Dutch Pension Funds Hold Key to Startup Funding Crisis
Delft, Saturday, 20 December 2025.
Innovation advocate Anton Duisterwinkel reveals a striking funding paradox: Dutch pension funds possess substantial capital but remain absent from startup investments, creating a critical gap in the Netherlands’ innovation ecosystem. Despite Zuid-Holland hosting 33% of Dutch tech companies with exceptional R&D spending rates exceeding 6% of turnover, startups struggle with funding compared to US counterparts. Duisterwinkel proposes a strategic ‘carrot and stick’ policy approach combining regulatory pressure with financial incentives to unlock pension fund capital for emerging companies. This initiative emerges as the Netherlands strengthens its European innovation hub status, with recent analysis showing the region’s economic future depends heavily on bridging this investment disconnect between established financial institutions and promising startups.
Zuid-Holland’s Innovation Infrastructure Faces Funding Disconnect
The High Tech Systems & Materials sector in Zuid-Holland employs over 123,000 people across more than 6,000 companies with two or more employees, demonstrating the region’s substantial innovation capacity [1]. These Zuid-Holland companies invest more than 6% of their turnover in Research & Development, dramatically exceeding the national average of less than 2% [1]. However, this robust infrastructure contrasts sharply with funding challenges that prevent many promising startups from reaching their potential. According to Duisterwinkel, who works at InnovationQuarter to accelerate innovation in the high-tech manufacturing industry, tech startups in the Netherlands succeed less often than their US counterparts, partly due to a lack of marketing expertise and funding [1].
The Pension Fund Investment Gap
The funding crisis becomes particularly stark when examining the untapped potential of Dutch pension funds. “Pensioenfondsen hebben genoeg geld, maar investeren niet in startups. Daar liggen kansen en daar werken we aan,” Duisterwinkel stated [1]. This disconnect represents a significant missed opportunity, as pension funds possess substantial capital that could be redirected toward supporting innovative Dutch companies. The innovation advocate emphasizes that addressing this gap is essential for maintaining the Netherlands’ competitive edge in the European innovation landscape. Organizations like InnovationQuarter, Hi Delta, and the Taskforce Technologische Industrie of the Economic Board Zuid-Holland are actively working to strengthen knowledge exchange and personnel movement between different companies to address these systemic challenges [1].
Strategic Policy Framework for Innovation Acceleration
Duisterwinkel advocates for a comprehensive ‘carrot and stick’ approach to drive innovation forward in the Dutch economy. “Als je tenminste enerzijds strenge regels opstelt voor verduurzaming en anderzijds subsidie geeft voor de ontwikkeling van duurzame oplossingen,” he explained, outlining how regulatory pressure combined with financial incentives could effectively unlock capital for startups [1]. This dual approach would establish strict sustainability regulations while simultaneously providing subsidies for developing sustainable solutions. The strategy aligns with broader economic transformation goals, as Duisterwinkel also noted the need to “afscheid durven nemen van vervuilende of laagproductieve sectoren” - daring to bid farewell to polluting or low-productivity sectors [1].
Regional Economic Vision and Future Outlook
The call for pension fund investment in startups emerges within the context of Zuid-Holland’s broader economic strategy, as outlined in a recent whitepaper presented on December 15, 2025. The Leiden-Delft-Erasmus Universities whitepaper ‘De economie van Zuid-Holland: Verdienen, Verdelen, Veranderen’ was presented to Gedeputeerde Meindert Stolk at the Provinciehuis in Den Haag [2][4]. Frank van Oort, professor of Urban and Regional Economics at the Erasmus School of Economics, emphasizes that economic progress in Zuid-Holland depends on innovation and a well-functioning labor market [2]. However, Van Oort also warns against overextension, stating “We gokken nu juist op te veel sectoren,” suggesting the need for more focused strategic investment [1]. The region’s economic future increasingly depends on successfully bridging the gap between its strong innovation infrastructure and adequate funding mechanisms for emerging companies.