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<strong>Holland</strong> <strong>Compared</strong><br />

Facts and figures, Summer 2015


Source: Rijkswaterstaat


GRONINGEN<br />

Groningen<br />

Leeuwarden<br />

FRIESLAND<br />

Assen<br />

NORTH SEA<br />

Haarlem<br />

NOORD-<br />

HOLLAND<br />

Amsterdam<br />

Lelystad<br />

FLEVOLAND<br />

Zwolle<br />

DRENTHE<br />

OVERIJSSEL<br />

's-Gravenhage (The Hague)<br />

ZUID-<br />

HOLLAND<br />

Rotterdam<br />

Utrecht<br />

UTRECHT<br />

GELDERLAND<br />

Arnhem<br />

Middelburg<br />

ZEELAND<br />

Breda<br />

's-Hertogenbosch<br />

NOORD-BRABANT<br />

Eindhoven<br />

GERMANY<br />

BELGIUM<br />

LIMBURG<br />

Maastricht<br />

UK<br />

BELGIUM<br />

GERMANY<br />

FRANCE<br />

2


Official name<br />

Form of government<br />

Head of State<br />

Capital<br />

Seat of government<br />

Administrative structure<br />

Surface area<br />

Location<br />

Number of inhabitants<br />

Number of inhabitants per km 2<br />

Monetary unit<br />

Languages<br />

Kingdom of the Netherlands<br />

Constitutional monarchy,<br />

parliamentary democracy<br />

His Majesty King Willem-Alexander, King of<br />

the Netherlands, Prince of Orange-Nassau<br />

Amsterdam<br />

The Hague<br />

Twelve provinces and the overseas<br />

territories of Aruba, Curacao and<br />

St. Martin. The overseas islands of Bonaire,<br />

Saba and St. Eustatius, all three of which<br />

are situated in the Caribbean, are ‘special<br />

municipalities of the Netherlands’<br />

33,800 km 2<br />

Western Europe, by the North Sea,<br />

bordering Belgium and Germany<br />

16,915,195 (April 2015)<br />

500 (April 2015)<br />

Euro<br />

Dutch, Frisian<br />

3


Source: Netherlands Enterprise Agency<br />

4


Content<br />

Foreword<br />

Page<br />

6<br />

1.<br />

General Information<br />

8<br />

2.<br />

Macro Indicators<br />

14<br />

3.<br />

Trade and Foreign Investment<br />

24<br />

4.<br />

<strong>Holland</strong> Digital Gateway<br />

36<br />

5.<br />

Top Sectors in Focus<br />

46<br />

6.<br />

Human Capital and Innovation<br />

66<br />

7.<br />

Infrastructure<br />

80<br />

8.<br />

Government<br />

86<br />

5


Foreword<br />

Often referred to as<br />

<strong>Holland</strong>, the Netherlands<br />

has for centuries had<br />

one of the world’s most<br />

open economies.<br />

The Dutch engage in<br />

all forms of business all<br />

around the globe.<br />

Like many others, the Dutch economy was hard hit by the global<br />

economic crisis that began in the autumn of 2008. Nevertheless it has<br />

stayed relatively buoyant. The Netherlands continues to occupy a<br />

prominent position in world trade: in 2014, the country was the world’s<br />

fifth-largest exporter of goods.<br />

According to the World Economic Forum, the Netherlands currently has<br />

the eighth-best business climate in the world. Dutch conditions for<br />

investment and for setting up a business are also ranked highly by other<br />

institutes, like the IMD World Competitiveness Center.<br />

These high rankings are due to a number of factors. The Netherlands is<br />

widely considered a pleasant place to live, and the high productivity of<br />

Dutch workers has given it one of the highest per capita incomes of any<br />

country in the European Union.<br />

6


The Netherlands has a great deal to offer the business community, and to<br />

foreign companies in particular. The country’s geographical location on<br />

the European continent is outstanding, and the Dutch have an open<br />

outlook and an international orientation. The workforce is well-educated<br />

and flexible – people often speak several languages – and the country has<br />

an excellent physical infrastructure. The Netherlands’ highly-developed IT<br />

network is another reason why it is such an attractive location for<br />

businesses: the Dutch have the second-highest number of broadband<br />

connections per head of population in the world. The Netherlands also<br />

excels in the use of IT by the general population, the business sector and<br />

government. This combination of factors may explain why the nation is the<br />

seventh-largest recipient of foreign investment in Europe. Yet despite all<br />

these factors contributing to their success, the Dutch refuse to allow<br />

themselves to become complacent. The government is constantly working<br />

to adapt and improve the Dutch business climate so as to meet the<br />

challenges of the future.<br />

This publication compares the Netherlands’ performance in these and<br />

other economic areas to that of other EU and OECD countries. If after<br />

reading this publication you still have questions about the quality of life or<br />

the business environment in the Netherlands, the team at the<br />

Netherlands Foreign Investment Agency (info@nfia.nl) will be glad to<br />

answer them.<br />

Renée Jones-Bos<br />

Secretary-General, Ministry of Foreign Affairs<br />

7


Source: Energising the Future


1. General<br />

Information<br />

The Netherlands is traditionally the land of<br />

windmills, cheese and tulips, but isn’t this<br />

image something of a cliché nowadays?<br />

Well, not really. Centuries of expertise in land<br />

drainage (using the famous windmills) have<br />

made the Netherlands world-renowned for its<br />

water management skills. So what about the<br />

cheese and the tulips? The answer is that the<br />

Netherlands is also one of the largest<br />

exporters of agri-food and horticultural<br />

products in the world.<br />

9


Brake on<br />

population growth<br />

Population by age (2014)<br />

4<br />

4<br />

5<br />

5<br />

1<br />

1<br />

3<br />

3<br />

2<br />

1. 1. 0-19 22.9% 2. 2. 20-39 24.5% 3. 40-64 23.3% 4. 65-79 13.1% 5. Older than 79 4.3%<br />

Source: Statistics Netherlands, 2014.<br />

In total 16.9 million people live on the relatively small piece of land that<br />

is the Netherlands, which makes the country one of the most densely<br />

populated in the world. However, population growth is slowing down in<br />

the Netherlands, as it is in many other Western countries. This slowdown,<br />

together with an increasingly healthy generation aged 65 and above,<br />

has resulted in an ageing population.<br />

10 General information


Attractive<br />

place to live<br />

Quality of life (2014)<br />

Switzerland 9.73<br />

Austria 9.55<br />

Norway 9.47<br />

Sweden 9.44<br />

Germany 9.38<br />

Netherlands 9.21<br />

Denmark 9.13<br />

New Zealand 9.13<br />

Australia 9.11<br />

Canada 9.04<br />

Source: IMD, 2014.<br />

Whether visiting for<br />

7business 7,5<br />

or pleasure,<br />

8,0<br />

the<br />

8,5<br />

Netherlands<br />

9,0<br />

is<br />

9,5<br />

home to<br />

10a<br />

highly pleasant living environment. It currently ranks sixth worldwide in<br />

terms of quality of life. Leisure amenities are within easy reach and Dutch<br />

cities have much to offer, such as the centuries-old architecture of<br />

Amsterdam, Delft, Groningen and Leiden as well as cultural activities and<br />

world-famous museums such as the Van Gogh Museum and the Hermitage<br />

Amsterdam. Housing is also fairly affordable compared to other countries,<br />

according to IMD. In addition to the various international schools in the<br />

Netherlands, a large and growing number of schools (119 in 2013) teach in<br />

two languages (mostly Dutch and English). Finally, the Dutch healthcare<br />

system officially ranks among the world’s best. According to the Commonwealth<br />

Fund, the Dutch healthcare system is the best in the world in terms<br />

of quality, access, efficiency, funding and the healthy lives, on average, of<br />

the general population.<br />

General information 11


One of the most<br />

competitive economies<br />

Global Competitiveness Index (2014-2015)<br />

Switzerland<br />

Singapore<br />

United States<br />

Finland<br />

Germany<br />

Japan<br />

Hong Kong, China<br />

Netherlands<br />

United Kingdom<br />

Sweden<br />

5.7<br />

5.65<br />

5.54<br />

5.5<br />

5.49<br />

5.47<br />

5.46<br />

5.45<br />

5.41<br />

5.41<br />

Source: World Economic Forum, 2014.<br />

5 5,1 5,2 5,3 5,4 5,5 5,6<br />

According to a number of international league tables published by<br />

renowned institutes such as IMD and the World Economic Forum, the<br />

Netherlands is among the world leaders when it comes to favourable<br />

business climate. There are numerous factors that form the basis for the<br />

favourable position that the Netherlands enjoys, including its open and<br />

international outlook, its strategic location in Europe, its well-educated,<br />

multilingual and flexible workforce, and the high level of labour productivity.<br />

The competitive fiscal climate, top-level physical and technological<br />

infrastructure and quality of life are key contributors to the country’s<br />

success. The Netherlands is thus an attractive location for companies<br />

seeking a European base and for those wishing to invest.<br />

12 General information


Source: DSM N.V.


Source: Hannah Anthonysz/Rotterdam Image Bank


2. Macro Indicators<br />

The impact of the downturn in world trade<br />

as a result of the global economic crisis was<br />

immediately tangible in the Netherlands with<br />

its buoyant and open economy. However, the<br />

Netherlands continues to perform well on<br />

many fronts. For example, the Netherlands<br />

has one of the highest incomes per capita in<br />

the EU, Rotterdam is still Europe’s largest<br />

port and the Netherland’s high-quality ICT<br />

infrastructure ensures that the country<br />

remains the gateway to Europe.<br />

15


Sixth-largest<br />

EU economy<br />

GDP in the EU (2014)<br />

Germany 2,903,790<br />

United Kingdom 2,217,872<br />

France 2,142,022<br />

Italy 1,616,047<br />

Spain 1,058,469<br />

Netherlands 653,476<br />

Sweden 436,342<br />

Poland 412,189<br />

Belgium 402,270<br />

Austria 328,996<br />

Millions of euros.<br />

Source: Eurostat, 2015.<br />

0 500.000 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000<br />

In terms of surface area and population size, the Netherlands is not a<br />

particularly large country and ranks 133rd and 64st worldwide. In stark<br />

contrast, the country’s economic performance ranks much higher. The size<br />

of the economy, or the Gross Domestic Product (GDP), is about 615 billion<br />

euros in 2014. The Netherlands has the seventeenth-largest economy in<br />

the world and the sixth-largest in the European Union.<br />

16 Macro indicators


High average<br />

income<br />

GDP per capita (2013)<br />

Luxembourg<br />

90,457<br />

Switzerland<br />

United States*<br />

Austria<br />

Sweden<br />

Netherlands<br />

Ireland<br />

Denmark<br />

Germany<br />

54,133<br />

51,689<br />

44,176<br />

43,497<br />

43,416<br />

42,941<br />

42,777<br />

42,549<br />

EU-28 34,256<br />

*= 2012<br />

US dollars, corrected for Purchasing Power Parity.<br />

Source: OECD, 2014.<br />

0 20.000 40.000 60.000 80.000 83.802<br />

The Netherlands is one of the wealthiest nations in the European Union.<br />

The Netherlands also performs well compared to similar economies<br />

outside the European Union, such as that of the United States. The high<br />

average income in the Netherlands is the result of high productivity and a<br />

high level of labour participation.<br />

Macro indicators 17


High productivity<br />

per hour<br />

GDP per hour, corrected for purchasing power parity (2013)<br />

United States<br />

Belgium<br />

Netherlands<br />

France<br />

67<br />

61<br />

60<br />

59<br />

Germany<br />

Denmark<br />

Ireland<br />

Austria<br />

Sweden<br />

57<br />

56<br />

56<br />

55<br />

55<br />

Switzerland<br />

50<br />

US dollars.<br />

Source: The Conference Board and Groningen Growth and Development<br />

Centre, 2014.<br />

30 35 40 45 50 55 60 65 70 75<br />

The working population in the Netherlands is highly educated, employees<br />

have an international outlook, and many speak more than one foreign<br />

language. This high level of education and the strong economic structure<br />

(enabled by the physical and the knowledge infrastructure, for example)<br />

allow employees to be productive. Labour productivity per hour is among<br />

the highest in the world. It is noteworthy that the Netherlands has<br />

combined this high level of productivity with a high level of labour<br />

participation, also among semi-skilled and unskilled workers.<br />

18 Macro indicators


Prosperous, sustainable<br />

and enterprising<br />

Growth in GDP in % (2006-2013)<br />

Switzerland<br />

2.0<br />

Sweden<br />

1.8<br />

Germany<br />

Austria<br />

United States<br />

1.3<br />

1.4<br />

1.4<br />

Belgium<br />

1.0<br />

Netherlands<br />

France<br />

Finland<br />

Euro area<br />

0,7<br />

0.7<br />

0.7<br />

0.6<br />

Source: Eurostat, 2014.<br />

0 0,5 1,0<br />

1.5 2.0<br />

<strong>Compared</strong> to many other EU Member States, the Netherlands has a highly<br />

