I’m writing on this blog for everybody, anywhere yet this is a post on the region where I live. Flanders is the biggest region of Belgium, located in the North of the country. Flanders is one of the wealthiest regions in Europe with a purchasing power of 23% above the European average.
We can all learn a valuable lesson on how not to invest in innovation from the Flemish example which is why I share this post with you. Since at least the early 1990’s – that is since I can remember – the Flemish government has focused on two innovation strategies:
- Change the economy into a ‘knowledge economy’.
- Stress the need for more engineers.
Turns out these two strategies are absolutely worthless for generating growth which is the point of innovation. The core problem that has hijacked government policy for at least two decades – two very crucial decades – is the mistaken view on growth.
The Flemish economy entered the last decade of the previous century as a export-oriented economy with as major export products half-finished products (steel, iron, chemicals, plastics, petroleum derivatives, …), food, cars and textile. The plan of the Flemish government has always been to expand these sectors and encourage innovation to reach this growth. Also, the Flemish government believes innovation requires engineers, period.
It’s easy to see what has happened. The obvious choice has always been to keep and expand the industries that are already there, especially when they are booming. There’s nothing really wrong with that, except that it’s always been assumed that these industries will remain strong forever and that everything should be done to contribute to that.
There are two views on innovation:
- The 20th century view on innovation, which in Flanders has always been understood by the government and the industry as means to increase efficiency.
- The 21th century view on innovation which is radical, subversive innovation; and which is feared very much in Flanders.
Core to the distinction between both views are two radically different views on growth:
- 20th century growth which is articulated in terms of impersonal national currencies.
- 21th century growth which is articulated in terms of outcomes for people as they are prioritized and experienced by people.
20the century growth is very simple, very easy to aggregate. It’s the kind of growth accountants can calculate and managers can aim for. 21th century growth is chaotic, very confused, very dialectic and at this time cannot be aggregated.
It’s not hard to understand why the Flemish region has gone for 20th century innovation, but it’s not obvious why 21th century innovation has been ignored. Countries like Finland realize that innovation in their existing industries alone will never create sufficient growth to address the challenges of the future. Instead entrepreneurism is required to subvert the dominance of the status quo.
Becoming an entrepreneur in Flanders and in Belgium is actively discouraged by the state bureaucracies, but that’s another discussion. More importantly, the Flemish government believes that future growth lies in its existing industries and that other industries can arise as long as they do not undo the existing ones. Radical change – hence – is not allowed.
This means that new industries are welcome to integrate with the existing economic networks but are not allowed to help destroy them. Players in new industries – especially young ones – are then left with only one option: become suppliers to the existing industry giants in Flanders and not subvert the status quo.
Radical 21th century innovation feasts on turbulence. This turbulence is a reality, only the Flemish government does not want to recognize this. They want pathways that let the status quo grow, and they’re not interested to hear voices that say this may not be an option.
The Flemish Innovation Mistake assures a shrinking economy while other European countries are working on innovation strategies that ride the waves of turbulence. The status quo is held so dear that the Flemish government has closed the door for innovation without permission.
The key insight the Flemish government will have to come to terms with in order to restore innovation and growth is that of the learning economy: that learning – doing things you’ve never done before – itself is growth. That learning is not a pathway to growth, but that learning is growth.
We’ll have to start realizing that learning, innovation and growth are actually synonyms, literally. There’s no objective difference between learning, innovation and growth. There’s not a single European country or region that’s basing its assumptions on this key insight or that is rearranging its infrastructure and resources accordingly. That – my friends – is an opportunity.
It’s not too late for the Flemish government to change its course and take action. The Flemish people have to accept that the status quo cannot be saved, under no circumstances. The unfolding closing of the Opel factory in Antwerp is a timely reminder of this reality. When the news of the closing will roll in many of us will feel defeated. It is in this moment of despair that the Flemish people will get the opportunity to think about how we’re all related to each other and what we can do better together.
That seemingly unreachable innovation and growth lies hidden in learning how to come together. Discovering that we’re all sharing the same frustration is doing something we haven’t done before. Coming together out of this frustration is doing something we haven’t done before. Taking these uncertain steps is learning, is innovative and creates growth.
We can invent thousands of reasons for not doing anything but since we’ve been doing this all along we’re not learning, not innovating, and not growing. We’ve been frustrated by how innovation has been practiced and handled so far and remaining frustrated without alternative action is not learning, not innovative, and doesn’t create growth. I could go on.
The point is that the Flemish government doesn’t get any of this and maybe they will in one year or ten years from now. We’ve all been depending on the government for such a long time that there’s nothing to learn there either. We have to come together. It’s the only option simply because this is the one thing we haven’t done before.
By coming together I mean actually meeting each other, listening to each other and getting to know each other without agenda. It’s completely uncertain and because we’ve been avoiding it all along it’s learning, it’s innovative and it will create growth.
The people in Flanders that care about radical innovation have been coming together for a while now, that problem has been solved. The people that need to come together are those that don’t see a way out. Networked frustration is the fuel of change.
Let’s network the frustrated people who are out there in Flanders.