My cradle stood in Kaatsheuvel. So that made me a boy of Brabant sand. Infertile land that required tremendous effort in order to stave off hunger. Where people worked together to earn a crust. That unmanageable sandy soil tested the character and inventiveness of the people who had to build their future on it. This also turned out to be the cornerstone for the success of the Eindhoven region that emerged from a remarkable transformation as an innovative High Tech region of global significance. More about this later. I believe that I can speak as an expert from experience. After all, I worked elsewhere for twenty years and I can assure you: things are done very differently there.

But putting this to one side. Because coincidence or luck has nothing to do with the resurrection of the region. Nor did the Marvel of Eindhoven fall from the heavens through some miracle. No, the success of the region is far from the result of a miracle. It is the result of hard work and continuous smart building on the region’s humus layer that has accumulated during the last 100 years. This humus layer, comprising a mixture of Brabant culture and creativity, plus a high-end manufacturing industry, R&D, engineering and design, has proven to be an excellent substrate for the successful transition of Eindhoven. It now makes the region the domain of farmers and scientists. A rich harvest from such miserable soil.

A transformation like this is certainly not a matter of course. Research by the Brookings Institute shows that in many places around the world this process takes place very slowly. Detroit in the USA is a sad example. Thirty years ago the city was known as Motown, the proud heart of soul and the American auto industry. Now Detroit is bankrupt. In comparison with back then, 2/3rd of the population have moved away. Who remains behind is left in poverty with little or few opportunities. But also elsewhere in the USA, in Wallonia, the Ruhr Area and the United Kingdom we see that very few regions with old industries manage to find a new way up. In this essay I will be analysing, based on literature and interviews, what economic transformation took place in Eindhoven and surroundings since Operation Centurion (October 1990) and the bankruptcy of DAF (April 1993) and what was the nature of the momentum that drove this transformation. That resulted in a region that we can typify today as a milieu of innovation, with the high-end manufacturing industry as its beating heart. In addition, I explore what is required to cherish and improve this ecosystem that has sprung from the region’s humus layer. To secure the greatest capital of the Eindhoven region for the future.

The transformation of Eindhoven and surroundings could never have come about without the layer of humus developed from the beginning of the industrialisation. This layer of humus comprises competencies that originated from the Brabant culture and fostered the conditions for growth and blossoming.

Brabant culture

Brabant folk are egalitarian. Henk de Wilt typifies Brabant culture as a flat horizontal pyramid, in contrast to the high vertical pyramid in Western Holland. In Brabant, people do not quickly get too big for their boots. Even the top of industry in Brabant, commonly family firms, usually consists of straightforward sensible people.

Competencies

The trends above led to the Eindhoven region excelling in four competencies: manufacturing industry, R&D, engineering & design. In this chapter I will discuss the development of the competencies until the turning point at the beginning of the 1990s with Operation Centurion at Philips and the bankruptcy of DAF.

High-end manufacturing industry

The arrival of Philips in Eindhoven in 1891 was the starting shot for the manufacturing industry in the region. That Philips wanted to found its factory in the South of the Netherlands because of the low wages and the large families is clear. But Philips could just as easily have landed in Helmond or Breda, where the circumstances were very similar.

Something else about the prominent position of the manufacturing industry in South East Brabant. In fact, the region set a trend that was and is atypical for the practices in this country. The Netherlands has always been driven by trade and the logistics stemming from this. There has always been a lot of snobbery about industry. Because factories stank, were noisy, dirty, grimy and stuffy and they polluted the environment. The idea of industry was almost automatically associated with the Nuisance Act. Even today, the inferior image of the business serves it an injustice. Despite the valiant efforts of the manufacturing industry to distance itself from this obstinate image. I have visited many industrial companies where the floors were cleaner than in a hospital. A region that has embraced the manufacturing industry meets, as a matter of course, obstinate prejudices in politics and government. I will return to this theme later in this essay.

Research & Development

The development of the discipline R&D in this region was started by Philips too, with the establishment of the Natlab in 1914. A typical example of private R&D, following the Henry Ford model. In the early years of modern industry there were more large companies just like Philips that organised R&D in laboratories that functioned as test beds for innovations and new products. At the time, the Natlab was considered one of the largest and most renowned R&D institutes in the world. Even Philips’ competitors spoke in awe of this cradle of technology.

Engineering

By engineering we mean the design, manufacture and maintenance of machines and other hardware, systems, materials and processes. The start of engineering in Eindhoven and surroundings was most likely the founding of the Philips machine-building factories in 1900 where, in the course of the years, many advanced production lines were developed and made, for incandescent bulbs as well as screens. The Philips Centre for Manufacturing Technology (CFT) played an important role alongside the machine-building factory. Within the CFT, the principle of mechatronics was fleshed out that appears to be indicative for the region’s current success (see chapter 2). In the 1980s the machine-building factories developed to become a production partner for mechatronic systems. Relationships with the current technology superpowers ASML and FEI date back to this time. In 2006 the Enabling Technologies Group, as the machine building factories are now known, were taken over by VDL.

