Here's Holland Compared - Enterprise Europe Network

Here’s Holland Compared

Colofon November 2009
This publication, Holland Compared 2010 is part of the publication
Here’s Holland! 2010 and is published by the Dutch Ministry of
Economic Affairs. The Ministry provides information regarding
interesting Dutch products, technologies and macro-economic
developments. In addition to this macro-economic overview, Made
in Holland sector magazines are published several times throughout
the year, each covering a different sector of Dutch industry and
commerce. For further information please contact the Dutch embassy
or consulate in your area, or visit www.hollandtrade.com to learn
even more about Dutch commerce.
‘The availability of work permits for knowledge workers,
the open culture and overall ease of living in the
Netherlands add up to an environment that is friendly to
expatriates.’
Merck & Co. | Merck Sharp & Dohme BV (MSD)
‘The Netherlands offers a number of clear advantages
for a growing international organization. These include a
high level of education and in-depth technical knowledge,
linguistic aptitude and the multinational trade spirit of the
Dutch.’
Cisco Systems
Editor-in-Chief
Mijke van Welsenes
Final editors
Michelle Lemmers
Caroline Boessenkool
Contributors
Christel van der Vorst
Ron Hogenboom
Annelies Drost
Editorial address
Redactie Holland Compared
P.O. Box 20105
2500 EC The Hague
The Netherlands
Translation and revision
Overtaal Language Services,
Utrecht
Design
Tappan Communicatie, The Hague
Printing
Koninklijke Broese en Peereboom,
Breda
Copyright
Articles may be reprinted
or reproduced only with
acknowledgement of the source:
Source: Holland Compared 2010
No rights may be derived from the
contents of this publication.
‘The Netherlands is one of the easiest countries in Europe
in which to do business. The people not only speak
English, they are also very open and they do business in a
clear, straightforward, no-nonsense way.’
Tata Consultancy Services (TCS)

Contents
Foreword 6
General information 8
Population by age 10
Quality of life 11
Global Business Environment Ranking 12
Macro indicators 13
Gross Domestic Product (GDP) 14
GDP per capita 15
GDP per hour 16
Percentage growth in GDP 17
Inflation 18
Employment rates 19
Part-time work 20
Average unemployment 21
Trade and foreign investment 22
Dutch exports of goods and services 23
World’s top 10 exporters of goods 24
World’s top 10 importers of goods 25
Geographic origin of imports 26
Geographic destination of Dutch exports 27
Composition of Dutch imports 28
Composition of Dutch exports 29
Major foreign investors worldwide 30
Main recipients of foreign investment 31
Human capital and innovation 32
Education level: upper secondary education 33
Capacities of school children 34
Human Development Index 35
E-readiness 36
Number of entrepreneurs 37
Most innovative countries 38
R&D expenditure 39
Top 10 innovative Dutch businesses 40
Top 10 knowledge and research institutes 41
Academic publications per researcher (FTE) 42
Citation impact 43
Triadic patent applications 44
Infrastructure 45
Quality of water transportation 46
Logistics performance index 47
European airport traffic and transport 48
Transhipment of goods 49
Number of broadband connections 50
Government 51
Government effectiveness 52
Corruption perception index 53
EU position in Doing Business 54
Starting up a new business 55
National debt 56
Corporate tax rate on profit 57
4 5

The hard facts that illustrate the Netherlands show that the country mainly
has exports to thank for its strong economy. The Netherlands has one of the
world’s most open economies. The share of international trade in the Dutch
economy in 2007 was 70% – higher than in Germany, Japan or the United
States. The chances are high, therefore, that the tomato you ate at dinner last
night was from among the 1 billion kilograms grown in Dutch greenhouses
and exported in 2008, and that those Asian electronics arrived via the Port
of Rotterdam. With key logistical hubs such as the Port of Rotterdam and
Schiphol Airport, the Netherlands is literally the ‘Gateway to Europe’. As
the Minister for Foreign Trade, I am extremely proud of the key position the
Netherlands holds in the global marketplace.
The facts behind
the Netherlands
A picture speaks a thousand words and
numbers can paint pictures. Anyone
wanting to know what it’s like to do
business with the Dutch may be inspired
by the colourful business stories featured
in the counterpart to this booklet (‘Here’s
Holland!’), but, ultimately, it’s the numbers
that really complete the equation.
Photograph: Nick Franken
The economic turmoil that began in 2008 and which is affecting virtually
every economy, is also affecting the Netherlands as we are one of the world’s
largest exporting nations. The decline in global trade is therefore tangible,
because, as the saying goes, “the bigger they are, the harder they fall”.
Nevertheless, the situation is not insurmountable. Even though the world
around us is changing, the Netherlands remains steady as a rock on many
different fronts; Rotterdam is still Europe’s largest port. The same can be said
of ICT: with high-quality ICT connections, the Netherlands is a global hub and
the digital gateway to Europe.
This booklet presents the figures that form the foundation for this innovative,
sustainable and attractive business location behind the dikes. After centuries
of facing the challenges of weather, wind and seas, we Dutch take these
challenges in our stride and turn them to our advantage. It’s this attitude that
helped us, literally, to build our land and that enables us to continue to build
our future.
Frank Heemskerk
Minister for Foreign Trade
www.hollandtrade.com
7

