The Netherlands maintains its position as a European innovation leader, but its lead is shrinking, according to the European Innovation Scoreboard 2024. Despite being in 4th place, the Netherlands scores just above the innovation leader criteria. Minister Verjaardts warns that regulatory pressures and financing difficulties are holding back small and medium-sized enterprises. Strengths remain in education levels, research quality and digital skills. Private investment in innovation is lagging behind.
A closer look at the numbers
According to the European Innovation Scoreboard 2024, the Netherlands scored 26% above the EU average, still placing it in the category of innovation leaders. This is a decrease compared to the previous year, and its lead over other countries is shrinking. Denmark, Sweden and Finland continue to occupy the top three positions, with the Netherlands remaining behind them in fourth place.
Minister of Economy Dirk Beljac points to several reasons for this downward trend. A major factor is regulatory pressures that mainly affect small and medium-sized enterprises, which Beljac says are struggling to focus on innovation due to too much regulation and a lack of funding.
The Dutch advantage
Despite the decline, there are visible strengths in the Netherlands’ innovation capacity. The high level of education, the quality of research and the digital skills of the population are important factors contributing to the Netherlands’ innovation performance. These strengths ensure a high level of knowledge and appropriate application of digital technologies in innovation.
One of the Netherlands’ weaknesses remains the relatively low amount of private investment in innovation: despite some improvement in 2024, the Netherlands remains well below the EU average in this area. However, public investment and government support for private investment are at or above EU levels.
Comparison with other countries
Compared to other European Union countries, the Netherlands’ performance is stable but not enough to enter the top three. Denmark continues to top the list, followed by Sweden and Finland. Austria in sixth place and Belgium, which has dropped into the strong innovator category, are indicative of trends within the EU rankings.
Minister Beljaerts stresses the need for targeted measures to strengthen the Netherlands’ innovation capacity. This includes reducing regulatory pressure on small and medium-sized enterprises and encouraging private investment in research and development. The new Cabinet is placing a strong emphasis on a strong entrepreneurial environment to support companies’ innovation activities.
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