Dutch Government Unveils Record Innovation Funding on Prinsjesdag 2025
The Hague, Thursday, 18 September 2025.
The Netherlands announces a historic €1.8 billion budget for innovation tax credits, plus €230 million for sector-wide innovation, aiming to bolster economic growth through enhanced R&D support.
Strategic Investments in Innovation
On Prinsjesdag 2025, the Dutch government announced a landmark investment plan to enhance the country’s innovation landscape. A record €1.8 billion has been allocated to the Research and Development Promotion Act (WBSO), aimed at reducing the tax burden for companies investing in research and development (R&D). This substantial budget increase is designed to make innovation more accessible and cost-effective for businesses, thereby strengthening the Netherlands’ competitive edge in the global market [1][2][3].
Sector-Wide Boost for Semiconductors and Startups
In addition to the WBSO funding, the Dutch government has earmarked €230 million for participation in the Important Project of Common European Interest (IPCEI) on Advanced Semiconductor Technologies. This initiative is crucial as it seeks to position the Netherlands at the forefront of semiconductor innovation—a sector recognized for its strategic importance in Europe’s technological landscape. Furthermore, €200 million has been allocated to the European Tech Champions Initiative (ETCI), which supports the growth of promising startups into scale-ups, addressing the gap in risk capital that European startups face compared to their American counterparts [1][2][4].
Reducing Administrative Burdens
The Dutch government is also taking steps to lessen the administrative pressures on small and medium-sized enterprises (SMEs). Starting in 2026, the requirement for mileage registration will be abolished for all SMEs, marking the first of 500 regulatory simplifications planned by the summer of 2026. This move is part of a broader effort to enhance the business climate in the Netherlands by reducing regulatory burdens that have long been considered stifling by the business community [1][2].
Economic Growth Projections and Policy Implications
Despite the ambitious funding plans, the Dutch economy is projected to grow modestly by 1.4% in 2026, down from 1.6% in 2025. This anticipated slowdown highlights the importance of maintaining a stable policy environment that supports business confidence and encourages long-term investments. The government emphasizes that sustained economic growth is essential to finance public services and maintain the country’s social safety nets [1][2][3].