Design

Conclusion

With Brabant culture as a substrate under the humus layer four competencies developed in the Eindhoven region: high-end manufacturing industry, research & development, engineering and design. They laid strong foundations for the region and this was decisive for the unfolding of the economic future. It is striking just how interwoven R&D and engineering are with the competencies of the high-end manufacturing industry. Design only played a limited role here, because the global niche players in the region (like ASML & FEI and their thousands of suppliers) are not active in the consumer market, but focus primarily on business-to-business. This market does not usually make the same high demands of design. A printed circuit board or switch box has to be functional and does not need to look fancy or contemporary. This restriction does, however, apply to a smart phone, tablet or LCD TV.

Eindhoven’s turn-around from a stereotypical industrial city to the current economic ecosystem took place in the wake of Operation Centurion at Philips and the fall of DAF. They were tough times. How close the shave was that Philips underwent only became clear later. Without Operation Centurion (1990), the largest reorganisation in the company’s history, Philips would probably not have survived. But the price that was paid was draconic: 40,000 employees, of which 10,000 in the Netherlands were sacked. In Eindhoven especially, the traditional home base for the company, hard blows were felt.

This last aspect does not mean I want to make light of the fact that the region had to make great sacrifices to get a transition moving of which at the time no one could envisage the implications. Especially because Operation Centurion and the bankruptcy of DAF were not just a drama for the employees of the individual companies. Countless suppliers also paid a high price. Or in the words of Hans Duisters: ‘When Philips caught a cold, the suppliers got the flu, a large number of them even died as a result’. Which is why we should never lose sight of the fact that the transformation of Eindhoven was no luxury, but a bitter necessity for survival. This went hand in hand with a lot of blood, sweat and tears and left deep scars.

The figure below shows the important turning points in the transformation process.

If we look at the transformation, we see various movements herald this transformation in the course of time.

2. 2 From vertical integration to a horizontal network

In the seventies it seemed that the increasing international competition was gnawing at the roots of these apparently impregnable bastions. For the large vertically organised companies there was little choice but to become ‘lean and mean’ and to focus on their core activities. Everything that fell beyond this had to go. This happened at Philips too. It led to the closure and sale of business units and spin-offs. From this, new giants would arise like ASML, FEI and NXP. An important effect of this is that ‘the two big lads’ in the region became far less dominant. In this sense October 1990, when the starting shot was fired for Operation Centurion, was a break with the past in more ways than one. Philips that, until this point, had done practically everything in-house, started to discover outsourcing. ‘The first commission for the construction of a machine outside Philips fell to us in February 1992’, according to William Pijnenburg. But this was not restricted to Philips, the suppliers also underwent a turnaround. They were given a completely different role, from now on they had to collaborate and assist development.

With the result that suppliers now, in addition to manufacturing, are also involved in engineering, prototyping and system integration, through which they take on more responsibility for a larger proportion of the High Tech chain. This allows their customer to focus more and more on the development of the latest technologies and applications (R&D) and customer relations for selling the products. But the suppliers took advantage of yet another development. Because they were no longer operating under the wing of Philips, they came into contact with other market parties and customers. This strengthened their commercial position and autonomy and meant that they spent more time and energy on marketing.

This approach to work created a horizontal network, in which many parties worked closely together. This also led to a tremendous number of new players in the manufacturing industry, like SoLayTec, Mutracx, Comaxx, WESP/PSV Carbon, Sioux, Assembléon, Sapiens Steering Brain Stimulation, BioArt Laboratories, Innovalens, Civolution, Van Berlo, FreeSense Solutions, Laméco, Nemo Healthcare, CMNTY, Prodrive, Phoenix 3D Metaal, InnoSportLab, Shapeways, Genexis, Miortech, Liquavista, IRX Innovations, Medical Robotic Technologies, Phenom World, Intel Benelux and Additive Industries.

4. From broad technological knowhow to global niche players

Where Jan Timmer saved Philips’ skin with Operation Centurion, his successor Kleisterlee (2001-2011) provided focus in the company’s products. Thanks to the innovative research in the Natlab, the range of products had grown and widened exponentially since the start with the incandescent bulb. Lighting, music, radios, televisions, medical equipment, domestic appliances, telecommunication, pharmaceutical and chemical products – really, were there any areas in which Philips had not been active? From the chaos of activities Kleisterlee selected Lighting, Healthcare and Consumer Lifestyle. This transformed Philips into a global niche player. Philips spin-offs ASML and FEI follow a comparable strategy. They too are global niche players with their exceptionally precise and complicated machines and high-end equipment. It is worthy of note that this is one of the unique selling points of the Eindhoven region.