open economy, which is why the country was hit hard by the sharp<br />

downturn in world trade in 2008 and 2009. When considered over a longer<br />

period of time, the Netherlands shows reasonable economic growth<br />

compared to other prosperous EU Member States and the US. This is a<br />

good performance for a highly developed economy with a high standard of<br />

living (see also GDP per capita). The structural reforms that have been<br />

implemented in areas such as the labour market and the social security<br />

system, have created conditions for potentially healthy economic growth<br />

that offers room for investments in knowledge and innovation, for<br />

example, so that the Netherlands will remain a prosperous, sustainable<br />

and enterprising nation.<br />

Macro indicators 19


Moderate<br />

inflation<br />

Average annual inflation (2006-2013)<br />

Switzerland 0.4<br />

1.5<br />

Ireland 1.1.6<br />

Sweden 1.7<br />

1.6<br />

France 2.0<br />

1.8<br />

Germany 1.8 2.1<br />

Netherlands 2.2<br />

Euro area 2.2<br />

Denmark 2.3<br />

Austria 2.4<br />

1.9<br />

2.0<br />

2.0<br />

2.2<br />

Belgium 2.32.6<br />

Average annual price increases as a percentage.<br />

Source: Eurostat, 2014.<br />

The Netherlands enjoys a good reputation in monetary terms. Long<br />

before the introduction of the euro, price rises in the Netherlands were<br />

at a moderate level, thanks to sound monetary policies on the part of DNB<br />

(the Dutch central bank). The product and labour markets also operate<br />

relatively well, which helps to moderate price increases. According to the<br />

IMD (2014), the Netherlands ranks third worldwide in the fight against<br />

unfair competition.<br />

20 Macro indicators


High labour<br />

participation rate<br />

Employment rates (2014)<br />

Switzerland<br />

Sweden<br />

Germany<br />

Netherlands<br />

Denmark<br />

Austria<br />

United Kingdom<br />

Finland<br />

United States<br />

OECD-countries<br />

75.879.7<br />

74.9 75.7<br />

72.2 74.0<br />

71.6 73.9<br />

70.6 73.6<br />

70.4 72.6<br />

68.4 72.0<br />

67.6 68.7<br />

.<br />

68,5 67.5<br />

65.7 66.3<br />

Source: OECD, 2015.<br />

0 10 20 30 40 50 60 70 75,8<br />

In the last two decades, the level of employment in the Netherlands has<br />

increased by more than 30%. The strong growth in jobs is largely due to<br />

the structural economic reforms that have been implemented. The lack of<br />

unrest in the labour market - there are relatively few strikes in the<br />

Netherlands - is also a contributory factor as regards maintaining a<br />

favourable business climate. Thanks to the firm growth in employment, a<br />

large proportion of the potential working population is in work. Indeed,<br />

the proportion is considerably greater than the average of the OECD<br />

countries.<br />

Macro indicators 21


Many part-time<br />

employees<br />

Part-time work (2013)<br />

Netherlands 39.9<br />

Switzerland 25.4<br />

Ireland 25.1<br />

United Kingdom 23.9<br />

Germany 22.8<br />

Denmark 19.8<br />

Belgium 19.8<br />

Austria 19.3<br />

Luxembourg 14.5<br />

France 14.3<br />

Measured as a percentage of employment as a whole.<br />

Source: OECD, 2015.<br />

0 5 10 15 20 25 30 35 37,1<br />

A relatively high proportion of Dutch people work part-time. This is often<br />

a deliberate decision, allowing employees to combine work with caring for<br />

their family. From an international perspective, the number of people - and<br />

particularly women - in the Netherlands who work part-time is high: nearly<br />

75% of all Dutch part-time workers are women. Nevertheless, the average<br />

working week for full-time employees is more or less on a par with most<br />

other Eurozone countries. The same applies to the number of hours<br />

worked in a year by full-time employees.<br />

22 Macro indicators


Relatively low<br />

unemployment<br />

Average unemployment (2006-2013)<br />

Switzerland<br />

Netherlands<br />

3.8<br />

4.3<br />

4.4 4.3<br />

Austria<br />

4.5<br />

4.8<br />

Luxembourg<br />

4.9<br />

5.5<br />

Denmark<br />

United Kingdom<br />

5.8<br />

5.9<br />

6.96.3<br />

United States<br />

7.3<br />

7.1<br />

Germany<br />

7.3<br />

7.8<br />

Sweden<br />

7.5<br />

8.3<br />

Euro area<br />

8.4<br />

9.6<br />

Measured as a percentage of the working population.<br />

Source: OECD, 2014.<br />

0 2 4 6 8<br />

The rate of unemployment in the Netherlands is one of the lowest in<br />

Europe. From 2006 to 2013, an average of 4.4% of the potential working<br />

population was unemployed, while the corresponding rate in the euro<br />

countries was 9.6%. As a result of the crisis the unemployment in the<br />

Netherlands increased. In February 2015 it amounted to 7.1% (Eurostat,<br />

2015), compared to an average of 11.3% in the euro countries. Moreover,<br />

youth unemployment is also still low in the Netherlands. In February 2015,<br />

the portion of <strong>Holland</strong>’s potential working population aged under-25 that<br />

was unemployed amounted to 11.0%. In the EU-28, the average was 21.1%.<br />

Macro indicators 23


Source: Netherlands Enterprise Agency


3. Trade and<br />

Foreign Investment<br />

The Netherlands plays a prominent role in the<br />

world economy due to its exports, imports,<br />

attracting foreign investors, and investments<br />

abroad. Its favourable location in relation to the<br />

European hinterland and its world-class<br />

infrastructure – such as the Port of Rotterdam<br />

and Schiphol Airport – have helped the<br />

Netherlands become an important distribution<br />

centre.<br />

25


Open<br />

economy<br />

Dutch exports of goods and services<br />

1970 44.8<br />

1975 49.8<br />

1980 52.3<br />

1985 62.1<br />

1995 56.1<br />

2000 70.1<br />

2005 69.6<br />

2014 83.2<br />

Measured as a percentage of GDP.<br />

Source: CPB, 2015.<br />

0 10 20 30 40 50 60 70 72,6<br />

The Netherlands has traditionally always had an open economy and the<br />

level of trade with other countries is very significant. According to<br />

research carried out by the Netherlands Bureau for Economic Policy<br />

Analysis, the Netherlands earns some 33% of its income from the export of<br />

goods and services. In 2014, the value of exports was 83.2% of the<br />

Netherlands’ GDP.<br />

26 Trade and foreign investment


World’s fifth-largest<br />

exporter of goods<br />

Top 10 exporters of goods (2013)<br />

Millions of US dollars Share in world exports (%)<br />

China 2,210,523<br />

United States<br />

Germany<br />

Japan<br />

Netherlands<br />

France<br />

South Korea<br />

United Kingdom<br />

Russian<br />

Federation<br />

Italy<br />

715,097<br />

4.0<br />

664,178<br />

3.7<br />

566,879<br />

3.2<br />

559,619<br />

3.1<br />

548,967<br />

3.1<br />

526,392<br />

2.9<br />

517,659<br />

2.9<br />

12.3<br />

1,578,001<br />

8.8<br />

1,458,647<br />

8.1<br />

Source: World Trade Organisation, 2014<br />

As the fifth-largest exporter of goods in the world, the Netherlands<br />

occupies a prominent position when it comes to world trade. In 2013, the<br />

Netherlands exported goods worth a total of almost 664 billion US dollars,<br />

which is about 3.7% of the world’s total exports. The Netherlands is also a<br />

significant exporter of commercial services: exports of commercial<br />

services amounted to 142 billion US dollars (110 billion euros) in 2013,<br />

which placed the country ninth in the world rankings.<br />

Trade and foreign investment 27


Strong in agri-food<br />

production<br />

Top 5 exporters of agricultural products (2013)<br />

Millions of US dollars Share in world imports (%)<br />

United States 175,567<br />

10.4<br />

Netherlands<br />

111,458<br />

6.2<br />

Germany<br />

99,232<br />

5.5<br />

Brazil<br />

5.2<br />

90,664<br />

France<br />

82,227<br />

4.7<br />

Source: World Trade Organisation, 2013.<br />

The Netherlands is the world’s second-largest exporter of agri-food<br />

products. For decades, the Dutch agriculture sector has succeeded in<br />

maintaining its lead over international competitors through continual<br />

investment in innovation in agri-food value chains. The Netherlands is a<br />

hotbed of R&D in the area of agri-food, due largely to the excellent<br />

knowledge infrastructure and close collaborations between knowledge<br />

institutes, government and the private sector, the so-called “golden<br />

triangle”. Key R&D centres include Wageningen University and Research<br />

Centre (WUR), the Top Institute Food & Nutrition and the public-private<br />

innovation program FND+. Some 12 out of the 40 largest Food & Beverage<br />

companies in the world have R&D facilities located in the Netherlands.<br />

WUR is the foremost university in Europe in the field of agriculture, and<br />

second in the world, according to the Higher Education Evaluation &<br />

Accreditation Council of Taiwan.<br />

28 Trade and foreign investment


Major importer of<br />

goods and services<br />

Top 10 importers of goods (2013)<br />

United States 2,328,329<br />

China<br />

Germany<br />

Japan<br />

Hong Kong, China<br />

France<br />

United Kingdom<br />

Netherlands<br />

South Korea<br />

India<br />

Millions of US dollars Share in world imports (%)<br />

2.7<br />

2.6<br />

3.5<br />

3.1<br />

3.7<br />

3.6<br />

4.4<br />

703,872<br />

668,658<br />

655,698<br />

509,844<br />

515,573<br />

488,442<br />

6.4<br />

833,166<br />

10.4<br />

12.4<br />

1,194,483<br />

Source: International Trade Organisation, 2014.<br />

1,949,935<br />

As well as being a major exporter, the Netherlands also imports large<br />

quantities of goods: 591 billion-US-dollars-worth in 2013. With a about 3.1%<br />

share of the global total, the country is the ninth-largest importer of<br />

goods in the world. The Netherlands is also a significant importer of<br />

commercial services - imports of commercial services amounted to 121<br />

billion US dollars (94 billion Euros) in 2013, which placed the Netherlands<br />

eight in the world rankings.<br />

Trade and foreign investment 29


Most significant trading<br />

partner: Western Europe<br />

Geographical destination of Dutch exports (2013)<br />

5<br />

4<br />

6<br />

5 5<br />

4 4<br />

6<br />

7<br />

6<br />

7<br />

7<br />

3<br />

3<br />

3<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1. All of Europe 340.8<br />

