What is ‘Smart Industry’?

Smart Industry is about using ICT and technology to help companies produce more efficiently and effectively. Companies can use smart ICT, for example, in:

• organization (web shops, automatic invoicing, logistics handling);
• production technology (robots, 3D printing, digital work instructions);
• or business models (such as product-as-a-service and manufacturing-as-a-service).

Advantages of Smart Industry:

Smart Industry uses less material and energy, produces less waste, has less staff loss and higher productivity. In short: it creates other jobs and a better competitive position for individual companies and the Dutch economy as a whole.

What is a field lab?

“The field labs are intended to fill the gap between research and application in the market,” explains researcher Mario Willems of TNO Vector. 'An entrepreneur wants to be sure of his business before investing in new production technology. As a field lab coordinator said to us: “We want to be the neighbor who tests the innovation first. Then the entrepreneur dares.” And then the chance of success is many times greater.'

The field labs are part of the Smart Industry Program. TNO works together with the Ministry of Economic Affairs and Climate Policy, trade associations FME and Metaalunie and the Chamber of Commerce. Very necessary, says Tim van de Zandt of FME: 'We are facing a major labor shortage and increasing competitive pressure in the coming years. Field labs are one of the ways to secure digital transformation and smarter production in our companies and maintain their strong competitive position in the world.'

Field lab successes for the Dutch manufacturing industry

TNO Vector conducted research into the history and future of Smart Industry field labs. 'With the currently available data, we cannot yet prove the extent to which the manufacturing industry has been further digitized through the use of field labs. Let alone how labor productivity has increased. But there are many success stories,' says researcher Willems.

1. Real innovation and awareness

For example, fieldlab Smart Connected Supply Network developed a protocol to which companies can connect their various supply chain information systems. RAMLAB in the port of Rotterdam even brought their development to the market: a system for 3D printing metal objects with a robot welding arm. 'Development in field labs is like real innovation: it doesn't always work, but if one comes through, it's a hit.'

Van de Zandt adds: 'In any case, we see that the field labs make many companies aware of the need for digitalization and smarter production. Then it works well that field labs are organized bottom-up: companies among themselves, peer-to-peer, exposed to the knowledge of institutions such as TNO and universities.'

2. Bottom-up innovative ecosystem

Comparison with abroad shows that the strength of the Dutch field labs lies mainly in their significance for small and medium-sized businesses. Willems: 'Fieldlab-like initiatives are often larger in Germany, England and Belgium, with the participation of more large companies, better financed and focused on special topics within digitalization and production. They are organized more top-down. Large companies are great and certainly contribute to creating roadmaps, for example, and bringing feasibility more within reach. So that is also a consideration for us. Foreign countries look enviously at our flexibility, open character and co-creation between companies and knowledge institutions. Partly due to the linking of the Smart Industry program and the field labs to the Digital Innovation Hubs (EDIHs), a strong innovative ecosystem is created bottom-up.'

David Otto, co-author of the report: 'The Smart Industry program could perhaps be used more broadly. Foreign initiatives, for example, are distinguished by an extensive range of technologies and services. There is also a role for field labs. This broad offering can be seen as a one-stop-shop approach, resulting in a broad value proposition, which gives them the opportunity to appeal to a wide group of companies.

3. Positive energy and confidence

Potential obstacles such as intellectual property (IP) are not yet a problem in Dutch field labs, precisely because of their open character, says Van de Zandt: 'The research is often still pre-competitive, so IP is not yet an issue.' one step further: 'With this type of collaboration, there is always a trade-off between mutual trust or legal closure. A field lab like Campione does not do the latter on purpose, because they say: “We need that positive energy, that is only possible if the parties trust each other.” And finally, Dutch manufacturing companies do not compete with each other, but with global supply chains. Collaboration and innovation together are therefore crucial to maintain our competitive position.'

Lessons and future of field labs

1. Attract more companies

The most important challenge for field labs in the future, according to Willems and Van de Zandt: more companies must join the field labs. The conclusion is that a clear structure of the field labs helps with this. But also, says Van de Zandt: 'Metaalunie and FME must do more to refer companies to field labs and generate new agreements through more digitally mature companies. The exchange of knowledge could also be improved a bit.'

There are many reasons for companies to join field labs, says Willems: 'Networking is an important one. There are examples of companies that meet at a field lab and then acquire orders together. You also get access to state-of-the-art R&D at a fairly cheap and accessible level. You will also promote your company better, especially if you also include your customers in your activities with the field lab. And you become more attractive in the hunt for new staff if, for example, you do AI, 3D printing or machine learning.'

2. Clear structure needed

To increase their effectiveness, TNO Vector recommends a number of improvements. Van de Zandt embraces this: 'Field labs will work better if they have a clearer structure for the companies. One lab will focus more on education, another on R&D, another on networking or demonstration. Companies then know better where they need to be. In addition, we also need to monitor better the qualitative and quantitative spin-offs. And mutual substantive cooperation is sometimes also necessary.'

3. Basic financing increases effectiveness

Willems adds: 'I would rather not immediately ask for money, but it would help if field labs received basic funding for their facilities, organization, location and knowledge transfer. There is none now, and companies often do not make money for this, because their contributions are usually in the form of employee hours. So covering the overhead is a relatively limited investment that has a lot of effect.'

According to Van de Zandt, the financier – the government – ​​gets quite a bit in return: a strong manufacturing industry, including high productivity, employment, earning capacity, and a permanently strong export position. 'We really don't need twice as many field labs, we are rather reluctant. But we do want the reach to double within 5 years. We need the field labs to become more effective for our economy.'