GRONINGEN
Leeuwarden
Groningen
FRIESLAND
Assen
DRENTHE
NOORD-
HOLLAND
North Sea
FLEVOLAND
Zwolle
OVERIJSSEL
Amsterdam
the Hague
ZUID-HOLLAND
Rotterdam
Utrecht
UTRECHT
GELDERLAND
Arnhem
Breda
Germany
Middelburg
NOORD-BRABANT
ZEELAND
Eindhoven
Belgium
LIMBURG
UK
BELGIUM
GERMANY
FRANCE
Maastricht
General information
The Netherlands, often referred-to as Holland, is
a land of windmills, cheese and tulips. While that
may sound rather corny, it’s actually quite accurate,
because the truth that the many centuries of
expertise the country has gained in draining water
from land – yes, with those very windmills – has
made the Netherlands a formidable force in water
management country, and one that is very advanced
in these uncertain times of climate change. And as
for the cheese and tulips, the Netherlands is one of
the world’s largest exporters of agrifood products. It
is, in short, a dynamic country to work and live in.
Official name
State form
Kingdom of the Netherlands
Constitutional Monarchy, Parliamentary
Democracy
Head of State Queen Beatrix of Orange-Nassau
Capital
Amsterdam
Seat of Government The Hague
Administrative structure Twelve provinces and the overseas territories
of Aruba and the Netherlands Antilles
Surface area 33,800 km 2
Location
Western Europe, by the North Sea, bordering
Belgium and Germany
Number of inhabitants 16,527,595 (August 2009)
Number of inhabitants
per km² 489 (August 2009)
Monetary unit
Languages
Euro
Dutch, Frisian
9

9.57
9.36
9.20
9.13
9.07
9.05
8.94
8.79
8.26
8.05
older than 80; 4%
65-80; 11%
0-20; 24%
45-65; 27%
20-45; 34%
Population by age Source: Statistics Netherlands, 2009
Brake on population growth
Austria
Denmark
Sweden
Luxembourg
Finland
Germany
The Netherlands
Belgium
France
Ireland
Quality of life Source: IMD Business School, 2009
General information
In total, 16,5 million people live on the relatively small piece of
land that is the Netherlands, which makes the country one of the
most densely populated in the world. However, the growth in the
population continues to slow in the Netherlands, as in many other
Western countries. This slowdown in growth, together with an
increasingly healthy generation aged 65 and over, has resulted in
an ageing population, with an ever-decreasing workforce who are
required to support an increasingly-large number of senior citizens.
Attractive environment
Whether you are here for business or pleasure, the Netherlands is
a very pleasant environment to live in. The country currently ranks
seventh in the European Union in terms of quality of life.
Leisure amenities are within easy reach and Dutch cities have much
to offer, such as the centuries-old architecture of Amsterdam,
Delft, Groningen and Leiden, as well as cultural activities and worldfamous
museums, including the Van Gogh Museum and the recently
opened Hermitage in Amsterdam.
General information
10 11

1
2
3
4
5
6
7
8
9
10
General information
Finland
Canada
Singapore
Switzerland
Hong Kong
Denmark
Sweden
Australia
New Zealand
The Netherlands
Global Business Environment Ranking (2009-2013)
Source: Economist Intelligence Unit, 2009
Looking for a European base
The Netherlands is also among the world leaders when it comes to
its business climate, according to a number of international league
tables published by renowned institutes such as the Economist
Intelligence Unit. The competitive fiscal climate, top-level
physical and technological infrastructure and quality of life are key
contributors to the country’s success. The Netherlands is therefore
an attractive location for companies seeking a European base and for
those wishing to make investments.
Macro indicators
In a resilient and open economy
such as that of the Netherlands, the
effects of the decline in world trade
as a result of the economic recession
are felt immediately. However, the
Netherlands continues to perform
well on many fronts. Rotterdam, for
example, is still Europe’s largest port,
unemployment is low compared
to many other countries and the
Netherlands has a world-class ICT
infrastructure.
12 13

2,922,553
45,489
45,027
2,199,677
2,115,012
1,848,988
1,456,158
39,222
37,119
36,632
35,961
35,656
35,382
34,700
34,391
680,022
673,120
374,125
343,951
329,111
Germany
United Kingdom
France
Italy
Spain
The Netherlands
Poland
Belgium
Sweden
Greece
United States
Ireland
The Netherlands
Austria
Sweden
Denmark
United Kingdom
Belgium
Finland
Germany
Macro indicators
Gross Domestic Product (GDP) (2008)
GDP per capita GDP per capita in US dollars. Source: OECD, 2009
GDP in millions of US dollars. Source: OECD, 2009
Sixth-largest EU economy
High average income
The Netherlands is one of the wealthiest nations in the European
In terms of surface area and population size, it will come as no
Union, and fares well in comparisons with comparable economies
surprise that the Netherlands is not a particularly large country,
outside the European Union, such as that of the United States.
occupying 133rd and 61st positions, respectively. In contrast, the
The high average income of the Dutch is the result of high labour
country’s economic performance ranks much higher. The size of the
productivity and a high level of labour participation.
economy, or the Gross Domestic Product, was more than 680 billion
US dollars in 2008. The Netherlands has the sixth-largest economy in
the European Union.
14 15
Macro Indicators

