That is why Eindhoven will grow to be the technological centre of Europe in 2040. Recognizing this technological importance, the Dutch government is currently already encouraging students to specialize in technical studies. In 2040, this encouragement will have led to a highly technically specialized workforce, not only in Eindhoven, but also throughout the rest of the country. Especially Amsterdam, Rotterdam, The Hague and Utrecht, together also known as the Randstad, will be highly specialized in the newly developing technologies. Together with Eindhoven, these cities will form a cosmopolitan centre in the Netherlands that is specializing on the development of nanotechnology and its contributions to the overall healthcare. It is within this cosmopolitan centre where Philips will further develop its knowledge on nanotechnology.
Philips - Moving Forward to 2040.
Patterns of Innovation Activities .
For a well-established firm such as Philips, 2040 may sound very far away at this moment. Philips has positioned its healthcare division very well, making it one of the most profitable sectors of the firm. Because of this it might be inviting to lie back and exploit the businesses that Philips has at this moment. This, however, is a strategy that might work for a short period of time, but in the long run this mindset will lead to a dilution of Philips' competitive advantages. Malerba and Orsenigo (1997) mention two marks, developed by Schumpeter. Philips would be active in a Mark II market at this moment, meaning that creative accumulation is important and that mainly large, well-established firms are ruling the market. The leading companies in a Mark II market have little to fear from other, smaller, companies since it will be very hard for these small companies to accumulate the same knowledge as the larger firms have done. Being in this market might lead to the relaxed mindset mentioned earlier.