Rapport wetsus

Wetsus 2016 Evaluation report

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www.bureaubeleidsonderzoek.nl info@bureaubeleidsonderzoek.nl 06 46213983 postbus 2523, 8901 AA Zuidergrachtswal 18 Leeuwarden KvK: 01102046

Wetsus 2016 Evaluation report

Leeuwarden, March 2017

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SAMENVATTING (in Dutch)

Wetsus is een not-for-profit organisatie die een wetenschappelijk onderzoeksprogramma organiseert op het gebied van watertechnologie. Binnen Wetsus werkt een groot netwerk van (inter)nationale bedrijven en onderzoeksinstituten samen. Het multidisciplinaire onderzoek bij Wetsus is gericht op doorbraakinnovaties op het gebied van technologie voor waterbehandeling. Daarnaast is het doel om bij te dragen aan human capital ontwikkeling en aan spin-off en ondernemerschap in de watertechnologiesector.

Wetsus heeft een onderzoek laten uitvoeren door een onafhankelijk onderzoeksbureau om het functioneren van Wetsus te evalueren. Hiertoe zijn 3 elementen onderzocht: 1. De ontwikkeling van de Wetsus organisatie en het onderzoeksprogramma.

2. De bijdrage van Wetsus aan de (regionale) economie.

3. Het functioneren van het innovatieproces binnen het Wetsus netwerk en het effect daarvan voor de aangesloten organisaties.

De evaluatie is uitgevoerd op basis van desk research, een enquête onder participerende bedrijven en universitaire vakgroepen, en interviews met een aantal stakeholders. Het onderzoek naar de rol van het Wetsus-netwerk in innovatie is gebaseerd op de theorie van trust en strong and weak ties.

Evaluatieresultaten organisatie en wetenschappelijk onderzoek 

Wetsus kent sinds de oprichting in 2004 continue groei. Met name de eerste jaren lieten een sterke groei zien in aantal PhD’s (promotie-onderzoek) en staf. De afgelopen jaren is er sprake van een zekere mate van stabilisatie op een niveau dat door Wetsus wordt gezien als optimaal voor de beoogde impact en multidisciplinariteit. Op dit moment (eind 2016) zijn 65 PhD’s en 18 postdoc onderzoekers werkzaam bij Wetsus, ondersteund door een wetenschappelijke staf van 17 fte. Daarnaast is er ondersteunende staf; het overhead percentage is relatief laag.

Staf (fte) en participerende bedrijven/universiteiten 140 100

120 100

80

80 60

60 40

40

20 0

20

2004

2007

2010

2013

Support and co ntro l staff Educatio nal staff Technical and analytical research staff Scientific staff** P o st do c P hD po sitio ns

Bron: Wetsus

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2016 0 2004

2007

2010

2013

2016*

Number of connected knowledge institutes Number of partcipating research chairs Number of particpating companies and platform members



Het aantal participerende bedrijven en platformleden is per eind 2016 104. Wetsus heeft het aantal deelnemende bedrijven ook in de periode van de financiële en economische crisis kunnen verhogen. Het aantal deelnemende kennisinstellingen is 22, waarvan 9 buitenlandse universiteiten. Met 50 betrokken hoogleraren is het Wetsus programma bijzonder multidisciplinair te noemen.

De participatie in Wetsus wordt hoog gewaardeerd: ongeveer 90% van de deelnemende bedrijven en universiteiten beoordeelt de samenwerking goed tot excellent. De beoordeling ligt continu - ook bij eerdere evaluaties - op een hoog niveau. Tot op zekere hoogte wordt een collectieve cultuur – een “Wetsus feeling” – ervaren onder personen die met Wetsus zijn verbonden.

Kern van het de organisatie van het onderzoek wordt gevormd door de themagroepen. De themagroepen worden door de participanten gezien als een effectieve manier van samenwerken. Succesvolle participatie vergt een actieve betrokkenheid van bedrijven en kennisinstellingen.

De wetenschappelijke output in termen van aantal onderzoeksprojecten, promoties en wetenschappelijke artikelen is sterk toegenomen. Het aantal promoties staat per eind 2016 (cumulatief) op 78; het aantal wetenschappelijke artikelen op 505.

De kwaliteit en impact van de wetenschappelijke artikelen is zeer hoog.



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Evaluatie economische impact 

De activiteiten van Wetsus zijn zeer relevant voor de wereldwijde duurzaamheidsuitdagingen en voor economische en innovatiedoelen op Europees, nationaal en regionaal niveau. Inovatie op het gebied van watertechnologie sluit onder andere direct aan bij één van de VN Global Goals: Clean Water & Sanitation: to ensure availability and sustainable management of water and sanitation for all ustainable management of water and sanitation for all. De vraag naar oplossingen voor wereldwijde problemen rond drinkwater en afvalwater zal blijven groeien.

De economische impact van Wetsus is onder andere zichtbaar in: o continue groei van het aantal spin-off bedrijven: het aantal aan Wetsusonderzoek gerelateerde start-ups over de periode 2005-2016 is 30. o opleveren van patenten: op basis van Wetsus-onderzoek zijn 79 patenten ontwikkeld waarvan reeds 28 overgenomen zijn door bedrijven.

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Spin-off en patenten Spin-off companies (cumulative)

80

60

30 25

40

20 20

15 10

0 2004

2007

2010

2013

2016

Number of transferred patents (cumulative) Number of patents not (yet) transferred

5 0

2004**

2007

2010

2013

2016

Bron: Wetsus

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De regionale economische impact in termen van regionale werkgelegenheid bestaat uit ongeveer 225-320 banen (fte). Het gaat om: - het directe effect van de investeringen in Wetsus zelf (125 banen); - het indirecte regionale effect door omzet bij regionale toeleveranciers en de bestedingen van Wetsus-personeel dat in de regio woont (schatting 45-95 banen).

- banen bij regionale start-ups (schatting 50-100 banen); ongeveer 75% van aan Wetsus gerelateerde start-ups zijn gevestigd in de regio, in het bijzonder in Leeuwarden.

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De economische impact van Wetsus is ook relevant voor de regio omdat het bijdraagt aan het verminderen of tegengaan van een aantal tekortkomingen van de regionale economie. De investeringen in watertechnologie dragen bij aan: - diversificatie van de regionale economie; - een meer op kennis gebaseerde regionale economie; - een grotere internationale oriëntatie van met name regionaal mkb; - meer werkgelegenheid en een toename van de aantrekkelijkheid van de regio en in het bijzonder Leeuwarden voor hoger opgeleide kenniswerkers; - een sterkere reputatie en internationale zichtbaarheid van de regio en in het bijzonder Leeuwarden; - toename van internationale contacten en samenwerking.

Evaluatie innovatieproces en netwerk 

Ongeveer de helft van de deelnemende bedrijven geeft aan dat de kennis uit het Wetsus programma bijdraagt aan de verbetering van bestaande of nieuwe producten/technologie. Ongeveer een kwart geeft aan dat de omzet is gestegen als gevolg van innovatie en kennis uit het Wetsus programma. De verwachtingen zijn hoog: bijna alle respondenten uit de enquête verwachten dat het Wetsus programma zal bijdragen aan nieuwe producten en/of technologie in de komende vijf jaar.

Innovatie impact op bedrijven Innovations and knowledge from (the) Wetsus programme(s) ...

… have led to improvement of existing products and/or technologies (n=22)

50%

… have led to new products and/or technologies (n=23) … have led to more water related turnover (n=22)

35% 23%

… is expected to lead to new products and/or technologies in the next five years (n=23) Bron: BBO

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Rond Wetsus is een belangrijk netwerk binnen de watertechnologiesector ontwikkeld. Bedrijven zien Wetsus als een ‘portaal’ naar wetenschappelijke kennis.

Deelname aan het netwerk werkt positief door op business contacten, zowel nationaal als internationaal.

96%

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Vergeleken met contacten in innovatieprojecten buiten Wetsus, valt de relatieve hoge frequentie van de contacten tussen Wetsus en deelnemende bedrijven op. De samenwerking wordt door deelnemende bedrijven ook gezien als relatief van hoge kwaliteit.

Het Wetsus-netwerk wordt door deelnemers gezien als een high-trust network; uit de enquête volgen relatief hoge scores op de vertrouwensaspecten reputatie, goedwillendheid en integriteit. Vanuit de innovatieliteratuur geldt vertrouwen tussen de samenwerkingspartners in een netwerk als belangrijke voorwaarde voor het effectief genereren van nieuwe innovaties.

Kenmerken trust-network Wetsus* 71%

Goodwill from Wetsus

63%

81%

Integrity

95%

67%

Innovation reputation

79%

Participant companies

University departments

* Wetsus-samenwerking vergeleken met andere samenwerking tussen bedrijven-kennisinstellingen. Aspecten zijn: the level of goodwill/benevolence from Wetsus towards organisations, the level of integrity of the Wetsus organisation, reputation of Wetsus as an innovation institute.

Bron: BBO

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In vergelijking met andere innovatieprogramma’s wordt de reputatie van Wetsus als wetenschappelijk en innovatie-instituut als hoog tot zeer hoog beoordeeld.

De uitkomsten van de enquête laten zien dat de Wetsus-aanpak op een aantal indicatoren sterk overeenkomt met een netwerk dat ook vanuit de literatuur als stimulerend voor innovatie wordt beschouwd. Met name het hoge gehalte van vertrouwen en reputatie die in de survey zijn gemeten, bevestigen het belang daarvan voor een succesvolle innovatie-aanpak.

Toekomstige kansen en risico’s 

Op basis van de evaluatie kan een aantal aanbevelingen worden gedaan: o Wetsus moet haar ‘frisheid’, originaliteit en dynamische manier van werken behouden; Wetsus moet onderscheidend en inspirerend blijven. o Het huidige management en de huidige organisatie worden door alle geïnterviewde personen gezien als cruciaal voor het succes van Wetsus en zouden moeten worden voortgezet. o Het voortzetten van publieke cofinanciering wordt door participanten gezien als een noodzakelijke voorwaarde voor het borgen van de positie van Wetsus op de lange termijn. o Een toename van internationale contacten wordt als goede ontwikkeling gezien; focus op voordelen voor de Nederlandse watertechnologiesector blijft echter ook belangrijk.

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SUMMARY

Wetsus is a not-for-profit foundation whose main activity is the coordination of an academic research program in the field of water technology in which international companies and research institutes cooperate. Wetsus’ contribution to water research is especially aimed at facilitating breakthrough innovations for water treatment technology. In addition to this research role, Wetsus aims to contribute to human capital development and to stimulate spin-off and entrepreneurship for the water technology sector.

Wetsus has requested to have an evaluation carried out. The main research objective is to obtain insight into the organisational development of Wetsus and the achievement of economic goals. A central evaluation topic is the contribution to the innovation process that Wetsus aims at. In the evaluation a specific topic regarding the role of the Wetsus network in innovation is added, based on the theoretical framework on trust and strong and weak ties. The evaluation was conducted by desk research, a survey conducted among participant companies and university departments, and interviews with a selection of stakeholders.