1.8
55.41
54.89
54.22
52.94
52.32
50.37
49.05
48.25
46.13
44.05
4.1
3.3
2.8
2.7
2.6
2.5
2.3
2.3
2.0
The Netherlands
United States
Belgium
Austria
France
Germany
United Kingdom
Ireland
Sweden
Denmark
Ireland
Finland
Austria
Sweden
The Netherlands
United States
Belgium
United Kingdom
*Euro area
France
GDP per hour (2008) GDP per hour in US dollars.
Percentage growth in GDP (2004-2008) Source: OECD, 2009
Source: The Conference Board and Groningen Growth and Development Centre, 2009
Productive employees
Prosperous, sustainable and
enterprising
Macro Indicators
The working population of the Netherlands is highly educated, and
a large percentage of adults speak more than one foreign language.
This high standard of education combined with strong economic
factors, such as the physical and knowledge infrastructure, enable
employees to be highly productive. Labour productivity per hour is
amongst the highest in Europe. The Netherlands has succeeded in
linking this to a high level of labour participation.
From 2004 onwards, economic growth in the Netherlands averaged
2.6%; an excellent performance for a highly developed economy
with a high standard of living (see also the GDP per capita). The
structural reforms that have been carried out – such as in the labour
market and in social security – have created healthy economic
growth potential. This potential offers room for investments in
knowledge and innovation, for example, so that the Netherlands will
remain a prosperous, sustainable, and also enterprising nation.
*Euro area = total area covered by the member states of the EU that use the
euro as their currency.
Macro Indicators
16 17

1.5
1.7 2.0
2.1
2.2
2.2
2.3
2.4
2.6
81.0
78.9
75.9
74.2
74.1
72.3
71.3
71.2
69.4
67.5
1.6
Finland
Sweden
The Netherlands
Denmark
Germany
France
Austria
United Kingdom
Euro area
Belgium
Denmark
The Netherlands
Sweden
Germany
Austria
United Kingdom
Finland
United States
Ireland
Euro area
Inflation (2004-2008)
Average annual price increases in percentages. Source: OECD, 2009
Low inflation
Employment rates (2008)
The ratio of total employment to the population of working age.
Source: OECD, 2009
High labour participation rate
Macro Indicators
In recent years, the Dutch government, in consultation with the
Over the past two years, the Netherlands has enjoyed the highest
social partners, has implemented a strong wage restraint policy,
level of employment in the Euro area. The attractive business climate
which has ensured in part that inflation has remained low.
and healthy entrepreneurial spirit have created a high level of
Inflation in the Netherlands in 2008 was extremely low compared
business activity in the Netherlands.
to the other European countries. With the exception of December,
inflation in the Netherlands remained below the Euro area average
for the entire year.
18 19
Macro Indicators

36.1
7.0 7.9
8.1
8.4
22.9
22.1
21.0
18.7
18.0
17.6
14.4
13.4
11.5
4.0
4.2
4.4
4.8
5.2
5.5
The Netherlands
United Kingdom
Germany
Ireland
Belgium
Denmark
Austria
Sweden
France
Finland
The Netherlands
Denmark
Luxembourg
Ireland
United Kingdom
Austria
Sweden
Belgium
Euro area
France
Macro Indicators
Part-time work (2008)
Part-time work as a percentage of employment as a whole. Source: OECD, 2009
Many part-time employees
Average unemployment (2004-2008)
Average unemployment as a percentage of the working population.
Source: OECD, 2009
Low unemployment
A relatively high proportion of Dutch people work part-time. This is
often a deliberate decision, allowing employees to combine work
The rate of unemployment in the Netherlands, even during the
with caring for their family. From an international perspective,
recent economic downturn, is one of the lowest in Europe.
the number of people in the Netherlands who work part-time,
From 2004 to 2008, an average of approximately 4% of the potential
particularly women, is high: nearly 75% of all Dutch part-time
working population was unemployed, while the corresponding rate
workers are women.
in the euro countries as a whole was more than 8.0%. The economic
crisis has led to an increase in unemployment in the Netherlands
to 4.8% in June 2009, but this is still far below the average in
neighbouring countries.
20 21
Macro Indicators

Trade and foreign
investment
With its exports, imports, attracting
foreign investors, and investments
abroad, the Netherlands plays a
prominent role in the world economy.
Its age-old international orientation,
favourable location in relation to the
European hinterland and its sound
infrastructure, with main ports such
as the Port of Rotterdam and Schiphol
Airport, have helped the Netherlands
to become an important international
centre of trade.
1988
44.0%
1995
56.1%
2000
70.1%
2005
78.4%
2008
84.3%
Dutch exports of goods and services
Exports of goods and services as a proportion of GDP in %.
Source: Statistics Netherlands, 2009
Traditionally open economy
Since the 17 th century, the Netherlands has had an open economy,
and trade with other countries is still of great significance. In 2008,
the value of exports compared to GDP was 84.3%. According to
research carried out by the Netherlands Bureau for Economic Policy
Analysis, the country earns no less than 30% of its income from the
export of goods and services.
Trade and foreign investment
23

