Dutch Knowledge Coalition: ‘Don’t let R&D fall behind’

Government investment in research and development (R&D) is crucial to funding says Marcel Levi, chair of both the Knowledge Coalition and the Dutch Research Council. Without it, businesses are less likely to take the plunge and invest in R&D themselves.

Plundering the Fund

The previous government established a National Growth Fund, which earmarked 20 billion euros of public money for education and innovation to strengthen the Dutch economy. But in the lead-up to last November’s general election, parties were already making other plans.

VVD, for example, wanted to use 1.3 billion euros from the Fund to prevent an increase in fuel duty for motorists this autumn. Outgoing education minister Robbert Dijkgraaf and finance minister Sigrid Kaag argued that the Fund should not be used to plug holes in other budgets but they were overruled: a broad majority in the House voted in favour of the VVD plan, which also won the backing of the Senate.

With coalition talks to form a new government in full swing, the Knowledge Coalition warns that the Growth Fund should not go to waste. If the Netherlands is serious about spending 3 percent of its gross domestic product (GDP) on R&D, then the Fund is essential.

This investment target consists of 1 percent government funding and 2 percent business spending. But the business figure is currently stalled at 1.3 percent. Meanwhile, neighbouring countries have succeeded in keeping their investment above 3 percent of GDP.

New ASMLs

Every euro spent on education and innovation yields a return of 4.60 euros, Marcel Levi argues. As an example, he cites the Growth Fund’s NXTGEN Hightech project. That project, in which TU Delft participates, has attracted 700 million euros in private R&D investment in advanced technology. “The new high-tech pioneers this creates – companies like ASML – will in turn boost the private stake in R&D.”

The Knowledge Coalition is a partnership between employers’ associations VNO-NCW and MKB Nederland and the associations representing Dutch universities, universities of applied sciences and university medical centres. The Royal Netherlands Academy of Arts and Sciences, the Dutch Research Council, ZonMw and the country’s applied research institutes are also involved.

HOP, Hein Cuppen

Translation: Taalcentrum-VU