In 2011, Kinrot Ventures was the most active water venture capitalist purchasing four individual companies Ecochemtech, Hydrosping, Kolmir Water Technologies, TA Count . Kinrot’s advisory board is made of leading academicians and industry leaders. In addition to a close relationship with Mekorot, Kinrot has strategic partnerships with water entities all over the world, including the LADWP . Kinrot claims to be the leading seed investor in water and clean-tech related technologies worldwide. AguAgro Fund LP, another Israel Venture Fund, acquired Kinrot Ventures in 2007.The government also provides grants and scholarships for research in water with potential commercial applicability .Perhaps most critical for future industry growth, Israel has at least 10 venture capital funds that together hold over $250 million targeted for investment in water technology firms . VC funds include Israel Cleantech Ventures , Terra Venture Partners, Tene Capital, and the aforementioned AquAgro Fund which holds over $100 million itself. These firms invest in start ups with technologies from throughout the water process. Examples include Emefcy Limited, with a ‘microbial fuel cell’ industrial wastewater treatment system that generates electricity and hydrogen , Blue Water Technologies which is developing an electro-optic technology for water quality analysis, Aqua Digital, with a remote water metering technology, and SmarTap which develops water efficiency technologies for the home .European Union water and wastewater utilities serve over 390 million people across 17 countries with sales over $65 Billion per year .
European multinationals such as Suez Environment , Gundfros , Veoila are among the most important water technology firms in the worlds Although there are many centers of water technology in Europe,flood tray several countries have targeted the water technology industry for economic growth like Denmark or Germany . I have chosen to focus on the Netherlands as the best example of a thriving European water industry innovation system. Despite its small size, 17 million people occupying a mere 16,600 square miles, the Netherlands has an incredibly strong water technology industry with nearly 1,450 companies with annual sales of $12 billion, or 2% of GDP, in 2007 . The Netherlands has several important water research centers. from world famous agricultural centers like Wageningen University, to institutes like Delft University of Technology. The country has a very healthy heterogeneity of firms working in the water industry from high technology startups such as Berghof Membrane, Dutch Rainmaker, Aqua Explorer, Capilix to major corporations such as global food industry conglomerates Nestle and Unilever, oil giant Shell, and electronics manufacturer Phillips . Additionally, the Netherlands has private foundations such as STOWA and Stichting Well, which are dedicated to fostering innovation in the water industry. Notably, the Netherlands is also home to the world’s two largest water and wastewater engineering service design firms, Arcadis and Grontimji and the global headquarters to the aforementioned Israeli infrastructure contracting firm The Tahal Group . The fact that the Netherlands has become a global water hub is perhaps not surprising considering its position at the delta of four major rivers, most importantly the Rhine, a major drainage and navigation waterway of Western Europe. Nearly one quarter of the country is below sea level requiring a massive series of dikes and waterworks to effectively manage its water resources. Furthermore, the country is a global agricultural powerhouse. In addition to strong production of food commodities such as cereals, the Netherlands is the largest flower exporter on the planet, selling over 52% of all flora products in 2006.
This is somewhat surprising given the relatively poor climate. Porter, in an investigation of the tulip industry, showed that this disadvantage actually served as a spur for the technological innovation . The country’s position on the delta gives it incredibly fertile soils, whose productivity is further amplified by heavy use of fertilizers. Today country is the world leader in many water technologies, such as greenhouses and hydroponic agriculture. The Netherlands’s heavy use of fertilizers and pesticides led to high levels of contamination which further encouraged the development of the water treatment expertise. The country’s unique low-lying geography has fostered a strong history of water management cooperation, and corresponding water engineering prowess. Unlike America, where sewage and sanitation are often administered separately from water delivery or waterway navigation, in the Netherlands all three have been closely linked. Today, local regional water boards work closely with the national and municipal bodies to manage water . Additionally, there is a large and vibrant ecosystem of private contractors and consultants with water management specialties. Nationally, water management regulation is being gradually consolidated under the Ministry of Infrastructure and the Environment, a new ministry that has been formed through a merger of Ministry of Transport, Public Works and Water Management with the Ministry of Housing, Spatial Planning and the Environment in 2010 . The link between agriculture and economic development continues to be very important to the Netherlands. In 2010 when the government revised its national governance structure, it also combined the Ministry of Economic Affairs with the Ministry of Agriculture, Nature and Food Quality to form the new Ministry of Economic Affairs, Agriculture and Innovation, a title which further highlights the importance the country has recently placed on innovation as a key to economic development. Under the act,ebb and flow tray water regulation was also drastically simplified. Today the Dutch government issues a single permit for any water activity that impacts the environment.
