Amsterdam-Eindhoven corridor strengthens Dutch tech

A tech corridor between the Amsterdam metropolitan region and Brainport Eindhoven could significantly strengthen the Dutch tech position in Europe. This is the conclusion of a study by Haroon Sheikh, Professor by Special Appointment at Vrije Universiteit (VU) Amsterdam, commissioned by the Amsterdam Economic Board. The study shows that the Netherlands has many regional specializations, but that structural connections and joint programming between regions are lacking.

The Dutch economic position is under increasing pressure due to structurally low productivity growth and lagging investment. Worldwide, countries are focusing on mastering 'the tech stack': the digital toolbox for innovation. This ranges from raw materials, chips and networks to data and AI applications. The need to remain relevant and independent in these areas is urgent – economically, socially and geopolitically.

A tech corridor geographically links regions to stimulate cooperation and innovation, with a focus on tech sectors such as AI, semiconductors and biotech. It is often characterized by a good physical location and strong infrastructure for logistics and data connections. Other well-known tech corridors include, for example, the Route 128/I-95 Corridor (United States) and the M4 Corridor (United Kingdom). Haroon Sheikh's research focuses on a potential tech corridor between the Amsterdam and Eindhoven regions.

Cooperation between the Amsterdam metropolitan region and Brainport is seen as an important starting point for a tech corridor, in which other relevant regions in the Netherlands should also be involved.

Opportunities for AI and HTSM, but structural connection is lacking

The Amsterdam metropolitan region and Brainport Eindhoven together account for approximately a quarter of Dutch GDP. They rank among the top in AI and digital applications (Amsterdam) and in hardware, machinery, and semiconductors (Eindhoven). At the same time, it is notable that companies in the Amsterdam region tend to look to global players and talent, while Brainport is embedded in different networks and ecosystems. There are also cultural differences, and distances in a geographically small country like the Netherlands nevertheless seem large.

The research shows that both regions can complement each other, for example by combining Amsterdam's AI expertise with Brainport's HTSM (High Tech Systems & Materials) position. Think of applying AI to physical systems, industrial applications and robotics, and conversely, developing chips for future-oriented AI. A concrete step towards closer collaboration lies in creating shared experimentation and testing facilities and infrastructures for AI, data and computing.

“In the Netherlands we excel at pilots and proofs-of-concept, but we struggle to scale these up into impactful companies,” said Jessica Peters-Hondelink, Executive Director of the Amsterdam Economic Board. “We can no longer afford to operate in a fragmented way and sit back. The question is what we want to excel in and where we want to connect the talents of different Dutch regions such as Eindhoven and Amsterdam. If we make better use of regional specializations, we will take a major step towards a future-proof Netherlands.”

Investments in R&D and capital goods for higher productivity

Haroon Sheikh's report is presented simultaneously with a Rabobank study that places Dutch top regions in a European perspective. This study shows that other European regions perform comparably or better. For the Amsterdam region, comparable regions include Dublin, Paris, Munich and Copenhagen. Brainport Eindhoven is compared with Erlangen, Böblingen, Ingolstadt, and Copenhagen. According to this research, the Amsterdam and Eindhoven regions are complementary and, when 'added together,' more closely resemble a European top region.

The Rabobank study finds that European frontrunners invest significantly more in Research & Development and capital goods. These investments are strongly associated with higher productivity. According to the study, this calls for long-term economic policy, a focus on knowledge-intensive and highly productive sectors, and a strong alignment between national and regional policy.