The Netherlands is falling behind the rest of the industrialised world when it comes to innovative industries, according to a new report from the TNO research institute and the Centre for Strategic Studies in The Hague.

While still investing considerably in knowledge-intensive industries, fewer people in the Netherlands work for innovative firms, the report states. In addition, start-ups are less likely to survive than in surrounding countries.
The researchers point out that developing innovative new products and services will be a positive motor for economic growth. At the moment, some 75% of spending on research comes from big companies such as Philips, ASML, Shell, DSM and NXP, the report says. Much of their R&D investment is done abroad.
Clean energy
Earlier this week, the World Nature Fund said the Netherlands has dropped three places to 21st out of 25 in its latest relative clean energy technology ranking. The WNF concluded that while the Netherlands has a great deal of know-how, it is not turning this knowledge into hard cash.
If the government wants the Netherlands to be among the top five knowledge-based economies, officials will have to be even more focused in their current ‘top sector’ strategy, which focuses on nine key areas, the report is quoted as saying.
‘There is no all-encompassing, integrated and future-focused vision,’ the report states.
The top sector initiative offers companies investing in innovation some €500m in tax breaks.
A report by the national statistics office CBS last year showed the Netherlands spends 0.88% of GDP on research and development, compared with an EU average of 1.25%.
Earlier stories
The Netherlands near bottom of WNF clean energy ranking
High tech, water and energy main beneficiaries of government cash
Spending on research will go down by 10%, says institute
The Netherlands lags on innovation, research and education