1,465
1,428
1,301
2,166
782
634
609
540
477
472
458
1,206
1,133
762
708
632
574
556
470
435
Ger m a n y
C hin a
United States
Japan
The Netherlands
France
Italy
Belgium
Russian Federation
United Kingdom
United States
Germany
China
Japan
France
United Kingdom
The Netherlands
Italy
Belgium
S o ut h Kore a
World’s top 10 exporters of goods (2008)
World’s top 10 importers of goods (2008)
Value in billions of US dollars. Source: WTO, 2009
Value in billions of US dollars. Source: WTO, 2009
Trade and foreign investment
World’s fifth-largest
exporter of goods
The Netherlands occupies a prominent position when it comes to
world trade. It is the fifth-largest exporter of goods in the world.
In 2008, it exported goods worth more than 634 billion US dollars
(3.9% of the world total). The Netherlands is also a significant
exporter of commercial services – exports of which amounted to
102 billion US dollars in 2008, placing the country tenth in the world
rankings.
Seventh-largest importer
The Netherlands is not just a major exporter. It also imports large
quantities of goods – almost 574 billion US dollars worth in 2008.
With a 3.5% share of the global total, the country is the seventhlargest
importer of goods in the world. The Netherlands is also a
significant importer of commercial services, which totalled
92 billion US dollars in 2008, placing the country eleventh in the
world rankings.
Trade and foreign investment
24 25

Asia 67,793
20.4%
Oceania 1,033
0.3%
America 24,751
6.8%
Asia 26,221
7.2%
Oceania 1,696
0.5%
America 42,566
12.8%
Europe 209,573
63.2%
Africa 9,988
2.7%
Europe 301,515
82.8%
Africa 10,779
3.2%
Geographic origin of imports (2008)
Geographic destination of Dutch exports (2008)
Value in millions of euros. Source: Statistics Netherlands, 2009
Value in millions of euros. Source: Statistics Netherlands, 2009
Gateway to Europe
Due to its favourable location in relation to the European hinterland
Western Europe’s most
significant trading partner
and the presence of world-class air and sea ports, the Netherlands
The role of the Netherlands as a key distribution location is also
has become the key hub for distribution in Europe. It is home to
indicated by the volume of imports and exports. Approximately 83%
more distribution centres than anywhere else in Europe and has the
of Dutch exports remain within Europe, especially Western Europe.
Trade and foreign investment
largest inland shipping fleet.
Germany is easily the most significant trading partner, followed by
Belgium, the United Kingdom and France. In 2008, the Netherlands
exported almost as much as the twelve newest EU member states
combined.
Trade and foreign investment
26 27

9 10 1
10
2
9
1
3
4
2
3
8
8
4
5
5
7
6
7
6
1 Animal feed and live animals 26,685
2 Beverages and tobacco 3,069
3 Raw materials, inedible;
not including fuel 13,903
4 Mineral fuels, lubricants 60,826
5 Animal and vegetable
oils and fats 3,360
6 Chemical products 44,668
7 Manufactured goods 38,970
8 Machinery and trans -
portation equipment 101,862
9 Miscellaneous
manufactured goods 37,542
10 Other goods 952
1 Animal feed and live animals42,095
2 Beverages and tobacco 6,049
3 Raw materials, inedible;
not including fuel 18,257
4 Mineral fuels, lubricants 57,967
5 Animal and vegetable
oils and fats 3,959
6 Chemical products 62,045
7 Manufactured goods 35,446
8 Machinery and transportation
equipment 106,974
9 Miscellaneous
manufactured goods 32,864
10 Other goods 1,923
Trade and foreign investment
Composition of Dutch imports (2008)
Value in millions of euros. Source: Statistics Netherlands, 2009
Germany is a popular
trading partner
Of the total Dutch imports in 2008, one-fifth came from Germany,
from which the Netherlands purchases large numbers of cars,
iron and steel, medicines and plastics. Of the total number of
cars imported into the Netherlands, 84% came from Europe, with
Belgium and Germany being the main suppliers. 14% of Dutch car
imports come from Asia; primarily Japan and China.
Composition of Dutch exports (2008)
Value in millions of euros. Source: Statistics Netherlands, 2009
Dutch tomatoes are eaten
all around the world
The Netherlands is the second-largest exporter of agricultural
products worldwide, after the United States. In the agricultural
sector, horticulture is by far the largest segment. Other significant
Dutch export products include chemical goods, and machinery and
transportation equipment. More than 60% of the machinery and
transportation equipment is cleared through Dutch distribution
centres and then exported to other European countries.
28 29
Trade and foreign investment

2,791
2,093
1,705
1,399
1,236
1,027
851
637
613
604
543
1,348
1,184
1,026
748
673
630
537
521
365
United States
United Kingdom
France
Germany
Hong Kong
The Netherlands
Spain
Belgium
Switzerland
Japan
United States
United Kingdom
Hong Kong
France
Belgium
The Netherlands
Germany
Spain
Canada
Italy
Major foreign investors worldwide (2007)
Value in billions of US dollars. Source: UNCTAD, 2008
World’s sixth-largest
foreign investor
Main recipients of foreign investment (2007)
Value in billions of US dollars. Source: UNCTAD, 2008
Attractive for inward foreign
investments
Trade and foreign investment
Dutch businesses are truly international. Dutch-based
It is remarkable that a small country such as the Netherlands
multinationals, such as Philips, Heineken, ING, AkzoNobel and
attracts so much foreign investment. According to the Netherlands
Ahold, have made substantial foreign investments in the past. The
Foreign Investment Agency, the country was home to almost 7,800
total value of Dutch investments in other countries is considerable.
establishments of foreign companies, including the likes of BASF,
In late 2007, investments overseas totalled in excess of 851 billion
Cisco Systems, Microsoft, Nike, Sabic and Yakult. In 2007, foreign
US dollars, making the Netherlands the sixth-largest foreign
companies made inward direct investments to the value of 673
investor.
billion US dollars. As a result, the Netherlands is the world’s sixthlargest
recipient of foreign investment.
30 31
Trade and foreign investment