1. All of 1. Europe All of 340.8 Europe 340.8<br />

2. All of Africa 14.4<br />

2. All of 2. Africa All of 14.4 Africa 14.4<br />

3. All of North America 19.4<br />

3. All of 3. North All of America North America 19.4 19.4<br />

4. All of Central and<br />

4. All of 4. Central All of and Central and<br />

South America 9,7<br />

South America South America 9,7 9,7<br />

5. Near and Middle East 7.9<br />

5. Near 5. and Near Middle and East Middle 7.9 East 7.9<br />

6. Asia 39<br />

6. Asia 6. 39 Asia 39<br />

7. Oceania 2.6<br />

7. Oceania 7. Oceania 2.6 2.6<br />

Values in billions of euros.<br />

Source: Statistics Netherlands, 2014.<br />

The role of the Netherlands as a key distribution location is also indicated<br />

by the volume of import and export activities. Almost 79% of Dutch exports<br />

remain within Europe, especially Western Europe. Germany is easily the<br />

Netherlands’ most significant trading partner, followed by Belgium,<br />

the United Kingdom and France.<br />

30 Trade and foreign investment


Gateway<br />

to Europe<br />

Geographical origin of Dutch imports (2013)<br />

rur<br />

6<br />

6<br />

6<br />

7<br />

7<br />

7<br />

5<br />

5<br />

5<br />

4<br />

4<br />

4<br />

3<br />

3<br />

3<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1. All of Europe 242.5<br />

1. All of 1. Europe All of Europe 242.5 242.5<br />

2. All of Africa 15.4<br />

2. All of 2. Africa All of 15.4 Africa 15.4<br />

3. All of North America 27.9<br />

3. All of 3. North All of America North America 27.9 27.9<br />

4. All of Central and<br />

4. All of 4. Central All of Central and and<br />

South America 16.6<br />

South America South America 16.6 16.6<br />

5. Near and Middle East 10.5<br />

5. Near 5. and Near Middle and East Middle 10.5 East 10.5<br />

6. Asia 70.1<br />

6. Asia 6. 70.1Asia 70.1<br />

7. Oceania 1.4<br />

7. Oceania 7. Oceania 1.4 1.4<br />

Values in billions of euros.<br />

Source: Statistics Netherlands, 2014.<br />

The Netherlands has become a key hub for distribution in Europe because<br />

of its favourable location in relation to the European hinterland and the<br />

country’s world-class air and sea ports such as the Port of Rotterdam<br />

(Europort) and Amsterdam Airport Schiphol. The Netherlands is home<br />

to more distribution centres than anywhere else in Europe and has the<br />

largest inland shipping fleet in Europe.<br />

Trade and foreign investment 31


Dutch paints add a touch<br />

of colour to the world<br />

Composition of Dutch exports (2013)<br />

9 9<br />

9<br />

10 10<br />

10<br />

1 1<br />

1<br />

2 2<br />

2<br />

3 3<br />

3<br />

8 8<br />

8<br />

4 4<br />

4<br />

7 7<br />

7<br />

6 6<br />

6<br />

5 5<br />

5<br />

1. 1. Animal Animal feed feed and and live live animals animals 53.8 53.8 6. 6. Chemical products 74.6 74.6<br />

2. 2.<br />

1. Beverages Animal feed and and<br />

and tobacco live animals 7.4 7.4<br />

53.8 7. 6.<br />

7. Manufactured Chemical products goods goods<br />

74.6 35.3 35.3<br />

3. 3.<br />

2. Raw Raw<br />

Beverages materials,<br />

and tobacco 7.4<br />

8. 7.<br />

8. Machinery Manufactured and and transportation<br />

goods 35.3<br />

3. inedible Raw materials,<br />

(not (not fuels) fuels) 19.8 19.8<br />

8. equipment Machinery and transportation<br />

108.6 108.6<br />

4.<br />

inedible (not fuels) 19.8<br />

4. Mineral Mineral fuels, fuels, lubricants 87.1 87.1 9.<br />

equipment 108.6<br />

9. Miscellaneous manufactured<br />

5.<br />

4. Mineral fuels, lubricants 87.1<br />

9. Miscellaneous manufactured<br />

5. Animal Animal and and vegetable<br />

goods goods 40.5 40.5<br />

5. Animal and vegetable<br />

oils<br />

goods 40.5<br />

oils and and fats fats 4.3 4.3<br />

10. 10. Other Other goods goods 2.5 2.5<br />

oils and fats 4.3<br />

10. Other goods 2.5<br />

Values in billions of euros. Source: Statistics Netherlands, 2014.<br />

The Netherlands is the second-largest exporter of agricultural products<br />

worldwide, after the United States. Horticulture is by far the most<br />

important segment within the agricultural sector. Other significant Dutch<br />

exports include chemical products (e.g. Sikkens paint), machinery (e.g.<br />

ASML lithography systems) and vehicles (DAF trucks and Scania trucks).<br />

The Netherlands is also a well-known exporter of high-quality aerospace<br />

components and systems (Fokker), ships (IHC Merwede), yachts (Royal Van<br />

Lent Shipyard) and busses and car parts (VDL Group).<br />

32 Trade and foreign investment


Biggest trading partner:<br />

Germany<br />

Composition of Dutch imports (2013)<br />

9 9<br />

9<br />

10 10<br />

10<br />

1 1<br />

2 2<br />

3 3<br />

8 8 8<br />

4<br />

4<br />

7 7<br />

7<br />

1. Animal feed and live animals 35<br />

1. 1. Animal feed feed and and live live animals 35 35<br />

2. Beverages and tobacco 3.8<br />

2. 2. Beverages and and tobacco 3.8 3.8<br />

3. Raw materials, inedible<br />

3. 3. Raw Raw materials, inedible<br />

(not fuel)s 13.8<br />

(not (not fuel)s 13.8 13.8<br />

4. Mineral fuels, lubricants 95.9<br />

4. 4. Mineral fuels, lubricants 95.9 95.9<br />

5. Animal and vegetable<br />

5. 5. Animal and and vegetable<br />

oils and fats 4.8<br />

oils oils and and fats fats 4.8 4.8<br />

5 5<br />

6 6<br />

6. Chemical products 51.8<br />

6. 6. Chemical products 51.8 51.8<br />

7. Manufactured goods 34.9<br />

7. 7. Manufactured goods 34.9 34.9<br />

8. Machinery and transportation<br />

8. 8. Machinery and and transportation<br />

equipment 103<br />

equipment 103 103<br />

9. Miscellaneous manufactured<br />

9. 9. Miscellaneous manufactured<br />

goods 40<br />

goods 40 40<br />

10. Other goods 1.4<br />

10. 10. Other goods 1.4 1.4<br />

Values in billions of euros.<br />

Source: Statistics Netherlands, 2014.<br />

In 2013, 16.5% of all imports into the Netherlands originated in Germany.<br />

Almost half of all products purchased by the Netherlands in Germany were<br />

related to chemical products and machinery. Of all of the cars imported<br />

into the Netherlands, more than 90% came from Europe, particularly<br />

Belgium, France and Germany. Belgium (9.8% of total imports of goods) and<br />

China (8.3%) were respectively second and third Dutch import partner.<br />

In 2013 the value of Dutch imports (of goods) was 384.3 billion Euros.<br />

Trade and foreign investment 33


Seventh-largest foreign<br />

investor in the world<br />

Foreign investors in the world (2013)<br />

United States 6,350<br />

China<br />

(incl. Hong Kong)<br />

United Kingdom<br />

France 1,637<br />

Switzerland 1,259<br />

Netherlands 1,072<br />

1,966<br />

1,885<br />

Germany 1,710<br />

Belgium 1,009<br />

Japan 993<br />

Canada 732<br />

Most important foreign investors in the world, in billions of US dollars.<br />

Source: UNCTAD, 2014.<br />

500 510 520 530 540 550<br />

Dutch businesses are truly international in their orientation. Dutch-based<br />

multinationals, such as AkzoNobel, Heineken, KPN, ING, Philips, Unilever<br />

and Shell have made substantial foreign investments in the past. The total<br />

value of Dutch investments in other countries is considerable. In late 2013,<br />

investments overseas totalled in excess of 1,072 billion US dollars, making<br />

the Netherlands the seventh-largest foreign investor in the world.<br />

34 Trade and foreign investment


Attractive for inward<br />

foreign investments<br />

Main recipients of foreign investment in Europe (2013)<br />

United Kingdom 1,606<br />

France<br />

1,081<br />

Belgium 924<br />

Germany<br />

852<br />

Switzerland 747<br />

Spain 716<br />

Netherlands 670<br />

Russian Federation 576<br />

Sweden 378<br />

Ireland 378<br />

Stocks, in billions of US dollars.<br />

Source: UNCTAD, 2014.<br />

200 600 1000 1400 540 550<br />

In 2013, foreign companies had inward direct investments worth 670<br />

billion US dollars. As a result, the Netherlands is the world’s eleventhlargest<br />

