[In-depth Look] Innovation Cluster and Knowledge Port

Kim Young-woo, Research Fellow at the Win-Win Growth Research Institute

Rotterdam is a representative port city of the Netherlands. The history of its port began in 1270 when a dam was built on the muddy area (Rotte), a tributary of the Maas River, and it grew by playing a central role in the Dutch East India Company. However, the Rotterdam port was located more than 5 meters below sea level, making it difficult for large ships to navigate. In 1872, the Maas River was connected to the nearby Rhine River through the canal (Nieuwe Waterweg), and docks were constructed to allow large ships to enter, expanding the port to the North Sea and enabling rapid growth.

Rotterdam, which served as a logistics hub in Europe, was reduced to ruins by bombings during World War II. However, by connecting land routes and railways centered around the port, it came to be known as the "Gateway to Europe" from 1970. Today, Rotterdam ranks 10th in the world in container throughput but is regarded as the "smartest port" with the shortest shipping times by utilizing autonomous robotic cranes, computer control, and the Internet of Things (IoT).

Originally, a seaport is a maritime facility where ships load and unload cargo and passengers, accounting for 70% of global trade. Major ports are internationally connected, requiring passports, and with the popularization of airplanes, the concept evolved into airports, or "ports of the sky." Recently, the Netherlands is expanding from Rotterdam-centered logistics ports to "brainports" based on ICT technology.

The Brainport region, located in the south, has a population of only 770,000 but began creating an innovation ecosystem centered on Eindhoven, home to Philips Electronics, in 2014. Together with the nearby Rotterdam port and Schiphol Airport, the goal is to transform the logistics port into a "brainport" suited for the Fourth Industrial Revolution era. Today, it has become a brain hub hosting semiconductor companies like ASML and NPX, which play key roles in the global value chain, along with 20,000 talented professionals.

In the 1990s, the Eindhoven area faced a total crisis due to Philips' difficulties and the bankruptcy of truck manufacturer DAF. The city government, schools, and chambers of commerce began working closely to promote regional economic development and strengthen the innovation base. After long discussions, they decided to create the Brainport innovation cluster by fostering ICT-centered local companies and attracting capable foreign firms to combine with regional specialized industries.

ASML, which has recently become a hot topic, is a representative company of the Brainport cluster. Spun off from Philips in 2004, it monopolizes the production of semiconductor extreme ultraviolet (EUV) lithography equipment and has grown into a global advanced company. The Brainport region accounts for 23% of the Netherlands' R&D and open innovation drives the regional industry. Products that did not exist three years ago now account for 28% of local companies' sales, underscoring the importance of innovation.

Brainport has also opened a new horizon for regional specialized industry-academia-research models by combining regional development with industry-academia-research collaboration. It focuses on five areas: talent, companies, internationalization, technology, and fundamentals. In particular, "talent" has been set as the top priority to respond to new technologies required by companies and to foster flexible thinking. Thanks to this, Brainport has become a cutting-edge brainport leading the innovation ecosystem of Dutch manufacturing. Even amid the COVID-19 pandemic, the Netherlands continues to grow its logistics port symbolized by Rotterdam and the digital brainport centered on Brainport.

Kim Young-woo, Research Fellow at the Institute for Shared Growth

This content was produced with the assistance of AI translation services.