Dutch government wants to catch up on innovation: new measures

The Netherlands invests too little in technology and innovation, and this has negative consequences. That is why Minister Karremans of Economic Affairs presented a package of nine measures. Together with businesses and knowledge institutions, she wants to structurally strengthen Dutch investment in research and development (R&D). The goal: less dependence on other countries, more opportunities for entrepreneurs, and a future-proof economy.

3% of gross domestic product

The Council of Ministers has given the green light for the so-called 3% R&D Action Plan. With this plan, the Netherlands aims to invest 3% of its gross domestic product (GDP) in research and development by 2030. Two-thirds of this amount must come from the business community, and one-third from the government, education, and knowledge institutions.

At present, the Netherlands is stuck at 2.2% of GDP, significantly less than frontrunners such as the US, South Korea, and neighboring countries such as Belgium and Germany. The cabinet wants to quickly close this gap in order to strengthen the Netherlands' competitiveness and innovation position.

‘Earn money first, before we spend it’

Minister Karremans (Economic Affairs): “We have to earn our money first before we can spend it. The Netherlands is home to smart minds and skilled workers, but we are not getting enough out of innovation. That is why we need to work on bringing our specialist knowledge to the market more often and more effectively, increasing public and private investment, and increasing the number of knowledge-intensive companies in the Netherlands.”

The nine actions:

1. The government is investigating whether a new organization should be established: the National Agency for Disruptive Innovation (NADI). This agency will be the first customer to purchase promising technologies, enabling them to grow more quickly. This approach has already helped the internet, GPS, and mRNA vaccines to become major successes abroad.
2. A special platform will be set up to attract knowledge-intensive companies to the Netherlands or help them grow here. This includes assistance with access to personnel, space, and funding for innovation.
3. Startups often find it difficult to obtain funding to continue growing. The government therefore wants to encourage large investors, such as pension funds, to invest €3 billion in these companies.
4. The government wants to ensure that young technology companies have easy access to affordable testing locations for important technologies, such as artificial intelligence (AI). This will enable them to develop and scale up products more quickly.
5. Many smart ideas from universities remain on the shelf. More support will be provided to translate them into new companies or applications. This is called knowledge valorization. Clear agreements will also be made between universities and entrepreneurs on cooperation and ownership.
6. There will be extra support for regional programs that train more technical professionals, such as the Microchip Talent Strengthening Plan and Techkwadraat. Technology that can save labor, for example, in the event of staff shortages, will also be explored.
7. The government wants to make structural funds available to make it easier to participate in European innovation subsidies. At present, the Netherlands sometimes misses out on opportunities because there is no national funding to match EU funding.
8. Existing schemes such as the WBSO (tax benefit for innovation) and the PPS allowance (cooperation between businesses and education) will be improved so that businesses can innovate more easily and quickly.
9. A public investment institution focusing on technology and innovation will be established. Its task will be to help companies that are currently excluded from existing financing options.

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