and Europe’s seventh-largest recipient of foreign investment. In<br />

2013 inward Dutch FDI stock amounted to 497.7 billion Euros or 82.2% of<br />

the Netherlands’ GDP. More than 6,300 foreign companies have established<br />

over 8,110 operations in the Netherlands. Among the many prominent<br />

international companies are firms like Abbott Laboratories, Boeing,<br />

Bombardier, Bosch, Cisco Systems, Danone, Dow, Eastman Chemical,<br />

Heinz, Hitachi, Huawei, ICBC, Medtronic, NCR Corporation, Reebok, RWE,<br />

Samsung, Siemens and Teijin.<br />

Trade and foreign investment 35


Source: Netherlands Enterprise Agency


4. <strong>Holland</strong> Digital<br />

Gateway<br />

The Netherlands is a leading ICT innovator and<br />

a digital gateway to Europe. It has strong ICT<br />

infrastructure and an open innovation model<br />

that leads to high-level research. Moreover, the<br />

Dutch are keenly focused on cyber security and<br />

have developed various centres of expertise<br />

such as The Hague Security Delta. The<br />

Netherlands plays a key role in global Internet<br />

traffic. About a third of Europe’s Internet traffic<br />

with the US goes via the Amsterdam Internet<br />

Exchange. The quality of ICT infrastructure<br />

and security in The Netherlands makes it an<br />

attractive location for foreign investors: 25% are<br />

ICT related.<br />

37


<strong>Holland</strong>’s ICT Playing<br />

Field<br />

Metropolitan Amsterdam<br />

Regional cooperation and<br />

innovation in the area of<br />

transport, distribution, and<br />

data processing (new<br />

media, social sciences, data<br />

infrastructure). Dominant<br />

players: Amsterdam Start<br />

Up Delta, Amsterdam<br />

Internet Exchange<br />

(AMS-IX), Science Park<br />

Watergraafsmeer, SURF.<br />

Groningen<br />

Regional cooperation on<br />

focus areas big data and<br />

radio astronomy.<br />

Dominant players: IBM,<br />

Google, RUG, Astron.<br />

East Netherlands<br />

Regional cooperation on focus<br />

areas e-Health and human<br />

capital. Dominant players:<br />

Roessingh Institute, TU Twente,<br />

health care institutions,<br />

businesses in the Health Valley.<br />

The Hague<br />

The Hague Security Delta (HSD), largest security<br />

cluster in Europe. Public and private innovation in<br />

cyber security. Dominant players: Hague Security<br />

Delta Campus, Twente Safety & Security (TS&S),<br />

Dutch Institute for Technology Safety & Security,<br />

Brabant (DITSS).<br />

Eindhoven<br />

Regional cooperation<br />

on focus areas human<br />

capital and big data for<br />

industrial processes.<br />

Dominant players:<br />

ICT-driven companies<br />

such as Philips and<br />

various high tech<br />

suppliers, TU Eindhoven,<br />

Brainport.<br />

38 HOLLAND DIGITAL GATEWAY


The Dutch and ICT<br />

Strong in innovation, security and connectivity<br />

• The Netherlands is an international internet hub. It has the most<br />

competitive internet market and the second highest online<br />

connectivity in the world. 98% of households are connected to<br />

(broadband) internet compared to the European average of 62%.<br />

• The Dutch are active internet users: 91% of Dutch aged 16-74<br />

compared to average 75% of Europeans in same age group. 75% of<br />

Dutch between 16-74 years have basic ICT skills. The European<br />

average is 59%.<br />

• Businesses from within and outside <strong>Holland</strong> invest in data centres<br />

and fibre optics connections in <strong>Holland</strong>, due to the country’s good<br />

digital infrastructure.<br />

• As a result, a third main-port of large economic importance has<br />

come into being: the digital hub. This hub has created 140,000<br />

jobs (Research by Deloitte. In comparison, Schiphol airport has<br />

166,000 jobs and the Port of Rotterdam, 184,000.)<br />

• For further economic growth, The Netherlands continues to invest<br />

in economic opportunities in the cyber domain and to stimulate<br />

research there<br />

• In addition, the Netherlands is committed to renewing laws and<br />

regulations that limit restrictions to digital innovation and growth.<br />

• The Netherlands actively supports the adoption of international<br />

internet standards and open and secure international internet<br />

hosting.<br />

• COMMIT is the biggest ICT research project in The Netherlands,<br />

including 100 ICT companies, users and universities, working<br />

together.<br />

HOLLAND DIGITAL GATEWAY 39


40 HOLLAND DIGITAL GATEWAY


HOLLAND DIGITAL GATEWAY 41


Everyone’s into ICT<br />

Most advanced ICT economies (2015)<br />

Singapore 6.00<br />

Finland 6.00<br />

Sweden 5.80<br />

Netherlands 5.80<br />

Norway 5.80<br />

Switzerland 5.70<br />

United States 5.60<br />

United Kingdom 5.60<br />

Luxembourg 5.60<br />

Japan<br />

5.60<br />

Source: World Economic Forum, 2015.<br />

Research done in 20158, by the<br />

7,5<br />

WEF<br />

7,6<br />

into<br />

7,7<br />

network<br />

7,8 5,5<br />

readiness,<br />

5,6 5,7<br />

awarded<br />

5,8 5,9<br />

<strong>Holland</strong><br />

6 8,5<br />

an excellent score: 4th place (in 2013 and 2014) in a list of 143 countries. The<br />

WEF-Networked Readiness Index (NRI) is one of the most comprehensive and<br />

authoritative assessments of the impact of ICT on competitiveness of nations<br />

and the well-being of their citizens. The NRI assesses the preparedness of an<br />

economy to fully leverage ICT in terms of: (1) ICT infrastructure, cost of access<br />

and the presence of the necessary skills to ensure an optimal use; (2) Uptake<br />

and use of ICT among governments, business and individuals; (3) Business<br />

and innovation environment, and the political and regulatory framework; and<br />

(4) Economic and social impacts accruing from ICT, and according to the<br />

International Telecommunication Union, the Netherlands ranks 7th among<br />

the world’s most advanced ICT economies, above countries such as Japan and<br />

the U.K. ITU’s ICT Development Index ranks 166 countries according to their<br />

level of ICT access, use and skills.<br />

42 HOLLAND DIGITAL GATEWAY


HOLLAND DIGITAL GATEWAY 43


Leading the field<br />

in broadband<br />

Number of broadband connections (2013)<br />

Switzerland<br />

44.9<br />

Netherlands<br />

Denmark<br />

40.4<br />

35.640.0<br />

France<br />

Korea<br />

Norway<br />

32.8<br />

33.5<br />

33.9<br />

37.0<br />

37.6<br />

37.5<br />

Iceland<br />

United Kingdom<br />

Germany 30.4<br />

31.9<br />

32.4<br />

35.2<br />

34.8<br />

35.8<br />

Belgium 30.3<br />

34.4<br />

Measured per 100 inhabitants.<br />

Source: OECD, 2015.<br />

28 29 30 32 33 34 35 36 37 38 39 40 41 42 43 44<br />

In December 2013, the Netherlands had the second-highest number of<br />

broadband connections per 100 inhabitants in the world. Almost<br />

every household in the Netherlands can be reached by a cable or<br />

DSL connection. With the world’s largest digital data distributor, the<br />

Amsterdam Internet Exchange (AMS-IX), the Netherlands also has an<br />

outstanding data connection network, which is essential for businesses<br />

such as banks, insurers, internet-based companies and computer and<br />

advertising companies.<br />

44 HOLLAND DIGITAL GATEWAY


Source: Netherlands Enterprise Agency<br />

45


Source: Netherlands Enterprise Agency


5. Top Sectors in<br />

Focus<br />

In its economic policy, the Dutch government is<br />

focussing on nine business sectors that are key<br />

to <strong>Holland</strong>’s international trade and investment.<br />

These are sectors that are leading the way in<br />

innovation and sustainability, collaborating<br />

with <strong>Holland</strong>’s knowledge institutes on worldclass<br />

research and development. Expertise and<br />

products from these Dutch sectors is on demand<br />

around the world. Together, these sectors are<br />

the drivers of the Dutch economy.<br />

47


Source: Netherlands Enterprise Agency


Agriculture & Food<br />

Sector<br />

World-leading supplier of agri-food products<br />

• <strong>Holland</strong> is the world’s 2nd largest exporter of agricultural<br />

products, after the USA. Together with the USA and Spain, <strong>Holland</strong><br />

is one of the top 3 exporters of vegetables and fruit.<br />

• The total value of Dutch agricultural exports was 80.7 billion euros<br />

in 2014.<br />

• In 2012 the Dutch agri-food industry contributed 48.7 billion euros<br />

of added value to Dutch GDP.<br />

• The Netherlands is the largest exporter of tomatoes and potatoes<br />

in the world. In 2013 the Dutch agrifood sector exported tomatoes<br />

to the value of about 1.8 billion US dollars.<br />

• Four out of the world’s top-30 food and beverage companies<br />

WORDT Three out of the world’s top-25 food and beverage<br />

companies.<br />

• The Food Valley region, centred at Wageningen University and<br />

Research Center, is one of the most authoritative agri-food and<br />

nutrition research centres in Europe. Wageningen University<br />

occupies the first place in the European ranking, and the second<br />

place worldwide in the QS World University Rankings by Subject<br />

2014, in the category Agriculture & Forestry.<br />

• NIZO food research owns the largest food testing pilot plant in<br />

Europe and is open to the entire food and ingredient industry.<br />

• <strong>Holland</strong> is one of the world’s leading developers and<br />

manufacturers of food processing machinery. Dutch industry<br />

produces 80% of the world’s capacity of poultry processing<br />

machinery, and a substantial amount of cheese production<br />

machinery.<br />

• Dutch agricultural entrepreneurs use efficient and sustainable<br />

production systems and processes, resulting in a productivity that<br />

is five times higher than the European average.<br />

• Amsterdam is the largest cocoa port in the world.<br />

TOP SECTORS IN FOCUS 49


Source: Green Chemistry Campus


Chemical Sector<br />

Chemical portal to Europe<br />

• The chemical industry is one of the leading business sectors in the<br />

Netherlands, making a significant contribution to the economy. In<br />

2013, the turnover was 57 billion euros.<br />

• The Netherlands is the world’s 5th ranking chemical exporting<br />

country. In 2013, Dutch chemical exports were valued at some<br />

75 billion euros.<br />

• <strong>Holland</strong> is one of Europe’s leading suppliers of chemical products<br />

and services.<br />

• The competitiveness of the Dutch chemical industry lies in its<br />

internal and inter-company integration. Chemical companies work<br />

together on innovation and production, and take advantage of<br />

regional clustering.<br />

• The Netherlands hosts 16 of the world’s top 25 leading chemical<br />

companies, including BASF, AkzoNobel and Shell.<br />

• <strong>Holland</strong> is also home to world-class R&D institutes for<br />

fundamental and applied research such as TNO, Delft University,<br />

Twente University, Wageningen University and Eindhoven<br />

University.<br />

• Within the strong chemical community, the Dutch have formalized<br />

and structured the approach to co-operation. This is done with<br />

formal, long-term public-private partnerships (such as BE-Basic,<br />

the Institute for Sustainable Process Technology and the Dutch<br />

Polymer Institute) as well as through ‘open innovation’ in so called<br />

Centres for Open Chemical Innovation (COCI). The five COCIs are<br />

Chemelot; the Green Chemistry Campus; Plant One; Biotech<br />

Campus; and Green Polymer Application Valley.<br />

• In the area of advanced materials (polymers, composites, etc), the<br />

Netherlands consistently punches above its weight, producing<br />

world-renowned innovations in materials such as Twaron,<br />

Dyneema and Glare, as well as the folding tires for the automotive<br />

industry.<br />

TOP SECTORS IN FOCUS 51


Source: Netherlands Enterprise Agency


Creative Industries<br />

Masters in architecture, design, fashion and gaming<br />

• <strong>Holland</strong>’s creative industry ranks among the world’s top 10 in<br />

terms of trade figures, jobs and registrations of brands and<br />

patterns.<br />

• The annual turnover of Dutch creative industries is 32.8 billion<br />

euros.<br />

• Dutch architects are commissioned to design prestigious<br />

buildings around the world such as the Mercedes Benz Museum<br />

in Stuttgart, the CCTV Headquarters in Beijing and Battery Park in<br />

New York. Renowned Dutch architects/agencies include Rem<br />

Koolhaas (OMA), Francine Houben (Mecanoo), Ben van Berkel and<br />

Caroline Bos (UNStudio).<br />

• <strong>Holland</strong> has a long tradition of interior design, epitomized by<br />

