The observed problem of the water management sector is the low application efficiency of the knowledge institutes. By the lack of international competition in the knowledge market, the sector is not responding enough on market demand, and not innovative to market needs. This is for a large extent initiated by the lack of international knowledge transfer in the executing sector. No knowledge transfer is obtained between the knowledge gaining sector in the Netherlands and the executing companies internationally.
In the further analysis, we have worked on answering the question “how we could stimulate the knowledge transfer by these institutes (internationally)”. The main solution is found in the reformation of the institution sector, into more market competition dictated. By liberalizing the large national knowledge institutes, one creates a demand dependent market for water management concerned knowledge. An additional advantage of this approach will be that the innovation effort will also be more demand dependent.
A possible risk can be determined in the negative effects of market competitions. By the increasing efficiency for being competitive to the international market for knowledge, one can often lose the focus on innovation activities; like we have seen in the executing sector, where the bidding and pricing processes of companies, led to minimal profit margins, without any prospect on innovative behaviour.
Disappointing was the search for foreign companies in the field of knowledge institutes in the sector of water management. Only in America we have been able to detect some engineering companies that are concerned with research and development in this knowledge area (U.S. Army Corps of Engineers, American Society of Civil Engineers). But as the names already reveal, most of them are related to the state similar to the Dutch companies mentioned before. As we determined the problem in the Netherlands, this same problem can be identified within the US. Where the knowledge sector does come up with knowledge and research data, but misses the demand and principal to execute this knowledge; with large consequences to New Orleans (Scientific American, January 22, 2006).

As in response on the happenings in New Orleans renewed the attention on the importance of good maintenance and water management knowledge (up to date and project based), the discussion on liberalisation can help in making the knowledge gaining sector more demand dependent and competitive (www.deltacompetition.nl).