Netherlands Pushes Major Private R&D Investment Drive as AI Reshapes Innovation

2025-12-23 data

The Hague, Tuesday, 23 December 2025.
Dutch lawmakers are demanding stronger policies to boost private research spending, which has stagnated at current levels for a decade despite ambitious government targets. The parliamentary push comes as artificial intelligence transforms innovation landscapes, creating both massive energy demands and breakthrough opportunities like AI-discovered geothermal sites in Nevada. With Minister Karremans targeting 3% of GDP in R&D by 2030, the private sector must contribute an additional €26.7 billion between 2026-2029 to meet this goal.

Stagnant Private Investment Despite Growing Digital Economy

Private R&D spending in the Netherlands, as a percentage of GDP, has barely increased in the last 10 years according to CBS data from 2025 [1]. This stagnation occurs despite the digital sector’s impressive growth trajectory, which now accounts for 5% of Dutch GDP and is expanding at double-digit rates [1]. Economic forecasts suggest this sector could surpass traditional industry in economic significance by 2050 if the right choices are made now [1]. The contrast is particularly stark when examining sector-specific performance: R&D intensity in trade remains at just 0.08%, specialist business services at 0.26%, and ICT at 0.21% - figures that have remained virtually unchanged over the past decade [1].

Government’s Ambitious 2030 Targets Require Massive Investment

Minister Karremans presented an action plan in 2025 to achieve 3% of GDP in R&D investments by 2030, requiring unprecedented coordination between public and private sectors [1]. TNO estimates indicate that reaching this target will demand an additional €11 billion in direct public funding cumulatively from 2026-2029 [1]. The private sector faces an even larger challenge, needing to invest an extra €26.7 billion during this same period [1]. The minister’s nine-point action plan includes exploring the establishment of a DARPA-like organization and mobilizing institutional capital to bridge the innovation gap [1]. This initiative responds to Mario Draghi’s 2024 assessment that large-scale innovation is necessary to address societal challenges and close the innovation gap with the United States [1].

AI Revolution Creates Both Opportunities and Energy Challenges

Artificial intelligence is fundamentally transforming the innovation landscape, creating both remarkable opportunities and significant sustainability challenges. A striking example emerged on December 12, 2025, when CNN reported that a geothermal hotspot was discovered 800 meters below the Nevada desert surface using artificial intelligence [2]. Zanskar Geothermal & Minerals employed AI to analyze data and locate this previously unknown geothermal resource [2]. Professor James Faulds estimates this technology could unlock ‘tens and maybe even hundreds of gigawatts’ of geothermal power, just in the western United States alone [2]. In Spring 2025, an international team launched the Aurora AI model to predict air quality, ocean waves, and extreme weather patterns [2].

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innovation policy artificial intelligence