Rietveld’s furniture designs. Marcel Wanders is currently one the<br />

world’s best known furniture designers.<br />

• Dutch fashion designers with international acclaim Viktor & Rolf,<br />

Spijkers and Spijkers, Iris van Herpen, Jan Taminiau and Marlies<br />

Dekkers. World-famous Dutch fashion brands include G-Star,<br />

Sandwich, Gsus and Supertrash.<br />

• <strong>Holland</strong> is the world’s 3rd largest exporter of television formats. TV<br />

producers such as John de Mol, Endemol and Eyeworks are the<br />

creative engine behind some of the world’s most popular TV<br />

shows, such as The Voice, Big Brother, Deal or No Deal, Obese and<br />

So You Wannabe a Popstar.<br />

• The Netherlands is a world-leading developer of computer games<br />

including serious games such as VStep’s Ship Simulator. Famous<br />

Dutch leisure games include Killzone and Age of Wonders.<br />

• The Netherlands is a pioneer in the area of dance music and large<br />

dance events such as Sensation. Dutch DJ Hardwell was voted<br />

world’s best DJ 2013 and 2014, and prior to that DJ Armin van<br />

Buuren was voted the world’s best DJ for five years.<br />

TOP SECTORS IN FOCUS 53


Source: Netherlands Enterprise Agency


Energy Sector<br />

Innovative, sustainable energy solutions<br />

• The Netherlands is a major natural gas producer and the source of<br />

advanced gas technology. Besides it is also Europe’s leading gas<br />

broker and a strategic gas hub. The country produced 84.9 billion<br />

cubic metres (bcm) in 2013; gas exports amounted to 67.3 bcm.<br />

• The distribution network for gas is the densest in Europe and of a<br />

very high standard.<br />

• The Dutch have unmatched capacity to cope with seasonal<br />

fluctuations in gas demand, providing north-western Europe with<br />

much-needed flexibility.<br />

• <strong>Holland</strong> has an international reputation for research in renewable<br />

energy, for instance in the field of solar energy, with institutes<br />

such as FOM and ECN, as well as various universities. The Dutch<br />

team from Delft University of Technology has won the World Solar<br />

Challenge, the biennial competition for solar cars, in 2001, 2003,<br />

2005, 2007 and 2013.<br />

• The Dutch have leading expertise in offshore wind energy,<br />

co-combustion of biomass in coal-fired power plants, pretreatment<br />

methods of biomass, the use of landfill gas, and the use<br />

of heat pumps combined with heat and cold storage.<br />

• There is extensive experience in the field of energy efficiency due<br />

to a long tradition of multi-annual voluntary agreements on<br />

energy efficiency between Dutch industry and the government.<br />

This has made Dutch industry one of the most energy efficient in<br />

the world.<br />

• 7.5 million tons of municipal waste is converted in 13 efficient and<br />

clean waste incinerators to power, heat and reusable resources<br />

from the ashes.<br />

• The Netherlands is establishing itself as leader in green gas.<br />

‘Green gas’ technology, the gasification of biomass, has been<br />

patented by Dutch energy company ECN.<br />

• The Netherlands plays a key role as a major oil-refining centre in<br />

Europe, with an extensive supply network of ports, storage<br />

facilities and pipeline connections playing a critical role for oil<br />

supplies to the continent.<br />

TOP SECTORS IN FOCUS 55


Source: Netherlands Enterprise Agency


High Tech Sector<br />

New technologies for health, mobility, energy and security<br />

• <strong>Holland</strong>’s high-tech sector is a world leader in the development of<br />

new technologies and materials for use in communication<br />

systems, aircraft and automobiles, medical devices, energy<br />

generation and semiconductor production.<br />

• Dutch companies invented WiFi, the CD and the DVD. Bluetooth<br />

was invented by Dutchman Jaap Haartsen. And high-tech<br />

equipment from Dutch companies are used in 90% of all silicon<br />

chips produced worldwide.<br />

• The Netherlands is strong in nanotechnology research. Dutch<br />

publications in nanotechnology are the most frequently cited by<br />

patents, compared to all other countries in the world. The country<br />

ranks 3rd in citation impact.<br />

• The Netherlands is also world leader in designing, developing and<br />

making high-tech equipment and micro/nano components.<br />

Characteristic features of this equipment are: highly intelligent<br />

(embedded systems, software, sensors); very precise (nanoelectronics,<br />

high precision manufacturing), and highly efficient<br />

(mechatronics and smart electronics)<br />

• Dutch multinational ASML is the world’s leading provider of<br />

lithography machines for the semiconductor industry.<br />

• In 2012 the export value from the HTSM sector was 45 billion<br />

euros, and the added value 42 billion euros.<br />

• The Netherlands has a world-leading position in the design and<br />

manufacture of milking robots.<br />

• In 2014, Tech United, a team from the Technical University<br />

Eindhoven (TU/e), became World Champion Robot Soccer for the<br />

second time at the RoboCup 2014 in Brazil.<br />

TOP SECTORS IN FOCUS 57


Source: Netherlands Enterprise Agency


Horticulture Sector<br />

World’s leading supplier of flowers, plants and trees<br />

• The Dutch horticulture sector is a global trendsetter and the<br />

undisputed international market leader in flowers, plants, bulbs<br />

and propagation material.<br />

• A quarter of the world trade in horticultural products (24%) is in<br />

Dutch hands. <strong>Holland</strong> has a 52% share of the worldwide trade in<br />