Previously, several permits were needed for every individual activity, including clean drainage or groundwater extraction—or infiltration—the drainage of polluting substances, etc. . In 2007 the national government, working in collaboration with the European Union’s Regional Development Fund, designated the City of Leeuwarden in Friesland Province as an official European water technology hub . The national government established Wetsus, Center of Excellence for Sustainable Water Technology. In addition to working with the various scales of government, Westus has partnered with over 80 companies and 25 universities and research institutions throughout the world to pool resources and work on water technology solutions . Additionally, private investment such as Dutch Angel investor, Westt, is involved in building the water cluster. It should be noted that the region is on the northern periphery of the Netherlands and many water related firms are still located in the Randstad, the area between The Hague, Rotterdam and Utrecht . However, the initiative is effectively forming partnerships and spurring new knowledge creation. By 2011 Westus had already generated over 33 new patents in water technology, and brought more than 250 PhDs together to produce over 90 scientific papers . Additionally, multiple new technologies have been licensed and 10 new firms have been spun off including Desah , Redstock , Metal Membranes , and AF&F . For a number of reasons, Europe has traditionally lagged behind the United States in innovation. Scholars have found that institutional and cultural barriers have led to imperfect market integration and hence, lower innovation rates . The United States also has higher rates of venture capital than Europe. The Netherlands has some VC firms, but far less than Israel, where per capita VC spending is more than 10 times the EU average . The Netherlands also has an advantage in that the country has traditionally been very internationally oriented. It its drive to develop its water technology industry, it has continued to build on this tradition. In 2006 the water industry formed the independent organization, Netherlands Water Partnership , to promote the Dutch water expertise worldwide. The organization has more than 160 Dutch members. NWP details numerous innovative Dutch firms and technologies and highlights successful international partnerships with Singapore, Israel, China, India, and Egypt. The NWP sponsors trade delegations, hosts events, and maintains a website and directory of the dutch service firms . Every August, the Singapore Water Association sponsors the Singapore International Water Week—the largest water conference in the world. Last year, over 14,000 people from over 112 countries attended the conference and over $2.8 billion in projects were awarded or announced.
Seemingly out of nowhere—SWA was only formed in 2004—the small tropical island city-state of 4 million people, now sets the gold standard for urban water management and is rapidly becoming the leading international center of urban water research and technology. From 2005 to 2015, the government projects that the industry’s employment will nearly double from 6,100 in 2005 to 11,000 by 2015 . Revenue is expected to nearly triple from SGD 619 million in 2005 to SGD 1.7 billion. The city-state has proudly embraced NEW water and built six new water recycling complexes, catapulting home grown firms like Hyflux into global leaders . Singapore, heavily targeting water research, has built two new research centers, Nanyang Environment & Water Research Institute , with five specialized research sub centers, and NUS Environmental Research Institute. NEWRI aims to be the “most comprehensive and integrated environment and water research institute in the world” . Meanwhile, international water technology global behemoths such as Siemens Water Technologies and GE Water and Processing Technologies, as well as global engineering services firms like Black & Vetch and CDM, have all located their global water research and development centers in Singapore . Singapore actively leverages its gateway position on the Pacific Rim and shared cultural connection with China to become the global water technology center. Singapore has very unique circumstances that precipitated the country’s interest in water technology. Singapore gets plenty of rainfall—over 90 inches annually—but its compact size means that there is a very limited amount of land where rainfall can be stored. In fact, domestic sources only cover half of Singapore’s domestic needs and it makes up the difference through imports from the neighboring Johor state of Malaysia. Singapore is entitled to water under long-term agreements signed in 1961 and 1962 when Singapore was still a self-governing British colony. The country of Singapore was formed in 1965 when the predominately ethnic Chinese city state broke away from neighboring Malaysia. During the country’s early years, water rations were briefly imposed . Relations between the two countries have been friendly but not without the occasional minor tension such as a race riot. The current water contracts run out in 2061, and Malaysia has been negotiating to raise prices for several decades. These unique circumstances have set the stage for Singapore to embrace a comprehensive strategy in order to secure a sustainable water supply, including institutional reform, integrated land use planning, strict legislation, public education, and advanced technology. The country’s official policy is known as the Four National Taps Strategy . The first tap is collecting water from the country’s catchment area, which, in addition to the existing reservoirs, has led to an extensive network of storm water collection infrastructure. The second tap is water purchased from Johor, which is piped in to the country. The third tap is the NEW water program, potable water derived from effluent. The fourth tap is desalination. Singapore has invested billions in increasing the first, third, and fourth taps. Developing clean water from sewage is much cheaper than desalination and can be cleaned to suit individual uses. For example, water used for industrial purposes often does not need to be as clean as drinking water, and therefore can use less costly grey water. Singapore’s two industrial water recycling plants provide discounted reused water directly to neighboring industrial districts. By 2006, the country had achieved 12% of its water supply from reused water . Singapore also uses sophisticated demand management tools in order to promote water conservation. Every end user in the country has a water meter with tiered pricing and water tariffs, notably a conservation tax, are designed to encourage the use of NEW or grey water and to promote a conservation mentality. Legislation mandates that water fees cover the costs of all water delivery and most collection—the exception being some sanitation services and storm water management facilities . NEW water is sold at a lower price than new water. In the early 1990s, Singapore reformed its water governance structure bringing all water related government agencies under a new governmental agency, the Ministry of the Environment and Water Resources . MOEWR oversees the Public Utilities Board and the National Environmental Agency .