Dutch Government Invests Over €2 Billion in Innovation and Climate Action
The Hague, Tuesday, 16 September 2025.
The Netherlands is channeling €1.8 billion into innovation, €230 million into semiconductors, and €200 million into startups, while reallocating €146 million from diesel subsidies to sustainable agriculture.
Historic Budget Unveiled on Prinsjesdag 2025
On Prinsjesdag 2025, the Dutch government announced a historic budget aimed at significantly enhancing innovation and competitiveness across various sectors. The allocations include a record €1.8 billion for the WBSO innovation tax credit scheme, €230 million for semiconductor projects, and €200 million to support promising startups in scaling up. These measures are part of a broader strategy to bolster the country’s economic growth and address pressing climate challenges [1].
Redirection of Diesel Subsidies
In a notable shift towards sustainability, the Dutch government is reallocating €146 million annually from previously earmarked diesel subsidies to innovative programs for farmers and horticulturists. This initiative, led by Agriculture Minister Femke Wiersma, is designed to promote innovation, business takeovers, and other supportive measures that prepare agricultural businesses for future challenges. This move underscores the government’s commitment to sustainable practices in agriculture while maintaining a balance between economic and environmental priorities [2][3].
Focus on Semiconductor and Startup Support
The Dutch government is investing €230 million in the semiconductor industry as part of an Important Project of Common European Interest (IPCEI). This strategic investment aims to enhance the Netherlands’ position in the high-tech sector and reduce dependency on external sources for critical technologies. Additionally, €200 million is allocated to the European Tech Champions Initiative, supporting startups and scale-ups in overcoming financial hurdles and achieving global competitiveness. These investments are critical for maintaining the Netherlands’ role in innovative technology sectors [4][5].
Economic Implications and Future Outlook
The planned investments align with the Dutch government’s broader economic strategy, which seeks to maintain a stable policy environment for businesses while addressing the challenges of rising costs in public services. Minister of Economic Affairs Karremans emphasizes the importance of a robust entrepreneurial community as a driver for economic growth. The government is also committed to reducing administrative burdens, simplifying regulations, and providing incentives to ensure a conducive business climate. These measures are expected to sustain the Netherlands’ economic vitality and innovation-driven growth [1][6].