Netherlands Launches New Industry Policy to Boost Economic Future
The Hague, Saturday, 18 October 2025.
The Dutch government introduces a policy focusing on key markets like semiconductors and AI to combat talent and capital flight, aiming to strengthen economic independence and innovation.
Strategic Focus on Key Markets
The Dutch government has initiated a new industry policy, emphasizing the importance of targeting six key markets: semiconductors, biotechnology, defense-related applications, digital services (notably artificial intelligence), machinery, and innovative chemistry. This strategic focus aims to counteract the current trend of talent and capital leaving the Netherlands, while also addressing the stagnation in innovation. The policy was proposed by Minister Karremans of Economic Affairs and has been approved by the Dutch Cabinet. The plan involves phasing out the existing top sectors policy by 1 January 2026 and establishing new programs to strengthen these selected markets [1].
Addressing Economic Challenges
The Netherlands faces significant economic challenges, including a tight labor market, a full power grid, and rising geopolitical tensions. These issues underscore the urgency of the new industry policy. Minister Karremans has articulated that in order to position the Netherlands as a leader by 2040, strategic choices must be made now. The approach involves concentrating resources on sectors where the Netherlands can achieve substantial growth and influence, thereby enhancing the nation’s security, economic growth, and future prosperity [1].
Projected Growth in Key Sectors
The expected growth rates for the targeted sectors underscore the potential of the new policy. For instance, the semiconductor industry is projected to grow at an annual rate of 8.7%, while the biotechnology sector anticipates growth rates of 15.4% for cell and gene therapy and 14.1% for alternative proteins. Digital services, particularly AI, are forecasted to grow by 16.8% annually. These projections highlight the substantial economic opportunities available, should the Netherlands successfully develop these sectors [1].
Enhancing Innovation and Independence
In addition to focusing on specific markets, the policy aims to improve access to financing, reduce regulatory burdens, and solve grid congestion issues. It also emphasizes the importance of ensuring a supply of technical and digital talent, which is crucial for maintaining competitiveness in these rapidly evolving industries. By fostering collaboration with businesses and addressing societal challenges, the policy seeks to secure job security, prosperity, and national independence for the Netherlands [1].