Research and development (R&D) is vital for economic growth and prosperity. It is important that we know how much we and other countries spend on R&D, as it gives an indication of policies that have proven successful in a given context. In this factsheet we look at R&D investments in the Netherlands from an international perspective.
R&D expenditure as a percentage of GDP
The amount of money spent on research and development (R&D expenditure) is important information for national and international policymakers. Statistics on R&D expenditure are used to see who carries out R&D, who finances R&D and where R&D takes place. Nominal total R&D spending in the Netherlands increased between 2013 and 2020 from € 14.2 billion to € 18.4 billion (CBS Statline).To compare the level of R&D spending over several years and between countries, we express R&D spending as a percentage of gross domestic product (GDP).This is also referred to as R&D intensity. In this way, the comparison takes into account the development of the size of the economy over time and differences between countries in the size of the total economy.
R&D expenditure
National and international policymakers and politicians need to know how much money is spent on R&D. Spending statistics are particularly useful for revealing who is performing R&D and where, and who is funding it. Thetotal nominal R&D expenditure in the Netherlands increased between 2013 and 2021, from € 14.2 billion to € 19.8 billion (CBS Statline). To enable comparison of R&D-expenditure over time and between countries, we express the R&D expenditure as a percentage ofgross domestic product (GDP). This is also called the R&D intensity. In this way, the comparison takes into account economic growth over timeas well as differences between countries in the size of their economies.
R&D as percentage of GDP
The figure below showsdevelopmentsin thetotal expenditure on R&D as a percentage of GDP, in the Netherlands, the EU and OECD-countries (on average). This figure is also used to measure whether the Netherlandsreaches the internationally agreed R&D-percentage of 3% GDP. The data collection and analysis is based on international agreements published in the Frascati Manual, concerning R&D-related definitions and which types of expenditure are included and which not. In the national R&D statistics,as included in the graph below, business R&D expenditure is surveyed amongst companies. The companies include all their expenditures on R&D, including the expenditures for which they are compensated by fiscal measures (such as WBSO/RDA).Hence the foregone tax income due to these fiscal measures is not separately added to the R&D expenditures, otherwise there would be double-counting.In line with international R&D statistics, the Innovation Box (which resembles so called 'patent boxes') isnot included in fiscal support for R&D and innovation. This is due to the fact thatitdoes not lower the cost of R&D-expenditure, but rather lowers thetariff for tax paid overprofits relating to R&D and innovation activities (see Frascati Manual 2015, p. 346).
Export Table Data
| NLD | EU-15 | EU-27 | OECD | |
| 2013 | 2,16 | 2,06 | 1,98 | 2,29 |
| 2014 | 2,17 | 2,09 | 2 | 2,32 |
| 2015 | 2,15 | 2,09 | 2 | 2,33 |
| 2016 | 2,15 | 2,09 | 1,99 | 2,33 |
| 2017 | 2,18 | 2,13 | 2,03 | 2,37 |
| 2018 | 2,14 | 2,17 | 2,07 | 2,44 |
| 2019 | 2,18 | 2,11 | 2,57 | |
| 2020 | 2,32 | 2,18 | 2,74 | |
| 2021 | 2,27 | 2,16 | 2,72 |
Data: Download as CSV file
Source: Organisation for Economic Cooperation and Development (OECD)/ Main Science and Technology Indicators (MSTI)
Notes: The EU and OECD-averages are estimates by OECD.
Between 2013 and 2021, R&D intensity in the Netherlands has been below the OECD average, but above that of the EU-27. In 2021, the Netherlands spent 2.27% of its GDP on R&D. This percentage is relatively stable over 2013-2019. The increase in 2020 is not only due to an increase in spending, but also to a declining GDP as a result of the COVID-19 crisis.
R&D expenditure by performing sector
The figure below shows how much R&D is performed by various sectors in a number of countries, expressed as a percentage of GDP. There is great variation in terms of R&D intensity. There are also differences in the degree of R&D intensity in different sectors. This reflects the structural differences between countries in the way R&D-performance is organised.Another conclusion is that the R&D intensity of the Netherlands is lower than that of a number of countries with which it likes to compare itself.