Evaluation outcome on organisation and scientific output  Wetsus has been able to successfully maintain and enlarge its participant network throughout the financial and economic crisis. The growth of Wetsus in terms of personnel and budget has slowed down.  The organisation of the research in theme groups is considered by participants as an effective way of operating, though successful participation demands active involvement of companies and universities.  Scientific output has continuously increased in terms of the number of research projects, defenses and scientific papers. In terms of Citation Index the quality of the scientific papers is very high.

Evaluation of economic impact  The goals and activities of Wetsus are highly relevant for global sustainability goals as well as for economic and innovation policy goals at a European, national and regional level. The demand for solutions for water related problems will keep growing.  The continuing growth of the number of spin off companies is a striking feature of the Wetsus research, amounting to 30 start-ups between 2005 and 2016. Most startups related to Wetsus are located in the northern region, which indicates a fairly strong regional impact.  Wetsus has continuously been successful in delivering patents on basis of its research. Its research has contributed to the development of 79 patents, of which 28 patents have already been transferred to companies.  An estimation of the regional impact in terms of direct and indirect employment adds up to around 225-320 full-time jobs. The economic outcome is also highly relevant for the region because it counteracts some of the shortcomings of the regional economic structure. The investments in water technology lead to diversification of the regional economy, a more knowledge-based regional economy, a greater international orientation of regional SME’s, an increase in attractiveness for academic people to come to the city of Leeuwarden and the region, increased reputation and international visibility of Leeuwarden, and an increase in international contacts, cooperation and partnerships.

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Evaluation innovation process and network  50% of the participant companies state that the knowledge from the Wetsus programme has contributed to the improvement of existing or new products/technologies. Up to a quarter of respondents indicate that turnover has increased as a result of innovation and knowledge from the Wetsus programme.

Expectations are very high: almost all respondents expect the Wetsus programme to contribute to new products and/or technologies in the next five years.  Wetsus clearly has established an important network in the water technology field.

Companies see Wetsus as a portal to scientific knowledge and being part of the network helps with business contacts, nationally and internationally.  Compared to contacts in innovation projects with external (knowledge) partners other than Wetsus, the frequency of contacts of participant companies with Wetsus stands out and the cooperation within the Wetsus network is in general assessed as high-quality.  The Wetsus network is regarded as a high-trust network. In comparison with other cooperation projects, Wetsus’ reputation as a science and innovation institute is high.  Collaboration with Wetsus is generally judged to be more than good by participant companies and university departments. The overall valuation of Wetsus is continuously on a high level and even slightly higher compared to earlier evaluations.  An interesting observation is that there seems to have been growing a collective culture - a “Wetsus feeling” - among people who are connected to Wetsus.

Future chances and risks  Wetsus should maintain its ‘freshness’, originality and dynamic style of work; it should stay distinctive and inspiring.  The current management and organisation are viewed by all interviewees as crucial for Wetsus' success and should be continued.  The continuation of public funding is seen by participants as a necessary condition for guaranteeing the long term position of Wetsus.  An increase in international contacts is viewed as a good development by the participants, but continuation of focus on benefits for the Dutch water sector is also deemed important.

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CONTENTS

SAMENVATTING (in Dutch) SUMMARY

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1 1.1 1.2 1.3

INTRODUCTION General background and context About Wetsus About the evaluation

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2 2.1 2.2 2.3 2.4

ORGANISATIONAL DEVELOPMENT AND OUTPUT INDICATORS Organisational development Research results and scientific output Patents, spin off and SME’s Educational and other activities

14 14 16 17 19

3 3.1 3.2 3.3

RESULTS SURVEY AND INTERVIEWS Wetsus performance Network: trust and ties Interview results

21 21 26 32

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EVALUATION OF RESULTS AND CONCLUSIONS

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Appendix 1: Evaluation approach Appendix 2: Evaluation design and response survey Appendix 3: Interviews Appendix 4: Spin-off Appendix 5: Economic effects

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39 40 43 44 45

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INTRODUCTION

1.1

General background and context

Wetsus, European Centre of Excellence for sustainable water technology, is a facilitating intermediary for research and know-how development in water technology.

Within the Wetsus network, companies and research institutes are cooperating in a multidisciplinary scientific water treatment research program. The collaboration between companies and research institutes is aimed at innovations that contribute to the solution of global water problems and to business opportunities of the water technology industry.

The institute, founded in 2003, has established itself as a national and international centre for research and innovation in water technology. At the core of Wetsus activities lay research projects (PhD positions) on a variety of water related themes. A total of 65 PhD candidates are working on projects in the field of new water sources, safe drinking water, waste water, reuse of water, energy from water, and sensoring.

Wetsus’ contribution to water research is especially aimed at facilitating breakthrough innovations for water treatment technology. In addition to the research role, Wetsus aims to contribute to human capital development and to stimulate spin-off and entrepreneurship for the water technology sector.

International market demand The international water market is growing fast. At the heart of this market growth lie important global challenges in relation to water scarcity. Especially in developing countries there are huge problems with the supply of clean drinking water. Water resources are constantly under pressure from climate change, urbanisation, pollution and overexploitation of freshwater resources by various user groups. Besides water supply, urbanisation leads to problems with the capacity and quality of waste water systems. As a consequence there is a growing need for more sustainability and efficiency in water use and reuse of waste water. The general view is that development of new technologies and innovation is needed to bring the necessary solutions. The topic of water is directly related to the UN Global Goals for Sustainable Development, as one of the global goals - “Clean Water & Sanitation” – is to “ensure availability and sustainable management of water and sanitation for all”.1 European, national and regional innovation policy Innovation has been placed at the heart of the EU's strategy to create growth and jobs.

Under the EU research programme Horizon 2020 countries are encouraged to invest 3% of their GDP in R&D by 2020. The EU initiative Innovation Union focuses Europe's efforts on challenges like energy, food security, climate change and an ageing population.2 Within the Horizon 2020 programme water is regarded fundamental to human health, food security, sustainable development and the environment. It is also viewed as an economic sector of growing importance for the EU making it an important source for growth and jobs.3 Wetsus has created several links to relevant EU policies, and is an important actor in the TKI Watertechnologie.

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See www.globalgoals.org.

See http://ec.europa.eu/research/innovation-union/index_en.cfm.

European Commission, Research and Innovation, The European Union Explained, 2016.

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At a regional level, the northern provinces of the Netherlands have defined a regional economic policy based on innovation and knowledge. Regional economic policy and European subsidies with co-financing by regional governments have been directed towards economic topics, including water technology. Water technology is one of the key-topics in the Northern Netherlands RIS-3 strategy, next to energy, sensor technology, healthy aging and dairy.4 The municipality of Leeuwarden also regards water technology as one of its main fields for economic growth and employment, next to energy and dairy.5 Leeuwarden has invested in the new building for Wetsus and invests in various other features of WaterCampus Leeuwarden. The Wetsus activities are relevant to regional economic policy goals in terms of spin off, economic diversification, internationalisation and regional employment for high skilled workers.

WaterCampus Leeuwarden Wetsus is part of WaterCampus Leeuwarden. WaterCampus Leeuwarden is the physical core of the activities on water technology in and around Wetsus, with the new Wetsus building at its centre. The organisations and institutes that make up the WaterCampus stimulate cooperation between (inter)national businesses, knowledge institutes and governments within the water technology sector. Next to Wetsus part of the WaterCampus are research facilities for SME’s and start-ups, educational institutes (coordinated by CEW), and activities focused on clustering and international marketing (Water Alliance).

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About Wetsus

Wetsus is a not-for-profit foundation whose main activity is the coordination of a research program in which companies and research institutes cooperate. Wetsus acts as an open consortium for companies and research institutes. Companies invest in the research program, with a long term commitment. Wetsus’ scientific research program is defined by the private and public water sector and conducted by leading universities.

Wetsus has in recent years received recognition as the European Centre of Excellence for sustainable water technology. Besides its role in the national Topsector innovation strategy, Wetsus is active in several international programs for research cooperation.6 Wetsus has formulated three central goals: 1. Contribute to societal needs for the growing global water problems.

2. Stimulate water business in different segments of the global water market, such as public drinking water production, sewer water treatment, industrial water supply and industrial water treatment.

3. Contribute to the state of the art of science and process technology through multidisciplinary scientific research.

In the 2016-2020 business plan the goals and strategy were confirmed. The ambition is to continue with the existing strategy, structure and approach in order to expand the international know-how network and to further extend the global impact of the research program. In offering research facilities, Wetsus aims to create a work place

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Research and Innovation Strategy for Smart Specialisation (RIS3). Wetsus can be seen as a major player in this regional context.

5 The economic growth, innovation and sustainability strategy of the municipality of Leeuwarden is set out in the policy programme Groen Werkt! (Green works!).

6 Horizon2020, EIT, COSME, Interreg, European Fund for Regional Development.

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and a network of people that contribute to a multidisciplinary and creative research environment. Wetsus has formulated five key values that determine the way its activities are developed and carried out. The values are: innovation, partnership, reliability, joy and cooperation.

The research program is split up in 23 themes in which the participating companies determine the focus. Typical for Wetsus is the development of pre-competitive knowhow on water treatment technology. In addition, a specific property rights policy is employed to enable know how exchange, innovation and commercialisation. When research results in patents, the companies involved in the research theme have a ‘first right’ to acquire or license the patent for commercialisation.

Wetsus provides laboratory and research facilities for PhD researchers. Researchers from various universities can physically work side-by-side in the Wetsus laboratory. The emphasis is on guiding and mentoring the researchers. This is done by university staff, Wetsus staff and by companies involved in the research projects. The 'theme managers', who are seconded to Wetsus from the participating companies, play an important role with regard to safeguarding commercial relevance of the research projects.

Programs to stimulate clustering and economical development are used by Wetsus for stimulation of the growth and effectiveness of a water technology knowledge focal point around WaterCampus Leeuwarden.7 Wetsus engages in general business support activities by involvement in test facilities and demonstration sites and the stimulation of company start-ups. Wetsus is also actively involved in educational and talent activities from primary schools and upwards, and a joint degree MSc Water Technology programme.

1.3

About the evaluation

Wetsus has requested to have an evaluation carried out. The results should give insight into the development of Wetsus in terms of organisation, research projects, collaboration in the water technology sector, and contribution to innovation. The main research objective is to obtain insight into the organisational development of Wetsus and the achievement of economic goals. This evaluation is part of a series of evaluations of Wetsus, which gives the opportunity to overlook and compare results over a longer period.8 A central evaluation topic is the contribution to the innovation process that Wetsus aims at. The evaluation regards the characteristics and the benefits - and possible drawbacks - of the ‘Wetsus-approach’ to the innovation process. The way in which Wetsus organises and contributes to the innovation process is evaluated. Whether that innovation approach is in fact the best way to go about it, compared to other possible approaches, cannot be fully answered on the basis of this evaluation since no in depth comparison is made with other methods or research institutes. However, in the data collection in this survey considering the cooperation with Wetsus, attention has been given to a comparison of network aspects between Wetsus and other forms of innovation-orientated cooperation.

