"The Netherlands’ score has fallen in recent years, to a level lower than in 2022. Other EU countries, and certainly countries outside Europe, are taking far more steps when it comes to technology and innovation. On balance, we are falling behind, and that is a cause for concern for our future prosperity, the business climate, and also our security. After all, research and development is the driving force behind our economic growth."
As far as I am concerned, we will implement the plans to turn this tide as quickly as possible, in collaboration with businesses, knowledge institutions and other organisations. For example, by taking steps this year to establish the Agency for Disruptive Innovation (NADI) and the National Investment Institution (NII). And by strengthening EU cooperation, so that we can participate effectively in European projects that can provide additional support for technology or, specifically, start-ups and scale-ups in the Netherlands."Minister Heleen Herbert (Economic Affairs and Climate Policy)
The Netherlands remains a country of innovation, but its position has weakened
The Netherlands’ relative score in the EIS has fallen over the last two years. As a result, the Netherlands’ position relative to the EU average has declined significantly, from 31.8 per cent above that average to 27.4 per cent above it now. A score of more than 25 per cent is required to maintain the status of ‘Innovation Leader’.
The Netherlands’ currently strong position is mainly due to our science, education, digitalisation and public-private partnerships. Additional investment in research and development (R&D) is needed to maintain a strong position in the future. With R&D investment standing at 2.29% of gross domestic product – despite the government’s ambitions – the Netherlands has for years failed to meet the 3% benchmark. The Netherlands ranks seventh in the EU, some way behind Denmark (3.0 per cent), Germany (3.1 per cent), Finland (3.2 per cent), Austria (3.3 per cent), Belgium (3.4 per cent) and Sweden (3.6 per cent). Countries such as the United States (3.4 per cent) and South Korea (4.9 per cent) are also investing more heavily in this area.
"This decline comes as no surprise, nor is it a cause for panic; it is, however, a call to action. The figures do not lie: at 2.29 per cent, our R&D investment falls far short of the 3 per cent benchmark, whilst countries such as South Korea invest almost twice as much.
For years, the Netherlands’ strength has lain in two areas: strong key technologies, such as photonics, semiconductors and AI, and collaboration between the business community, knowledge institutions and government. It is precisely by focusing our efforts on these areas that we get the most value for every euro. NADI and the National Investment Agency can be a valuable addition to this and offer a great opportunity to further strengthen this collaboration and embed it in the Dutch approach to innovation."
Peter Stolk, Chair of Holland High Tech and Chair of Key Technologies