floricultural products, making it the dominant global supplier of<br />

flowers and flower products. Some 80% of all flower bulbs traded<br />

worldwide come from the Netherlands, the majority of which are<br />

tulips.<br />

• The sector is the number 3 exporter in nutritional horticulture<br />

products.<br />

• Dutch horticultural innovations include intelligent greenhouses<br />

that can float on water, moving platforms, robots, innovative<br />

lighting, water and waste recycling, and greenhouses that<br />

generate more energy than they consume and thus contribute to<br />

a reduction in CO2.<br />

• Of the approximately 1,800 new plant varieties that enter the<br />

European market each year, 65% originate in the Netherlands. In<br />

addition, Dutch breeders account for more than 35% of all<br />

applications for community plant variety rights.<br />

• The Dutch are the world’s largest exporter of seeds: the exports of<br />

seeds amounted to 1.6 billion dollars in 2014.<br />

• In 2014 the Netherlands was the world’s second largest exporter<br />

(in value) of fresh vegetables. The Netherlands exported<br />

vegetables with a market value of 7.8 billion US dollars.<br />

TOP SECTORS IN FOCUS 59


Source: Enraf-Nonius


Life Sciences and Health<br />

Sector<br />

Helping to advance health worldwide<br />

• The Netherlands ranks 4th worldwide in patent applications for<br />

medical technology and 9th in patent applications for<br />

biotechnology..<br />

• With approximately 375 innovative life sciences companies<br />

clustered within a 120 mile radius, <strong>Holland</strong> is the most<br />

geographically concentrated region in the world when it comes to<br />

creating economic and social value in Life Sciences and Health.<br />

• Expertise in healthcare infrastructure is characterised by a<br />

turn-key plus approach: Dutch companies are able to cover all<br />

aspects from hospital design & engineering, financing, waste<br />

management, medical equipment etc. while paying special<br />

attention paid to energy efficiency and ‘healing environments’.<br />

• In 2011, Brainport Eindhoven’s Brainport region was named the<br />

world’s most intelligent ICT and health cluster.<br />

• The excellent medical research infrastructure is strongly focused<br />

on translational research in the different medical fields such<br />

oncology, cardiovascular, immunology and neuroscience.<br />

• The Netherlands is a global market leader in mobile health care,<br />

which enables the Dutch to contribute to rural health care in<br />

developing countries around the globe.<br />

• The industry annually exports around 37 billion euros in total of<br />

which 25 billion euros is pharmaceutical and the rest medical<br />

technology and medical and laboratory instruments.<br />

• The sector invests over 2 billion euros in R&D in the Netherlands<br />

each year and is becoming a globally recognized stronghold of<br />

open innovation. It already accounts for 2.5% of GDP.<br />

• Philips is the world leader in medical imaging and patient<br />

monitoring; DSM is a biomaterials leader.<br />

• The Dutch public-private partnership model, such as the<br />

Netherlands Genomics Initiative (NGI) and the three top institutes<br />

(TI Pharma, CTMM and BMM), have set an international standard.<br />

TOP SECTORS IN FOCUS 61


Source: Netherlands Enterprise Agency


Logistics Sector<br />

Strategic gateway to Europe and the world<br />

• The Netherlands was ranked 2nd in the 2014 World Bank global<br />

Logistics Performance Index (based on terms of efficiency and<br />

effectiveness of its customs, quality of transport, IT infrastructure<br />

for logistics and ease and affordability of shipping).<br />

• The Port of Rotterdam is the world’s 8th-largest and Europe’s<br />

largest port with a throughput of 445 million tons in 2014. From<br />

the Port of Rotterdam, all major industrial and economic centres<br />

in Western Europe can be reached in less than 24 hours.<br />

• In 2013, Schiphol won the ‘ACI EUROPE Best Airport’ award for the<br />

fourth time. Amsterdam Schiphol Airport won two awards at the<br />

2012 Asian Freight & Supply Chain Awards: Best Airport in Europe<br />

and the Best Air Cargo Terminal in Europe. At the 2014 World<br />

Airport Awards air travellers voted Amsterdam Airport Schiphol<br />

the Best Airport in Western Europe.<br />

• According to the World Economic Forum, the quality of the Dutch<br />

infrastructure is among the best in the world, reflecting excellent<br />

facilities for maritime, air, road and railroad transport, ranked 1st,<br />

4th, 5th and 9th, respectively in 2014. IMD Business School ranked<br />

the Netherlands first worldwide in 2014 with regards to the quality<br />

of its water transport infrastructure.<br />

• Dutch inland shipping accounts for 54% of all trade shipping in<br />

Western Europe. The Dutch fleet is, with 7,000 vessels, the biggest<br />

and most modern in Europe. 79% of all containers transported via<br />

inland navigation in the EU-28 countries passes through Dutch<br />

territory.<br />

• Over 1,000 American and Asian companies have centralised their<br />

European distribution activities in the Netherlands. The country<br />

hosts over 20 million square metres of distribution centres.<br />

• The Netherlands has the third cooling and freezing storage<br />

capacity in the EU.<br />

TOP SECTORS IN FOCUS 63


Source: Netherlands Enterprise Agency


Water Sector<br />

World leaders in hydraulic engineering, water treatment and<br />

shipbuilding<br />

• The Dutch are renowned for their integrated water management<br />

and multi-disciplinary approach that balances social, economic,<br />

environmental and engineering needs (‘Building with Nature’).<br />

Dutch companies are involved in the sustainable development of<br />

low-lying urban agglomerations such as Jakarta and Bangladesh,<br />

and coastal development in areas such as Dubai, Vietnam and<br />

Romania.<br />

• 40% of the freely accessible market for water management is in<br />

Dutch hands.<br />

• The Dutch Delta Works are listed in the Guinness Book of Records<br />

as the largest flood defence project in the world. With almost<br />

16,500 kilometres of dykes and 300 structures, the project is one<br />

of the most extensive engineering projects in the world. The<br />

Oosterscheldedam is the largest single tidal barrier in the world,<br />

at 9km in length.<br />

• The Dutch invest heavily in innovation and R&D through publicprivate<br />

partnerships. These include renowned institutes such as<br />

Deltares, MARIN, Wetsus and KWR Watercycle Research Institute.<br />

TNO and large Dutch private firms are also recognised for their<br />

water R&D.<br />

• In the field of water technology and maritime technology, the<br />

Netherlands ranks 8th worldwide for global patents.<br />

• The Dutch began using innovative waste water treatment<br />

techniques in the 1970s. Some 99.9% of Dutch households have<br />

access to clean, entirely chlorine-free drinking water. Additionally,<br />

the level of recycling of industrial waste water is high, and this<br />

recycled water is of such high quality that it can be used in the<br />

food and beverage industries.<br />

• The Dutch maritime cluster comprises 12 sub sectors and 12,000<br />

companies, which employ 224,000 employees. The cluster has a<br />

strong international focus: 60% of the seagoing ships produced in<br />

the Netherlands are destined for export.<br />

TOP SECTORS IN FOCUS 65


Source: Netherlands Enterprise Agency


6. Human Capital<br />

and Innovation<br />

Dutch products are ‘typically’ highly<br />

innovative. The Netherlands provides<br />

solutions to keep rising water levels in check,<br />

create islands in the sea and make waterways<br />

navigable. Apart from solutions for use in the<br />

natural environment, the Dutch also have the<br />

knowledge and the skills to develop products<br />

such as navigation systems with worldwide<br />

appeal (TomTom). This capacity to innovate is<br />

evidenced by the large number of patents that<br />

are applied for every year, and by the presence<br />

of several world-renowned knowledge and<br />

research institutes in the Netherlands.<br />

67


Well-educated<br />

working population<br />

Education level: upper secondary education (2012)<br />

United States 89<br />

Sweden 88<br />

Switzerland 86<br />

Germany 86<br />

Finland 85<br />

Austria 83<br />

United Kingdom 78<br />

Denmark 78<br />

Ireland 73<br />

Netherlands 73<br />

Measured as percentage of population (25-64 years old)<br />

that has attained upper secondary education.<br />

0Source: 10OECD, 20<br />

2014.<br />

30 40 50 60 70 80 90<br />

The internationally-oriented working population of the Netherlands is well<br />

educated, with many people able to speak more than one foreign language<br />

(European Commission, 2012). According to the EF English Proficiency<br />

Index, the Netherlands ranks third out of 54 countries. In addition to<br />

English, and in comparison with neighbouring countries, a good proportion<br />

of the population also speak German and French. According to the<br />

European Commission, the Netherlands has a world-class vocational<br />

education and training (VET) system, with built-in mechanisms to adapt to<br />

current and future skills needs so that training is more demand-driven.<br />

Furthermore, compared to many other EU member states, life-long learning<br />

is commonplace in the Netherlands: adults regularly engage in further<br />

education in order to continually improve their skills and knowledge levels.<br />

68 Human capital and innovation


Dutch schoolchildren<br />

are second in the EU<br />

PISA Score<br />

Singapore<br />

Hong Kong,<br />

China<br />

South Korea<br />

Japan<br />

540<br />

543<br />

555<br />

554<br />

Taiwan<br />

535<br />

Finland<br />

529<br />

Canada<br />

Netherlands<br />

Switzerland<br />

519<br />

518<br />

522<br />

Germany<br />

515<br />

Measured as PISA scores (points). OECD average = 500.<br />

Source: OECD, 2013<br />

500 510 520 530 540 550<br />

Dutch schoolchildren achieve good scores in the OECD Programme for<br />

International Student Assessment (PISA): fifth place within the OECD and<br />

second in the EU. The PISA survey is conducted every three years among<br />

500,000 school pupils across 70 countries, and evaluates the capacity of<br />

15-year-old schoolchildren to understand and solve academic problems.<br />

Moreover, according to the OECD the Dutch labour force is well equipped<br />

for the dynamic, fast changing IT-society of the 21e century. In comparison<br />

to other OECD countries, Dutch employees have leading positions in<br />

literacy proficiency, numeracy proficiency and proficiency in problem<br />

solving in technology-rich environments.<br />

Human capital and innovation 69


Fourth most prosperous<br />

country<br />

Human Development Index (2014)<br />

Norway<br />

0.9440.971<br />

Australia<br />

0.933<br />

Switzerland<br />

Netherlands<br />

0.917<br />

0.915<br />

United States<br />

Germany<br />

0.911<br />

0.914<br />

New Zealand<br />

Canada<br />

Singapore<br />

Denmark<br />

0.910<br />

0.902<br />

0.901<br />

0.900<br />

0.963<br />

Source: United Nations Development Programme, 2014.<br />

,58 ,69 ,60 ,61 ,62 ,63 ,64 ,65 ,66 ,67 ,68 ,69 ,70 ,71<br />

According to the UNDP, the Netherlands ranks 4th place worldwide with<br />

regard to prosperity. In determining ‘prosperity’, the UNDP takes into<br />

account a country’s GDP as well as other aspects of human well-being,<br />

such as life expectancy, public health, literacy levels and educational<br />

standards. Of the 186 countries listed in the UNDP index, the Netherlands<br />

ranks 4th.<br />

70 Human capital and innovation


Entrepreneurs create<br />

dynamism<br />

Number of entrepreneurs (2009)<br />

Australia<br />

Canada<br />

12.2<br />

1212.3<br />

14.4<br />

Netherlands<br />

Belgium<br />

EU-27<br />

Ireland<br />

United Kingdom<br />

9.9<br />

9.7<br />

11.611.9<br />

11.411.5<br />

11.311.5<br />

11.4<br />

11.4<br />

Germany<br />

Finland<br />

8.8<br />

8.5 9.3<br />

9.8<br />

United States<br />

6.9<br />

9.3<br />

Measured as a percentage of the working population<br />

Source: Statistics Netherlands, 2012.<br />

The Dutch have always been well known for their entrepreneurial spirit,<br />

which is reflected in the country’s large number of entrepreneurs: 11.9%<br />

of the Dutch working population is self-employed. The Dutch government<br />

promotes start-ups because they create economic vitality and innovation<br />

and because they challenge existing firms, giving them the incentive to<br />

adapt and continue to innovate.<br />

Human capital and innovation 71


Worldwide innovation<br />

index: fifth position<br />

Most innovative countries (2014)<br />

Switzerland 64.8<br />

United Kingdom 62.4<br />

Sweden 62.3<br />

Finland 60.7<br />

Netherlands 60.6<br />

United States 60.1<br />

Singapore 59.2<br />

Denmark 57.5<br />

Luxembourg 56.9<br />

Hong Kong, China<br />

56.8<br />

Source: INSEAD, 2014.<br />

The Netherlands scores<br />

4<br />

well<br />

4,1<br />

on<br />

4,2<br />

the Global<br />

4,3 4,4<br />

Innovation<br />

4,5 4,6<br />

Index<br />

4,7(GII) 4,8<br />

2014.<br />

4,9<br />

The GII ranks 143 countries on parameters such as ‘institutions’, ‘human<br />

capacity’ and ‘business sophistication’, so as to arrive at a global innovation<br />

ranking for each country. The Netherlands scores particularly well on<br />

parameters such as ‘knowledge diffusion’, ‘online creativity‘ and ‘creative<br />

goods and services’.<br />

According to the Innovation Union Scoreboard 2015 (IUS) the Netherlands<br />

ranks fifth in the EU (European Commission/UNU-MERIT, 2015). The IUS<br />

distinguishes between 3 main types of indicators (enablers, firm activities<br />

and outputs) and 8 innovation dimensions (as human resources, research<br />

systems, finance and support, intellectual assets), capturing in total 25<br />

different indicators.<br />

72 Human capital and innovation


Source: Layar


Modest R&D<br />

expenditure<br />

R&D expenditure (2013)<br />

Finland<br />

Sweden<br />

Denmark<br />

Germany<br />

Austria<br />

3.32<br />

3.21<br />

2.73.05<br />

2.94 2.7<br />

2.81 2.6<br />

3.7<br />

United States*<br />

2.0<br />

2.81<br />

Belgium<br />

France<br />

1.8<br />

1.9<br />

2.28<br />

2.23<br />

Netherlands<br />

United Kingdom<br />

1.7<br />

1.8<br />

1.63<br />

1.98<br />

Measured as a percentage of GDP<br />

*= 2012<br />

Source: Eurostat, 2015.<br />

1 1,5 2,0 2,5 3,0 3,5 3,8<br />

At 2.16% of GDP, Research & Development expenditure in the Netherlands<br />

is modest from an international perspective (EU-average was 2.07% in<br />

2012). However, this can partly be explained by the Dutch sector structure<br />

because the services sector, which ‘naturally’ has a low R&D intensity,<br />

accounts for a relatively large share of the Dutch economy. Public-private<br />

partnerships in scientific research are a major factor, and the Netherlands<br />

is ranked sixth worldwide in this area, according to the Netherlands<br />

Observatory of Science and Technology (NOWT) (2008).<br />

74 Human capital and innovation


Home-grown knowledge<br />

multinationals<br />

Top 10 innovative Dutch businesses (2014)<br />

R&D expenditure (millions of euros)<br />

R&D personnel (FTE)<br />

ASML<br />

Philips<br />

799.5<br />

4263<br />

742<br />

4013<br />

Royal DSM<br />

NXP<br />

Semiconductors<br />

249<br />

1384<br />

244.2<br />

1486<br />

Thales<br />

Nederland<br />

DAF Trucks<br />

119<br />

717<br />

107.5<br />

884<br />

VDL Groep<br />

Synthon<br />

Friesland<br />

Campina<br />

Rijk Zwaan<br />

83<br />

69.4<br />

212<br />

66<br />

520<br />

65<br />

466<br />

874<br />

*Calculated by TW.<br />

Source: Technisch Weekblad, 2015.<br />

The Dutch economy has a broad and solid base. Leading multinationals<br />

with worldwide operations such as AkzoNobel, ASML, DAF Trucks,<br />

Heineken, NXP Semiconductors, Philips, Shell and Unilever have their<br />

roots in the Netherlands. Dutch industry includes a large number of<br />

innovative and knowledge-intensive companies that enjoy a sound<br />

reputation the world over and that carry out a great deal of R&D<br />

(including the aforementioned multinationals). In addition, there are also<br />

many other global businesses that conduct R&D activities in the<br />

Netherlands, such as Danone, Dow and Yakult.<br />

Human capital and innovation 75


Large base of knowledge<br />

and research<br />

A selection of knowledge and research institutes (2014)<br />

Budget in millions of euros<br />

Personnel in FTE<br />

TNO<br />

ECN<br />

140<br />

550<br />

626.4<br />

3028<br />

Deltares<br />

FOM<br />

NLR<br />

KNMI<br />

MESA +<br />

MARIN<br />

J.M. Burgercentrum<br />

TI Food and<br />

Nutrition<br />

74<br />

104<br />

102<br />

59.1<br />

347<br />

51<br />

42.7<br />

366<br />

30<br />

60<br />

28<br />

177<br />

578<br />

819<br />

1019<br />

643<br />

Source: Technisch Weekblad Special R&D, april 2015.<br />

0 1000 2000 3000 4000<br />

Dutch universities score quite highly for teaching and research in a<br />

number of international rankings (see: www.vsnu.nl). Wageningen<br />

University (WUR), for example, is a global leader in green biotechnology,<br />

and Leiden University leads the way in the biomedical life sciences (see<br />

box). In addition, the Netherlands is also home to a significant number of<br />

renowned knowledge and research institutes such as ECN and TNO, which<br />

play an important role in the government-initiated public-private<br />

innovation programmes.<br />

76 Human capital and innovation


TNO<br />

Organisation for Applied Scientific Research<br />

ECN<br />

Energy Research Centre of the Netherlands<br />

Deltares Institute for Deltatechnology<br />

FOM<br />

Foundation for the Fundamental Research on Matter<br />

NLR<br />

National Aerospace Laboratory<br />

KNMI Royal Netherlands Meteorological Institute<br />

MESA+ Institute for Nanotechnology<br />

MARIN Research Institute in Hydrodynamics and Nautical Research<br />

J.M. Burgers- Research School for Fluid Mechanics<br />

centrum<br />

TI Food and Public private partnership for interdisciplinary research<br />

Nutrition in food and nutrition<br />

Brainport Eindhoven Region is a top technology breeding ground for<br />

innovation and home to world-class businesses, knowledge institutes and<br />

research institutions. The five key target sectors are High Tech Systems &<br />

Materials, Food, Automotive, Lifetec and Design. Brainport Eindhoven<br />

Region is a powerful innovative player in a European and global context. It<br />

accounts for a third of all Dutch private R&D expenditure, and is one of<br />

Europe’s top three regions in terms of patent density. In 2011 the Intelligent<br />

