChamberofCommerceand

theTaxAuthoritiesaremorewell-knownandare,therefore,usedtoalargerdegree.

ThesolutiontothischallengeistomaketheAnswersforBusinessaccessiblefromall

othergovernmentwebsites.And,‘themarketingofanswersforbusiness.nlwillbe

conductedviatheaforementionedgovernmentorganisationsandwillnolongerfocusontheanswersforbusiness.nlbrand’,saystheMEAdocument(MEA,2016).

Otherimportantinitiativescompriseactivitiestoenablethereuseofdatapreviously

enteredbybusinessessothatcompanieswillnothavetore-enterthesamekindsof

dataeachtimetheyuseagovernmentcommunicationservice.In2012,aCompany

Dossierwassetuptofacilitatethis.Later,thisinitiativehasbeenenhancedbygiving

accesstocompaniestotheinformationthatpublicauthoritieskeepontheirbusinesses.

Thismakesitpossibleforcompaniestousethisasarepositoryforinformationontheircompaniesandtocheckthecorrectnessofthedatakeptbypublicauthorities.

Anotherinitiativeistomakeaccesstopublicdataopensothatitcanbeusedforvarious

businessinitiativesandgeneratesocialandeconomicaddedvalue(MEA,2016).Making

publicdataavailablehasformanyyearsbeenagoalfortheEUandfornational

governments,andin2015,theDutchministerfortheInteriorandKingdomRelations

establishedtheNationalOpenDataAgenda,whichistomakedataheldbypublic

authoritiespubliclyavailableunlessotherconcernsspeakagainstit.Thecatch-phraseis‘open,unless’.

Withrespecttotheinternationalcross-borderdimensionsofpolicyinitiativesregarding

digitalization,theMEAdocument(MEA,2016)referstotheEUinitiatives.TheDutch

economyisoneoftheworld’smostinternationalizedeconomies,andtheinternational

dimensionsare,therefore,important.However,thedocumentdoesnotaddinitiatives

totheEUagendaintheareabutmentionstheEUpoliciesconcerningthedevelopment

oftheDigitalSingleMarket(DSM).TheEUinitiativesmentionedareaddressingthree

goals:‘1)encouragingcross-borderonlineeconomicactivities,2)reinforcingthedigital

infrastructure,and3)capitalizingonthepotentialoftheEuropeandataeconomy’(MEA,2016).


2018

Inthesectionon‘digitisationofsectors’,focusisonfoursectors:healthcare,energy,

manufacturingandmobility.Inthepresentreport,wewillonlybedealingwith

manufacturing,asthisincludesthemoregenericperspectiveonpoliciesfor

digitalization.

OneofthewaysinwhichtheDutchgovernmenthasbeendealingwithdigitalization

policiesisviaaTopSectorapproach.Policiesfordigitalizationconstituteacross-cutting

agendaforallthesetopsectors(DutchDigitalDelta,2015).Inordertopromote

digitalization,theDutchgovernmentsetupTeamSmartIndustry,whichwas

commissionedtodeviseanactionplan,whichcameintoforcein2015.Theactionplan

hasthreeactionlines:capitalizationonexistingknowledge,accelerationoffieldlabs,

andreinforcementoffoundations(MEA,2016).

AsisstatedintheMEAdocument(MEA,2016),therolloutoffieldlabsisthemain

priority.Inthesefieldlabsbusinessesandknowledgeinstitutescollaborate.Theprimary

sourceoffundingisprivateinvestments,butthefieldlabsalsoapplyforfurtherfunding

fromvariousfinancialmechanismssuchastheSMEInnovationSchemeforTopSectorsandtheTopConsortiumforKnowledgeandInnovation.

Amongthemanydifferentapproachesandinitiativescomingoutofthesefieldlabsand

theotheractivitieswithrespecttodigitalization,threeapproachesdeservespecial

attention,astheymayentailtypesofactivitiesthatcanbeinspirationalforother

countries.Thethreeapproachesarethefocusonpublic-privatepartnerships(PPP),the

emphasisontheneedforstandardization,andtheprioritizationofcertainsectorsinthepolicyinitiatives.

