Geopolitical Tensions Hamper Healthcare Innovation in the Netherlands
Amsterdam, Friday, 27 June 2025.
A report by ABN AMRO highlights the significant impact of geopolitical tensions on the Dutch healthcare innovation sector, leading to a 15% drop in funding during the first half of 2025.
Geopolitical Impacts on Innovation Funding
Recent analysis from ABN AMRO indicates that geopolitical tensions have significantly impacted the healthcare sector in the Netherlands, leading to a 15% decline in innovation funding during the first half of 2025. This decline comes as the industry faces challenges from increased import tariffs and evolving international trade policies, which hinder the inflow of essential medical devices and aid [1].
The Crux of U.S. Tariffs
U.S. import tariffs now threaten multiple aspects of the Dutch healthcare sector, particularly in the supply of medical devices and pharmaceuticals. In 2023, about 18% of the Netherlands’ healthcare imports consisted of goods from the U.S., a figure that underscores the potential disruption to supply chains. Anticipated U.S. drug pricing reforms may exacerbate constraints further by inducing global ripple effects that affect pricing and availability in the Netherlands [1].
Government and Market Responses
Though government funding has risen, providing a 3.5% sector growth in 2025, ongoing geopolitical and economic uncertainties complicate long-term planning and budget allocations. These issues are compounded by the recent fall of the Dutch government, which introduces additional unpredictability into policy frameworks that could affect future financial commitments to healthcare innovation [1].
Potential Shifts in the Pharmaceutical Landscape
Pharmaceutical companies in the Netherlands might face a dual challenge: on one hand, potential new U.S. policies could lower U.S. drug prices, impacting global market dynamics; on the other, tighter financial conditions might reduce the sector’s ability to innovate. Companies may thus experience reduced profit margins, leading to less reinvestment in new technologies or drug discoveries locally and globally [1].