84
83
82
80
80
72
69
67
67
66
Human capital
and innovation
A common feature of Dutch products is that they are
highly innovative. The country generates solutions
that keep rising water levels in check, create islands
in the sea, and make waterways navigable. Apart
from this inventive approach to water management,
the Dutch also have the knowledge and the skills to
develop navigation systems with worldwide appeal,
such as TomTom. The proof of the innovative nature
of the Dutch is witnessed by the large number of
patents that are applied-for each year, and by the
presence of several world-renowned knowledge and
research institutes in the Netherlands.
Sweden
Germany
Denmark
Finland
Austria
The Netherlands
United Kingdom
France
Belgium
Ireland
Education level: upper secondary education (2006)
Percentage of population (25–64 years old) that have completed upper
secondary education. Source: OECD, 2008
Smart working population
The internationally oriented working population of the Netherlands
is well-educated, with many people able to speak more than one
foreign language. Approximately 87% of the Dutch populace aged
15-or-above speak English; 66% speak German and roughly 25%
speak French. Compared to many other EU member states, lifelong
learning is more prevalent in the Netherlands: adults take a relatively
large number of courses to continually improve their knowledge and
skill levels.
Human capital and innovation
33

553
529
521
514
510
509
505
504
502
501
0.968
0.968
0.967
0.965
0.960
0.958
0.958
0.956
0.956
0.955
Finland
Canada
The Netherlands
Switzerland
Belgium
Ireland
Germany
Sweden
United Kingdom
Denmark
Iceland
Norway
Canada
Australia
Ireland
The Netherlands
Sweden
Japan
Luxembourg
Switzerland
Capacities of schoolchildren
Human Development Index (2006)
PISA score (points). OECD average = 500. Source: OECD, 2007
Source: United Nations Development Programme, 2008
Schoolchildren indicate
potential
What’s prosperity
According to the United Nations Development Programme (UNDP),
Human capital and innovation
Dutch schoolchildren achieve good scores in the OECD Programme
for International Student Assessment (PISA). The PISA survey
is conducted every three years among 400,000 school pupils
across 57 countries, and evaluates the capacity of 15-year-old
schoolchildren to understand and solve academic problems.
According to the OECD, this is an indicator of a country’s economic
potential.
the Netherlands enjoys the world’s sixth-highest level of prosperity.
In determining ‘prosperity’, the UNDP takes into account a country’s
GDP as well as other aspects of human well-being, such as life
expectancy, public health, literacy levels and educational standards.
Human capital and innovation
34 35

8.87
8.67
8.64
8.62
8.60
8.45
8.35
8.33
8.33
8.30
12.2
12.0
11.6
11.4
11.3
9.9
9.7
8.8
8.5
6.9
Denmark
Sweden
The Netherlands
Norway
United States
Australia
Singapore
Hong Kong
Canada
Finland
Canada
The Netherlands
Ireland
United Kingdom
Belgium
United States
Germany
Sweden
Finland
Denmark
E-readiness (2009)
Number of entrepreneurs (2007)
Source: Economist Intelligence Unit, 2009
Number of entrepreneurs as a percentage of the working population.
Human capital and innovation
Nearly everyone is online
The E-readiness ranking assesses economies on their ability to
absorb information and communications technology (ICT) and use
it for economic and social benefit. It is a measure of the quality
of a country’s ICT infrastructure and the ability of its consumers,
businesses and governments to use ICT to their benefit.
Source: Statistics Netherlands, 2009
Dynamic and enterprising
people
The Dutch have a long tradition of enterprise, as is reflected in
the large number of entrepreneurs: 12% of the Dutch working
population is self-employed. The Dutch government promotes
start-ups because they create economic vitality and innovation, and
because they challenge existing firms, encouraging them to adapt
and continue innovating.
Human capital and innovation
36 37

2.1
1.9
1.8
1.7
1.3
1
2
3.6
3.5
3
4
2.6
2.6
2.5
5
6
7
8
9
10
Japan
Switzerland
Finland
United States
Sweden
Germany
Taiwan
The Netherlands
Israel
Denmark
Sweden
Finland
Austria
Denmark
Germany
France
Belgium
United Kingdom
The Netherlands
Ireland
Most innovative countries (2004-2008)
R&D expenditure (2007)
Source: Economist Intelligence Unit (EIU), 2009
R&D expenditure as a percentage of GDP. Source: Eurostat, 2009
Human capital and innovation
What makes a country
innovative
In the EIU’s index, innovation is defined as the application of
knowledge in a novel way, primarily for economic benefit. The index
measures the innovative performance of companies and combines
the result with the innovation environment created by governments.
The Netherlands has climbed from ninth position in the 2002-2006
rankings, to eighth place in the current rankings.
Dutch sector structure
At 1.7% of GDP, R&D expenditure in the Netherlands might seem
modest from an international perspective. However, this can be
explained by the Dutch sector structure: the services sector, which
‘naturally’ has a low R&D intensity, makes up a relatively large share
of the Dutch economy.
Human capital and innovation
38 39