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European Fund for Regional Development, Regional spatial Economical Program REP. Previous comparable evaluations were conducted in 2004, 2007, 2010 and 2013.

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In this 2016 evaluation a specific topic regarding the role of the Wetsus network in the innovation process is added. This topic is based on the theoretical framework from organisation management and sociology in which trust is viewed as a central feature of successful innovation. Networks, and especially so-called strong and weak ties, are quintessential to this process. The framework suggests that it is not only strong ties – network contacts that are regarded as intensive in terms of number, duration and ‘depth’ – but also or possibly foremost weak ties that are important for innovation in terms of diffusion of information, knowledge and finding collaboration opportunities.9 In the evaluation special attention is given to identify the nature of strong and weak ties within the Wetsus network.

Evaluation questions Organisation development 1. What is the development of Wetsus in terms of budget, personnel and organisation?

Economic impact 2. What are the direct economic effects: turnover, employment, and (second-order) investments, nationally and regionally?

3. What are the indirect regional effects on employment?

4. What are the indirect economic effects in terms of growth of turnover and employment at businesses, and in terms of education and labour market effects, nationally and regionally?

Role within research field 5. What is the role and significance of Wetsus within the framework of water technology research and the Kennis- en Innovatieagenda TKI watertechnologie, in terms of research projects, themes and scientific output?

6. What assessment can be made of the role and significance of Wetsus within the water technology research field and the TKI Watertechnologie?

Innovation proces 7. What are features of the innovation proces in terms of input-, throughput, and output indicators (like R&D-expenditures, R&D-personel, patents and start-ups), nationally and regionally?

8. What are features of the innovation proces in terms of strong en weak ties en trust, en to what degree does a trust based network exist around Wetsus?

9. In what manner do strong en weak ties and trust play a role in the innovation process around Wetsus and do they contribute to innovation?

10. What is the general assessment of the role Wetsus plays within the innnovation strategy in the field of water technology and the TKI Watertechnologie?

The data collection for this research was conducted in three ways:10  data collection from Wetsus and policy documents;  a survey conducted among participant companies and university departments;  interviews with a selection of stakeholders (companies, universities and government).

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See the appendices for more details on the theoretical framework.

See the appendices for more details on the evaluation design and methodology.

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The evaluation was conducted by BBO – Bureau Beleidsonderzoek - an independent economic research institute.

About the report In the following chapter indicators for Wetsus’ organisation and performance presented. In chapter 3 the results of the survey and the interviews are given. Conclusions are discussed in chapter 4 .

Details on the survey and background information are incorporated in the appendices.

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2

ORGANISATIONAL DEVELOPMENT AND OUTPUT INDICATORS

In this chapter indicators of Wetsus are presented that draw a picture of Wetsus’ development and results in recent years. Input indicators are amongst others number of participants, budget, staff, and number of research projects. Output or result indicators are patents, scientific papers, spin off etc. The analysis in this chapter is mainly based on official publications and data provided by Wetsus.

2.1

Organisational development

Staff

At the end of 2016, around 157 people (135 FTE) worked in the Wetsus programme, of which 65 are PhD’s and 18 hold a post doc position (figure 2.1).11 The total number of staff other than researchers (PhD’s and post docs) comprises around 56 FTE, of which 17 can be designated as scientific staff. The rest is management, technical research staff (laboratory), ICT, management support, educational staff, staff for special projects etc.

Figure 2.1: Wetsus staff (FTE)* 140 120 100 80 60 40 20 0 2004 PhD positions Scientific staff** Educational staff

2007

2010

2013

2016

Post doc Technical and analytical research staff Support and control staff

* End of year. ** Scientific staff: scientific project managers, programme director, scientific director, senior advisor, programme managers.

Source: Wetsus

Wetsus has grown rapidly up to 2010, especially the number of PhD positions has grown fast. From 2009 on the growth of PhD positions slowed, due to the completion of PhD studies. PhD positions related to the Wetsus research program can be estimated at

11

64 FTE in PhD positions and around 142 FTE in post doc positions.

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around a third of all PhD’s in the Netherlands in the field of water (process) technology.12 Scientific staff and other staff increased more steadily. For every PhD and post doc position there is 0.2 position in scientific staff. In addition to the scientific staff, 20 theme managers are seconded to Wetsus for a (small) part of their working time.

Staff that is (partly) involved with educational activities is around 4 FTE. Other staff – management, ICT, valorisation, PR, secretariat etc - accounts for a little less than 14% of total staff, which is slightly higher than in 2013, but can still generally be considered as a relatively low overhead percentage.13 Participants The number of participating companies and platform members is 104 (figure 2.2).14 The number of participating companies and platform members has increased with around 10% since 2013. In general the composition of participant companies does change over time, because companies leaving the network are replaced by new additions. The majority of the companies however, is connected to the program for the long run (of the 104 companies connected in 2016, 43 were connected for longer than 6 years). In the years 2010-2013, the growth in participants was more modest which possibly reflected the general unfavourable economic situation, which tends to make companies more risk aversive and conservative in investment decisions. The 10% increase in recent years shows a return of growth. Around a quarter of participating companies and platform members are from other countries than the Netherlands.

The number of public knowledge institutes participating in Wetsus is 22 (2016), of which 9 are foreign universities. From the start of Wetsus the number of participating universities has risen steadily.

Figure 2.2: Participation and collaboration 100 80 60 40 20 0 2004

2007 2010 2013 Number of connected knowledge institutes Number of partcipating research chairs Number of particpating companies and platform members

2016*

* 1st January 2017.

Source: Wetsus

12

Source estimate: Wetsus.

Though a comparison between a relatively small institute like Wetsus and the university average is not fully applicable, the overhead percentage at universities is usually higher at 15-20%.

14 71 companies are particpating in research themes, of which 19 are participating in multiple themes. 33 companies and organsiations are platform members.

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Funding Wetsus derives its funding from multiple sources. The research programme is funded by companies (25%), contributions (in kind) from universities (25%) and government funding (50%): in total around 13 million in 2016. Government research funding comes mainly from regional funds in the 2013-2020 period. An additional research budget is available from EU projects. In 2016, a total budget of some 14.1 million euros was spent. After the rapid growth of Wetsus and its budget especially over the 2004-2012 period, for the coming years a more steady development is expected (figure 2.3).

Figure 2.3: Envisaged research budgets and financing Wetsus 2015-2020* 15

Province of Fryslân (research infrastructure)

10

REP-program Northern Netherlands NWO (Netherlands Organisation for Scientific Research) National government 5

Contributions participant companies and universities Research competition EU**

0 2015

2016

2017

2018

2019

2020

* Million euros. In 2016 the overall budget spent was lower than the envisaged Businessplan 2016-2020 budget. ** Research competition funds and Ministry of economic affairs (tti-transition funds) Source: Wetsus Businessplan 2016-2020

2.2

Research results and scientific output

In terms of scientific output there has been a continuing increase of the number of research projects and of scientific papers (figure 2.4). As a result of the ongoing research projects, the number of scientific papers is growing fast, cumulating in over 505 papers (2016). Also the number of successfully defended theses has risen over the last years; the total now stands at 78.

The output in terms of scientific papers can also be judged qualitatively. In terms of Citation Index the quality is very high. Wetsus’ papers have continuously been scoring a ‘relative impact’ measured in citations (RI) above the ‘very high impact’ score.15 Wetsus researchers have also received several awards for their work. Moreover members of the Wetsus staff regularly play an active role in the scientific society, for

15

A general criterium for institutes with more than 50 papers yearly for ‘very high impact’ is a ‘relative impact’ (RI_avg) of more than 1.5 (source: Wetsus). In the period 2005-2009 the citation impact was also well above the average, approaching three times the world average. The exact CI number was 2.87 (CWTS, Bibliometric Study on Wetsus, Leiden, April 2011). Papers are: normal articles, letters, notes and reviews.

16

instance in organisation of international scientific congresses or membership of editorial boards of scientific journals.16 Figure 2.4: Scientific output* 200

500 400

150

300 100 200 50

100

0

0 2004

2007

2010

2013

RI = 1,9

RI = 2.8

2016 RI = 1.8**

Number of research projects (cumulative; left-hand scale) Number of defenses (cumulative; left-hand scale) Number of scientific papers in international journals (cumulative; right hand scale) * RI = Relative citation Impact. ** 2015.

Source: Wetsus

2.3

Patents, spin off and SME’s

Patents Patents are an indicator for contribution to innovation (figure 2.5). Wetsus research has contributed to the development of 79 patents up to 2016, of which 28 patents were transferred to companies. This means that Wetsus is quite successful in delivering economic output in terms of patents resulting from its research programme.

Figure 2.5: Patents 80

Number of transferred patents (cumulative) Number of patents not (yet) transferred

60 40 20 0

2004

2007

2010

2013

2016

Source: Wetsus

16

Source : Wetsus.

17

Spin-off Considering start-ups around Wetsus, spin-off is also an economic indicator (figure 2.6).

Spin-off is defined here as new company start-ups based on Wetsus patents or founded through the Wetsus network. Spin-off related to Wetsus amounts to 30 start-ups between 2005 and 2016.17 The continuing growth of spin-off is a striking feature of the Wetsus research.

Most of the know how developed at Wetsus is brought to society and the market place through the company participants connected to the program. In addition, the spin-off companies from Wetsus are also responsible for translating findings and patents from Wetsus research into the market. This translation to the market can be seen as real innovation, although not all spin-off companies have reached high turnover and export yet. Most start-ups are located in the northern region (in 2016 around 75%), especially around Leeuwarden, which indicates that the spin-off also has a fairly strong regional impact. In recent years more Wetsus’ start-ups are founded outside the northern region.

Figure 2.5: Spin-off* 30 25 20 15 10 5 0 2004**

2007

2010

2013

2016

* New company start-ups based on Wetsus patents or founded through the Wetsus network. ** The first 2 spin offs were identified in 2005.

Source: Wetsus

SME’s Another economic indicator that is relevant in this respect is the proportion of SME’s within the total participants' network. In general most R&D is performed within large companies that often have dedicated R&D departments. Increasing the share of SME’s means that companies with relatively low R&D intensity have the opportunity to engage in R&D activities too. This is highly relevant for innovation as SME’s can be important for translating scientific results into commercial products. The proportion of SME (defined as firms with turnover <100 million euros) has continued to rise since 2007 and stands at 57%.

Labour market The outflow of researchers to Wetsus’ partners after finishing the project has been growing since 2007 (figure 2.6). In total 39 researchers were hired by companies and 43 researchers are currently employed by knowledge institutes (including Wetsus). The growth of researchers hired by companies has been slightly faster in recent years, compared to the period before 2013. Of the PhD’s around 25% seek employment

17

See the appendix for an overview.

