While other countries are investing purposefully in technology and resilience, the Netherlands is lagging behind. A lack of innovation creates dependencies, hinders opportunities for our entrepreneurs, jeopardizes our jobs, threatens our economic security, and, in the long term, the affordability of public services such as healthcare and safety. Minister Karremans (Economic Affairs), in collaboration with the business community and knowledge institutions, therefore proposes nine actions to structurally improve Dutch investments in research and development (R&D).
Peter Stolk, Chairman of Holland High Tech, on the 9 actions:
We encourage the success of public-private innovation together with all stakeholders in our ecosystem, with significant participation from the Dutch high-tech business community and research organizations. As the top sector for High Tech Systems and Materials, we applaud the structural improvement of Dutch investments in research and development (R&D), as presented in the 3% R&D Action Plan. It is crucial that we continue to develop together and take steps to invest in R&D, both nationally and internationally. To this end, we collaborate with all partners in our ecosystem—knowledge institutions, businesses, and government—to shape action agendas for these important key technologies.
The Cabinet has approved the measures in the so-called 3% R&D Action Plan. This means that the Netherlands will invest 3% of its economy (gross domestic product, GDP) in research and development (R&D) by 2030. Two-thirds of this funding, within this European target, will come from private investors and companies, while one-third will come from the public sector, including government, education, and knowledge institutions.
Currently, the Netherlands invests 2.2% of its GDP in R&D. This is considerably less than leading countries like the US, South Korea, and neighboring countries like Belgium and Germany. Without measures, the percentage in the Netherlands will drop to 2%. To reach 3%, €14.9 billion in public investment is needed.
The 9 actions
- Explore the establishment of a National Agency for Disruptive Innovation (NADI)
With a new public organization, the government will be the first client to purchase groundbreaking innovations. Breakthroughs abroad, such as the internet, GPS, and mRNA technology, have been scaled up this way. - Establish an R&D launch platform
Target knowledge-intensive companies to come to the Netherlands or expand here by removing barriers to access, for example, talent, space, or innovation regulations. - Mobilize €3 billion in institutional capital for R&D-intensive scale-ups
Startups are not growing into scale-ups due to a lack of funding. The government will further mobilize institutional investors, such as pension funds, to achieve this. - Expand the experimental space for technological start-ups and scale-ups.
Focus on affordable access to high-quality experimental space for various key technologies, such as the AI factory. This will enable growth companies to develop and scale up more quickly. - Stimulating knowledge valorization
A strong impetus to develop good scientific ideas into successful companies or applications more often. This will be achieved through entrepreneurship, spin-offs, and policies such as standard deal terms at knowledge institutions. - Increasing the availability of technical talent and labor-saving technologies
Focus on sectoral and regional programs such as the Microchip Talent Reinforcement Plan and Techkwadraat to structurally reduce the shortage of technical talent. - Establishing an EU co-financing facility
A structural facility through which the government co-finances innovation and technology nationally. Without a budget for the Netherlands, we currently lack attractive EU funding. - Further development of innovation instruments
Optimizes existing schemes, such as the WBSO (Funding for Innovation and Development) and the PPP allowance, so that companies are encouraged to invest in R&D more quickly, easily, and effectively. - National Investment Institution
A public investment institution focused on innovation, technology, and earning capacity that provides financing for companies currently falling through the cracks.
Minister Karremans (Economic Affairs):
We must first earn our money before we can spend it. The Netherlands boasts bright minds and talented entrepreneurs, but we're not getting enough out of innovation. Therefore, we need to work on bringing our specialized knowledge to market more often and effectively, increasing public and private investment, and increasing the number of knowledge-intensive companies in the Netherlands.
The Netherlands: EU Innovation Leader, but Not a Top Innovation Investor
As number 3 in the EU, the Netherlands is an innovation leader. This is primarily due to our rock-solid science, excellent education, digitalization, and public-private partnerships. If we stop investing now, we'll lose this position in the future. We're only number 9 when it comes to innovation investment. We lag far behind countries like Germany (3.1%), Austria (3.3%), Belgium (3.3%), and Sweden (3.6%). The Netherlands, along with countries like France (2.2%), Slovenia (2.1%), and the Czech Republic (1.8%), has been below the 3% target for years, despite earlier ambitions to close the gap.
