The Dutch government has launched an ambitious 9-point plan aimed at reversing the country’s lag in innovation and boosting long-term economic resilience.

“This is primarily due to our rock-solid science, excellent education, digitalisation, and public-private partnerships. If we stop investing now, we will lose this position in the future. We are only number 9 when it comes to innovation investments,” says the government in the press release.

In the long run, it could also affect the affordability of essential public services like healthcare and safety, says the government. `

3% R&D Action Plan

To improve this situation, Minister Karremans of Economic Affairs, along with the business community and academic institutions, proposes nine actions to boost investments in research and development (R&D) in the Netherlands.

The cabinet recently approved the measures in the so-called 3% R&D Action Plan.

This means that the Netherlands will invest 3 per cent of its economy (gross domestic product, GDP) in research and development (R&D) by 2030.

Two-thirds of this funding, within the European target, will come from private investors and companies, while one-third will be provided by the public sector, including government, educational institutions, and knowledge institutions.

The Netherlands currently invests 2.2 per cent of its GDP in R&D. This is significantly lower than leading countries like the US, South Korea, and neighbouring countries like Belgium and Germany.

Minister Karremans (Economic Affairs): “We have to earn our money first before we can spend it. The Netherlands boasts bright minds and talented entrepreneurs, but we’re not getting enough out of innovation. That’s why we need to work on bringing our specialised knowledge to market more often and effectively, increasing public and private investment, and increasing the number of knowledge-intensive companies in the Netherlands.”

Without measures, the percentage in the Netherlands will drop to 2 per cent. To reach 3 per cent, €14.9B in private and public investment is needed.

What’s in the Dutch government’s 9-Point Plan?

Here are the action plans that the cabinet is rolling out:

Establishment of a National Agency for Disruptive Innovation (NADI)

With a new public organisation, the government is the first client to purchase groundbreaking innovations. Breakthroughs such as the internet, GPS, and mRNA technology have been scaled up in this way abroad.

Establishing an R&D launch platform

Targeted at attracting knowledge-intensive companies to the Netherlands or enabling them to expand here by removing barriers to access to talent, space, or innovation schemes, for example.

Mobilising €3B for R&D-intensive scale-ups.

Startups are struggling to grow into scale-ups due to a lack of funding. The government will further mobilise institutional investors, such as pension funds, to support this.

Expanding experimental space for technological startups and scale-ups.

Focusing on affordable access to high-quality experimental space for various key technologies, such as the AI factory.

Stimulating knowledge valorisation

A strong incentive to help promising scientific ideas evolve into successful companies and applications more frequently. This is achieved through entrepreneurship, spin-offs, and policies such as standardised deal terms at knowledge institutions.

Increasing the availability of technical talent and labour-saving technologies

Invest in sectoral and regional programs like the Microchip Talent Strengthening Plan and Techkwadraat to structurally reduce the shortage of technical talent.

Establishing an EU co-financing facility

This is a structural provision through which the government co-finances innovation and technology nationally. Without a budget for the Netherlands, we currently lack attractive EU funding.

Further development of innovation instruments

Optimises existing schemes, such as the WBSO and PPS allowance, so that companies are stimulated to invest in R&D more quickly, easily, and effectively.

National Investment Institution

Public investment institution with a focus on innovation, technology, and earning capacity that makes financing possible for companies that are currently falling between the cracks.

“These proposals not only contribute to achieving the target of investing 3% of GDP in R&D by 2030, but also to our strategic priorities. This includes not only securing future earning capacity, but also solving social problems through innovation and strengthening the economic resilience and technological independence of the Netherlands,” concludes Minister Karremans