4,581
4,581
2,350
2,350
703
703
1,600
1,600
459
459
1,505
1,505
400
1,500
400
1,500
373
1,460
373
1,460
310
2,600
310
2,600
4
241 920
241 920
4,651
164 910
164 910
144
820
144
125 878 600 820
125
809
878
73
600
809
73
680
680 678
678
104
500
104
83
500
83 78
78 78
309
78
309
45
245
45 35
245 240 347
35 33
240 347
33 31
31 30
30
Human capital and innovation
Philips
ASML
Schering-Plough
Shell
NXP
DSM
Océ
Unilever
Top 10 innovative Dutch businesses (2008)
KPN/Getronics
Based on R&D expenditure. Source: Technisch Weekblad, 2009
Expenditure in millions
of euros
Personnel in FTE
Knowledge is firmly-rooted
in the Netherlands
The economy of the Netherlands has a broad and stable base.
Leading multinationals with worldwide operations, such as DSM,
Philips, Shell and Unilever, have their roots in the Netherlands.
Dutch industry includes a large number of innovative and
knowledge-intensive companies that carry out high levels of R&D
(including the aforementioned multinationals) and that enjoy a
sound reputation the world over.
Thales
TNO
Deltares
FOM
TNO Organisation for Applied
Scientific Research
Deltares Institute for Delta
Technology
FOM Foundation for
Fundamental Research on
Matter
ECN Energy Research Centre
of the Netherlands
ECN
NLR
MESA+
MARIN
NLR National Aerospace
Laboratory
MESA+ Nanotechnology
research institute
MARIN Research institute in
hydrodynamics and nautical
research
Top 10 knowledge and research institutes (2008)
Based on R&D expenditure. Source: Technisch Weekblad, 2009
Typical public-private
innovation
Budget in millions
of euros
Personnel in FTE
ITC
CTIT
DIMES
ITC International Institute for
Geo-Information Science and
Earth Observation
CTIT Centre for Telematics
and Information Technology
DIMES Delft Institute
of Microsystems and
Nanoelectronics
The Netherlands is home to a significant number of renowned knowledge
and research institutes, such as TNO and ECN. These institutes
play an important role in the government-initiated public-private
innovation programmes. The knowledge generated by TNO had been
converted into economic and societal value in the shape of 30 new
high-tech, innovative and independent SMEs by the beginning of 2009.
40 41
Human capital and innovation

1.49
1.44
1.44
1.37
1.12
1.01
1.01
Public sector
Public and private
sector
0.95
0.93
0.91
1.41
1.37
1.34
1.33
1.24
1.22
1.22
1.20
1.20
1.17
0.69
0.73
0.55
0.42
0.43
0.36
0.37
0.44
0.37
0.24
United Kingdom
The Netherlands
Switzerland
United States
Canada
Ireland
Austria
Denmark
Belgium
Sweden
Switzerland
United States
The Netherlands
Denmark
United Kingdom
Canada
Norway
Belgium
Sweden
Ireland
Academic publications per researcher (FTE) (2008)
Citation impact (2003-2006)
Source: NOWT - CWTS/Thomson Scientific Web of Science, 2008
Source: NOWT – CWTS/Thomson Scientific Web of Science, 2008
Human capital and innovation
Productive researchers
Dutch researchers are among the most productive in the world.
The Netherlands ties with Switzerland for the second-highest total
in the world with regard to the number of articles per researcher
(FTE) in the public and semi-public sectors. This significant number
of articles accounts for 2.6% of the total number of academic
publications worldwide.
Dutch scientists frequently
cited
The citation impact score is a key indicator of academic quality,
because this score denotes references that scientists make to each
other, therefore indicating an appreciation for each other’s work.
The global average citation impact score is ‘1’. Dutch scientists are
cited above the global average and claim third place in the world.
Human capital and innovation
42 43

Nick Franken
229.2
Infrastructure
152.7
141.7
141.2
133
109.3
99.9
89.7
76.3
74.6
The Netherlands has two world-class
logistics hubs. These are supported
by world-class connections such as
the Betuwe rail link, as well as a high
penetration of broadband Internet.
This provides the country with a
sound physical infrastructure and
consequently enables it to be a top
performer in the area of logistics.
Japan
Germany
The Netherlands
Sweden
South Korea
United States
Finland
France
Denmark
Austria
Triadic patent applications (2005) Number of triadic patent
applications per million people in the working population.
Source: Statistics Netherlands, 2009
Proof of refreshing business
Human capital and innovation
Triadic patents are those that are registered with the American,
Japanese and European patent offices. The Netherlands is well
represented in this area and is ranked third in the world. Patents are
in many cases the result of R&D activities which, if successful, can
lead to greater labour productivity and an advantage over foreign
competitors. The good score makes Dutch industry an attractive
potential partner - one that is innovative, inviting and refreshing.
44 45

9.40
9.15
9.04
9.02
8.94
8.85
8.85
8.71
8.55
8.28
4.19
4.18
4.10
4.08
4.06
4.02
4.02
4.00
3.99
3.92
Finland
The Netherlands
Denmark
Norway
Singapore
Germany
Sweden
Hong Kong
Canada
Switzerland
Singapore
The Netherlands
Germany
Sweden
Austria
Japan
Switzerland
Hong Kong
United Kingdom
Canada
Quality of water transportation (2009)
Logistics performance index (2007)
Quality of water transportation (harbours, canals, etc.).
Source: World Bank, 2008
Infrastructure
Source: IMD Business School, 2009
Navigable inland waterways
In addition to world-class main ports, the Netherlands has an
extensive network of inland waterways with excellent connections to
those in the rest of Europe. After Finland, the Netherlands has the
best water transport infrastructure in the world. The country also
has an extensive road transport network and is third in the world
rankings for road network density. The Dutch energy infrastructure
scores well also, taking seventh place overall.
In the ‘heart’ of Europe
The Netherlands’ strong position in terms of logistics is due to:
the favourable geographical location of the country in the heart of
Europe; a sound infrastructure that includes the Port of Rotterdam,
the Port of Amsterdam and Amsterdam Airport Schiphol; and a
sophisticated logistics sector. This is reflected in the World Bank
Logistics Performance Index 2007, where the Netherlands is ranked
second, behind Singapore.
Infrastructure
46 47

