Alternative plan needed as National Growth Fund phased out
Minister of Economic Affairs in dialogue with Topsector organisations and TKIs about preserving Dutch innovative capability
The Hague, 24/10/2024 - Phasing out the Dutch National Growth Fund (NGF) means an end to a key source of funding to stimulate economic growth and innovation. The Topsector organisations and TKIs in the Netherlands believe that it is important to boost and preserve the country’s innovative capability, including the promising national projects being prepared for Round 4. With this in mind, today they presented Minister Beljaarts of Economic Affairs with the bid book ‘Investing in the Innovative Capability and Earning Capacity of the Netherlands’ (Investeren in de innovatiekracht en het verdienvermogen van Nederland). This morning, the bid book launched a further dialogue for considering an alternative to those innovation plans and what it will take to realise them.
Presented with the bid book, Minister Beljaarts (Economic Affairs) commented, “It is vital to make investments in knowledge, technology and innovation: by 2030, the Dutch Cabinet wants 3% of the country’s GDP to be spent on research and development. Next year, Invest-NL will invest an extra 900 million euros for us in innovative SMEs and in helping promising start-ups to grow further. The Dutch Research and Development Stimulus Act (WBSO) will also receive additional funding in 2025, going up to 1.5 billion euros. This will reduce the tax burden on companies’ R&D and make it cheaper for them to innovate. The coming years will also see the first exciting results from the 51 National Growth Fund projects, which have received more than 11 billion euros of investment funding.”
Acting now to solve major challenges
Dutch productivity is increasing at a slower rate than previously. Other countries are presenting more competition. The recent geopolitical developments also highlight the need to become less dependent on other countries. The Netherlands faces major challenges in its efforts to preserve its prosperity, just when possibilities for government investment in research and innovation are limited. We need to constantly work on improving the country’s economy, including in partnership with the business sector and SMEs, to make sure that we remain an attractive place to live and do business.
The National Growth Fund has been phased out, and with it a key instrument for boosting economic growth and innovation has vanished. The Topsector organisations and TKIs urge the Cabinet of Prime Minister Dick Schoof, and in particular the Minister of Economic Affairs, to join forces with them to develop an alternative plan with new investment arrangements and ROI agendas. They will discuss how ministries, Topsector organisations, their numerous public and private partners and consortium members and other investors and financial backers can work together to preserve projects that are ready or will be developed in the near future. Click here to see the bid book, the letter and a description of the next steps for the innovative capability of the Netherlands (in Dutch only).
“An investment in innovation is an investment in the future of the Netherlands. We firmly believe that everyone involved – government, the business community, knowledge institutions and societal organisations – has a vital part to play in preserving the country’s ability to compete and innovate and reinforcing our vital sectors, now and in the future. Of course the plan is to maximise the impact of current Growth Fund projects, and we are eager to help develop an alternative for supporting new innovation plans and creating new possibilities for funding, whether public or private.” - The presenting parties, Topsector organisations and TKIs
National Growth Fund: the numbers
From 2021 to 2024, the NGF invested €11.3 billion in projects on behalf of the Dutch government. Companies, knowledge institutions and societal organisations matched this with a combined total of €12.6 billion in funding. Every euro invested is estimated to yield a return of €5.80 during the period until 2040 (Rabobank, 2024).
On behalf of the ten Topsector organisations and the TKI Construction and Engineering
- TKI Construction and Engineering
- Topsector Agri & Food
- Topsector Chemistry
- Topsector Creative Industry
- Topsector Energy
- Topsector High-Tech Systems & Materials
- Topsector ICT
- Topsector Life Sciences & Health
- Topsector Logistics
- Topsector Horticulture & Starting Materials
- Topsector Water & Maritime