Evaluating Innovation Credit's Impact on Dutch Biotech
Amsterdam, Wednesday, 19 November 2025.
HollandBio’s infographic assesses the Innovation Credit’s alignment with biotech needs, highlighting financial challenges and potential for fostering innovation.
Challenges in Biotech Funding
The biotech sector is characterized by its long, risky, and capital-intensive development pathways, necessitating innovative funding solutions. HollandBio’s recent analysis underscores the critical role of subsidies in this landscape. However, finding suitable funding opportunities tailored to the unique needs of biotech companies remains challenging [1].
Evaluating the Innovation Credit
The Innovation Credit is a government-backed risk-bearing loan program designed to support companies in high-risk, high-reward sectors like biotechnology. With a total budget of €50 million, it offers up to €5 million for clinical and €10 million for technical projects. Despite its potential, the program has faced criticism for its restrictive terms, such as the lien on intellectual property, scoring just 2 out of 10 in flexibility according to HollandBio’s yardstick [1].
Room for Improvement
HollandBio’s infographic suggests several areas for improvement in the Innovation Credit scheme. These include making follow-up funding more attractive, which currently scores only 3 out of 10, due to its nature as a loan with substantial interest. Additionally, the administrative burden is deemed proportionate, with a score of 7 out of 10, given the extensive application and documentation requirements [1].
The Broader Impact
The effective alignment of financial support with the biotech sector’s needs is crucial for fostering innovation in the Netherlands. Enhanced support could significantly impact emerging technologies, ensuring that the country remains at the forefront of biotech advancements. Programs like Biotech Booster complement such initiatives by offering mentorship and networking opportunities, further aiding commercialization efforts [2].