Netherlands Urged to Bolster Innovation Policy to Achieve R&D Targets
Amsterdam, Wednesday, 23 July 2025.
A call for a National Investment Bank highlights the Netherlands’ need to enhance innovation funding, aiming for a 3% R&D GDP target to boost economic growth and global competitiveness.
Current Status of R&D Investment in the Netherlands
As of 2025, the Netherlands is falling short of its target to allocate 3% of its gross domestic product (GDP) to research and development (R&D). Currently, the country invests only 2.3% of its GDP in R&D, trailing behind neighboring countries like Germany and Belgium, which invest 3.1% and 3.5%, respectively [1]. This shortfall is seen as a substantial risk to the country’s competitive edge in the global technological landscape [1].
The Role of a National Investment Bank
To address the financing gap, Dutch industrial organizations, such as FME, advocate for the establishment of a National Investment Bank. This institution would provide the necessary structural funding for scaling up R&D initiatives across sectors such as healthcare, energy, and sustainability [1]. The proposed bank would also counteract the fragmentation in the current financing landscape and create a more predictable environment for innovation [1].
Importance of Public-Private Partnerships
Public-private partnerships remain a cornerstone of the Dutch innovation strategy. The technological industry, which accounts for 38% of private R&D spending, is ready to engage with the government in initiatives that foster sustainable innovation [1]. Programs supported by entities like Holland High Tech further exemplify how public and private sectors can collaborate effectively to drive economic growth [5].
Moving Towards the 3% R&D Target
Achieving the 3% R&D GDP target is viewed not only as a national ambition but as a necessity for sustained economic growth and strategic autonomy. The execution of strategic investments and a coherent R&D Action Plan are key priorities in this endeavor [3]. Without robust financial tools and supportive policies from the government, the realization of this goal remains uncertain. The scenario underscores the need for governance structures that prioritize innovation-driven policies to bolster the country’s industrial base [1].