Industry here disposes of the rare capacity for the manufacture of the most complex machines. This is highly advanced and refined system integration. Thousands of suppliers are involved with the renowned ASML wafer stepper. With a more or less superlative degree of cooperation they all take ownership of a single link in the chain. Even the smallest screw is state of the art and is subjected to minute specifications. There are very few places on earth where something of this level can be achieved.

6. From separate worlds to cooperation

Following the double knock-out of Operation Centurion and the bankruptcy of DAF came the realisation that people needed each other. More cooperation took place between companies and between companies and knowledge institutes. The conviction that industry, government and knowledge institutes were also obligated to form a united front to get the regional economy back on its feet was widely acknowledged. This cooperation, known by the name Triple Helix, first took shape within Stimulus and Horizon, grant programmes that were focused on economic structure reinforcement. Following the recognition of South East Brabant as one of the cornerstones of the Dutch economy, through its labelling as Brainport in 2004, the Triple Helix focused on the realisation of the integral agenda from the ‘Brainport Navigator, Lissabon Voorbij!’ with four activities in four areas: People, Technology, Business and Basics. Since 2009 the compass has been set for the programme Brainport 2020. The ambition is that Brainport will then fulfil a top-3 position in Europe and a top-10 position in the world as a top technology region.

8. From Rhineland model to American Brabant style

However big, in spirit and nature Philips was a company with a touch of the family firm. There had been many more of this type of company in the Eindhoven region in the past. But in the last decades the number of stock-listed companies has increased dramatically. As a result, more Anglo-Saxon influences are felt in what was originally a region with a more Rhineland economic model. This has meant that long-term results have had to make space for short-term ones and profits. The region has learned how to be sharper, more business-like. Just like American commerce, it has modelled itself to the discipline of the market. In this sense, the Eindhoven region still has some way to go. Strong emphasis on R & D is still where the focus lies here; putting more emphasis on sales and marketing would therefore not do any harm. ‘Because’, says William Pijnenburg, ‘we do need to learn how to sell better.’ Something that is echoed by the region’s CEOs. But the Anglo-Saxon tint also creates tension. For example, in an interview a manager expressed his preference for doing business with regional suppliers and he was castigated by the American manager of the company for, ‘not knowing what was for sale in the world’. And you always run the risk that a trend like this goes overboard, so that the engineers no longer determine what happens with the new technology, but the controllers. Henk Tappert: ‘In the past, at Philips, anything in the field of product development was possible, but now it appears as though the controllers within companies have the power. New initiatives are often calculated to death in the embryonic phase.’ I am increasingly convinced that the region now has its own unique mixture of Anglo-Saxon and Rhineland traditions, the best of both worlds. The roots in the sandy soil, such as the drive for collaboration, the non-begrudging nature, the scope fixed on far horizons, cross-pollinated with the typical Anglo-Saxon characteristics such as mindful of yield and shareholder value.

10. From Kalff to Dutch Design Week

Historically, the education with the Academy for Industrial Design Eindhoven (AIVE) was chiefly focused on the design tasks required within Philips. The man responsible for this at the time was Louis Kalff, who was sometimes characterised as the ‘artistic conscience of Philips’. This is what we call applied arts. After the change of name from the AIVE to Design Academy Eindhoven (DAE) in 1997, something changed. In addition to applied design (an agency like Van Berlo is a good example), a major autonomous design movement steadily grew within Eindhoven (people like Kiki and Joost and Piet Hein Eek). In the meantime, the DAE has educated many of the big names in the design world.

In the course of the years the Design Academy (‘The school of cool’ as the academy was once described in the New York Times) has acquired an internationally renowned reputation. In 2005 the British design magazine ICON put the Design Academy Eindhoven at number five on its list of most influential people, products and institutes in the world of design. Eindhoven is generally considered as design city, which is more than clear from the success of the Dutch Design Week, which has grown to become an international event. In the area of applied design the TU/e opened the faculty of Industrial Design in 2001.

Where with applied design there is a clear integration with the manufacturing industry, for autonomous design this is certainly not so. Autonomous design is, however, very important for the region’s creative cultural climate and image. It has developed in the shadow of the existing economic ecosystem to become a mature cast iron brand. This is most visible during DDW, where two thousand designers attend to exhibit and demonstrate their new ideas, concepts and prototypes.