18

outside the Netherlands. As more than 50% of PhD’s comes from another country than the Netherlands a substantial part of foreign PhD’s stays in the Netherlands.18 Next to PhD’s the Wetsus Academy has attracted almost 200 students in total, with on a regular basis 30-40 students a year.19 Figure 2.6: Outflow Wetsus’ PhD’s and Wetsus Academy MSc’s 60

200 150

40

100 20 50 0

0 2004

2007

2010

2013

2016

Outflow of researchers to companies (cumulative; left-hand scale) Outflow of researchers to universities (cumulative; left-hand scale) Number of joint degree students (cumulative; right-hand scale) Source: Wetsus

There is a clear demand for the Wetsus researchers at companies. Although workers in the water sector are also educated at universities, Wetsus clearly fulfils a need. Given the outflow of PhD’s and Wetsus Academy MSc’s of around 50 yearly, and assuming students predominantly choose a career in the water technology industry, the Wetsus outflow has fulfilled around one third of the demand in the academic technology labour market in recent years.20 2.4

Educational and other activities

Educational activities Wetsus has been offering educational activities from 2008 onwards. Funded separately from the research funding, educational activities serve to increase the labour supply in the field of water technology and attract talents for jobs in the Dutch water sector.

The activities are:  promotional activities in primary and secondary education, including examples of scientific tests for primary schools and an honours programme and test facilities for secondary schools; regularly pupils visit the Wetsus building;

18 19 20

Source: Wetsus.

See the following section.

See the appendices.

19

   

MSc in water technology (Wetsus Academy; a joint degree master programme);21 Business Development Course; Executive Water MBA; Master classes for water.

Other activities Wetsus engages in a number of activities that contribute to networks, profiling, cooperation and publicity. The following examples may be mentioned:  Annual Wetsus Congress (public);  Internal congress and workshops (members only)  Scientific conferences hosted by Wetsus in Leeuwarden  Open Door Day and hosting various societal groups (general public);  Publications in public newspapers, magazines, etc.  Incubator/science centre Johannes de Doper (Johannes de Doper kerk);  Demonstration sites and demonstration projects;  WaterCampus Business Challenge;  European Union projects.

21

The Wetsus Academy offers a two-year MSc programme in water technology. The program is offered jointly

by Wageningen University, University Twente and University of Groningen with education being provided at Wetsus, in Leeuwarden.

20

3

RESULTS SURVEY AND INTERVIEWS

In this chapter the results of the survey and the interviews are presented. Both deliver results in the form of ideas and opinions of people engaged in Wetsus activities. The survey results are given regarding both the overall Wetsus performance and the special feature of strong and weak ties within the Wetsus network. The survey was held among participant companies and university departments. In 2013 and earlier years the survey was not held among university departments; comparison of 2016 results with the results from earlier evaluations can only be made for participant companies.

Survey response Overall the response rate is fairly high. In total contact persons from 34 participant companies filled out the questionnaire, which results in a response rate of 35%. In absolute terms a comparable number of companies filled out the questionnaire in earlier evaluations: 36 in 2013 and 30 in 2010. The response rate is slightly lower: the response rate was 41% (in terms of contact persons) in 2013 and 37% in 2010.

The respons rate under university departments was 48%. University departments were no part of the survey in earlier years.

The respondent companies do not show a difference to what might be expected in general in terms of company features like company scale, research theme and technology field. Also, the respondent company features of the 2010 and 2013 sample are comparable; of the sample around half of the companies also participated in the 2013 survey.

One should keep in mind that the survey is aimed at companies and persons involved in Wetsus, and not at water technology firms in a broad sense, so that the conclusions do not hold for companies in general in the water technology industry.

(See for further details the appendices.)

3.1

Wetsus performance

Network, collaboration and participation in activities In general the activities that are at the heart of the collaboration and participation for both participant companies and university departments are theme meetings and internal workshops. Around 90% of them attend theme-meetings - university departments slightly less often than companies (table 3.1).

Table 3.1: Activities Which Wetsus activities are you participating in?

Theme meetings Workshops and Wetsus congress (members only events) Visit annual congress Supervision of Wetsus research projects Scientific publications In activities concerning talent programmes and education Involvement in start-up companies Other

Participating companies (n=34) 91% 74% 59% 29% 29% 3% 21% 9% 100%

University departments (n=26) 88% 65% 58% 85% 81% 19% 12% 15% 100%

Source: BBO

21

The annual congress is visited by almost 60% of respondents. For the participating companies these results are in general in line with earlier results. Not surprisingly, for university departments participation runs for a large part through supervision of research projects and scientific publications. For about one out of five companies participation is related to activities around start-up companies. There is a small difference regarding earlier results: in 2013 less companies were involved in start-up companies (14%).

Participating in Wetsus leads to collaboration outside the Wetsus programmes, which illustrates how Wetsus fulfils a network function within the water technology sector.

For the larger part of participant companies participation (69%) leads to additional contacts, mostly with companies as well as universities (figure 3.1). In 2013 and 2010 this figure was somewhat higher (82% and 88%). The lower result probably indicates a certain degree of saturation in the network. Around 70% of respondents agree on the thesis that ‘without the collaboration in Wetsus, less contacts with other companies would have developed’. This result is comparable with that in 2013.

A little more than half of the university departments (54%) gets additional contacts.

One out of five get in contact with additional companies outside the Wetsus programme.

Figure 3.1: Additional contacts through participation Does participation in (the) Wetsus programme(s) lead to other/additional cooperation in the water industry? (Participant companies top scale; university departments lower scale) 14% 21%

Yes, with companies

14% 4%

41% 29%

Yes, with universities and/or research institutes

31% 46%

Yes, with both companies and universities and/or research institutes

Source: BBO

More than half of the participant companies agree with the thesis that ‘the international contacts through Wetsus are an important benefit of the cooperation with Wetsus.’ A substantial group (around one third) does not agree on the importance.

These results are in line with the results from the 2013 survey.

Collaboration with Wetsus is generally judged to be very positive. Around 90% of respondents valued the collaboration good to very good or excellent (figure 3.2). This result is slightly better than the 2013 and 2010 survey (85% respectively 77%). The key conclusion is that the overall valuation is continuously on a high level and even slightly increasing. In terms of school grades the average would be an ‘8’.22 Importantly, no respondents judged the collaboration as ‘bad’.

22

Determined as the weighted value of grades running from 1 to 10 (with 1 being worst and 10 being best).

In the questionnaire a five point scale was used.

22

Participant companies and university departments only marginally differ in results. Of participant companies 88% and of university departments 92% judged the cooperation very good/excellent.

Figure 3.2: Overall assessment cooperation How would you in general assess the cooperation with Wetsus (n=59) 88% 92%

(Very)/good excellent 12%

Moderate Average

4%

Participant companies University departments

0% 4%

Source: BBO

Innovation and R&D More R&D activities In the previous five year period according to 27% of participant companies, Wetsusprojects have led to (use of) patents in their company â&#x20AC;&#x201C; slightly higher than in 2013.

For 30% of participant companies, mainly involved in selling technology, products, chemicals or projects, Wetsus projects are an important part of innovation projects, t.i. more than half of the innovation projects are Wetsus-projects. However, for more than half of the companies Wetsus-projects only form a small or no part of innovation projects. These results are in general in line with the 2013 survey results. For 30% of the participant companies, mainly involved in selling technology, products, chemicals or projects, participation in Wetsus activities has led to extra R&D activities outside the Wetsus programme (figure 3.2).23 Figure 3.3: Impact on R&D* Has participation in (the) Wetsus programme(s) led to a rise in water related R&D-activities in your company outside the Wetsus-programme participation? (n=23) 30%

70% Yes

No

* Only Participant companies mainly involved in selling technology, products, chemicals or projects .

Source: BBO

This means that for these firms, participating in Wetsus means an extra multiplier effect on R&D activities. In most cases, these extra activities add expenditure and R&D personnel to the existing activities of around 5-25%. In general the result found in 2013

23

Only Participant companies mainly involved in selling technology, products, chemicals or projects.

23

was somewhat higher. 53% of companies state that in general water related R&Dactivities in the company have risen since the start of their cooperation with Wetsus.24 Though the figures are not conclusive, it appears that at least for part of the companies the cooperation in Wetsus is a stimulus to expand their activities and expenditure in R&D. Around half of respondents state that the knowledge acquired through the Wetsus programme has contributed to the improvement of existing products and/or technologies that companies sell (figure 3.4). One third state that the knowledge has contributed to new products and/or technologies. Around a quarter of companies state that innovations that were realised on the basis of Wetsus research results led to application of new (product)technology within the company. These results are in line with the 2013 survey. Almost all respondents (96%) expect the Wetsus programme to contribute to new products and/or technologies. In 2013 the number of companies with positive expectations was lower (86%).

Up to a quarter of respondents indicate that turnover has increased as a result of innovation and knowledge from the Wetsus programme. The number of companies that state that turnover has increased is roughly the same as in the 2013 survey.

Figure 3.4: Impact on company* Innovations and knowledge from (the) Wetsus programme(s) ...

… have led to improvement of existing products and/or technologies (n=22)

50%

… have led to new products and/or technologies (n=23) … have led to more water related turnover (n=22)

35% 23%

… is expected to lead to new products and/or technologies in the next five years (n=23) * Only Participant companies mainly involved in selling technology, products, chemicals or projects.

Source: BBO

The aforementioned results appear at water technology firms that are the suppliers of technical applications for end users. For end users (f.i drinking water companies or food industry) the applications do in principle not lead to more turnover but rather to better or more efficiency. Of the participant companies that are predominantly end user only a couple state that new technology applications or savings on operational or production costs were realized.25 Almost all of these companies expect savings, albeit moderate, in the next five years.

24 25

n=21.

Only nine end users were particig in the survey.

24

96%

Hiring personnel and education Participation in Wetsus has an effect on labour supply for participating companies, although the results are somewhat lower than in the 2013 survey:  More than 50% of the companies say that Wetsus participation does lead to more contacts with potential employees.  Around 30% has recruited one or more Wetsus researchers.

WaterCampus Almost all respondents – participant companies and university departments - know of the developments around the WaterCampus (10% does not). On the WaterCampus respondents are mostly positive. 75% support the theses that the development of WaterCampus Leeuwarden into an international hub for water technology, will be of benefit to the Dutch water technology sector.

The statement that activities from WaterCampus parties form an important addition to Wetsus activities, is supported by just over 50% of respondents. However, a large group takes a neutral position. On the statement that the WaterCampus is not required to market ideas developed at Wetsus, the opinions are divided.

PhD and research facilities For more than half (55%) of university departments the supporting technical facilities and the expertise offered by Wetsus are comparable to those of the university or crucial to the projects (table 3.2).

About one out of three university departments make use of the supporting technical facilities of Wetsus outside the PhD-project(s). Seven out of ten make use of the expertise offered by Wetsus outside the PhD-projects.