60,678
53,234
47,392
66,910
50,846
Cargo transport
x 1,000 tonnes
Passenger
transport x 1,000
passengers
421.1
Transhipment
(in millions of tonnes)
Containers
(in 1000 TEU’s)
2,039
2,021
1,568
1,401
795
10,784
189.5
8,663 140.4
9,737
329
Paris Charles
de Gaulle
Frankfurt
Amsterdam
Airport Schiphol
London Heathrow
Madrid
Luxembourg
101
Rotterdam
Antwerp
Hamburg
European airport traffic and transport (2008)
Transhipment of goods (2008)
Traffic and transport figures for Europe’s largest airports.
Source: Port of Rotterdam, 2009
Source: Schiphol Group, 2009
Third-largest airport in Europe
Largest port in Europe
In 2008, goods transhipment in the Port of Rotterdam increased to
Amsterdam Airport Schiphol is the third-largest cargo and passenger
the record level of 421 million tonnes – an increase of 2.9% over
airport in Europe. More than 47 million passengers passed through
2007. Of course, the down-turn in world trade has had an effect on
the airport in 2008. It is also renowned for its outstanding baggage
the port’s numbers in 2009. However, an important milestone in
handling system: a good example of innovation in logistics. The
2008 was the start of construction of the ‘Maasvlakte 2’; an historic
Infrastructure
airport has won more than 140 national and international awards
since 1980. Since 2002, Schiphol has played host to a museum, the
first of its kind in the world, featuring paintings by old masters such
as Vincent van Gogh and Rembrandt.
land-reclamation project to expand the Port of Rotterdam. This will
give Rotterdam an excellent springboard for the future.
Infrastructure
48
49

37.2
35.8
32.0
32.0
30.7
29.0
28.5
28.1
25.8
23.6
Infrastructure
50
Denmark
The Netherlands
South Korea
Sweden
Finland
Canada
United Kingdom
Belgium
United States
Japan
Number of broadband connections (2008)
Number of broadband connections per 100 inhabitants. Source: OECD, 2009
Leading the field in broadband
In 2008, the number of broadband connections per 100 inhabitants
was greater in the Netherlands than in any other country except
Denmark. Almost every household in the Netherlands can be reached
by a cable or DSL connection. With the world’s largest digital data
distributor - the Amsterdam Internet Exchange (AMS-IX) - the
Netherlands also boasts an outstanding data connection network.
This is essential for businesses such as banks and insurers, as well as
Internet, computer and advertising companies.
Government
The Binnenhof (‘inner court’;
a group of buildings in The
Hague) is the heart of the Dutch
government, which enjoys a
good international reputation
and functions effectively. The
Netherlands is one of the most
stable nations in the world and
has a competitive fiscal climate.
Apart from recent extra stimulus
expenditure, government
finances are balanced and healthy.

1
2
3
9.3
9.3
9.3
9.2
9.0
9.0
8.9
8.9
8.7
8.7
4
5
6
7
8
9
10
Finland
Denmark
The Netherlands
Canada
Sweden
United Kingdom
Australia
Belgium
Austria
United States
Denmark
New Zealand
Sweden
Singapore
Finland
Switzerland
The Netherlands
Iceland
Australia
Canada
Government
Government effectiveness (2002-2006)
Source: Governance Matters, World Bank 2007
Easier decision-making
for companies
Government effectiveness encapsulates: the perceptions of the
quality of public services; the quality of the civil service and its
degree of independence from political pressure; the quality of
policy formulation and implementation; and the credibility of
the government’s commitment to such policies. According to the
World Bank, the government of the Netherlands is one of the most
effective in the world. The effective Dutch government makes it
easier for companies to make medium and long-term decisions.
Corruption perception index (2008)
Source: Transparency International, 2008
Low level of corruption
According to the Transparency International corruption perception
index, levels of corruption and nepotism in the Netherlands are
among the lowest anywhere in the world. The aspects of corruption
examined included the degree to which people in authority,
such as customs officers, police officers, politicians, judges and
other officials misuse their position for personal gain, financial or
otherwise.
52 53
Government

1
2
13
13
13
3
4
10
5
6
7
7
6
6
8
4
9
3
10
2
Denmark
United Kingdom
Ireland
Finland
Sweden
Belgium
Estonia
Germany
The Netherlands
Austria
Australia
Canada
Belgium
Denmark
United States
France
The Netherlands
Ireland
Italy
United Kingdom
EU position in Doing Business (2009)
Source: World Bank, 2009
Good cross-border trade
The Netherlands ranks 26 th globally in Doing Business, the annual
survey carried out by the World Bank into how easy it is to do
business in a country. The Netherlands ranks ninth among EU
member states. The Netherlands scores relatively - well when it
comes to cross-border trade.
Starting up a new business (2007)
Number of days required to start up a new business.
Source: Statistics Netherlands, 2009
Starting up your own company
You can start up a new business in the Netherlands in less than ten
days. The Dutch score well here in comparison with other nations.
The Netherlands ties with Belgium, Denmark and France for first
position in the EU rankings.
Government
Government
54 55