TheNetherlandsistraditionallyconsideredasoneofthemoreliberaleconomies

internationally.However,ashasalreadybeenseeninsomeoftheabove-mentioned

publicinitiatives,thestatestillhasaveryactiverole.Theimportanceoftheinterplay

andcooperationbetweenprivateinterestsandpublicinstitutionsisrecognizedandisan

inherentpartofpolicyapproaches.PPPsareoneofthewaysinwhichthistypeofcooperationcanbedeveloped.

StandardizationisanothercrucialpartofthepolicyinitiativesoftheDutchgovernment.

ThisisemphasizedintheMEAdocument(MEA,2016)andisalsoputforwardasoneof

theactionlinesinDutchDigitalDeltadocument(2015).Actionline3inthislatter

documentisconcernedwith‘ICTforaconnectedworld’andfocusesonimproving

interoperabilityofinformationexchanges.Thisnotonlyconcernscommunication

networks.Infact,thestandardizationofcommunicationnetworksisanareawhere

nationalgovernmentsinmostcountriesincludingtheEuropeancountrieshaveonly

littleinfluence.However,thestandardizationandinteroperabilityofinnovative


2018

productsandservicesatthecontentandapplicationlevelsisanimportanttaskfor

nationalgovernmentsandfortheEU.IntheDutchDigitalAgendadocument(Dutch

DigitalAgenda,2015)itissaidthat‘thedevelopmentofinteroperabilityandstandardsis

indispensablewhenitcomestocreatingefficientdigitalbusiness,supplychain,

electronichealthrecord,anddigitalgovernment’.Thesemanticlevelisemphasizedinthiscontext.

Thelastissuetobementionedistheprioritizationofcertainsectors.Asinthecasewith

PPPs,governmentswithaliberalapproachwilloftenrefrainfrom(atleastexplicitly)

prioritizecertainsectorsoverothers.And,althoughonecansaythatthetopsectors

prioritizedcoverabroadrangeofbusinesssectors,therestillisaprioritizationofsome

areasoverothers.Theideaisclearlynottoleaveothersectorsbehindbuttocreate

somebreakthroughinitiativesthatcanleadthewaytobroadergainsbywayofdigitalization.

4.4. Governanceofdigitalpolicies

PublicgovernancestructuresintheNetherlandsaregenerallyconsensusorientedwith

cleardecentralfeatures.Thisalsoappliestodigitalizationpoliciesandinitiatives.Ina

reportcommissionedbytheSwedishInstituteforGrowthandPolicyStudiesfrom2003

(Molas-Gallart,etal.,2013)comparingICTpoliciesintheNetherlandsandtheUKfor

potentialinspirationforSwedishICTpolicies(Molas-Gallart,etal.,2013),theoverall

conclusionwasthatICTpolicydevelopmentintheNetherlandsisdecentraland

consensusorientedascomparedtothepolicyprocessesintheUK,andthatthishas

advantagesaswellasdisadvantages.Thedisadvantagesarerelatedtosometimesslow

decisionproceduresandatendencytowardslackofcoordination.Theadvantagesarea

potentiallygreaterdegreeofsupportfordecisionstakenand,therefore,betterimplementationprocesses.

Duringthepastfewyears,however,therehavebeeninitiativesintheNetherlands

towardsagreaterdegreeofcoordinationandcentralizationofdigitalizationpolicies.In

2014,aNationalCommissionerforDigitalGovernment(digi-commissioner)was

appointedbytheDutchgovernment(DeDigicommissaris,2016).Thereasonstatedwas

that’withoutastrongprogressofthegovernanceandwithoutbetterfunding

arrangements,weinTheNetherlandsarenotgoingtosucceedingettingtheGeneric

DigitalInfrastructureontheneededleveloroperationalexcellence’(De

Digicommissaris,2016).Thedigi-commissionerisappointedbytheDutchgovernment

(cabinet)althoughtherewasnolegalbasisforthisgovernancestructure(De

Digicommissaris,2016).Itisexplainedinthestatementbythedigi-commissionerthat

relevantlawsandregulationsintheareadoexistbutthattheyareoftennotconsistentandonlyconcernedwithpartialdomainsofsectors(DeDigicommissaris,2016).


