Netherlands Urgently Needs to Boost R&D Spending to Stay Competitive
The Hague, Wednesday, 10 September 2025.
The Netherlands faces challenges in achieving EU R&D spending targets, risking its innovation landscape and ability to tackle issues like climate change.
Current R&D Investment Landscape in the Netherlands
As of September 2025, the Netherlands is grappling with the challenge of lagging behind its EU neighbors in research and development (R&D) investments. Despite the country’s reputation for innovation, actual spending has not kept pace with the targets set by the EU, which requires member states to allocate at least 3% of their GDP to R&D. Unlike Belgium, which now ranks first in the EU for R&D intensity, the Netherlands has consistently failed to reach this benchmark [1].
Consequences of Insufficient R&D Funding
The implications of inadequate R&D funding are significant and multifaceted. Marcel de Heide from TNO Vector warns that this shortfall could severely undermine the Netherlands’ capacity to innovate and address critical challenges such as climate change and technological advancements [1]. Without substantial investments, the country’s ability to foster long-term economic growth and maintain its competitive edge in the global market is compromised. Jochem de Heide further emphasizes the urgency, noting that the costs of R&D precede the benefits, and any delay in funding could result in a prolonged recovery period [1].
Government Initiatives and Future Prospects
In response to these challenges, the Dutch government has initiated the National Technology Strategy, focusing on ten promising technologies with the aim of attracting private investors to co-finance R&D projects. The success of this initiative largely depends on the government’s financial commitment, as private sector investments are typically contingent on public sector participation [1]. However, with the potential discontinuation of the National Growth Fund, there is a looming risk of further diminishing R&D expenditures, exacerbating the current investment gap [1].
The Path Forward: Collaborative Efforts Required
To mitigate these risks, there is a pressing need for a coordinated effort between the government, private sector, and academic institutions. Effective public-private partnerships could catalyze the necessary investment in innovation projects, leveraging the multiplier effect where government funds attract additional private investment [1]. As the clock ticks, the Dutch government must clarify its R&D policy and allocate sufficient resources to ensure the nation remains at the forefront of innovation and economic resilience [1].