58.2
62.5
65.9
68.1
69.7
25
25
25.5
26
26.3
28
28.59
32.92
33.33
33.3
33.4
38.0
43.2 52.0
12.5
Denmark
Finland
Sweden
Ireland
United Kingdom
The Netherlands
Austria
Germany
France
Euro area
Ireland
Austria
Denmark
The Netherlands
Finland
Sweden
United Kingdom
Luxembourg
Germany
France
National debt (2008) National debt as a percentage of GDP.
Corporate tax rate on profit (2009)
Source: Eurostat, 2009
Source: IMD Business School, 2009
Solid public finances
Tax rate below EU average
In the years prior to the economic crisis, the Netherlands was able
The corporate income tax rate in the Netherlands is 25.5% (for
to drastically reduce its national debt. In 2008, the national budget
taxable profits exceeding EUR 200,000), which is well below the
showed a surplus for the third year in a row. The Dutch government
EU national average. Dividend tax has been reduced from 25% to
debt as a percentage of GDP for 2008 was more than 58% and
15%. Furthermore, a patent box with a 10% tax rate on income from
therefore well within the EU norm of 60%. The effect of the crisis on
innovations has been introduced. Other features of the Dutch tax
Government
the national debt is difficult to predict, but solid public finances still
have priority.
system include a wide tax treaty network and a 30% tax-break for
highly qualified foreign employees.
Government
56 57

Explanatory notes
This publication is intended to provide a concise and
representative picture of the state of the Dutch economy.
Every attempt has been made to select indicators carefully
and judiciously from internationally renowned and reliable
sources. In the case of most of the indicators, the Dutch
economy has been compared with surrounding countries,
many of which are similar in terms of their economic
structures. However, it should be pointed out that the
presence of Belgians and Germans in the border regions of
Luxembourg serves to push up that country’s earning level
by a considerable degree, as their income counts towards the
gross domestic product of Luxembourg. The actual income
enjoyed by Luxembourgers is consequently lower and therefore
Luxembourg has not been included in the GDP indicators.
Comparisons have also been made in a number of cases with
non-European countries, such as with various worldwide
rankings.
Sources
Amsterdam Airport Schiphol
www.schipholgroup.nl
The Conference Board
www.conference-board.org/
economics
Economist Intelligence Unit
www.eiu.com
European Commission
www.ec.europa.eu
Eurostat
www.epp.eurostat.ec.europa.eu
Havenbedrijf Rotterdam N.V.
www.portofrotterdam.com
IMD Business School
www.imd.ch
IMF
www.imf.org
Dutch Ministry of Economic
Affairs, Erken and Donselaar
(2005)
www.ez.nl
Dutch Ministry of Foreign
Affairs
www.minbuza.nl
Netherlands Bureau for
Economic Policy Analysis
www.cpb.nl
The Netherlands Observatory of
Science and Technology
www.nowt.nl
The Netherlands Organisation
for Applied Scientific Research
www.tno.nl
OECD
www.oecd.org
Social and Cultural Planning
Office of the Netherlands
www.scp.nl
Statistics Netherlands
www.cbs.nl
Technisch Weekblad
www.technischweekblad.nl
Transparency International
www.transparency.org
UNCTAD
www.unctad.org
United Nations
www.comtrade.un.org
United Nations Development
Programme
www.hdr.undp.org
World Bank
www.Worldbank.org
World Trade Organization
www.wto.org
58 59

Other sources of information
More detailed information is available on the websites below,
nearly all of which include sections in English.
General information about the Netherlands
www.minbuza.nl
Ministry of Foreign Affairs
www.cbs.nl
Statistics Netherlands
Information regarding the labour market and higher education
www.cbs.nl
Statistics Netherlands
www.cpb.nl
www.employment.gov.nl
www.vsnu.nl
www.nuffic.nl
Netherlands Bureau for Economic Policy
Analysis
Ministry of Social Affairs and
Employment
Association of Universities in the
Netherlands
Netherlands Organization for
International Cooperation in Higher
Education
Information regarding enterprise (including internationally),
investing and partnership in the Netherlands
www.cbs.nl
Statistics Netherlands
www.ez.nl
www.evd.nl
www.hollandtrade.com
www.minfin.nl
www.kvk.nl
www.minlnv.nl
www.nfia.nl
Ministry of Economic Affairs
EVD - Agency for International Business
and Cooperation
EVD - Agency for International Business
and Cooperation
Ministry of Finance
Chambers of Commerce
Ministry of Agriculture, Nature and
Food Quality
Netherlands Foreign Investment Agency
Information regarding innovation
www.boip.int
Benelux Office for Intellectual Property
www.cbs.nl
Statistics Netherlands
www.ez.nl
www.innovatieplatform.nl
www.octrooicentrum.nl
www.senternovem.nl
www.twanetwerk.nl
Ministry of Economic Affairs
Platform with Key Players in the
Knowledge Economy
Netherlands Patent Office
SenterNovem - Agency for Sustainability
and Innovation
Trendwatchers for Innovation and
Technology (Dutch only)
60 61

62 63