This diagram clearly depicts the direct line that runs between the competencies of the Eindhoven region and Brabant culture. Industry in South East Brabant is able to integrate the most complex machines, services, systems and processes. This is perhaps the real secret behind the economic success of Eindhoven and surroundings. The complexity is only achievable if the parties within the networks are on equal footing with each other and together support the superlative cooperation. Because if a single link or component in the process is not right, the entire chain is worthless. It is at exactly this point that the farmers and scientists in the title of this essay come together. The farmers symbolise the Brabant culture of cooperation, the scientists the system integration in which the Eindhoven region excels.

If we examine the economic profile of the Eindhoven region under a magnifying glass, what do we see? What has the transformation described in the previous chapter led to in quantitative and qualitative terms?

The structure of the regional economy

Global is dominant
The Brainport region makes a considerable contribution to the gross national product. After the Amsterdam region, it is the second regional economy in our country. But the question remains: who makes which contribution? At my request, Bureau Louter investigated what proportion of the employment (1) was with export-oriented companies (part of the global new network economy) and (2) what with the companies serving the region (so-called domestic economics) (* note: the statistics concern the distinction between propelling and regional serving).

Differences compared to Amsterdam and Rotterdam
The Eindhoven region distinguishes itself from the other Mainports in the Netherlands in the scope of the importance of industry for society (see fig. 7). Where industry in Eindhoven and surroundings still provides about 18% of all the jobs, in the Mainport Amsterdam that is but 5% and in the Mainport Rotterdam only 8%.

There are strong indicators that the economy in Eindhoven and surroundings has developed in the direction of the German Industrial Production Model and the regions of Amsterdam and Rotterdam are leaning towards the Anglo-Saxon Service Economy Model. Indeed, it has been acknowledged for some time that industries involved in high-tech systems are early cyclical, but at the same time it appears that the ‘German’ model is more stable than the Anglo-Saxon one. A good illustration of this is 2011, the year in which the Dutch economy as a whole suffered a deep crisis, but companies like ASML, FEI, NXP and others experienced a top year. Anyhow, it is remarkable to see how the economy in the Eindhoven region, contrary to the national trend, has been reasonably successful since 2008 in wrestling out of the recession. Or, as Eric van Schagen says: ‘Crisis? What crisis. Crisis is an old man’s ailment. I’m focused on opportunities. The market is my mindset.’

The secret of the multiplier
Due to an absence of home-grown research I stray abroad for advice on this point. A study for the President’s Council of Advisors on Science and Technology shows that in the USA, of all the sectors, industry has the highest multiplier. According to this research, every job in industry generates 2.5 jobs in other sectors. Research by Moretti in the USA shows that every job in High Tech even leads to five jobs in other sectors: two for highly educated professionals like lawyers and physicians and three for people with low education like waiters and shop assistants. The creation of jobs in High Tech appears to be an extremely effective way to tackle unemployment.

Another recent report from the USA shows that industry lays a far more robust and sustainable cornerstone under the economy than can be derived from the GNP. In the USA the contribution to the GNP is 11%. But simultaneously this industry is responsible for 70% of R&D, 90% of all patents and more than half the income on the trade balance. An invisible, but undeniable superpower, this industry. No wonder that the ‘renaissance of the industry’ is currently one of the Obama administration’s most important strategic themes.

The importance of the high-end manufacturing industry for the Eindhoven region cannot be stressed enough.

Milieu of innovation

Concentration of manufacturing in metropolitan regions
We live in the age of the New Economy that runs on knowledge, innovation, globalisation and networking. The inventor of the term is Manuel Castells who, in his book The Rise of the Network Society, paints the contours of this far-reaching transition. With the arrival of the world-wide web, time and place no longer mattered, thought scientists, entrepreneurs, experts, trend watchers and opinion leaders in the rise of the digital revolution. It was expected that the electronic highway and the virtual world would lead to the death of distance and the death of cities, according to Cairncross (1997) and Glider (1995) respectively. I can remembered an advertising film from the time in which the CEO for a major US company was fleshing out his corporate strategy on a computer, sitting at the edge of a cliff in the Rocky Mountains. Who on earth would want to while away their hours in an anonymous office building if you could do the same work in the garden, at the seaside or on your laptop in the mountains?

Strikingly enough, from an economic perspective, the opposite occurred. In the first place, scientists noticed that a new form of urbanisation took place in the new economy, being the forming of metropolitan regions, like the Pearl River Delta. Such a region comprises multiple cities, with varying relationships. We also see in an area like this a decentralisation of residential demographics, activities and services with mixed land use and a difficult to define territorial border that ends where the networks stop. Subsequently, we can conclude that in 2013 the economic activities are to an increasing degree concentrated in the metropolitan regions. Porter describes this phenomenon as the global/local paradox. According to McKinsey, the metropolitan regions with 38% of the world population produce 72% of the GDP.

