Netherlands Sets Ambitious 3% GDP Target for R&D Investment
Amsterdam, Tuesday, 9 December 2025.
The Netherlands is pushing to allocate 3% of its GDP to R&D, aiming to close the innovation gap with giants like China and the U.S. Key strategies include establishing a disruptive innovation agency and boosting scientific knowledge utilization.
Current Status and Challenges
The Netherlands, a country long celebrated for its progressive approaches to innovation, is currently focusing on increasing its R&D investment to 3% of GDP. This target is part of a broader strategy to bridge the innovation gap with global leaders such as China and the United States. As of November 2023, the Netherlands’ R&D investment was approximately 2.2% of GDP, indicating a substantial increase is necessary to meet the strategic goal [1][2].
Strategies for Achieving the Target
To reach the 3% R&D target, the Netherlands plans to increase investments from current companies and foster new R&D-intensive startups. Existing companies are encouraged to significantly boost their R&D spending, with a proposed increase of €4.8 billion needed to meet the goal [1][3]. Additionally, the country aims to enhance its business climate to attract foreign R&D-intensive activities, leveraging public-private partnerships to support strategic innovation programs [2][4].
Role of Public-Private Partnerships
Public-private partnerships (PPS) play a critical role in the Netherlands’ strategy to boost R&D. These partnerships, facilitated by organizations like Holland High Tech, aim to fund research and development initiatives in high-tech sectors through government and private sector collaboration [4]. The PPS Innovation Scheme and other strategic programs are crucial in maintaining the country’s competitive edge in technology and innovation [5].
Future Outlook and Government Initiatives
Looking ahead, the Dutch government has announced plans to increase R&D funding by €500 million in 2026, further supporting the establishment of an innovation fund to aid tech startups and scale-ups [2][5]. The government is also transitioning its innovation policy framework to TKI, ensuring continuity in programs that drive innovation in agriculture, water, and food sectors [3]. Through these measures, the Netherlands aims to solidify its position as a leader in global innovation and technology by 2030.