Dutch Entrepreneurs Missing Out on Valuable Innovation Subsidies
Amsterdam, Monday, 22 September 2025.
Many Dutch entrepreneurs are not fully utilizing the WBSO innovation subsidy, which offers significant tax relief for R&D investments, potentially boosting growth and competitiveness.
Potential of WBSO Innovation Subsidy
The WBSO (Wet Bevordering Speur- en Ontwikkelingswerk) subsidy is a crucial fiscal tool designed to incentivize innovation within the Netherlands. By offering significant tax benefits, it reduces the financial burden on companies engaged in research and development (R&D), thereby encouraging more extensive and riskier innovations. The subsidy applies to labor costs associated with R&D projects, allowing businesses to allocate resources more efficiently towards innovation without the immediate pressure of achieving profitability [1][2].
Current Utilization and Economic Impact
In 2024, nearly 19,000 companies took advantage of the WBSO, investing approximately €8.36 billion in innovation activities. Out of this, €5 billion was directed towards labor costs, underscoring the subsidy’s role in supporting employment within the R&D sector. Small and medium-sized enterprises (SMEs) constituted 97.2% of these beneficiaries, highlighting the program’s importance to smaller businesses. However, despite its potential, many entrepreneurs still perceive the application process as complex or view their operations as insufficiently innovative, leading to underutilization of these benefits [1][3].
Benefits and Encouragement for Participation
The WBSO subsidy not only alleviates financial pressure but also fosters an environment conducive to experimentation and rapid innovation. By cutting down on labor costs, businesses can afford to engage in more trial-and-error without the immediate necessity of commercial success. This flexibility is particularly beneficial for startups and smaller enterprises that might otherwise lack the resources to undertake ambitious R&D projects. Marco Coolen, a patent attorney at AOMB, emphasizes that even routine improvements and optimizations in business processes may qualify for WBSO, encouraging entrepreneurs to reassess their eligibility for this vital support [1][4].
Framework and Future Prospects
For 2025, the Dutch government has made adjustments to the WBSO framework to further enhance its attractiveness. The first tranche rate has increased to 36%, with a higher rate of 50% for startups, up from 32% and 40% respectively in 2024. The first tranche limit now stands at €350,000. These changes reflect a commitment to bolstering innovation through financial incentives, aiming to integrate more businesses into the R&D ecosystem and stimulate economic growth [2][5].