Accenture's recent 'Innovate or Fade' report shows that the Netherlands, with almost one-fifth (19.1%) of executives with technology experience, leads Europe. This is significantly more than the European average of 14 per cent. The study shows that European companies can generate up to $3.2 trillion in additional revenue by closing the technology gap with North America. The technology edge in the boardroom puts the Netherlands in a key position to realise this potential growth.
Potential $3.2 trillion extra income by bridging tech gap
Accenture's research, among nearly 2,000 leading companies worldwide, shows that European companies could potentially generate $3.2 trillion in additional revenue by 2024 by bridging the technology gap with North America. At only 14 per cent of European companies, the board has technology experience, compared to 22 per cent in North America. Bridging this gap requires a new strategic direction: strengthening technological knowledge within boardrooms, accelerating R&D investments and making the best use of existing training opportunities. Thanks to their technologically skilled executives, Dutch companies are well positioned to capitalise on this growth opportunity.
"That potential growth of $3.2 trillion is at stake shows how important technology experience is. Deep technology expertise within boards is necessary to thrive in these demanding economic times," stated Nicole van Det, Country Managing Director Accenture Netherlands. "Dutch companies have shown that they can take the leading role in Europe, but on a global level we need to raise the bar."
Van Det adds: "It used to be common for boards and CEOs to define their business strategy first, then look at how technology could support that strategy. Today, technology should be an integral part from the first step in the development of new products, services and business models."
European backlog in R&D and AI patents calls for change
European companies lag far behind in R&D investment, with a $147 billion deficit compared to their US and Asian industry peers. They are also reluctant to apply for artificial intelligence (AI) patents. Only 60 per cent of European companies do so, compared to 77 per cent in America and 89 per cent in Asia. The same goes for patents for generative AI: only 34 per cent of European companies apply for them, compared to 60 per cent in America and 73 per cent in Asia.
"This has to change," stresses Roy Ikink, Technology Lead Accenture Netherlands. "Investing in technology R&D is the key to future growth, putting new products, services and business models within reach." He underlines the value of technologies such as blockchain, cloud computing, AI and quantum technology, which play a crucial role in accelerating R&D. These state-of-the-art applications can, for example, foster the development of new drugs and more sustainable materials in the chemical sector. "It is not just about the amount of investment in R&D," he adds, "but mainly about the targeted deployment of these investments."
The 'Innovate or Fade' report is an urgent call for European companies to improve their technology skills and embrace R&D to close the gap with their North American competitors.