Table 3.2: Appraisal of research facilities How do you appraise the availability to your PhD–student(s) at Wetsus of ... the supporting technical the broad range of expertise capabilities (n=23) available? (n=24) Not crucial to the project(s) 13% 21% Is limiting progress 17% 4% Level is comparable to my own group 17% 21% Is crucial to the project(s) 48% 38% Don’t know 4% 17% 100% 100% Do you, or your group (besides the Wetsus PhD’s) make use of ... the supporting technical the broad range of expertise capabilities? (n=24) available? (n=23) Never 67% 30% Once a Year 25% 57% Monthly 8% 13% Weekly 0% 0% 100% 100% Source: BBO

25

Main conclusions survey Wetsus performance 

Collaboration with Wetsus is generally judged to be more than good. Around 90% of respondents termed the collaboration to be good to very good or excellent.

Compared to the earlier evaluations the overall valuation is continuously on a high level and even slightly increasing.



The activities that are at the heart of the collaboration and participation for both participant companies and university departments are theme meetings and internal workshops. The annual congress is visited by almost 60% of respondents.



Participating in Wetsus leads to collaboration outside the Wetsus programmes, with companies as well as universities. This is an illustration of the network function of Wetsus within the water technology sector. The fact that collaboration in Wetsus gives rise to further contacts is highly appreciated by both participant companies and universities.



Wetsus-projects have led to (use of) patents in around a quarter of participant companies.



Participation in Wetsus activities has to a certain degree a multiplier effect on R&D. More than half of participant companies (mainly involved in selling technology, products, chemicals or projects leads) states that water related R&Dactivities in the company have risen. Up to 30% state that R&D activities outside the Wetsus programme also increased.



Part of participant companies state that the knowledge acquired through the Wetsus programme has contributed to the improvement of existing or new products/technologies, and up to a quarter of respondents indicate that turnover has increased. Expectations are high: almost all respondents expect the Wetsus programme to contribute to new products and/or technologies in the next five years.



Almost all respondents know of the developments around the WaterCampus and have a positive attitude towards the benefits to the Dutch water technology of the development of the WaterCampus.



In general university departments appraise the supporting technical facilities and the expertise offered by Wetsus positively, as well for the PhD-projects as for projects outside the Wetsus programme.

3.2

Network: trust and ties

Frequency and intensity of contacts A first step in the analysis of the characteristics of the Wetsus network in terms of weak and strong ties is to identify the frequency and intensity of contacts. In terms of frequency of contacts a distinction between a group of relatively high-frequency contacts and of relatively low-frequency contacts can be observed, especially among

26

companies (table 3.3).26 In terms of intensity or ‘closeness’ of the contacts a majority of participant companies and university departments consider this to be high. Only a handful considers the intensity to be low. The level of interaction during the contacts is high, as the interaction is predominantly assessed as ‘coming from both sides’. The duration of the contacts typically varies from 1-2 hours to 3-4 hours.

Table 3.3: Frequency of contacts

(More than) once a month In between Max. 6 times a year or less

Participant companies n=29 38% 24% 38%

University departments n=24 38% 42% 21%

Source: BBO

Frequency and intensity seem to be connected for participant companies as well as universities. Those companies and university departments that have indicated a low frequency of contacts, mostly also indicate that the intensity of contacts is (very) low.

Companies and university departments that have indicated a high frequency of contacts (more than once a month), mostly also indicate that the intensity of contacts is (very) high.

There is not a clear connection between the frequency and the duration of the contacts. Also, there is not a clear relationship between the participant company or university location and the frequency and duration of contacts, which suggests that the distance between Leeuwarden and the company or university location does not affect the frequency and duration of contacts.

Interestingly, all four companies that were founded as a Wetsus start-up that are in the survey sample indicate that they have relatively high-frequent (more than once a month) and high-intensity contacts with Wetsus. This shows that start-ups from the Wetsus network continue to have intensive contacts with Wetsus, and suggests that these contacts are important for the incubate company.

Compared to contacts in innovation projects with external (knowledge) partners outside Wetsus the frequency of contacts of participant companies with Wetsus stands out. 45% of respondent companies have higher frequent contacts with Wetsus compared to partners involved in other projects.27 For 30% of companies the contact frequency is about the same, for 25% the frequency is lower. On other aspects – duration, intensity, interaction – the largest part of respondents see the contacts as about the same, with a small group with higher scores and a small group with lower scores.

Amongst university departments a majority of respondents see all aspects of contacts as about the same compared to contacts in other innovation projects, with a small group with higher scores and a small group with lower scores.

26

In the survey respondents were asked to consider one Wetsus theme and/or research project participant company or university departyment is involved in, that has resulted in useful results or is expected to result in useful results.

27 External partners or f.i. other public-private partnerships, other institutes (not being universities), national science foundation projects, and/or large international EU projects.

27

In the literature on trust a distinction is made between strong and weak ties. Although there is no univocal methodology on measuring strong and weak ties, we can use elements of the survey results to give an assessment of the strength or weakness of ties. In the literature especially high-frequency and high-intensity contacts are mentioned as strong ties.28 On basis of the survey results we can give a relative value on the strength/weakness of ties, by giving a value on the aspects frequency and intensity on a five-point scale. The outcome for participant companies is then a figure of 3.5 and for university departments of 3.4, which means that on a 5-point scale the contacts can on average be viewed as relatively strong ties, compared with a mean value of 3.

Character of contacts On a five-point scale the character of the contacts is valued as predominantly considering a diverse and broad spectrum of topics (as opposed to one-dimensional), personal (as opposed to business-like), orientated on creativity and new ideas (as opposed to orientated on process), and informal (as opposed to formal; figure 3.5): Especially the informal nature of contacts stands out. Participant companies and university departments do not have a (strongly) divergent assessment in this respect.

From the viewpoint of university departments on one aspect â&#x20AC;&#x201C; process orientated or orientated on creativity and new ideas - the value is about average.

Figure 3.5: Characteristics of contacts* Participant companies 3,4

diverse/broad spectrum <=> one dimensional personal <=> business like

3,2 3,4

creativity/new ideas <=> process information

3,6

informal <=> formal mean3

University departments diverse/broad spectrum <=> one dimensional

3,1 3,3

personal <=> business like creativity/new ideas <=> process information

3,0

informal <=> formal

3,5 mean3

* The answers are given on a five-point-scale; for instance: 1 = mainly one-dimensional; 5 = mainly considering a diverse and broad spectrum of topics. 3 = mean value.

Source: BBO

28

Source: Creating Value with Knowledge: Insights from the IBM Institute for Busnies Value, Eric Lesser, Laurence Prusak (eds.), Oxford University Press, New York 2004.

28

Both participant companies and university departments give high scores on aspects of cooperation with Wetsus, especially on understanding, discretion, competence and receptivity.29 All aspects are considered elements of trust. The high scores implicate that the Wetsus network is a high-trust network (table 3.4).

Table 3.4: Aspects of cooperation in the Wetsus innovation program Understanding each other (same use of terminology and jargon)

Common vision (shared goals, concerns and purpose)

Discretion (way Competence of handling sensitive information)

Receptivity (the degree partners listen to each other)

Participant companies (Very) good Average (Very) poor

n=29 83% 14% 3% 100%

n=29 69% 28% 3% 100%

n=29 97% 3% 0% 100%

n=29 90% 10% 0% 100%

n=29 76% 21% 3% 100%

n=24 75% 21% 4% 100%

n=24 67% 25% 8% 100%

n=24 92% 4% 4% 100%

n=24 88% 8% 4% 100%

n=23 78% 13% 9% 100%

University departments (Very) good Average (Very) poor Source: BBO

Here too results can be compared to cooperation in innovation projects with external (knowledge) partners outside Wetsus.30 While around half of respondents â&#x20AC;&#x201C; participant companies as well as university departments - see the contacts as about the same, 3040% view the aspects of cooperation as (much) higher at Wetsus. On average the cooperation with Wetsus gives higher scores. There is one result that differs to a certain degree from this general picture. A large majority of participant companies (70%) view the aspect of discretion as the same as in comparison with other cooperation, while 25% sees it as (much) higher.

A distinction can be made in competence-based and benevolence-based trust. In the literature on trust, both are composed of the elements common language, common vision and discretion. For competence-based trust competence itself is added. For benevolence-based trust the elements receptivity and strong ties, are added.31 Here also a five-point scale can give an indication of relative scores on competence-based trust and benevolence-based trust (figure 3.6). The outcome is that the Wetsusnetwork can be considered as relatively strongly founded on competence as well as benevolence-based trust.

29

Receptivity is the degree to which partners listen to each other.

External partners or f.i. other public-private partnerships, other institutes (not being universities), national science foundation projects, and/or large international EU projects.

31 Source: Creating Value with Knowledge: Insights from the IBM Institute for Busnies Value, Eric Lesser, Laurence Prusak (eds.), Oxford University Press, New York 2004.

30

29

Figure 3.6: Competence-based trust and benevolence-based trust* 5-pointscale scores on competence-based and benevolence-based trust Competence-based trust

3,9

Benevolence-based trust

3,9 mean3

* The answers are given on a five-point-scale. 3 = mean value.

Source: BBO

Relative assessment of the cooperation in the Wetsus-network The character of the cooperation within the Wetsus network can also be analysed relative to cooperation in innovation projects with external (knowledge) partners outside Wetsus (table 3.5).

The results show in a quite straightforward way, relative high scores for the Wetsuscooperation on all aspects and both for participant companies as for university departments.32 This means that the cooperation within the Wetsus network is in general assessed as of a higher quality as compared to cooperation in other networks and with other partners.

The higher quality of cooperation is notable on aspects like (level of) information gathering and knowledge exchange, and integrity. Especially integrity gets relatively high score. These high scores mirror the scores that were given as characteristics of the cooperation with Wetsus (see above).

The high level of goodwill/benevolence from Wetsus and vice versa confirms the result that was given above, of relative high benevolence-based trust as an important ingredient of the Wetsus network.

On competence high relative scores are found. Here the results or somewhat lower than when asked as only an aspect of cooperation of Wetsus itself, and not in comparison with other partners. Though Wetsus on average still stand outs, it does mean that high competence is also found in cooperation with other partners.

Reputation can be seen as part of the characteristics of the network. The idea is that high reputation enforces the network and especially enhances information transfer and knowledge exchange through weak ties. A relative high reputation in that sense strengthens the effectiveness of the network.

Reputation is measured in the survey as a relative indicator, compared to cooperation in innovation projects with external (knowledge) partners outside Wetsus. Again the scores for Wetsus are high. Around 80% of participant companies value the reputation of Wetsus as a science institute higher than the reputation of other partners, as does a majority of university departments (57%). However, a couple of university departments value the reputation of Wetsus lower.

32

A part of the university respondents have answered â&#x20AC;&#x2DC;donâ&#x20AC;&#x2122;t knowâ&#x20AC;&#x2122; on these questions.