2018

Thedigi-commissionerisresponsibletoaMinisterialCommissionconsistingofhighlevel

ministersandarepresentativeofthelocalgovernmentsand,furthermore,a

representativeofthemajorexecution-organizations(DeDigicommissaris,2016).Also,a

consultinggroup,CitizensandBusinesses,providesinputfromenduserperspectives.As

statedbythedigi-commissioner,‘Thedigitalservicestocitizensandbusinessescannotbeimplementedanddevelopedsuccessfully,separatelyfromtheultimateusers’.

Thestatementbythedigi-commissionerconcludesthatforacentralgovernance

structuretowork‘itisnecessarythatallgovernmentorganisationshavetowork

consideringtheprinciplesofcooperation,notpower!Theinvolvedpartieshaveto

realize(orbeenconstantlyshown)thattheycanbecomplementary’(De

Digicommissaris,2016).

Theinitiativetoappointanewcentralentitytocomplementotherinstitutionsthusaims

atbalancingthecentralaspectswiththemoredecentralandcooperativegovernance

structures.Theissueofthecombinationofcentralanddecentralstructuresis

permanentlypresentindigitalizationpoliciesofallcountries.InDenmark,forinstance,

thenationaltelecomandICTregulatorwithresponsibilitiesnotonlyfortelecoms

regulationbutalsoforICTpolicieswasdissolvedin2011spreadingoutthe

responsibilitiesforICTpoliciesonseveralagenciesofministries.Anyexplicitreasonfor

thismovewasnotgiven,butthereasoninglaterdiscussedhasbeenthat

ICT/digitalizationpolicieshavesowidespreadimplicationsthatallareasofgovernanceneedtobeinvolved.

However,intheNetherlands,comingfromatraditionallyrelativelydecentralized

governancestructure,acoordinatingandcentralbodytodirectdigitalizationpolicies

haslatelybeenimplemented.Insteadofplacingdigitalizationpoliciesunderjustone

ministry,theversionofmorecentralizationintheNetherlandshasoptedfora

coordinatingbodyreferringdirectlytothePrime-Ministerandotherhighlevelministries.

4.5. Cross-bordereGovernmentservices

WithrespecttotheConnectingEuropeFacility(CEF)BuildingBlocksdevelopedfor

monitoringandmeasuringtheprogressoftheDigitalSingleMarket,theNetherlandsis

onall5buildingblocksamongthemoreadvancedcountries.ThisappliestoeDelivery,

wheretheevolutionofeDeliveryaccesspointspercountryismeasured.Italsoapplies

totheothermeasures,whereeIDismeasuredbythenumbereIDAS(electronic

IDentification,AuthenticationandtrustServices)nodesconformancetests,eTranslation

ismeasuredbythenumberoflanguageresourcespercountry,eInvoivingismeasured


2018

bythenumberofpublicentityandserviceproviderprofiles,andeSignatureismeasuredbythenumberofqualifiedtrustserviceproviders(CEFDigital).

TheEUhasissuedaneIDASRegulationadoptedin2014andcomingintoforcein

September2018.TheNetherlandsisoneofthecountries,whichhascomefurthestin

theapplicationofthisRegulation.TheeIDAS2018MunicipalitiesProjectisanearly

implementationoftheEUeIDpolicy.OnapageoftheCEFDigitalwebsite,itisstated

thatthisproject‘enablescitizensofEUMemberStatesandEEAcountriesto

electronicallyprovetheiridentitywiththeirnationallyissuedeIDwhenseekingaccesstoaround300servicesin81municipalitiesacrosstheNetherlands’(CEFDigital).

4.6. Summary

TheNetherlandsisacountrywitharelativelyliberalapproachtomarketdevelopments.

However,regulatoryinterventionssetting(nowandthenstrict)frameworkconditions

butalsoprovidingfinancialstimulusandsupportwhenconsideredneededispartofthe

overallpoliciesforthedevelopmentoftheeconomy.Marketsarebeingcontrolledand

guidedandeconomicdevelopmentisbeingfacilitated.Partofthisfacilitationprocess

currentlyistheso-calledTopSectorapproach.Foracountrywitharelativelyliberalmarketapproachsuchaprioritizationofcertainsectorsisnotable.

