The Netherlands faces a major challenge to increase productivity and strengthen its competitive position. The Netherlands is a knowledge country, but is not sufficiently successful in converting this knowledge into applications, business activity and economic value. Industrial companies in R&D-intensive sectors are relocating activities abroad due to a deteriorating investment climate. The Netherlands is also not sufficiently successful in allowing new start-ups to grow. This is what TNO writes in a study commissioned by the Standing Committee for Economic Affairs of the House of Representatives in response to the Draghi report.
Summary
- Industry is a highly productive and R&D-intensive sector, accounting for half of exports, but is under pressure.
- Structural congestions such as grid congestion, licensing and a shortage of technical personnel limit investments and growth.
- The regulatory burden in the Netherlands has increased significantly and in some areas is stricter than EU regulations. In addition, energy costs in the Netherlands are much higher than in other EU countries and the US.
- All this leads to a poorer investment climate, less business confidence, less innovation and weakening or even departure of business. At the same time, too few start-ups are growing into new Dutch industrial champions of the future.
- Insufficient long-term and consistent policy focus on sectors and technologies in which the Netherlands is strong is slowing down (private) R&D expenditure. R&D expenditure is lagging far behind the European target.