Community Forum declared Brainport the world’s smartest region. In 2012<br />

Fortune magazine suggested that this region could be the new Silicon<br />

Valley.<br />

Energy Valley is the energy cluster in the north of the Netherlands. The<br />

Energy Valley Region is an incubation zone for clean, reliable and innovative<br />

energy. The region is strategically positioned, centrally in the European gas<br />

and power grid, and directly at the North sea with excellent harbour<br />

facilities for transport of raw materials and offshore wind developments.<br />

Companies, knowledge institutes and governments work closely together<br />

to create a sustainable energy economy and new green jobs. Currently<br />

there are over 3,000 companies en 22,500 employees in the Northern<br />

energy cluster.<br />

Human capital and innovation 77


Dutch scientists<br />

frequently cited<br />

Citation impact (2009-2012)<br />

Denmark 1.63<br />

Netherlands 1.6<br />

Switzerland 1.56<br />

United Kingdom<br />

United States<br />

1.49<br />

1.5<br />

Ireland 1.44<br />

Finland 1.44<br />

Norway 1.42<br />

Sweden<br />

Belgium<br />

1.37<br />

1.37<br />

Source: WTI 2 , 2015, data processing: Netherlands Enterprise Agency, 2015.<br />

1,40 1,42 1,44 1,46 1,48 1,50 1,52 1,54 1,56 1,58 1,60 1,62 1,64<br />

The citation impact score is a key indicator of scientific quality.<br />

The score refers to the number of times a scientist is cited by other<br />

scientists. These citations indicate how much they value each other’s<br />

work. The global average citation impact score is ‘1’. Dutch scientists<br />

are cited above the global average and claim third place in the world.<br />

Furthermore, Dutch scientists score highly for joint publications, which is<br />

evidence of the international significance of research taking place in the<br />

Netherlands.<br />

78 Human capital and innovation


Refreshing business<br />

approach<br />

Number of PCT-patent applications (2013)<br />

United States 57,239<br />

Japan 43,918<br />

China 21,516<br />

Germany 17,927<br />

South Korea 12,386<br />

France 7,899<br />

United Kingdom 4,865<br />

Switzerland 4,367<br />

Netherlands 4,198<br />

Sweden<br />

3,960<br />

Source: World Intellectual Property Organisation, 2014.<br />

75 85 95 105 115 125 135 145 155 165 175 185 195 205 210213<br />

PCT (Patent Cooperation Treaty)-patents are patent applications that are<br />

registered with the World Intellectual Property Organisation (WIPO). The<br />

Netherlands is well represented in this area and is ranked ninth in the<br />

world (fourth in the EU). Patents are in many cases the result of R&D<br />

activities which, if successful, can lead to greater labour productivity and<br />

an advantage over foreign competitors. This high score means that Dutch<br />

industry is an attractive potential partner - one that is innovative, inviting<br />

and stimulating.<br />

Human capital and innovation 79


Source: Amsterdam Airport Schiphol


7. Infrastructure<br />

The Netherlands has a number of key logistics<br />

hubs such as the Port of Rotterdam and Schiphol<br />

Airport, as well as a high penetration of broadband<br />

Internet. This provides the country with a sound<br />

physical infrastructure and consequently enables<br />

it to be a top performer in terms of logistics.<br />

81


Navigable inland<br />

waterways<br />

Quality of water transportation (2014)<br />

Netherlands 9.60<br />

Finland 9.10<br />

Iceland 8.98<br />

Denmark 8.97<br />

Germany 8.79<br />

Hong Kong, China 8.72<br />

Singapore 8.72<br />

Sweden 8.62<br />

Canada 8.53<br />

United States 8.37<br />

Harbours, canals, locks, etc.<br />

Source: IMD, 2014.<br />

0 2 4 6 8 9,6<br />

The Netherlands has a good physical infrastructure, with the world-class<br />

(main)ports and the navigable inland waterway system being prime<br />

examples. The extensive network of inland waterways has excellent<br />

connections to the waterways in the rest of Europe. The Netherlands has<br />

the best water transport infrastructure in the world. The country also has<br />

an extensive road transport network and is second in the world as regards<br />

road network density (IMD, 2014). According to IMD (2014), the Dutch<br />

energy infrastructure also scores well, taking second place overall.<br />

82 Infrastructure


Strong in<br />

logistics<br />

Logistics performance index (2014)<br />

Germany 4.12<br />

Netherlands 4.05<br />

Belgium 4.04<br />

United Kingdom 4.01<br />

Singapore 4.00<br />

Sweden 3.96<br />

Norway<br />

3.96<br />

Luxembourg 3.95<br />

United States 3.92<br />

Japan 3.91<br />

Source: World Bank, 2014.<br />

3,8 3,9 4,0 4,1<br />

4,2<br />

The Netherlands’ strong position in terms of logistics is due to the<br />

favourable geographic location of the country, at the heart of Europe;<br />

a sound infrastructure that includes the Port of Rotterdam, the Port of<br />

Amsterdam, Amsterdam Airport Schiphol; and a sophisticated logistics<br />

sector. This is reflected in the World Bank Logistics Performance Index<br />

2014, where the Netherlands is ranked second. The Netherlands came out<br />

on top in terms of the efficiency and effectiveness of its Customs and<br />

other border procedures, the quality of its transport and IT infrastructure<br />

for logistics, the ease of use and affordability of its shipping, and the level<br />

of professionalism in the Dutch logistics industry.<br />

Infrastructure 83


Third-largest airport<br />

in Europe<br />

European airport traffic and transport (2013)<br />

Cargo transport x1,000 tonnes<br />

Passenger transport x1,000 passengers<br />

Frankfurt am Main<br />

Germany<br />

Paris Charles de Gaulle<br />

France<br />

Amsterdam Airport Schiphol<br />

Netherlands<br />

2,016<br />

57,896<br />

1,877<br />

61,985<br />

1,531<br />

52,528<br />

London Heathrow<br />

United Kingdom<br />

1,423<br />

Source: Schiphol Group, 2014.<br />

72,3333<br />

In 2013, Amsterdam Airport Schiphol was Europe’s fourth-largest airport<br />

in terms of passenger numbers and third in cargo volumes, welcoming<br />

52.6 million passengers and processing 1.5 million tonnes of cargo. A<br />

total of 99 airlines offer direct flights from Schiphol to 323 destinations.<br />

This makes Amsterdam Airport Schiphol one of the four most important<br />

Main Ports (or hubs) in Europe. It is also one of the two European home<br />

bases of Air France-KLM and the SkyTeam alliance. In addition, Schiphol<br />

is an important contributor to the regional economy, providing direct<br />

employment for around 65,000 people at the airport. The contribution to<br />

the national economy amounts to around 26 billion euros, and a total of<br />

290,000 jobs nationwide. Schiphol is also renowned for its inspiring<br />

facilities for passengers and innovative technical solutions such as the<br />

extensive baggage handling system. The airport has won over 200<br />

national and international awards since 1980.<br />

84 Infrastructure


Largest port<br />

in Europe<br />

Trans-shipment of goods (2013)<br />

9,743<br />

Trans-shipment (in millions of tonnes)<br />

Containers (in millions of TEU)<br />

Netherlands<br />

Rotterdam<br />

440.5<br />

11.6<br />

Belgium<br />

Antwerp<br />

183.8<br />

8.6<br />

Germany<br />

Hamburg<br />

132.2<br />

Source: Port of Rotterdam, 2014.<br />

9.3<br />

The port of Rotterdam is the largest port in Europe. The trans-shipment<br />

in Rotterdam added up to 440.5 million tons in 2013. The number of<br />

containers handled remained at 11.6 million TEUs in 2013.<br />

Business often choose to locate in and around the Port of Rotterdam<br />

because of its strategic location in north-west Europe, its depth, the<br />

many port facilities, and its excellent links with the hinterland. Many<br />

companies from America and Asia use Rotterdam as their base for the<br />

distribution of goods throughout Europe. Work on the ‘Maasvlakte 2’<br />

project is currently on-going. This historic land reclamation project will<br />

expand the area of the Port of Rotterdam. The first phase will be<br />

completed in 2014, which is when the first containers will cross the quay.<br />

The combined activities of the port account for about 5% of GDP. More<br />

than 90,000 people work directly for the port of Rotterdam.<br />

Infrastructure 85


Source: Hans Kouwenhoven


8. Government<br />

The complex of buildings known as the ‘Binnenhof’<br />

[‘Inner Court’] in The Hague is the seat of the Dutch<br />

government, which enjoys a good international<br />

reputation and functions effectively.<br />

The Netherlands is one of the most stable nations<br />

in the world with a competitive fiscal climate.<br />

Besides, government finances are relatively healthy.<br />

87


Effective<br />

government<br />

Government effectiveness (2013)<br />

Finland 2.2<br />

Singapore 2.1<br />

Denmark 2.0<br />

Norway 1.9<br />

Switzerland 1.9<br />

Canada 1.8<br />

Netherlands 1.8<br />

Sweden 1.8<br />

Liechtenstein 1.7<br />

New Zealand<br />

1.7<br />

Source: World Bank, 2015.<br />

75 85 90 1 2 3 4 5 6 7 8 9 100 1 2 213<br />

According to the World Bank, the government of the Netherlands is<br />

one of the most effective in the world, thus making it easier for<br />

companies to make medium and long-term decisions.<br />

The figures for government effectiveness capture the perceptions of the<br />

quality of public services; the quality of the civil service and the degree<br />

of its independence from political pressures; the quality of policy<br />

formulation and implementation; and the credibility of the<br />

government’s commitment to such policies.<br />

88 Government


One of the least<br />

corrupt countries<br />

Corruption perception index (2014)<br />

Denmark<br />

New Zealand<br />

Finland<br />

Sweden<br />

Norway<br />

Switzerland<br />

Singapore<br />

Netherlands<br />

Luxembourg<br />

Canada<br />

9.4 92.0<br />

9.391.0<br />

9.289.0<br />

9.2 87.0<br />

9.086.0<br />

8.986.0<br />

8.9 84.0<br />

8,783.0<br />

8.7 82.0<br />

8.7 81.0<br />

Source: Transparency International, 2014.<br />

0 10 20 30 40 50 60 70 80 90<br />

According to the Transparency International Corruption Perception Index,<br />

levels of corruption and nepotism in the Netherlands are among the<br />

lowest anywhere in the world. Among the aspects of corruption that were<br />

examined were the degree to which people in authority - such as Customs<br />

officers, police officers, politicians, judges and other officials – misuse<br />

their position for personal gain (financial or otherwise). IMD (2014) also<br />

concludes that bribery and corruption are rare in the Netherlands: the<br />

country ranks sixth worldwide.<br />

Government 89


Moderate level of<br />

government debt<br />

National debt as a percentage of GDP (2013)<br />

Luxembourg<br />

23.1<br />

Sweden<br />

Denmark<br />

40.6<br />

44.5<br />

Finland<br />

57<br />

Netherlands<br />

Austria<br />

Germany<br />

73.5<br />

74.5<br />

78.4<br />

United Kingdom<br />

Euro area<br />

France<br />

90.6<br />

92.6<br />

93.5<br />

Source: Eurostat, 2014.<br />

0 10 20 30 40 50 60 70 80 90<br />

The Netherlands was able to dramatically reduce its level of government<br />

debt in the years preceding the global economic crisis thanks to a stable<br />

economy and a reasonably stringent fiscal policy. In 2008, there was even a<br />

budget surplus for the third consecutive year. In 2014, Dutch government<br />

debt as a percentage of GDP was higher than the EMU standard of 60%<br />

(69.0%), but it was still well below the average for the Euro zone (90.9%).<br />