Getting together has added value
But why is it that the economic activities congregate in the newly formed urban areas? I would like to propose two explanations. Firstly, the concentration is explained by the proximity. Cites are so important for economics and innovation because companies benefit from mutual proximity. And this does not just rest on geographical position and distance, but it also has an institutional and social dimension. So, as we saw previously, the arrival of the Internet and the information society ensures that digital knowledge can be transferred and shared when and where you want. But apart from this codified knowledge there is also something known as tacit knowledge. This is the often invisible knowledge inside people’s heads that is an inherent part of their personality and wanders around within the informal routines of organisations. Face-to-face contact is essential for the exchange of this knowledge. Eindhoven = Supervillage: organised, close-by and relatively modest in size. In other words: geographical proximity, i.e. something strange has to happen for you to miss each other.

Gleaser provides a second explanation for the renewed vitality of the major cities and the concentration of economic activities in metropolitan regions in ‘The Triumph of the city’. For this, he employs the paradox introduced by the 19th-century economist Jevons. This is known as Jevons Complementarity Corollary. Jevons explained that with the arrival and more efficient use of the steam engine demand for coal did not fall, but actually increased. Gleaser projects this theory onto the New Economy and states that the improvement of networks, faster internet and the increasing ease with which information can be transmitted around the world, have actually led to more and not less person-to-person contact. The importance of this has actually increased. ‘Statistical evidence also suggests that electronic interactions and face-to-face interactions support one another; in the language of economics, they’re complements rather than substitutes.’

You do not need to be a scholar to see from the statistics above that the Eindhoven region does not meet the criteria of a metropolitan region. Neither is it a part of a larger metropolitan area. The law of averages does not apply to Eindhoven and surroundings with its 745 thousand residents. The region does not have sufficient mass and misses the agglomerative attraction that other metropolitan regions in Europe enjoy. In all sorts of statements and overviews, the Eindhoven region is stuck around the 20th position with regard to economic revenues. This is due to the relatively modest size of the region. With its 745 thousand residents it is no match for regions like Paris, London and the Ruhr Area. However, if we just look at the economic contribution per resident, it might well be the highest in Europe.

A strategy for making a stand in this area is known as ‘borrowed size’: hitching a ride with the strength and potential of close neighbours, where excellent connections are crucial. The question, however, is, does this approach offer any consolation for the Eindhoven region? During the last decade the region has laid irons in the fire here and there to alleviate this shortcoming. From within Brainport, for example, the importance of the Eindhoven Louvain Aachen Triangle (ELAT) is emphasised. ELAT appears to be a logical line of march, because the companies and knowledge institutes situated in the region appear to be well-matched from a technological point of view. The connections between the cities are, however, mediocre. Above all, ELAT is not or hardly noticeable for the people and industry in the region. Is upgrading to Brabant or Brabant City an option? Many people would like to see Brainport, due to its strong brand and globally appealing profile, scaled up to the level of Brabant. The necessary good infrastructure is in place, but with regard to the type of industry and knowledge institutes there is very little cohesion between what is taking place around Eindhoven and in the other regions in the rest of the province. Above all, there are a considerable number of governmental and political sensitivities that stand in the way of a Brabant without regional borders. In brief, ‘borrowed size’ does not appear to be a universal remedy for the Eindhoven region.

Milieus of innovation
The last thirty years have shown that certain specialised small-scale regions have managed to thrive on the world stage. There are good examples of this on various continents, with Silicon Valley in the lead. Regions like this stand out, because they dispose of an extremely successful ‘milieu of innovation’, according to Castells’ analysis. A relevant question is: do Eindhoven and surroundings belong on this same stage? Does the milieu of innovation mean that the region disposes of sufficient qualities and characteristics to be able to measure up to the best?

There are all sorts of milieus of innovation and they occur in different areas; cultural, financial, criminal, scientific and technological. Within the scope of the transformation of the Eindhoven region we are especially interested in the way in which technology milieus occur. In connection with this, Castells employs two terms: ‘milieu of innovation’ and ‘technopolis’. The term milieu of innovation originated with Groupe de Recherche Europeen sur les Milieux Innovateur (GREMI) from prof. Aydalot. The basic idea behind this is that the functioning of companies cannot be considered separately from the environment in which they are to be found. An environment with a specific identity that acts as a flywheel for generating its own innovative companies. According to the aforementioned definition the most important elements in the milieu of innovation are:

• cooperation and the exchange of information between regional actors;
• lots of face-to-face contact;
• commitment of the actors from the different branches of the economy (companies, knowledge institutes and government);
• awareness of the actors that they are part of a coherent unit and regional culture.

In brief: an almost organic combination of social, institutional and geographical proximity is conditio sine qua non for achieving a milieu of innovation.

