Netherlands Plans Defense Innovation Agency Following US DARPA Model
The Hague, Tuesday, 16 December 2025.
Dutch policymakers are exploring creation of a Netherlands version of DARPA, the American defense research agency behind groundbreaking innovations like the internet, GPS, and mRNA vaccines. The initiative stems from advisor Peter Wennink’s recommendation for a National Agency for Disruptive Innovation with €1.5 billion annual funding to strengthen the country’s competitive position in global innovation.
Wennink Report Drives Innovation Agenda
On December 5, 2025, kabinetsadviseur Peter Wennink presented a comprehensive report to Dutch politicians outlining how to make the Netherlands economy more vital and resilient [1]. The report identifies a critical gap: the Netherlands has been underinvesting in innovation for twenty years, relying too heavily on low-productivity sectors [1]. Wennink’s analysis aligns with Mario Draghi’s broader European assessment that the continent is falling behind the United States and China in technological competitiveness [1]. To address this challenge, Wennink advocates for establishing a Nationaal Agentschap voor Disruptieve Innovatie (National Agency for Disruptive Innovation), directly inspired by the American DARPA model, which would invest €1.5 billion annually in fundamental research [1].
Massive Investment Gap Highlights Urgency
The scale of Europe’s innovation deficit has grown dramatically over the past decade. The spending gap between large European and American companies expanded from €100 billion in 2010 to €700 billion in 2022 [1]. To bridge this divide and achieve at least 1.5% annual economic growth, Wennink calculates that the Netherlands requires an additional €151 billion to €187 billion in investments over the next ten years [1]. These funds would target critical areas including machines, technology, and education infrastructure. The proposed innovation agency would replace the existing Groeifonds and focus investments across four strategic sectors: AI and digitization, biotechnology and healthcare, defense, and energy and climate [1].
Learning from German Failures and American Success
Industry expert Herman Wagter, writing on LinkedIn, warns against repeating Germany’s failed attempts to create a DARPA equivalent, which became mired in bureaucratic oversight focused on preventing misuse of government funds [2]. Innovation requires a fundamentally different approach than traditional government spending, demanding what Wagter describes as “genadeloos eerlijk” (ruthlessly honest) testing and market validation [2]. The American DARPA model succeeds because it operates with dedicated teams at arm’s length from political consensus-building, employs short-cycle steering by innovation experts, and maintains a culture of rapidly killing unsuccessful projects [2]. Wagter points to the Data Infrastructuur Logistiek (DIL) project as one of the best-evaluated Dutch growth fund initiatives, suggesting this model could inform the proposed Dutch DARPA structure [2].
Political Support Amid Economic Pressures
The Dutch innovation initiative comes as the country faces mounting fiscal pressures from defense commitments. The Netherlands has committed to NATO’s target of 3.5% of GDP for defense spending by 2035, requiring an additional €19 billion in annual expenses at 2026 prices [3]. The Centraal Planbureau estimates the economic multiplier for defense spending in the Netherlands at close to zero, meaning increased military expenditure would fully offset other economic activities without boosting GDP [3]. However, D66 and CDA parties have outlined support for innovation funding in their December 2025 joint agenda, proposing a National Investment Institution focused on socially relevant investments in industry sustainability and projects that positively impact national earning capacity [4]. The political document emphasizes expanding WBSO tax advantages for AI and technology development while maintaining the Innovation Box tax scheme [4].