Thepoliciesfordigitalizationfollowthegeneraldirectionofmarketpoliciesinthe

Netherlands.Aswithmanyothercountries,thefirstgeneralICTpolicydocumentwas

issuedinthemid-1990s–in1994.Thisdocumenthadadualfocusoninfrastructureas

wellasservicedevelopmentandthisdualfocushascontinuedtobetheoverall

approachoftheDutchgovernmenttoICTpolicies.Thereisthusagreatdegreeof

continuityofthedigitalizationpolicies,whichisunderpinnedbythepoliticalconsensusinthisfield.

Amongthemorenotablepoliticalinitiatives,whichcanbeinspirationaltoother

countries,arethepublic-privatepartnershipinitiatives,whicharewellinlinewiththe

overallpolicymixofliberalmarketapproachesandtheneedforpromotionofspecific

developments.Alsonotableistheemphasisontheneedforstandardizationofservices,

applicationsandcontentprovisionincommunicationsbetweenpublicauthoritiesand

businesscompanies.

Inlinewiththisfocusonstandardizedcommunicationsistheattempttocentralizethe

platformforcommunicationsbetweengovernmentandbusiness.Theaimistomakeit

easierforbusinessestocommunicatewithpublicinstitutions.Inthesameveincanbe

seentheestablishmentofadigi-commissionerwiththepurposeofbettercoordinatingpoliciesfordigitalization.


2018

Intheareaofmorespecificinitiativescanbenotedtheestablishmentofa5Gfieldlab.

SuchaninitiativeisalsotakeninafewotherEuropeancountriesandwillbeimportant

forgettingthehighestpossiblebenefitsfromthevariousapplicationssurroundingthe

developmentof5Gcommunications.Furthermore,thestimulationofanincreaseduseofpublicdataforbuildingnewbusinesspossibilitieswillbeofimportance.

Intheareaofcross-borderinitiatives,theNetherlandsisimplementingtheEUpolicies

forthedevelopmentofaDigitalSingleMarketconnectedwiththe‘EUeGovernment

ActionPlan2016-2020’andmorespecificallywiththeinitiativesrelatedtothe

ConnectingEuropeFacilityprogram.EspeciallywithrespecttoeIDandtheeIDAS

Regulation,theNetherlandshasmadeprogresswithitsEIDAS2018Municipalities

Project.


2018

5. Conclusion

TheUKaswellastheNetherlandshasabroadbusinessbasiswithnoall-dominating

businesssectors.Aswithmostothercountries,theoverwhelmingmajorityof

companiesaremicroorsmallenterprises.Thiscontributestothenecessityofeaseof

accesstogovernmentinformationandexchangesbetweengovernmentandbusinesses

inordertolowerthetransactioncostsofsuchcommunications.Micro-businessesand

smallenterpriseswillnothavemuchtimefortheseactivitiesandwillnotbeableto

createspecialcommunicationchannelswithpublicauthorities.

Inbothcountries,themarketsarebasedonrelativelyliberalstatepolicies.Thisimplies

stateinterventionbymeansofprimarilyframeworkregulation,butalsothestimulation

ofmarketdevelopmentsbymeansoftargetedfinancialsupportandthemobilizationof

resourcesfacilitatedbycooperativerelationshipsbetweenprivateandpublicactors.

Bothcountriesmustbeconsideredasopeneconomieswithalargedegreeofrelianceoninternationaltradingandinvestmentsincludingsettlements.

IntermsofdigitalizationanduseofICTsforbusinessandothersocialpurposes,both

countriesareamongthemostadvanced.Inthevariousinternationalrankings

mentionedinsection2oncurrentperformance,theUKaswellastheNetherlandsisat

theverytop.Thisappliestotheinfrastructuralpartsincludingbroadbandfacilitiesin

termsofcoverageandtake-upanditappliesontheservicesidewithe-governmentservices.

Theoverallpoliciesfordigitalizationdonotdiffersubstantially,butthespecificmanners

inwhichpoliciesareconstructedandimplementedareobviouslyembeddedwithinthe

specificbusinessandothersocialstructuresofthetwocountries.PoliciesforICT

developmentsanddigitalizationhaveforthelastquarterofacenturyplayeda

prominentroleinthetwocountries.Policiesfordigitalizationareamongthespearhead

initiatives.Forthepast25yearsorso,therehavebeennumerouspolicyplansand

initiativesforadvancingICTinfrastructuresandtheuseandtake-upofdigitalservices

andavitalpartofsuchpolicieshaveincludedtheprovisionofdigitalservicesto

businesses.