The key question is: does the Eindhoven and surroundings’ regional economy meet these criteria? For the answer to this question we must return to the shifts that took place in the regional economy from 1970/1973 onwards. Especially the strategic decision that Philips took to effect vertical disintegration is essential here. Up until this point, Philips had organised almost all the links in the chain in-house and as a result was not dependent on regionally supporting systems from suppliers. Innovation, too, was entirely anchored within the company. The consequences of the vertical disintegration of Philips were not just the closure and independence of business units, but also to an increasing degree the cooperation with suppliers in the region. Not solely in manufacturing but especially in the field of innovation. Cooperation in the chain was also at the forefront among the new conglomerates, with ASML as the uncontested leader. This created horizontal networks. These networks do not solely comprise companies, but also other supporting regional parties, such as specialised services. There is also institutional support from universities, research institutes and government. A climate of trust and begrudging each other nothing are crucial for properly functioning and horizontal networks. And these just happen to be the ingredients that give the economic ecosystem in Eindhoven its flavour. The conditions for maintaining its position in the competitive battle over other regions are in plentiful supply in the land of Farmers and Scientists. The ecosystem surrounding the high-end manufacturing industry, with mechatronics, precision technology and the capacity for system integration as a distinguishing competency, can safely be called globally unique.

The effect of all the movement in the Eindhoven region is that a milieu of innovation was born. This is the significant transformation that has taken place during the last two decades: from an industrial city to a milieu of innovation.

In this last chapter, two topics take centre stage. First of all: what do we need to do to maintain the current ecosystem, so that we stay ahead of the competition in the race? Can such a system actually be created, and is this something worth striving for? The second question is to what extent the quality of life in the Eindhoven region can contribute to the further economic blossoming of the area. Which parties come into play here, and under whose auspices should this fall? On the basis of my interviews and analysis of the region I have arrived at a number of insights and recommendations.

Reinforcing the Ecosystem

Thinking in terms of manipulability is a tricky business. Examples from the past (and not insignificant ones) have shown that such exercises are almost always overtaken by reality. Even so, we should not be frightened of new ideas that could reinforce the foundations of the ecosystem and the milieu of innovation. But they should be able to be named as game changers. This means that, on the basis of the existing competencies and capacities, innovation is sought that can contribute some form of value to the Eindhoven and surroundings’ ecosystem. Such game changers should be multidisciplinary, integral, holistic and pioneering. And as such ensure that we do not doze off or start to live off our reputation that is sooner or later doomed to evaporate. Game changing places great demands on the region’s ability to adapt: ideas have to be developed and transformed into products that are, in turn, taken to market. And all this at the desired speed. It is to be expected that entrepreneurs will lead and that the knowledge institutes, government and financers will feed this process.

3. Bold enough to think big
Let us be bold enough in our region to tackle the major social themes (like energy, water, food and healthcare), say several CEOs, those at Philips at the head. These are problems with enormous range that require global solutions and for which the region’s universally praised innovative ability could serve as a joint game changer. It is precisely here that our key competencies are most opportune. After all, these are major challenges and require an approach employing a wide front, comprising actors from all sorts of disciplines working together in harmony, taking the necessary steps in unison that take them forward individually or in joint ventures. It is just like with the state-of-the-art machines that roll out of the ASML factory: they derive their strengths from not just the superior technology but also from the sophisticated interaction between main producer and suppliers.

4. Long live manufacturing
Against the background of a report from MIT, the Brookings Institute and the President’s Council of Advisors on Science and Technology, it is important for us to see the significance of the cohesion of things in this ecosystem and to comprehend that the high-end manufacturing industry is actually the backbone. Not solely because of its contribution to the country’s treasury coffers, but also as a result of the enormous effect on R&D, the derived employment that this brings about and the contribution to the balance of trade. Strikingly, we currently see moves that are to lead to an initial recovery of industry in the USA. Obama has this high on the agenda for his final period in office. The background for this is a recent report from the MIT that ascertained that the American ecosystem displays serious voids. The Apples of the world have already outsourced so much manufacturing and assembly to China and India that they are not even able to manufacture their own prototypes themselves in the USA. A stark contrast with our region, where the art of making is still held in great esteem.

This quality still delivers masterful results. This is most visible in the graduation show of the Design Academy students. However bizarre, weird and complicated what they dream up is, prototypes can almost always be made here. In other words: all competencies are available for prototyping and custom-made series. It is consequently of unbelievable importance that the manufacturing industry remains connected with the region. For someone like Wim van der Leegte, this is an emotional matter. ‘We have a passion for making things’, says the figurehead of the Eindhovense Fabrikanten Kring.

