Tech champion of tomorrow: NL strengthens startup ecosystem
The Netherlands launches a new action plan to strengthen startups and scale-ups, with investments, tax breaks, and talent programs.
Published on September 24, 2025
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The Dutch government has announced a new action plan to strengthen the startup and scale-up ecosystem in the country. The plan includes measures such as extending the Techleap program, investing in the European Tech Champions Initiative, and setting up a national investment institution. With these steps, the government aims to ensure that innovative companies can continue to thrive in the Netherlands, thereby securing their future prosperity and earning capacity.
“We are proud of the continued trust in and support for Techleap. Over the years, we have built a thriving community of startup and scale-up founders in the Netherlands through our programs and ecosystem interventions,” Techleap.nl said in a LinkedIn post.
The Netherlands drops in the ranking of most competitive economies
Despite efforts to create a favorable climate for startups and scale-ups, the Netherlands has fallen in the list of the world's most competitive economies from 4th place in 2022 to 10th place in 2025. This decline highlights the need for the action plans and investments announced today to maintain and further expand the Netherlands' position as a leading economy. The Dutch government recognizes that investing in innovative companies is crucial to securing the country's future prosperity and economic growth. The new action plan, ‘Building tomorrow's tech champions,’ is a direct response to this challenge, with the aim of strengthening the startup and scale-up ecosystem and ensuring fertile ground in which tech companies can grow and flourish.
Investments in the European Tech Champions Initiative
In addition to its support for Techleap, the Dutch government is also investing significantly in the European Tech Champions Initiative (ETCI). €200 million has been reserved for the ETCI, supplemented by a €250 million blended finance instrument. The ETCI is a fund set up to provide growth capital to promising tech companies in Europe at a later stage of their development. The fund is managed by the European Investment Fund (EIF). By participating in the ETCI, the Netherlands aims to ensure that European tech companies, including those based in the Netherlands, have access to the necessary financial resources to compete with major global players. This investment is a crucial step in enhancing European technological sovereignty and driving economic growth.
National investment institution and tax incentives
The government is working on establishing a national investment institution and is considering tax incentives for shareholders of startups. The purpose of a national investment institution is to provide capital to companies in crucial stages of their growth, particularly when private investors are reluctant to invest. Tax benefits for shareholders can make investments in startups more attractive, thereby increasing the capital available for innovative companies. These measures aim to strengthen the financial foundation of startups and scale-ups, enabling them to invest in research, development, and growth. The combination of a national investment institution and tax benefits can give a powerful boost to the Dutch startup ecosystem.
Attracting and retaining talent
Attracting and retaining talent is a crucial factor for the success of the Dutch tech sector. The government is committed to introducing a new tax regime, effective January 1, 2027, to make it more attractive for companies to attract and retain international talent. This regime is designed to improve the Netherlands' competitive position in the battle for highly educated professionals. In addition, more support will be provided to spin-offs from research institutions, and the possibility of establishing a National Agency for Disruptive Innovation is being explored. Encouraging spin-offs and supporting disruptive innovation are crucial for fostering new businesses and driving technological progress.