Dutch Regional Agencies Boost Innovation to Tackle Housing Crisis
Amsterdam, Sunday, 18 August 2024.
Regional development agencies in the Netherlands are driving economic growth by supporting startups and SMEs. Their efforts, backed by substantial funding, aim to solve societal challenges like the housing shortage while enhancing regional economic capacity.
Financial and Content Support
In 2023, the nine regional development agencies (ROMs) in the Netherlands provided significant financial and content support to thousands of startups, scale-ups, and innovative SMEs. This support enabled these enterprises to grow and work on solutions for pressing societal issues such as housing shortages, net congestion, sustainable food production, and climate transition[1].
Strategic Innovation Agendas
ROMs collaborate with businesses, educational institutions, and government bodies on strategic innovation agendas. These agendas are crucial for developing and enhancing innovative ecosystems. In 2023, ROMs contributed to 474 innovation projects, with a financial scope exceeding €350 million, involving over 1,000 companies[1].
Interregional Cooperation and Funding
A key role in this innovation drive is played by the Multi-Year Strategy for Interregional Cooperation 2024-2027, published by the Minister of Economic Affairs and Climate Policy in late June 2024. At the end of 2023, ROMs received a one-time boost of €4 million to strengthen interregional cooperation. Additionally, €2.5 million was allocated under the Energy Hubs Stimulus Program for developing energy hubs in the Netherlands[1].
Impact on Regional SMEs
ROMs invested €219 million in 372 innovative SMEs in 2023, with 50% of these companies attracting startup and later-stage capital involving ROMs. Furthermore, 138 foreign companies were supported in establishing new locations, resulting in an investment of €1.1 billion over three years and creating or maintaining over 3,330 jobs[1].
Global Context
This innovation-driven approach is mirrored in other parts of the world. For example, Canada’s Regional Development Agencies (RDAs) also focus on fostering economic growth and creating well-paying middle-class jobs. Like the ROMs, RDAs work closely with businesses and innovators to scale up operations and enhance regional economies[2].
European Efforts
Similarly, the European Commission has allocated at least €56.6 billion for innovation and research in the Cohesion Policy programmes for 2021-2027. The European Regional Development Fund (ERDF) supports over 185 smart specialisation strategies, enhancing jobs and sustainable growth across various regions in Europe[3].
Future Prospects
The ROMs expect that the positive contributions of regional SMEs to the Netherlands’ economic capacity will continue to grow in the coming years. Wendy de Jong, chair of ROM-Nederland, emphasizes the importance of ongoing innovation, stating, ‘We have taken steps together, but I urge to continue focusing on innovation. Because innovation affects us all’[1].