According to the CPB – Netherlands Bureau for Economic Policy Analysis –<br />

the budget deficit will amount to 1.8% of GDP in 2015 and 1.2% in 2016. The<br />

government debt will amount to 68.8% of GDP in 2015 (EMU-definition)<br />

and 67.8% in 2016 (CPB, March 2015).<br />

90 Government


Competitive<br />

taxation climate<br />

Corporate tax rate on profit 2014 (%)<br />

Ireland 12.5<br />

Finland 20.0<br />

Switzerland 21.2<br />

Sweden 22.0<br />

United Kingdom 23.0<br />

Denmark 24.5<br />

Austria 25.0<br />

Netherlands 25.0<br />

Luxembourg 29.2<br />

Germany 30.2<br />

Source: IMD, 2014.<br />

0 10 20 30 40 50 60 70 79<br />

The corporate income tax rate is 20% on the first 200,000 euros and 25% for<br />

taxable profits exceeding 200,000 euros which is well below the EU<br />

national average. Furthermore, companies can benefit from an effective<br />

tax rate of only 5% for R&D income from self-developed, patented,<br />

intangible assets and also from self-developed, unpatented, intangible<br />

assets which qualify for the WBSO subsidy. Other features of the Dutch tax<br />

system include a wide tax treaty network - the participation exemption -<br />

which states that all benefits related to a qualifying shareholding are<br />

exempt from Dutch corporate income tax, and, finally, a 30% tax-break for<br />

highly qualified foreign employees.<br />

Government 91


Explanatory notes regarding this publication<br />

This publication is intended to provide a concise and representative<br />

picture of the state of the Dutch economy. Every attempt has been<br />

made to carefully and judiciously select indicators from internationally<br />

renowned and reliable sources. In the case of most of the indicators,<br />

the Dutch economy has been compared with surrounding countries and<br />

the United States, many of which are similar in terms of their economic<br />

structures. Comparisons have also been made in a number of cases<br />

with other countries, such as with various worldwide rankings.<br />

92


Sources<br />

Amsterdam Airport Schiphol<br />

www.schipholgroup.nl<br />

The Conference Board<br />

www.conference-board.org<br />

Economist Intelligence Unit<br />

www.eiu.com<br />

European Commission<br />

www.ec.europa.eu<br />

Eurostat<br />

www.epp.eurostat.ec.europa.eu<br />

IMD<br />

www.imd.ch<br />

IMF<br />

www.imf.org<br />

INSEAD<br />

www.globalinnovationindex.org<br />

Ministry of Foreign Affairs<br />

www.government.nl/ministries/bz<br />

Netherlands Bureau for<br />

Economic Policy Analysis<br />

www.cpb.nl<br />

The Netherlands Observatory<br />

of Science and Technology<br />

www.nowt.nl<br />

The Netherlands Organisation<br />

for Applied Scientific Research<br />

www.tno.nl<br />

OECD<br />

www.oecd.org<br />

Port of Rotterdam Authority<br />

www.portofrotterdam.com<br />

Social and Cultural Planning<br />

Office of the Netherlands<br />

www.scp.nl<br />

Statistics Netherlands<br />

www.cbs.nl<br />

Technisch Weekblad<br />

www.technischweekblad.nl<br />

Transparency International<br />

www.transparency.org<br />

UNCTAD<br />

www.unctad.org<br />

United Nations<br />

http://comtrade.un.org/<br />

United Nations Development<br />

Programme<br />

www.hdr.undp.org<br />

World Bank<br />

www.worldbank.org<br />

World Economic Forum<br />

www.weforum.org<br />

World Trade Organization<br />

www.wto.org<br />

93


Other sources of information<br />

More detailed information is available on the websites below,<br />

almost all of which include sections in English.<br />

Information regarding innovation<br />

Benelux Office for<br />

Intellectual Property<br />

www.boip.int<br />

Statistics Netherlands<br />

www.cbs.nl<br />

Ministry of Economic Affairs<br />

www.government.nl/ministries/ez<br />

Netherlands Patent Office<br />

www.agentschapnl.nl/<br />

octrooicentrum<br />

Netherlands Enterprise Agency<br />

www.rvo.nl/innovatie<br />

Trendwatchers for<br />

Innovation and Technology<br />

www.rvo.nl/en/nost<br />

Information regarding the labour market and higher education<br />

http://www.studyinholland.nl/<br />

Statistics Netherlands<br />

www.cbs.nl<br />

Netherlands Bureau for<br />

Economic Policy Analysis<br />

www.cpb.nl<br />

Association of Universities<br />

in the Netherlands<br />

www.vsnu.nl<br />

Netherlands Organization<br />

for International Cooperation<br />

in Higher Education<br />

www.nuffic.nl<br />

Ministry of Social Affairs<br />

and Employment<br />

www.government.nl/ministries/szw<br />

General information about the Netherlands<br />

Ministry of Foreign Affairs<br />

www.government.nl/ministries/bz<br />

Statistics Netherlands<br />

www.cbs.nl<br />

94


Information regarding enterprise (including internationally),<br />

investing and partnerships in the Netherlands<br />

Ministry of Economic Affairs<br />

www.government.nl/ministries/ez<br />

Netherlands Foreign<br />

Investment Agency<br />

www.nfia.nl<br />

Netherlands Enterprise Agency,<br />

focus on sustainability,<br />

innovation and international<br />

www.hollandtradeandinvest.com<br />

www.rvo.nl<br />

Ministry of Finance<br />

www.government.nl/ministries/fin<br />

Statistics Netherlands<br />

www.cbs.nl<br />

Chambers of Commerce<br />

www.kvk.nl<br />

95


Information regarding Top Sectors<br />

Food Tech <strong>Holland</strong><br />

www.foodtechholland.nl<br />

Dutch Federation of<br />

Agriculture and Horticulture<br />

(LTO)<br />

www.lto.nl<br />

Association of the Dutch<br />

Chemical Industry<br />

www.vnci.nl<br />

Dutch Design Fashion<br />

Architecture Programme<br />

(DFA)<br />

www.dutchdfa.com<br />

Dutch export platform for<br />

Dutch clean tech companies<br />

www.cleantechholland.nl<br />

Energy Research Centre of<br />

the Netherlands<br />

www.ecn.nl<br />

Association of Suppliers of<br />

Environmental Technology<br />

www.vlm.fme.nl<br />

<strong>Holland</strong> High Tech Sector<br />

www.hollandhightech.nl<br />

Plantum (Dutch Association<br />

for Plant Propagation<br />

Material)<br />

www.plantum.nl<br />

Dutch Flower Auction<br />

www.floraholland.com<br />

96


Greenport <strong>Holland</strong> (Dutch<br />

Horticultural Association)<br />

www.greenportholland.com<br />

(Dutch only)<br />

Life Sciences and Health<br />

Sector<br />

www.lifescienceshealth.com<br />

<strong>Holland</strong> International<br />

Distribution Council<br />

www.hidc.nl<br />

Port of Rotterdam<br />

www.portofrotterdam.com<br />

Amsterdam Airport Schiphol<br />

www.schipholgroup.com<br />

Dutch Water Sector<br />

www.dutchwatersector.com<br />

Wetsus, Dutch Centre of<br />

Excellence for Sustainable<br />

Water Technology<br />

www.wetsus.nl<br />

<strong>Holland</strong> Shipbuilding<br />

Association<br />

www.hme.nl<br />

The Association of Dutch<br />

Suppliers in the Oil and Gas<br />

Industry (IRO)<br />

www.iro.nl and www.iro-noc.nl<br />

97


Imprint 2015 Edition<br />

This publication, <strong>Holland</strong> <strong>Compared</strong> Cyber Security Special 2015, is<br />

published by the Dutch Ministry of Foreign Affairs. For further information<br />

please contact the Dutch embassy, consulate or Netherlands Business<br />

Support Office in your area, or visit www.hollandtrade.com to learn even<br />

more about Dutch commerce.<br />

Editor-in-Chief<br />

Angelina Helder-Klamer<br />

Economic editor<br />

Ron Hogenboom<br />

Gea Blok (assistant)<br />

English language editor<br />

Jacqueline Meeuwisse<br />

Coordination<br />

Elles van Egmond<br />

Editorial address<br />

<strong>Holland</strong> <strong>Compared</strong><br />

Netherlands Enterprise Agency<br />

Intelligence Unit<br />

P.O. Box 20105<br />

2500 EC The Hague<br />

The Netherlands<br />

Design<br />

Tigges, Voorburg<br />

Copyright<br />

Articles may be reprinted or reproduced only with acknowledgement<br />

of the source: Source: <strong>Holland</strong> <strong>Compared</strong> 2015<br />

No rights may be derived from the contents of this publication.<br />

Photo front, source: Netherlands Enterprise Agency<br />

98


Source: Heerema Marine Contractors Nederland B.V.


Source: Energising the Future


What companies say<br />

about the Netherlands<br />

Strategic location<br />

“Opening a base at Schiphol is an important<br />

strategic move for easyJet. easyJet is already the<br />

second largest airline at Amsterdam - one of<br />

Europe’s leading airports serving a large and<br />

growing aviation market with strong passenger<br />

demand both to and from the Dutch capital.”<br />

EasyJet (UK)<br />

Digital Gateway<br />

“Now, this is just the European Headquarters, but it<br />

is a matter of time before this office will serve as<br />

the headquarters for Africa and the Middle East as<br />

well.”<br />

Netflix (USA)<br />

Superior logistics and technology infrastructure<br />

“Aside from the great infrastructure and the<br />

Netherlands excellent location in Europe, the<br />

Netherlands also appeals to us because of<br />

developments in the fields of smart cities, smart<br />

environments, and smart mobility.”<br />

Huawei (China)<br />

www.hollandtrade.com

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