5. Industry 4.0
On our way to Industry 4.0 it can be assumed that the importance of information technology will increase in the complex systems that the region is yet to build. This can already be observed within ASML, where more than 1,000 engineers work on embedded systems, but also at companies like VDL Sioux, and Prodrive. The municipality of Eindhoven has noticed that several software companies from India have established themselves in the region recently. The arrival of an international knowledge institute in the field of information and software development could reinforce the region and bring it more into line with the cooperation between this sector and the existing knowledge industry in the Eindhoven region. A branch of Stanford University would really be a splendid boost for the area. And why not; if you really dare to dream, the sky is the limit. What does not sit so well here is that central government has kept emphatically to the side-lines. Entrepreneurs in the region often look jealously at the situation for our Eastern neighbours who, according to Huub van de Vranken, enjoy ‘a coherent and consistent industrial policy.’ ‘The Netherlands doesn’t have this’, he indicates. More national support would be a real boost, certainly because an increasing number of foreign companies are trying to get their foot in the door in Brainport, because the region is perceived as a vital economy for the future. Martin Saris: ‘We see that there’s growing interest from international companies who want to create a footprint in the Brainport region.’

6. Recognition from The Hague
We are ourselves gradually becoming more convinced of the unique proposition that the Eindhoven region disposes of with its ecosystem and milieu of innovation. The problem, however, is that the echo from this cry still insufficiently reaches ears in The Hague. Within the government institutes and bodies, there is not yet a sharp picture of the absolute importance of the Eindhoven region for the economic future of the Netherlands. This is apparent from, among other things, a recent WRR report concerning future revenue models. So here lies another mission for the region. It is especially important for politicians and government to disclose where ‘the tricks of the trade’ are hiding in Eindhoven and surroundings. This is not just about establishing that the region makes a substantial contribution to the GNP (the policy makers have now realised this), but more especially in the multiplier effect: the enormous R&D efforts, the countless patents that this generates, plus the many jobs that are created in the extensive network of suppliers. In other words, the acquisition perspective of the whole is greater than the sum of parts.

7. In search of the new ASML
We have to get more out of the available technology in the region. Phenom, a Hans Duisters initiative that, with the table electron microscope, fills the gap between light microscopy and high-end electron ­micro­scopy and Addlab, a 3D printing initiative by Daan Kerstens and Jonas Wintermans, are wonderful examples of new cooperation in the chain. These kinds of new alliances, of which a number are to grow to world-player status, should be stimulated by the province / BOM. Not the individual companies, but the ecosystem makes the region powerful, unique and, in contrast to the system’s components, almost impossible to copy or reproduce. This ecosystem can only continue to exist if give and take are in balance: Guanxi, as the Chinese call it. We should realise that, as Katz says in relation to the metropolitan revolution, ‘the cavalry isn’t coming’. In other words: you will have to do it yourself as a region.

9. Reinforcing the networks
The well-developed network structure is one of the major strengths of the region. ‘You bump into each other everywhere’, is heard across the board, from CEOs as well as from authorities and knowledge institutes. The crux of the matter is creating formal and informal networks that are active at different levels. First of all within their own ecosystem, but also between the various sub-ecosystems that have sprouted from it. Particularly between the manufacturing industry and the designers. Of great assistance here can be that Dutch Design Week is the platform where the nerds (pioneers in technology) and the creatives (pioneers in design) can find each other and Dutch Technology Week the event where the creatives can track down the nerds. More of these kinds of connective and special events are needed to create more cross-pollination.

10. More brains and more hands
Without a sufficiently qualified workforce and good education, the Eindhoven region will lose the head start it has acquired in the last decades. Important to keep in mind here is that this does not just refer to international technology top talent but also to skilled professionals at intermediate levels. It is exactly this delicate balance between brains and hands that makes Eindhoven and surroundings stand out as a top technology region compared to other areas in Europe, Asia and the USA. We do not just think up new products, concepts and services here, we develop and manufacture them too. The close ties between the engineers and the skilled machine operators have been spotted before as an important part of the high-end manufacturing industry. The region is consequently very dependent on the availability of a technically skilled workforce. Brainport Industries and education institutes have joined forces to improve the intermediate-level education. This has resulted in a number of new and fascinating initiatives. We can also learn from Germany in this field. There, targeted measures have not just boosted the number of successful students, but a lot of trainee places have also been created.

Which does not mean that there is no room for improvement. The fame of the High Tech Campus Eindhoven has almost reached every corner of the world. Even so, only 10 thousand of the 150 thousand people in the manufacturing and knowledge-intensive industries earn their living here. ‘This is why the existing industrial estates should be upgraded. This is where the old manufacturing industry is located, but you need to make it more pleasant for the people’, Henk Tappert remarks. But the idea does exist that there is more emphasis on families than on young single and two-person households and that what is on offer is mainly aimed at the original inhabitants of the region. While the region has become a lot more international, a trend that will only become more apparent in the coming period. ‘Eindhoven has to again become a student city’, says Geert Hurks. ‘With in any case more studies popular with women’, Arjen de Koning adds.

