Amsterdam between productive top region and engine for prosperity
Although the Amsterdam region is helping the Netherlands achieve unprecedented economic growth, prosperity in general is lagging behind.
Published on March 23, 2025
Bart, co-founder of Media52 and Professor of Journalism oversees IO+, events, and Laio. A journalist at heart, he keeps writing as many stories as possible.
The Amsterdam Metropolitan Area (AMA) has been a driving force of economic growth for decades. With only a tiny part of the population, this region is responsible for almost a quarter of the economic growth in the Netherlands since 1995. Specialization in knowledge-intensive and technological sectors has transformed the AMA into a proper tech region. However, there is a downside, as is evident from a new survey by RaboResearch: the growth in narrow prosperity indicators (such as GDP and productivity) is not sufficiently translating into broad prosperity indicators such as health, quality of life, and equal opportunities.
Economic power without social returns
Between 2010 and 2022, labor productivity in the greater Amsterdam area grew by over 18%, compared to only 8% nationally. The region is a frontrunner in adopting new technologies, R&D investments, and the number of knowledge-intensive jobs. Yet the broad development of prosperity – measured by the Broad Prosperity Indicator (BPI) – lags behind the national average. Despite growth, the region continues to score relatively low on the social and ecological dimensions of prosperity.
Therefore, the central question is, how do we ensure that economic prosperity translates into well-being for all residents?
Amsterdam stops smart traffic lights over privacy concerns
Amsterdam halts 'smart' traffic lights due to inefficiency and privacy risks.
From insular thinking to an ecosystem of shared values
According to the RaboResearch report, the key lies in “sustainable earning power”: a region's ability to structurally create economic and social value. This requires a shift in both thinking and action.
The challenge is that cooperation between the business community, government, and educational institutions is still too fragmented. Tech companies in the Amsterdam Metropolitan Area are insufficiently involved in social issues, even though they have enormous clout to contribute to solutions. The government often lacks knowledge of technological developments, which hinders mutual understanding.
“Tech companies are isolated in the Amsterdam Metropolitan Area,” one participant noted during a dialogue session. The negative image – think of the impact on the housing market – must give way for a new narrative: tech as a catalyst for broad prosperity.
Towards a shared agenda
What is needed is a shared long-term vision supported by concrete agreements. The report argues for a common agenda backed by companies, governments, and educational institutions.
There are already concrete examples. Consider the New Amsterdam Alliance, in which the government and businesses jointly invest in the quality of life in vulnerable neighborhoods. Or the Green Tech Campus in North Holland, which is working to accelerate the energy transition. Initiatives such as TUMO, Codam, and TechValley-NH also show how education and technology come together to serve an inclusive region.
The power of small steps
The road to sustainable prosperity does not require a grand master plan but rather small-scale initiatives with the potential to be scaled up. Fast-track certification for companies that use AI for social purposes or rewards for tech solutions in healthcare and education are the kinds of targeted incentives that can make a difference.