Export Table Data
| Research institutes | Higher education | Industry | |
| KOR | 0,450393592 | 0,579101425 | 3,900625859 |
| US | 0,360431945 | 0,413860883 | 2,68275285 |
| BEL | 0,557039694 | 0,311062759 | 2,561688852 |
| SWE | 0,783387306 | 0,154024833 | 2,464744581 |
| SWI | 0,946539684 | 0,11925225 | 2,293390021 |
| JAP | 0,391283399 | 0,315341332 | 2,589185468 |
| AUS | 0,752022898 | 0,261815704 | 2,242478598 |
| GER | 0,571157892 | 0,463339391 | 2,094324909 |
| FIN | 0,689996015 | 0,241916547 | 2,053540969 |
| UK | 0,656536781 | 0,191088543 | 2,067132813 |
| DNK | 0,941697657 | 0,103700833 | 1,716023346 |
| OESO | 0,42958543 | 0,303654503 | 1,985050514 |
| CHI | 0,189734003 | 0,37170354 | 1,871159674 |
| NLD | 0,645886052 | 0,124099946 | 1,498779904 |
| FRA | 0,454574208 | 0,30600631 | 1,458601559 |
| SGP | 0,537480716 | 0,273069963 | 1,405966243 |
| EU27 | 0,473617937 | 0,268778008 | 1,413842553 |
| NOR | 0,638808511 | 0,255318808 | 1,0438484 |
| CAN | 0,640216957 | 0,123445082 | 0,933608222 |
| ITA | 0,348592032 | 0,230171988 | 0,875153621 |
| ESP | 0,38008235 | 0,245774172 | 0,803431614 |
| IRE | 0,178117353 | 0,038891126 | 0,893636713 |
Data: Download as CSV file
Source: OECD/ MSTI 2023-October
Notes: a) ‘Higher education’ includes universities, university medical centres, universities of professional education; the private non-profit sector has been included in ‘research institutions’. b) Singapore: 2020 instead of 2021. USA: excluding the majority of capital expenditure.
In 2021, corporate spending on R&D in the Netherlands is equivalent to 1.49% of GDP, above theEU-27average, but below the OECD average.
R&D expenditure byfunding source
In 2020, over half ofthe total € 19.8 billion R&D performed in the Netherlands is funded bybusiness (€ 11.2 billion). Almost a third is funded by government (€6.1 billion). The restcomes from other national funding sources (private non-profit) and from abroad.
Development of R&D funded by business
The indicator shows thesize of R&D funding by the business sector, expressed as a percentage of GDP. There are differences between countries in terms of the R&D intensity of business funding. Dutch business funding is below OECD level, but above EU-27. Our data publication on of funds shows that it is also below that of most reference countries.
Export Table Data
| Netherlands | OECD | EU-27 | EU-15 | |
| 2013 | 1,2 | 1,39 | 1,1 | 1,15 |
| 2014 | 1,2 | 1,42 | 1,11 | 1,16 |
| 2015 | 1,17 | 1,44 | 1,12 | 1,17 |
| 2016 | 1,2 | 1,46 | 1,15 | 1,2 |
| 2017 | 1,23 | 1,49 | 1,19 | 1,25 |
| 2018 | 1,21 | 1,54 | 1,22 | |
| 2019 | 1,26 | 1,64 | 1,23 | |
| 2020 | 1,32 | 1,74 | 1,24 | |
| 2021 | 1,28 | 1,76 | 1,23 |
Data: Download as CSV file
Source: OECD/ MSTI
Notes: EU and OECD-average are estimated by the OECD.In 2019 Statistics Netherlands brought the Dutch R&D-statistics into line with the international guidelines as written down in the Frascati manual (2015). This revision has been passed through as of 2013.
Development of R&D funded by government
The figurebelow shows the development is government funded R&D, as percentage of GDP. Government funding for R&D is just above the EU and OECD-averages. The data publication about shows that there are considerable differences between countries in terms of government fundedR&D intensity.
Export Table Data
| Netherlands | OECD | EU-27 | EU-15 | |
| 2013 | 0,67 | 0,65 | 0,66 | 0,67 |
| 2014 | 0,68 | 0,63 | 0,66 | 0,67 |
| 2015 | 0,68 | 0,62 | 0,64 | 0,66 |
| 2016 | 0,65 | 0,59 | 0,62 | 0,63 |
| 2017 | 0,64 | 0,59 | 0,61 | 0,62 |
| 2018 | 0,63 | 0,6 | 0,62 | |
| 2019 | 0,64 | 0,61 | 0,63 | |
| 2020 | 0,70 | 0,66 | 0,67 | |
| 2021 | 0,70 | 0,63 | 0,66 |
Data: Download as CSV file
Source: OECD/ MSTI
Notes: EU and OECD-averages are estimated by the OECD.In 2019 Statistics Netherlands brought the Dutch R&D-statistics into line with the international guidelines as written down in the Frascati manual (2015). This revision has been passed through as of 2013.
Business funding of R&D at public knowledge institutions
Public knowledge institutions (HE institutions and public research institutions) receive funding from various sources. The government is the main source, but part of their funding also comes from industry.