The region has built up an excellent reputation with a number of ground-breaking events of international appeal such as Glow, DDW and STRP. The strength of these events is that they navigate the cross-roads of various disciplines and are linked to the region’s DNA in character and in execution. They are informal and flexible in set-up, have sprouted from the cooperation between various parties and have managed to hang onto their hunger for experiment and innovation despite their public success. There are still major opportunities for further depth in these events. Glow, DDW and STRP now attract many thousands of visitors, but the original structure of hotbed and laboratory still stands. A good example of this is Glow. In Eindhoven’s city centre, this has grown into a mass event with hardly space to walk, whereas Strijp S boasts the innovative activities that attract the connoisseurs. A striking detail here is the resulting new business. Lighting designer Daan Roosegaarde and Heijmans Contractors are working on a motorway concept for the future.

In brief, confrontations between different sectors that bear fruit both commercially and culturally. And are interesting for creative thinkers and doers to establish themselves in the region. A good example of this is the way in which design has grown into a sub-ecosystem. Ten years ago, almost all the talent in this area left Eindhoven, now the reverse is true. This does demand sufficient affordable studio and work space for these groups, including activities to keep them captivated. Eindhoven has always had its fair share of nerds; in the last decades they were joined by bohemians. It is imperative to leave these groups to confront each other. Such a clash leads to surprising innovations. This does require networks and high-end meeting places such as Usine and Igluu. Another thing that assists in jazzing up the image is restoring the city’s icons, such as De Lichttoren and the industrial heritage in Strijp S.

Nurturing talent
Eindhoven and surroundings should not just attract knowledge workers from afar, it should also put more energy into developing own talent. Start with the children, I would say. Let them get to know engineering, design, culture, let them get their hands dirty. As they can do in the Ontdekfabriek in Strijp S for example.

In conclusion, a very last tip from me: let us make sure at all times to stay close to the sandy soil. The soil of farmers and scientists that has been a lot more fertile over the last century than anyone considered possible. Way past the powers of imagination.

In the first place Patrick Dogge (support desk research and editorial) and Hans Horsten (support final editing). I would like to thank Wim van der Leegte for his mediation with members of the Eindhovensche Fabrikanten Kring (EFK), who cooperated actively with this study thanks to his referral. Open and exciting interviews took place with: Elies Lemkes-Straver (ZLTO), Martin Saris (Connect Group Nederland BV), Theo Hurks and Geert Hurks (Hurks groep BV.), Simon Bambach (VDL Enabling Technologies Group), Theo Koert (GL Group BV.), Huub van der Vrande (Neways Electronics International NV), Eric van Schagen (Simac Techniek NV), Hans Duisters (Sioux Group BV), Wim van der Leegte (VDL Groep), Arnold Stokking (TNO - Industrial Innovation), Hans de Jong (Philips Electronics Benelux), Jan Post, (former chairman of the board Philips Nederland), Maarten van Andel (PANalytical, X-ray Tubes), Aukje Kuypers and Wim Kuypers (Kuijpers Installaties BV.), Jan van Gemert (Gemco Industries), Arjen de Koning (Paradigit Holding BV.), Gerard Meulensteen,(former director and founder of Neways Electronics International NV), Henk de Wilt, (former chair university board, TU/e), Leo van Doorne, (former supervisory board chairman Versatel Benelux), Maarten Steinbuch (TU/e) Berry Eggen (TU/e), Monique List (Alderman Eindhoven), Staf Depla (Alderman Eindhoven), Harry Hendriks (former CEO Philips Benelux), Henk Tappel (Frencken Europe Group BV.), Wim van de Donk (King's Commissioner Noord-Brabant), Peter Wennink (ASML), Jan Pelle (N.V. Brabantse Ontwikkelings Maatschappij), Michel Weeda (N.V. Brabantse Ontwikkelings Maatschappij), Marc Evers (Engelen en Evers bv), John Blankendaal (Brainport Industries), Marc Hendrikse (NTS-Group), William Pijnenburg (DGA AAE bv), Elly Blanksma-Van den Heuvel (Mayor of Helmond), Noud Swinkels (Bavaria NV), Edward Voncken (KMWE Management BV.), Hans Verhagen, (Prodrive BV.). Without these conversations I would not have been able to bring my task to a satisfactory conclusion. Of course, thanks to my Hilde, who appeared happier the more I became entangled in papers and tape recordings. And finally, Wim van de Donk, who from the beginning believed in the success of this project.