Action plan aims to boost Dutch innovation climate

The Netherlands currently invests 2.2% of its Gross Domestic Product (GDP) in Research and Development (R&D), considerably less than countries such as the US, South Korea as well as European peers including Belgium, Germany and Sweden. Despite past ambitions to make up lost ground, the Netherlands has for years remained stubbornly below the EU target of 3%.

In response, Vincent Karremans – caretaker minister of Economic Affairs in the Dutch caretaker government – has set out a nine-point plan to reverse the country’s innovation lag (read the Dutch article). The plan was announced in July 2025.

While the Netherlands is one of the three leading EU countries in terms of innovation – thanks to its leading research, high-quality training programmes, digitalisation and public-private partnerships – it places only ninth in terms of investments in innovation among EU Member States.

What’s in the 3% R&D action plan?

Made in collaboration with businesses and knowledge institutions, the plan sets out structural improvements to Dutch R&D investments.

Minister Karremans (Economic Affairs): “We need to earn our money before we can spend it. The Netherlands has no shortage of dynamic businesses and talented people, but we’re failing to capitalise on all that innovation on our doorstep. That’s why we need to optimise marketing channels for our specialist knowledge, raise public and private investments and increase the number of knowledge-intensive companies in the country.”

The Netherlands aims to invest 3% of its Gross Domestic Product (GDP) in R&D by 2030, in line with the EU target. Two thirds of this funding will be from private investors and businesses, and one third will be sourced from the public sector as well as education and knowledge institutes.

The nine actions points in full

1. Establish the National Agency for Disruptive Innovation (NADI);
   This government organisation will be the first to purchase groundbreaking innovations. It will operate in a similar vein to agencies like DARPA in the US, which scaled technological breakthroughs such as the Internet, GPS and mRNA technology. AI Plan wrote an opinion piece with specific advice for the Dutch context (original article in Dutch).

1. Set up R&D launch platform;
   This platform aims to attract knowledge-intensive companies to the Netherlands or enable them to expand in the country by removing barriers to access talent, space or innovation schemes, for example.
2. Mobilise 3 billion euros of institutional capital for R&D-intensive scale-ups;
   A lack of funding is holding back start-ups from transitioning into scale-ups. To improve access, the government will focus more on mobilising institutional investors such as pension funds.
3. Improve access to experimental facilities for tech start-ups and scale-ups;
   This focuses on providing affordable access to high-quality experimental facilities for various Digital and Information Technologies, such as the AI factory. Its aim is to accelerate development and scaling among growth companies.
4. Stimulate knowledge valorisation;
   This aims to boost the number of promising research ideas that evolve into successful companies and applications through entrepreneurship, spin-offs and policies such as standardised deal terms at knowledge institutions.
5. Increasing the availability of technical talent and labour-saving technologies;
   Investments in sectoral and regional programs like the Microchip Talent Strengthening Plan and Techkwadraat will systemically address the shortage of technical talent.
6. Establishing an EU co-financing facility;
   This is a structural facility through which the government will co-finance innovation and technology at national level. The Netherlands currently has no budget and is missing out on key EU funding.
7. Optimisation of innovation scheme;
   This optimises existing schemes such as the Tax Credit for Research and Development (WBSO) and Public-Private Partnership (PPS) allowance in order to accelerate and facilitate more targeted corporate investment in R&D.
8. National Investment Institution;
   This public investment institution will focus on innovation, technology and earning capacity to open up funding to companies that are currently ineligible.

A boost for the Dutch innovation landscape

Topsector ICT welcomes Minister Karremans’ 3% R&D Action Plan. “R&D investments are pivotal to the health of the Dutch economy. Digital and Information Technologies such as AI, Cybersecurity Technologies and Neuromorphic Computing represent not only income channels in tomorrow’s economy, but also potential sources of innovative solutions to major societal challenges,” says Frits Grotenhuis, director of Topsector ICT.

This thinking is also reflected in the Dutch government’s Mission-driven Innovation Policy and National Technology Strategy (NTS). Topsector ICT is coordinating Action Agendas for two of the ten key Digital and Information Technologies: AI/Data and Cybersecurity Technologies. The nine-point plan and Action Agendas aim to reinvigorate the Dutch innovation landscape, improving the country’s earning capacity, economic resilience and technological independence.

Triple interview with Techleap and Invest-NL

In the run-up to the Dutch elections, copywriter Ester Schop sat down with Stephanie Ottenheijm (Topsector ICT), Gert-Jan Vaessen (Invest-NL) and Myrthe Hooijman (Techleap) to discuss the importance of collaboration as a catalyst of digital innovation. The article will feature in AG Connect’s Digital Business special in September 2025.

Video

Watch the interview below with Marc Zegveld, Managing Director at TNO’s ICT, Strategy & Policy Unit, in which he shares his thoughts on the Dutch business climate, the strength of the country’s entrepreneurial culture and what steps are needed to improve the business environment.