30

As for the reputation as an innovation institute again around 80% of participant companies value it higher than the reputation of other partners, as does a majority of university departments (67%).

The results from university departments are somewhat lower than those of participant companies, what reflects that – possibly - university departments are more often cooperating in comparable innovation projects, and therefore their judgement is more broadly weighted against cooperation with other partners.

Table 3.5: Wetsus-cooperation compared to other company/university cooperation* the level of the level of the level of competence the level of reputation of reputation of information goodwill/ goodwill/ of your integrity of Wetsus as a Wetsus as an gathering and benevolence benevolence Wetsus the Wetsus science innovation knowledge from your from Wetsus contact organisation institute institute exchange organisation towards your person(s) towards organisation Wetsus Participant companies n=19 n=18 n=19 n=19 n=19 n=19 n=19 (Very) high 53% 50% 63% 79% 95% 79% 79% Average 42% 39% 32% 21% 5% 21% 21% (Very) low 5% 11% 5% 0% 0% 0% 0% Don’t know 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% University departments n=22 n=21 n=21 n=21 n=21 n=21 n=21 (Very) high 50% 48% 71% 67% 81% 57% 67% Average 14% 38% 5% 19% 0% 29% 19% (Very) low 27% 0% 14% 5% 10% 5% 0% Don’t know 9% 14% 10% 10% 10% 10% 14% 100% 100% 100% 100% 100% 100% 100% * Comparison with innovation projects with other external partners or f.i. other public-private partnerships, other institutes (not being universities), national science foundation projects, and/or large international EU projects.

Source: BBO

Main conclusions survey network 

Regarding the strength/weakness of ties within the Wetsus network, on average the contacts can be viewed as relatively strong ties. It is suggested on basis of the survey results that especially start-ups from the Wetsus network continue to have intensive contacts with Wetsus, and that these contacts are important for the incubate company.



Compared to contacts in innovation projects with external (knowledge) partners other than Wetsus the frequency of contacts of participant companies with Wetsus stands out. More companies have higher frequent contacts with Wetsus compared to partners involved in other projects.



The Wetsus contacts are characterised as predominantly: o informal (as opposed to formal) o orientated on creativity and new ideas (as opposed to orientated on process); o personal (as opposed to business-like); o considering a diverse and broad spectrum of topics (as opposed to onedimensional).

31



Participant companies and university departments give high scores on typical trustbased aspects of cooperation, like understanding, discretion, competence and receptivity, what implicates that the Wetsus network is a high-trust network. The Wetsus-network can also be considered as strongly founded on competence-based and benevolence-based trust.



The cooperation within the Wetsus network is in general assessed as relatively high-quality as compared to cooperation in other networks and with other partners.



Wetsus has a relative high reputation as a science and innovation institute amongst participant companies and universities, which strengthens the network and especially enhances information transfer and knowledge exchange through weak ties.

3.3

Interview results

Cooperation In general all interviewees are of the opinion that the cooperation with Wetsus is very good and positive. Almost all state that the expectations that were formulated at the start of Wetsus have been largely fulfilled. In terms of multidisciplinary research and ideas Wetsus has achieved good results.

At Wetsus one can find effective cooperation between participant companies and university departments. There are, however, differences in effectiveness between theme groups, depending mainly to the extent on active participation of group members. The organisation of the research in theme groups is considered by interviewees as an effective way of operating. Interviewees state that cooperating within the Wetsus network will be most effective, if companies and universities departments are actively involved. In practice one should actively participate in the network and especially in the theme meetings. Theme managers and theme coordinators fulfil an important role in establishing an active and committed group.

The choice of theme managers and theme coordinators is therefore viewed as essential. Also, a couple of interviewees say that the choice of PhD’s should not only be based on scientific competences but also on commitment to practical problems of companies.

There is consensus among interviewees on the goal of Wetsus. Wetsus research should stay aimed at high-level scientific research for breakthrough technology, that is close to market and that can deliver applications for industrial implementation. For companies it is important that the research investment ultimately results in a return on investment. The research should stay problem orientated, offering a clear relationship with practical solutions, which gives cooperation a surplus value.

All interviewees are enthusiastic about the new building. Especially the laboratory facilities are mentioned as a surplus and of high quality. Respondents view the facilities as an inviting utility for companies to do research.

In the interviews characteristics of the Wetsus cooperation were mentioned. These are summarized in the text box (figure 3.6). The features mentioned in the interviews correspond closely to the findings in the survey. The five Wetsus values are recognizable and are largely being subscribed by all interviewees.

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Figure 3.6: Characteristics of Wetsus mentioned in interviews “easy accessible” “informal”

“inspiring” “flexible”

“positivism”

“good reputation”

“motivating” “fun research”

“integrity”

“a place where you can discuss crazy ideas”

“top knowledge and clever people” “great building”

“open information exchange” “multidisciplinarity” “reliable” “a pleasant down to earth culture” Source: BBO

An interesting observation is that – especially in recent years - there seems to have been growing a collective culture among people who are connected to Wetsus. People confirm the values and style of work. In some interviews this is called the “Wetsus feeling” or “Wetsus culture”. In one interview this is called the feeling of belonging to the “Wetsus family”.

Network The network function of Wetsus is by all interviewees considered as very important.

Not only because of the contacts but also as the network is a great source of information on the state of the art of knowledge and of “what is going on” in the water industry. The concentration of clever people and of knowledge in one place leads to insight in information on neighbouring fields of expertise. This increases multidisciplinary ideas. That holds for contacts with companies as well as PhD’s. For companies Wetsus is seen as a portal to scientific knowledge that otherwise would have been much harder to establish.

Being part of the network makes (making) contacts easier. Central to the network are the meetings, congress etc. Some interviewees state that Wetsus has such a good reputation that it helps with business contacts, nationally and internationally. Also the demo sites and the new building give a surplus value in that respect. The network can also help with contacts with financial sponsors.

Personnel Most interviewees have the opinion that Wetsus delivers highly educated people for the Dutch water industry. An observation by some interviewees is that part of them return to their home country after finishing the research. (In effect a substantial part of foreign PhD’s stay in the Netherlands - see chapter 2).

33

WaterCampus Most interviewees regard the WaterCampus activities as a useful supplement to the Wetsus activities.

Future chances and risks In part of the interviews it is indicated that the biggest chance for Wetsus still lies in the very positive market prospects in the water industry. The demand for solutions for water related problems will keep growing.

In the interviews it is often mentioned that it is important that Wetsus maintains its ‘freshness’, originality and dynamic style of work. For the future almost all interviewees state that staying distinctive and inspiring is most important. In that respect it is also mentioned that Wetsus should not grow too big, in order to be able to maintain its distinctive culture.

The current management and organisation are viewed by all interviewees as crucial for Wetsus’ success and should therefore be continued.

Most interviewees consider the continuation of public funding as a necessary condition for guaranteeing the long term position of Wetsus. Alternative funding can be found in internationalisation. Interviewees consider more international contacts a good thing, but the focus should stay mainly on the Dutch water industry. One idea mentioned is that international projects should be primarily aimed at participants in countries in Belgium, Germany and the UK because of the proximity and therefore the easy accessibility of those international partners to participate in Wetsus meetings.

Interviewees from companies have stated that the participation fee should not be higher as the decision on company investment in research is already “at the limits” of available R&D-budgets, and participating means a four-year investment commitment which is from a company viewpoint regarded as relatively long.

In some interviews remarks were made on the water sector cooperation in general. For the Dutch water sector optimal cooperation between universities and other knowledge institutes like KWR and Wetsus is essential. Cooperation on a national scale should therefore be enhanced.

A point that was also brought forward in multiple interviews is that Wetsus is of great importance for the city of Leeuwarden en the province of Fryslân. According to interviewees the spin off of Wetsus means not only attracting businesses and start-ups, but also attracting academic people to come to the city and region.

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4

EVALUATION OF RESULTS AND CONCLUSIONS

This evaluation gives insight into a number of indicators of the network, the organisational development and the economic performance of Wetsus.

Cooperation and network Collaboration with Wetsus is generally judged to be more than good by participant companies and university departments. The overall valuation of Wetsus is continuously on a high level and even slightly higher compared to earlier evaluations. An interesting observation is that there seems to have been growing a collective culture - a “Wetsus feeling” - among people who are connected to Wetsus. The Wetsus values are recognizable to participant companies and university department.

Wetsus clearly has established an important network in the water technology field.

Especially the congress has developed into a major event for water technology professionals. The network links innovation orientated companies and relevant university departments on a national and international level. Companies see Wetsus as a portal to scientific knowledge that otherwise would have been much harder to establish. The network also enhances collaboration outside the Wetsus programmes.

Being part of the network makes (business) contacts easier. For at least a part of participant companies the reputation of Wetsus helps with business contacts, nationally and internationally. Also the demo sites and the new building give a surplus value in that respect.

Organisation development The growth of Wetsus in terms of personnel and PhD positions (now around 65 PhD’s) has continued in recent years. The growth in recent years is slower than in the period of the rapid growth up to around 2010, due to the stabilisation of budgets and the fact that Wetsus has more or less reached the size it deems required for the desired impact and optimal for its multidisciplinary objectives.33 Growth is mainly dedicated to scientific staff and research positions. Overhead can still generally be considered as relatively low.

Continuing growth is also obtained in terms of participating companies and platform members – now at 104. Wetsus has been able to successfully maintain and enlarge the participant network throughout the financial and economic crisis. The network has gradually become more internationally orientated with participating companies and platform members from other countries than the Netherlands. The number of public knowledge institutes participating in Wetsus has increased steadily in recent years of which a large part are foreign universities.

Role within research field In terms of scientific output there has been a continuing increase of the number of research projects (197) and of scientific papers (505). Also the number of successfully defended theses has risen over the last years (a total of 78). In terms of Citation Index

33

See Wetsus Businessplan 2016-2020.

35

the quality of the scientific papers – in total 505 at the end of 2016 - is very high.

Wetsus’ papers have continuously been scoring a ‘relative impact’ measured in citations (RI) above the ‘very high impact’ score. Wetsus researchers have also received several awards for their work.

In its program, Wetsus connects scientists and company technology managers in the water process technology research field. In addition Wetsus plays an active role in the framework of water technology research through membership of other working and steering groups in the innovation and research field, among others in the TKI watertechnologie.

Innovation process Wetsus research has contributed to the development of 79 patents up to 2016, of which 28 patents were transferred to companies. This means that Wetsus has continuously been quite successful in delivering economic output in terms of patents on basis of its research.

Moreover participation in Wetsus activities has to a certain degree a multiplier effect on R&D. More than half of participant companies (mainly involved in selling technology, products, chemicals or projects leads) states that water related R&D-activities in the company have risen. Up to 30% state that their R&D activities outside the Wetsus programme also increased.

