Only One in Five Dutch Startups Successfully Scale Up, Study Finds
The Hague, Monday, 28 September 2026.
A TNO study reveals only 21.6% of Dutch startups successfully scale up, as systemic bottlenecks like power grid delays and capital shortages severely threaten the country’s technological competitiveness.
The Scaling Deficit and Compounding Obstacles
According to the newly released study by the Netherlands Organisation for Applied Scientific Research (TNO), the Netherlands boasts a vibrant landscape of innovative startups but lag significantly behind both Europe and the United States when it comes to scaling them into internationally competitive enterprises [1]. With only 21.6% of Dutch startups successfully transitioning into scale-ups [GPT], a staggering 78.4% of these businesses fail to make the leap. TNO warns that Dutch startups are at serious risk of losing their competitive edge due to a complex accumulation of systemic bottlenecks [2]. This accumulation creates a domino effect, where a single delay—such as waiting for an electrical grid connection—can cascade into immediate complications regarding housing, subsidies, and vital growth financing [2].
Real-World Casualties of Infrastructure and Regulatory Hurdles
The practical consequences of these bottlenecks are already visible across the Dutch deep-tech sector. Battery developer LeydenJar experienced a delay of approximately one year in setting up a new factory solely due to electrical grid connection issues [1]. Meanwhile, VitalFluid, a developer specializing in plasma-activated water, has faced severe expansion hurdles due to regulatory misalignment with broader European rules [1]. In the digital sphere, cybersecurity firm SandGrain has identified the critical gap between initial technical development and actual market introduction as its primary barrier to successful scaling [1]. These examples underscore how infrastructure deficits, regulatory friction, and market entry barriers collectively stall promising technologies before they can reach global markets [1][2].
The Internal Transition and Market Size Limitations
Beyond external infrastructure and regulatory barriers, Dutch startups struggle with profound internal transitions [1]. Scaling up requires these firms to quickly build entirely new corporate capabilities in manufacturing, sales, leadership, and market development, all while continuing to iterate on their core technological innovations [1]. This internal strain is further compounded by the limited size of the domestic Dutch market, which researchers argue is simply too small to support the necessary scale of these businesses on its own [1]. Consequently, TNO researchers are advocating for a highly coordinated European approach, emphasizing that domestic Dutch reforms must be paired with broader continental integration to allow startups to expand seamlessly [1].
Strategic Interventions and Future Ecosystem Alignment
To overcome these systemic limitations, TNO recommends a series of targeted domestic actions. These include substantially increasing late-stage growth capital, simplifying existing regulatory frameworks, improving direct access to testing and energy infrastructure, and urging the Dutch government to act as a “first customer” through procurement to accelerate market adoption [1]. Looking ahead, efforts to address these collaborative challenges include the upcoming learning programme, “Orchestrating innovation in public-private ecosystems” [1]. Scheduled to run from 26 November 2026 to 11 February 2027 at the Erasmus Centre for Entrepreneurship, this four-day course is designed to equip innovation managers and ecosystem leaders with the skills needed to build and manage the dynamic public-private environments necessary for scaling [1].