An analysis of the innovative performance of the Dutch greenhouse horticultural sector

Abstract

Statistics showed a negative trend in the financial performance of the Dutch greenhouse horticultural sector. As innovation has played an important role in the history of the Dutch greenhouse horticulture, we therefore studied whether the chosen rate and direction of innovation still suit the challenges the sector is currently facing. We distinguished four types of innovation: product-, process-, marketing- and organizational innovation. The importance of each type varies during the life cycle of a sector. Then, in order to evaluate the chosen rate and direction of innovation, we studied two important bodies of innovation literature. First, the ‘Sectoral System of Innovation and Production’ (SSIP) approach of Malerba contributed to understanding how sectors operate and evolve and the role of innovation processes in this. Second, the diamond framework of Porter provided insights in the determinants that based on innovation influence the performance of industries. Both frameworks relate as we claim that sectors consist of a set of interrelated industries.Combining both frameworks thus lead to a more complete view of the factors that influence the rate and direction of innovation of sectors.