AsisemphasizedinthesectiononUKpolicies,theprovisionofgovernmentservicesin

onlinedigitalformatsinsteadofthepreviousanalogformatsisonlypartofthegeneral

strategy.Itisalsoaquestionofadigitaltransformationofgovernmentitself,the

transformationoftheeconomyassuchtowardsdadigitaleconomy,andindustrialstrategiestoincreaseeconomicproductivity.

Importantsalientfeaturesofthepoliciesfordigitalizationinbothcountriesarethedual

emphasisonpromotinginfrastructureenhancementawellastheservicesprovidedon


2018

topoftheseinfrastructures.Intheinfrastructuralarea,thereisanoverallrelianceon

privateoperatorstoextendbroadbandfacilities.However,thereisalsoawillingnessto

providepubliceconomicsupportfortargetedareasifthemarketisnotabletoprovide

theinfrastructuresconsideredneeded.Anotheraspectisthatbothcountrieshavetaken

politicalstepstosupportinitiativesforpublic-privatecooperationregardingthefutureuseof5Gtechnologiesforbusinesspurposes.

Theuseofpublic-privatepartnershipsisameasurethatcanbefoundmoregenerallyin

thepolicyapproachesofboththeUKandtheNetherlands.Althoughtheoverallpolicy

frameworkisguidedtowardsliberalmarketpolicies,thereisawillingnesstoenterinto

public-privatearrangementsandalsoawillingnesstoputspecialfocusoncertain

businesssectors,whichareconsideredofstrategicimportanceandwhichcanbe

frontrunnersinthegeneraldigitalization.Thisseemstobealittlemorepronouncedin

theNetherlandswiththeTopSectorapproachbutcanalsobeseeninsomeoftheinitiativesoftheUKgovernment.

Thestandardizationofservicesandapplicationsprovidedbypublicauthoritiesandused

incommunicationswithbusinessesisconsideredimportantinbothcountries.Thiswill

makeiteasierforbusinessestocommunicatewithgovernmentinstitutions.Thesame

appliestothecentralizationofportalsforinformationprovisionandcommunications.

TheUKhastraditionallyhadaverycentralizedapproachtogovernment,whilethe

Netherlandshasbeenmoredecentralized.Inbothcountries,however,therehavebeen

initiativestoprovidebutonesingleentrywebsiteforpublicinformationand

communications.IntheUK,thisdoesnotseemtohavemetseriousobstacles,whilein

theNetherlandsthereseemstobeatraditionalformultipleentriestoacquiringpublic

informationandforcommunicatingwithpublicauthorities.

TheUKhastraditionallyhasarelativelycentralizedformofgovernment,whilethe

Netherlandshavehadatraditionformoredecentralizedformsofgovernance.Inboth

countries,thereisobviouslyacontinualadaptationofthecentralizedandthe

decentralizedaspectsofgovernment.TheNetherlandshavelatelydecidedtocentralize

partsofgovernanceofpublicinfrastructuredevelopments,whiletheUKhasmovedintheoppositedirectionwithitspolicyinitiativesregardingdevolution.

Thefurtherissuetobementionedistheuseofopenstandards.Insteadoflarge

informationsystemprovidersimplementingtheirownproprietarysystems,theUKas

wellastheNetherlandsprioritizestheuseofopenstandards,wheretherecanbemultiplesystemsprovidersbutwhereinteroperabilityismaintained.

Regardingcross-borderinitiatives,theUKandtheNetherlandshavebeenworkingon

followingupontheDigitalSingleMarketpoliciesoftheEUincludingtheEU


2018

eGovernmentActionPlansandtheConnectingEuropeFacilityprogram.TheUKaswell

astheNetherlandsisamongthefrontrunnersinimplementingtheseplansand

programs.Cross-borderinitiativesare,however,notamongtheprimarypolicy

initiativesofpublicinstitutionsinthetwocountries.Itis,toaconsiderableextent,firstandforemostEUinstitutionsthatdrivethesepolicyinitiatives.


2018

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