Alternative plan for phased-out National Growth Fund desirable

Minister of Economic Affairs in dialogue with top sectors and TKIs on maintaining the Netherlands' innovative strength

With the phasing out of the National Growth Fund, important funding for stimulating economic growth and innovation will be lost. In order to stimulate and maintain the innovative power of the Netherlands, including the promising national projects that were being prepared for round 4, top sectors and TKIs today presented the bid book Investing in the innovative power and earning capacity of the Netherlands to Minister Beljaarts of Economic Affairs. This morning, the bid book was the start of a further dialogue to jointly explore an alternative for these innovation plans and the efforts required to realize them. Our Captain of Science Guus Rijnders took part in this important conversation.

To the bidbook

Photo: Ministry of Economic Affairs

Minister Beljaarts (EZ) at the presentation of the bid book: ''Investments in knowledge, technology and innovation are crucial: the government wants 3% of the gross domestic product (GDP) to be spent on research and development by 2030. That is why we are investing an additional 900 million euros next year via Invest-NL in innovative SMEs and the growth of promising start-ups. The subsidy for the Research and Development Promotion Act (WBSO) will increase to 1.5 billion euros in 2025. This means that companies will have to pay less tax for their research and development and will be able to innovate more cheaply. In addition, we expect the first good results from the 51 National Growth Fund projects in which we are investing more than 11 billion in the coming years.''

Solving major challenges now

Dutch productivity is growing less rapidly than before and other countries are becoming increasingly competitive. Recent geopolitical developments also emphasise the need to become less dependent on foreign countries. The Netherlands faces major challenges in maintaining its prosperity in these times of limited opportunities for government investment in research and innovation. We must therefore continuously work on strengthening our economy, including with the business community and SMEs, so that our country remains attractive to live and do business in.

The National Growth Fund has been phased out, which means that an important instrument for stimulating economic growth and innovation will no longer be available. The top sectors and TKIs call on the Schoof cabinet, in particular the Minister of Economic Affairs, to work together on an alternative plan with other investment arrangements and return agendas. They will enter into discussions about cooperation between departments, top sectors, their many public and private (consortia) partners and other investors and financiers so that projects that are ready or that will be developed in the near future can also continue. Click here for the bid book, the letter and the next steps for the innovative power of the Netherlands.

“Investing in innovation is investing in the future of the Netherlands. We are convinced that all parties – government, business, knowledge institutions and social organisations – are crucial to maintaining the competitiveness and innovation of the Netherlands and strengthening our vital sectors, now and in the future. Of course, we strive to get as much impact as possible from the current growth fund projects and we are happy to work together on an alternative plan to also support the new innovation plans and to enable new financing options, public and private,” says Carmen van Vilsteren, figurehead of Health Holland on behalf of the Top Sectors and TKIs.

National Growth Fund in figures

Between 2021 and 2024, the government invested €11.3 billion in projects through the National Growth Fund, and this was matched by companies, knowledge institutions and social organisations with a total of €12.6 billion. It is estimated that every investment euro yields €5.80 in return until 2040 (Rabobank, 2024).