Wandering around Amsterdam's Horti Fair, which closes today, can be inspiring, but also a little disheartening. Even in a tough year it is awash with bright young things proudly displaying solutions to what most of us hadn't even realised were problems. There was a Latvian firm using nanotechnology to tweak the light transmission of glass to optimise protected crop prodution. There are a few Brits among them with unique niche products that attract international interest, but generally the cutting edge stuff comes from the Dutch.
Did it have to be like this? The Dutch undoubtedly gain from a close-knit network of small companies, banks and research establishments, as well as a supportive government. Perhaps the high pressure on, and cost of land is a goad to innovation. But the upshot is that a culture of engineering and manufacturing has been maintained there that has largely disappeared in the UK. This can be seen on a visit to any Dutch production nursery, where much of the kit will have been designed, commissioned, maintained and even built by the nursery's own workforce.
Not so long ago, James Dyson, who had given up trying to manufacture his vacuum cleaners in Britain and relocated to Malaysia, lamented this loss of British nous:
In the 1970s, when I was developing the Ballbarrow, I needed some bent metal tubing. I got in my car and went to Birmingham. In the space of a few streets, I found workshops and suppliers who between them could provide the tubing, cut it, bend it and coat it. It was an extraordinarily vital environment. And it was absolutely essential to the small engineering entrepreneur.
You might ask what happened to these British suppliers and subcontractors? Quite simply: we drove them out of existence. Employment and property laws made it difficult for them to take on extra staff and premises. They needed a tax regime that appreciated the volatile nature of their business. Instead, Governments imposed PAYE and hammered them with high interest rates, year after year. By the mid-1980s, most had gone to the wall.
Of course this wasn't thought to matter at the time, as the great service sector economy would, as it were, hoover up all the labour and investment.
Sadly it now appears we can no longer keep getting richer simply by selling mortgages and pensions to each other. Yet with the loss of skills, infrastructure and experience, we won't be able to just switch back to making things either. As Dyson foresaw:
Britain's service industries will wither without their manufacturing customers.Innovation will be stifled.We will be surrounded by products that we have not made. That's something that is already culturally destructive.