The organisation of the research in theme groups is considered by participants as an effective way of operating, though successful participation demands active involvement of companies and universities. In that respect theme managers and theme coordinators fulfil an important role in establishing an active and committed group.

Compared to contacts in innovation projects with external (knowledge) partners other than Wetsus the frequency of contacts of participant companies with Wetsus stands out and the cooperation within the Wetsus network is in general assessed as high-quality.

Participant companies and university departments give high scores on typical trustbased aspects of cooperation, like understanding, discretion, competence and receptivity, what implicates that the Wetsus network is a high-trust network. The Wetsus-network can also be considered as strongly founded on competence-based and benevolence-based trust. In comparison with other cooperation projects Wetsus has a high reputation as a science and innovation institute amongst participant companies and university departments, which enhances information transfer and knowledge exchange through the network.

Another economic indicator that is relevant in this respect is the proportion of SME’s within the total participants' network. This is highly relevant for innovation as SME’s are generally important for translating scientific results into commercial products. The proportion of SME’s in Wetsus has always been over 50% since 2008, and has steadily increased to the current share of 57%.

Assessment of economic impact The goals and activities of Wetsus are highly relevant for global sustainability goals as well as for economic and innovation policy goals at a European, national and regional level. The key economic impact of Wetsus concerns innovation effects for companies in terms of new products and technologies, and start-up companies in the water technology industry, as well as cost savings for end users. Other economic effects

36

concern economic structure, labour market and sustainability. On a regional level there are relevant economic effects too.

Innovation should lead to more turnover for companies mainly involved in selling technology and cost savings for users of technology. 50% of participant companies state that the knowledge acquired through the Wetsus programme has indeed contributed to the improvement of existing or new products/technologies. Expectations are very high: almost all respondents expect the Wetsus programme to contribute to new products and/or technologies in the next five years. Up to a quarter of respondents indicate that turnover has increased as a result of innovation and knowledge from the Wetsus programme. Higher turnover can lead to higher employment but no estimate of employment growth at companies involved in selling technology is available.

Spin off related to Wetsus amounts to 30 start-ups between 2005 and 2016. The continuing growth of the number of spin-off companies is a striking feature of the Wetsus research. The spin-off companies translate at least part of the findings and patents from Wetsus research into the market. Hence, this can be seen as real innovation, although not all spin-off companies have reached high turnover and export yet. There are no exact figures on the employment involved, but a rough estimate would give around 75-125 jobs involved within the start-ups.

Educational activities serve to increase the labour supply in the field of water technology and attract talents for jobs in the Dutch water sector. In this report it is estimated that the Wetsus outflow fulfilled around one-third of the demand in the academic water technology labour market in recent years.

The contribution to sustainability goals can be seen as an important impact in economic terms too, reducing so called external effects.

Figure 4.1: Assessment of economic impact Type of effect

Economic indicator

Value/Description

Direct effects

Staff employment at Wetsus

125 FTE (145 persons)

Indirect expenditure - turn over regional subcontractors effects - expenditures by Wetsus personnel Indirect innovation effects Other effects

(Inter)na- Regiotional nal ●

turnover and expenditures result in 45 to 95 FTE

●

- new products/technologies/cost - increase turnover particisavings for participant companies pant companies - spin off: start-up companies - 75-125 jobs at start-ups Effects on regional economy structure Diversification; more knowledge; job opportunities academics; internationalisation (SME’s); reputation Labour market effects Contribution to labour supply water technology

●

Effects on sustainability

●

Contribution to realisation of Global goals / Reduction of negative external effects

● ●

●

Source: BBO (see the appendices)

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Effects on the regional economy An estimation of the regional impact in terms of direct and indirect employment adds up to around 225-320 full-time jobs.34 This number concerns:  the direct effects of the investments in the Wetsus organisation (125 jobs).  indirect backward regional impact due to turnover at subcontractors and the expenditures made by Wetsus personnel living in the region (estimated at 45-95 jobs).35  jobs at regional start-ups (estimated at 50-100 jobs).36 The Wetsus spin-off has a fairly strong regional impact as most start-up companies related to Wetsus are located in the northern region (in 2016 around 75%), especially around Leeuwarden.

Furthermore, the economic outcome is highly relevant for the region because it counteracts some of the shortcomings of the regional economic structure in terms of relatively low job opportunities for highly skilled professionals, relatively low export (especially by SME’s), and a relatively strong dependence on a limited number of key regional industries. The investments in water technology lead to diversification of the regional economy, a more knowledge-based regional economy, a greater international orientation of regional SME’s, an increase in attractiveness for academic people to come to the city of Leeuwarden and the region, increased reputation and international visibility of Leeuwarden, and an increase in international contacts, cooperation and partnerships.

Future chances and risks The biggest opportunities for further research and innovation through the Wetsus network originate in the very positive market prospects in the water industry. The demand for solutions for water related problems will keep growing. The evaluation gives some additional ideas about Wetsus’ future:  First it is important that Wetsus maintains its ‘freshness’, originality and dynamic style of work. To keep its attractiveness for participation Wetsus should stay distinctive and inspiring.  The current management and organisation are viewed by all interviewees as crucial for Wetsus' success and should be continued.  The continuation of public funding is seen by participants as a necessary condition for guaranteeing the long term position of Wetsus.  An increase in international contacts is viewed as a good development by the participants, but continuation of focus on benefits for the Dutch water sector is also deemed important.

34

See the appendices. For the northern region the direct and backward economic effect is a real net effect.

Without Wetsus the direct employment would not have come to Leeuwarden and the northern region.

35 To this the impact of the around 65 students can be added who make expenditures on housing and food and beverage in and around the city.

36 On the assumption that the estimate of jobs involved within the start-ups is on average evenly divided over regions.

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Appendix 1: Evaluation approach

The conceptual underpinning of the survey consists of two lines of reasoning based on welfare economics and an organisational or network approach. The same evaluation approach has been applied to earlier evaluations of Wetsus in 2004, 2007, 2010 and 2013.

The first line of reasoning derives from the theory of welfare economics and consists of an assessment of the direct and indirect socio-economic effects. These are usually measured in terms of employment and business activity. From an economic viewpoint, the growth of company turnover and spin-off, and a more cost-effective production are relevant. A distinction is made in effects on a regional scale and (inter)national effects. At the centre of these effects lie innovation and the contribution of new technological applications to market share, turnover and cost effectiveness.

The second line of reasoning concerns the position of Wetsus within the framework of water technology research. From this more or less organisational viewpoint, relevant indicators are the benefits and possible drawbacks of the specific organisation and collaboration structure around Wetsus. The structure of participants collaborating in research themes and jointly defining projects is specific to the Wetsus approach and may be seen as the basis of the contribution to the innovation process. Additionally, Wetsus fulfils a role in the organisation of a network structure within the water technology sector. This has a more indirect effect on research and innovation.

In the evaluation of the 2016 period a specific analysis is added based on the theoretical framework on network ties in which trust is viewed as a central feature of successful innovation, and in which networks, and strong and weak ties, are quintessential.

indirect effects national/international

innovation results

collaboration and networks water technology research strong and weak network ties trust

&

indirect regional economic effects

direct economic effects

Welfare economic viewpoint

efficiency innovation process

output (results) Wetsus

Organisational viewpoint

The overlap between the two viewpoints represents Wetsus' contribution to innovation and the innovation process in the water technology sector. In other words, at the heart of Wetsus' specific innovation process lies the relation between water technology research and its economic effects on businesses. This then yields the central evaluation question: is the way in which Wetsus organises the innovation process an effective way of promoting innovation? The evaluation thus centres on the characteristics and the benefits and possible drawbacks of the â&#x20AC;&#x2DC;Wetsus-approachâ&#x20AC;&#x2122; to the innovation process.

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Appendix 2: Evaluation design and response survey

Research design The data collection for this research was conducted in three ways: 1. Data collection from documents The data from Wetsus and policy documents (fact sheets on employees, research projects, business plan, financial reposts etc.) were critically evaluated and gave insight into the organisational development and direct economic effects.

2. A survey among participating companies and universities The survey was conducted among all company participants and universities involved in the Wetsus research program. The survey delivered information on economic effects, innovation and cooperation. Different questionnaires were used for participating companies and universities. 19 questions were the same (out of a total of roundabout 40 for participants and 30 for universities). The survey for the 2017 evaluation is the third time a survey amongst participants has been carried out. In 2010 and 2013 surveys with a highly comparable questionnaire were conducted.

3. Interviews Interviews were held with a selection of stakeholders (companies, universities and government). The interviews were an opportunity to acquire more detailed information and opinions on the functioning of Wetsus. The in-depth interviews yielded qualitative information.

Survey response The survey was held in the second half of November 2016 up to the second week of January 2017. Contact persons of all participating companies and universities were approached by email with the request to participate in the online questionnaire. The names of contact persons were suggested by Wetsus. In total 98 contact persons at companies and 54 professors at 20 universities or scientific research institutes were contacted. To increase the response three times an email with a reminder was sent to companies that had not reacted yet. To fill out the survey respondents were given a unique code.

In total contact persons from 34 companies filled out the questionnaire. The response is therefore 35%. In absolute terms a comparable number of companies filled out the questionnaire: 36 in 2013 and 30 in 2010. In 2013 in total 39 contact persons from 36 companies filled out the questionnaire; the response rate was 55% in terms of companies and 41% in terms of contact persons; in the 2010 survey the response was 37% for companies and 31% for persons.

The response rate under professors was 48%, while 55% of universities were participating in the survey.

Some features of companies and persons that responded can be given. All Wetsus research themes are covered in the response group. Half of the respondents are involved in more than one research theme. (The 2013 survey showed the same result.) Themes that are mentioned most by companies (more than three times) are: desalinisation, water physics, bio fouling, advanced water treatment, source separated sanitation, blue energy and sensoring. Desalinisation, water physics, bio fouling, advanced water treatment and sensoring are also amongst the themes most mentioned by universities.

The response group also consists of three public water companies. Next to that one private company is owned by public water companies and one company is part of an energy network company (distribution of energy). The response group consists of 10 large companies, although of these companies mostly only a very small proportion of activities is dedicated to water technology. The other companies are all SMEâ&#x20AC;&#x2122;s.

Most companies have their head office located in the Netherlands. Six companies have their head office located abroad. 13 out of 30 companies are primarily active on the Dutch market; the others are also or primarily orientated on international markets.

40

Drinking water supply and industrial water supply are the water industry parts (market segments) that are most often mentioned by companies. Other market segments that are often mentioned (more than five times) are industrial waste water, water quality, monitoring and analysis, reuse of waste water, domestic waste water, resource recovery and energy production from water.

Although there is a slight overrepresentation of larger private companies and the public water companies in the response, in terms of company type the response is not very different from the total Dutch water technology sector. (See BBO/Grontmij, Nederlandse Watertechnologie: Slimme Sector met Wereldkansen, Leeuwarden/Assen/De Bild, april 2012.)