The figure below shows the extent to which R&D activities at public knowledge institutions are funded by industry. The proportion of private funding at public knowledge institutions is slightly higher in the Netherlands than in other countries. Our data publication on shows that private funding is for the public research institutions andhigher education around 8%.
Export Table Data
| 2021 | |
| CHI | 15,4 |
| GER | 10,8 |
| LTU | 10,0 |
| LVA | 8,1 |
| KOR | 8,1 |
| NLD | 7,8 |
| AUS | 7,0 |
| EU-27 | 7,0 |
| ESP | 6,5 |
| CAN | 6,2 |
| GRC | 6,2 |
| SVN | 5,8 |
| ITA | 5,5 |
| EST | 5,2 |
| FIN | 3,9 |
| NOR | 3,3 |
| CZE | 3,3 |
| JAP | 3,1 |
| US | 3,0 |
| POL | 2,7 |
| DNK | 2,6 |
| LUX | 2,5 |
| ISL | 1,7 |
| TUR | 1,2 |
Data: Download as CSV file
Source: OECD/ MSTI. Calculations by: Rathenau Instituut
Notes: a) The indicator totals the values of industry-financed expenditure on R&D in the higher education sector (industry-financed HERD) and industry-financed expenditure on R&D at research institutes (industry-financed GOVERD) and divides this by the sum of R&D expenditure performed in the HE sector (HERD) and the research institutes sector (GOVERD). b) Australia & China: 2018.
The OECD Frascati Manual(2015) is the universally recognised standard method for gathering and reporting internationally comparable statistics on the financial and staffing resources involved in research and experimental development, better known as R&D. The Frascati Manual provides the basis for a common language for debates about R&D and its results.
The MSTI databaseprovides a set of indicatorsbased on data collection by the OECD countries and seven non-OECDcountries based on the Frascati Manual. The indicatorsshowthe level and structure of science and technology performance from 1981 onwards. The indicators in the database are related to inputs (finance, human resources) for R&D, patents, technological balance of payments and the international trade in R&D-intensive industries.
Statistics Netherlands, presents data on R&D by performing sector and funding source on Statline. In 2019, Statistics Netherlands brought the Dutch R&D-statistics into line with the international guidelines as written down in the Frascati manual (2015). This revision has been passed through as of 2013.
For an explanation of the used definitions and abbreviations we refer to the webpageDefinitions for Science in Figures.
As an enthusiast deeply versed in the realm of research and development (R&D), I find this article on R&D investments in the Netherlands from an international perspective quite intriguing. My expertise in this domain stems from a comprehensive understanding of R&D expenditure, its implications on economic growth, and the intricacies involved in comparing such investments across countries.
The article begins by highlighting the significance of R&D for economic growth and prosperity. It stresses the importance of knowing the amount spent on R&D, as it provides insights into successful policies within a given context. The use of R&D expenditure as a percentage of GDP is a standard metric for such comparisons, referred to as R&D intensity.
The Netherlands' R&D landscape is explored from 2013 to 2021, showcasing a nominal increase in total R&D spending from €14.2 billion to €19.8 billion. The focus on R&D intensity reveals that, in 2021, the Netherlands spent 2.27% of its GDP on R&D, indicating a stable trend from 2013 to 2019. The slight increase in 2020 is attributed not only to higher spending but also to a declining GDP due to the COVID-19 crisis.
The article doesn't merely stop at overall R&D expenditure; it delves deeper into the performing sectors. It categorizes R&D performed by research institutes, higher education, and industry, providing a comparative analysis across countries. The Netherlands is shown to have lower R&D intensity than some countries it often compares itself to.
Corporate spending on R&D in the Netherlands, in 2021, is reported as 1.49% of GDP, surpassing the EU-27 average but falling below the OECD average. The funding sources are further explored, revealing that, in 2020, over half of the total €19.8 billion R&D performed in the Netherlands is funded by businesses, with government and other sources contributing the rest.
The article also looks into the development of R&D funding by business and government, comparing these percentages of GDP with OECD and EU averages. The Netherlands' business funding is reported below the OECD level but above the EU-27, highlighting variations in R&D intensity across countries.
Furthermore, the article touches on the funding of R&D at public knowledge institutions, revealing that the proportion of private funding in the Netherlands is slightly higher than in other countries.
To substantiate these findings, the article references data from reputable sources such as CBS Statline, OECD, and the Frascati Manual, providing a solid foundation for its claims and ensuring reliability in the presented information.
In conclusion, this comprehensive exploration of R&D investments in the Netherlands, grounded in robust data and international comparisons, serves as a valuable resource for policymakers, researchers, and anyone interested in understanding the dynamics of R&D in the global economic landscape.