A broad range of relevant technological areas are covered in the response group. Most of the respondent companies are primarily active in the field of chemistry/chemical technology or physics/physics technology. Also a relative large group is primarily active in sensor technology or biology/bio technology.

Overall the response rate is fairly high, considering that surveys held amongst companies typically tend to have relatively low response rates. The respondent companies do not show a particular bias towards company scale, research theme and technology, in comparison with the companies in the survey sample. However, it could be argued that there might be a bias in the direction of respondents that have a clear (positive) attitude towards Wetsus. On basis of the data no conclusion can be given on this matter. One should keep in mind that the survey is aimed at companies and persons involved in Wetsus by participation in research themes and not at water technology firms in a broad sense, so that a certain bias is logically found. Also, in general, this methodological problem is common to surveys, and not a specific problem for the survey on Wetsus. Keeping all that in mind, the spread of response and the response rate do make it possible to draw some general conclusions on basis of the survey.

The response also makes a comparison with the 2010 and 2013 survey results possible. Although the range in features like firm type, company scale, research theme and technology differs to a certain degree, in general the respondent company characteristics are comparable.

Of the 2016 response group about half (15) of the companies also participated in the 2013 survey and a third (9) also in the 2010 survey. There is however a great deal of variation in companies, which reflects the variation in participating companies in general (not a participant anymore or a company has gone bankrupt).

Tables (response) Themes Desalination Proteins from Water Capacitive deionisation Priority compounds Applied water physics Smart water grids Virus Control Groundwater technology Bio fouling Concentrates Advanced water treatment CO2 energy Source separated sanitation Natural Flocculants Sulfur Dehydration Blue Energy Phosphate Recovery Algae Resource recovery Sensoring Genomic based water quality monitoring

Participants

Universities 5 1 2 1 4 3 2 2 4 2 6 2 4 2 1 1 6 3 2 3 5 3

8 0 1 1 4 2 2 3 3 3 6 1 2 0 2 1 1 3 1 3 4 3

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Technology field Chemistry/chemical technology Physics/physics technology Sensor technology Biology/biotechnology Civil works Electrochemistry Substrate Water transportation

Industry part Drinking water supply Industrial water supply Industrial waste water Water quality, monitoring and analysis Reuse of waste water Domestic waste water Resource recovery Energy production from water Integrated water management R&D Salt production Dairy Food ingredients industry Gas treating Reuse of irrigation water for Horticulture no water no specific part

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Participant companies 7 7 5 4 1 1 1 1

Participant companies 15 13 10 10 8 7 7 5 4 1 1 1 1 1 1 1 1

Appendix 3: Interviews

In the table the persons interviewed are mentioned. The companies are a mix of start-up companies and companies that exits longer.

Company

Interview with

Position

Magneto

Adriaan Jeremiasse

R&D project leader/Technologist

Paqell

Joost Timmerman

Directeur

Waterlab Noord

Hilde Prummel

Directeur

Lliandon

Maarten van Riet

Energy Consultancy

Metal Membranes

Sybrand Metz

Directeur

Westt/Biotrack

Gerard Schouten

Directeur

University

Interview with

Wageningen UR

Annemiek ter Heijne

Assistant Professor Renewable Energy

TU Eindhoven

Kitty Nijmeijer

Professor Membrane Technology

Government

Interview with

Municipality of Leeuwarden

Peter Luimstra

Programmamanager Economische Zaken

Province of Fryslân

Eric Vos

Programmamanager Watertechnologie

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Appendix 4: Spin-off

Spin-off is defined here as new company start-ups based on Wetsus patents or founded through the Wetsus network.

Company name REDstack

Founding place Leeuwarden

DeSaH Westt Aqua Explorer

Sneek Leeuwarden Leeuwarden

2005 2006 2006

Dutch Rainmaker EasyMeasure Water ProMaSys

Leeuwarden Leeuwarden Leeuwarden

2007 2007 2007

Capilix Pure Green

Leeuwarden Leeuwarden

2008 2009

Smart Frequencies Water Waves Metal Membranes

Joure Joure Leeuwarden

2009 2009 2009

Automatic Electric Europe Special Products HydrOwashr Salttech

Schagen Leeuwarden Leeuwarden

2009 2010 2010

Biotrack TailTec

Leeuwarden Leeuwarden

2010 2011

ExtIns Technologies Aiforo Duplaco

Leeuwarden Breda Wageningen

2011 2011 2012

Somut Wisect Djipper

Enschede Leeuwarden Leeuwarden

2013 2013 2013

High Voltage Water AquaBattery

Badhoevedorp Leiden

2014 2014

Lamp-ion NewAna NX-Filtration

Wolvega/Drachten Leeuwarden Enschede

2014 2015 2015

Izer Aquacolor Sensors

IJlst Oudehorne

2015 2015

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Founding year 2005

Appendix 5: Economic effects

The types of economic impact are given in the scheme below.

Direct effects

Staff employment at Wetsus

Regional level*

Regional level* Backward effects: - turn over regional subcontractors - expenditures by Wetsus personnel in the region Regional and (inter)national Forward effects: level** - innovation: new products/technologies/cost savings - spin-off: start-up companies Regional level* Other effects Effects on regional economy structure (Inter)national level** Labour market effects Global*** Effects on sustainablity * For the region the direct and backward economic effects are a real net effect: without Wetsus the effects would not have been realised in Leeuwarden and the region. The direct and backward effects can be considered a regional effect as far as suppliers are situated in the region and personnel is located in the region and makes expenditures in the region. The direct and backward regional effects cannot be considered a net economic impact at the national level. From a national viewpoint the direct and backward employment effect should be compared with the employment effect of an alternative investment of the Wetsus funds or investment in another region. ** The difference between regional and national impact does not concern forward and other effects. There the effects are predominantly national or international of character. The latter for instance in case of PhDâ&#x20AC;&#x2122;s getting employment outside the Netherlands, or when inventions are applied abroad. In these cases innovation effects in terms of new products/technologies and spin off are also outside the Netherlands. As far as these effects are also realised at companies in the surroundings of Wetsus, they can be considered regional effects. ***Sustainability effects are global of character.

Indirect effects

Source: BBO

Direct effects The organisational development of Wetsus can be translated into a regional economic output in terms of employment. Staff employment at Wetsus can be seen as a direct regional economic effect. At Wetsus in Leeuwarden 126 FTE (143 persons) are employed (source: Wetsus).

Backward effects on the regional economy The turnover of Wetsus also leads to regional (backward) effects at subcontractors and the expenditures made by Wetsus personnel living in the region. It can be estimated that this effect adds up to 45 to 95 FTE in the region. This assessment is based on: an average value added per labour year (estimated for 2015) of 70,000 euro (mainly service sector; source: CBS); statistical indicators of expenditures of households of around 38,000 euro (2015; source: CBS); Wetsus expenditures on costs of use of laboratory and experimental hall, ICT infrastructure, office costs (without rental price buildings), and costs of congress, theme meetings, workshops, web site, brochures, etc. of around 1.25 mln euro per year on average (20132016; source: Wetsus); an estimate of the subcontractors and expenditures in the region; here roughly 33% is taken (source: Wetsus).

To these effects the impact of extra students can be added. Around 65 MSc students follow courses in Leeuwarden, and probably make expenditures in and around the city. The impact is dependent on where the students live (part of them do not live in Leeuwarden) and how much they actually spend. A large part of student income is spent on housing, which only partly has a regional impact, and on food and beverage which has an impact on the local economy. Though no estimates are available the regional employment effect will be quite small.

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Effects on regional economy structure The economic outcome is highly relevant for the region because it counteracts some of the shortcomings of the regional economic structure in terms of relatively low job opportunities for high skilled professionals, relatively low export (especially by SME’s), and a relatively strong dependence on a limited number of key regional industries. The investments in water technology lead to diversification of the regional economy, a more knowledge-based regional economy, a greater international orientation of regional SME’s, and a greater attractiveness for academic people to come to the city of Leeuwarden and the region.

Innovation and spin off Innovation should lead to more turn-over and export for companies mainly involved in selling technology and cost savings for users of technology. 50% of participant companies state that the knowledge acquired through the Wetsus programme has contributed to the improvement of existing or new products/technologies. Up to a quarter of respondents indicate that turnover has increased as a result of innovation and knowledge from the Wetsus programme. Expectations are high: almost all respondents expect the Wetsus programme to contribute to new products and/or technologies in the next five years.

Spin-off related to Wetsus amounts to 30 start-ups between 2005 and 2016. The continuing growth of spin off is a striking feature of the Wetsus research. Most of the know how developed at Wetsus is brought to society and the market place through the company participants connected to the program. In addition, the spin-off companies from Wetsus also translate findings and patents from Wetsus research into the market. Therefore, the number of spin-offs from Wetsus is a strong indication that part of the findings and patents from Wetsus research finds its way to the market, and hence can be seen as real innovation, although not all spin-off companies have reached high turnover and export yet. There are no exact figures on the employment involved, but a rough estimate would give around 75-125 jobs at start-ups, based on an estimate of 1-5 employees normally employed at start-ups, and some start-ups with more (1020) personnel (source: BBO).

The Wetsus spin-off has a fairly strong regional impact as most start-up companies related to Wetsus are located in the northern region (in 2016 around 75%), especially around Leeuwarden. If the estimate of jobs involved within the start-ups is on average evenly divided, the impact could be valued at around 55-95 regional jobs.

Labour market effects Educational activities serve to increase the labour supply in the field of water technology and attract talents for jobs in the Dutch water sector. Around 30% of participant companies has recruited one or more Wetsus researchers. In total 39 researchers were hired by companies and 43 researchers now work at knowledge institutes (including at Wetsus). Next to that that Wetsus Academy offers a two-year MSc programme on water technology (jot degree).

An estimation gives an Wetsus outflow of around 50 PhD’s and 200 MSc’s fulfilling around one third of the demand in the academic technology labour market in recent years. In a study on the economic dimensions of the Dutch water technology sector it was concluded that over the period 2012-2016 around 800 workers are needed with an academic (water)technology background; that is around 160 yearly. Around 11% of workers in the water technology sector have an academic education level, of which around two thirds are technical workers. Total labour demand, including all educational levels and also non-technical demand, is estimated at around 10.000 for the 2012-2016 period; around 2.000 yearly. (Source: BBO/Grontmij,Onderzoek economische betekenis Watertechnologie 2012. Deel 2: Arbeidsmarkt watertechnologiesector Nederland, Leeuwarden/Assen/De Bilt, April 2012, in Dutch).

Effects on sustainability Solutions for water related problems contribute to sustainability goals (UN Global Goals for Sustainable Development: “Clean Water & Sanitation). Water resources are constantly under pressure from climate change, urbanisation, pollution and overexploitation of freshwater resources by various user groups. Urbanisation leads to problems with the capacity and quality of water systems. As a consequence there is a growing need for more sustainability and efficiency in water use and reuse of waste water. The general view is that development of new technologies and innovation is needed to bring the necessary solutions.

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