Holland Compared - Netherlands Foreign Investment Agency
Transcription
Holland Compared - Netherlands Foreign Investment Agency
Holland Compared Facts and Figures, 2nd edition 2016 Source: Rijkswaterstaat 2 GRONINGEN Groningen Leeuwarden FRIESLAND Assen DRENTHE NOORDHOLLAND NORTH SEA Zwolle Lelystad Head of State Capital Seat of government Administrative structure FLEVOLAND Haarlem OVERIJSSEL Amsterdam 's-Gravenhage (The Hague) GELDERLAND Utrecht ZUIDHOLLAND UTRECHT Surface area Location Arnhem Rotterdam GERMANY 's-Hertogenbosch Middelburg Official name Form of government Breda NOORD-BRABANT ZEELAND Eindhoven Number of inhabitants Number of inhabitants per km2 Monetary unit Languages Kingdom of the Netherlands Constitutional monarchy, parliamentary democracy His Majesty King Willem-Alexander, King of the Netherlands, Prince of Orange-Nassau Amsterdam The Hague Twelve provinces and the overseas territories of Aruba, Curacao and St. Martin. The overseas islands of Bonaire, Saba and St. Eustatius, all three of which are situated in the Caribbean, are ‘special municipalities of the Netherlands’ 33,800 km2 Western Europe, by the North Sea, bordering Belgium and Germany 17,008,695 (May, 2016) 503 (May, 2016) Euro Dutch, Frisian LIMBURG BELGIUM Maastricht UK GERMANY BELGIUM FRANCE 2 3 Content Page Foreword 6 1. General Information 8 2. Macro Indicators 14 3. Trade and Foreign Investment 24 4. Holland Digital Gateway 38 5. Top Sectors in Focus 48 6. Human Capital and Innovation 70 7. Infrastructure 84 8. Government 90 Check in iris scan / Schiphol Source: Netherlands Enterprise Agency 4 5 Foreword Often referred to as Holland, the Netherlands has for centuries had one of the world’s most open economies. The Dutch engage in all forms of business all around the globe. There are few nations in the world that can link their economic and social development and success so clearly and distinctly to their physical environment as the Netherlands. Located in a low-lying delta at the confluence of three major rivers, the Dutch were faced with a challenging and risk-laden environment in which to settle and develop what would become one of Europe’s strongest economies. The Netherlands has recently risen from 8th to 5th place in the Global Competitiveness Report 2015–2016, published by the World Economic Forum. As the world’s fifth-largest exporter, second-largest exporter of agri-food products and eighth-largest foreign investor, the Netherlands occupies a prominent position when it comes to world trade. 6 The Netherlands has long had an open economy and 33% of our income is derived from trade. Europe is by far our most significant trading partner – more than three-quarters of the products and services we export are destined for Europe. Many of our products and services are driven by innovation and by co-creation. The Dutch embrace the strong benefits of a triple helix approach, sharing knowledge and expertise between government, business and knowledge institutions. Working in multidisciplinary partnerships, produces optimum solutions. From developing cutting-edge, high tech solutions in labs and clean rooms; to ‘Working with Nature’ to optimize water management; and to supporting bright young talents to realize their startups here – The Netherlands is focused on fostering sustainable economic growth. At home and abroad, the Dutch welcome the opportunity to meet and work with new business partners. By way of introduction, we are pleased to present the Netherlands through this newest edition of ‘Holland Compared’. Best regards, Secretary-General, Ministry of Foreign Affairs Renée Jones-Bos As of 1 July, Joke Brandt will succeed Renée Jones-Bos as the Secretary General of the Ministry of Foreign Affairs. 7 1. Holland: A Sustainable Urban Delta As a country within a low-lying delta, The Netherlands has been faced with the enormous might of the sea from the outset. The age-old relationship with water has shaped the Dutch DNA. The typical Dutch approach is characterised by collaboration, cross-fertilization, and creativity. The Dutch are known for their pragmatic and integrated solutions. By working with nature, the Dutch have succeeded in creating sustainable solutions for the growth of their economy. Solutions that not only focus on practical issues such as urban planning, clean energy, drinking water, air quality, and waste management, but also on issues such as governance, tolerance and a fair society. Source: Netherlands Enterprise Agency 9 Brake on population growth Attractive place to live Population by age (2015) Quality of life (2015) 9,0 9,2 9,4 9,6 9,8 10 9,1 9,3 9,5 9,7 9,9 5 5 4 4 1 1 33 22 1.1.0-19 0-1922.7% 22.7% 2.2.20-39 20-3924.5% 24.5% 3. 3.40-64 40-64 35.1% 35.1% 4. 65-79 13.4% 13.4% 5. 5. Older Olderthan than79 794.3% 4.3% Source: Statistics Netherlands 2016. In total 17.0 million people live on the relatively small piece of land that is the Netherlands, which makes the country one of the most densely populated in the world. However, population growth is slowing down in the Netherlands, as it is in many other Western countries. This slowdown, together with an increasingly healthy generation aged 65 and above, has resulted in an ageing population. 10 GENERAL INFORMATION 9.73 Switzerland Austria 9.57 Norway 9.51 New Zealand 9.38 Canada 9.36 Denmark 9.31 Australia 9.25 Netherlands 9.24 Germany 9.21 Sweden 9.17 Source: IMD, 2016. 7,5 8,0 8,5 9,0 Whether visiting for7business or pleasure, the Netherlands is 9,5 home to10a highly pleasant living environment. It currently ranks eighth worldwide in terms of quality of life. Leisure amenities are within easy reach and Dutch cities have much to offer, such as the centuries-old architecture of Amsterdam, Delft, Groningen and Leiden as well as cultural activities and world-famous museums such as the Van Gogh Museum and the Hermitage Amsterdam. Housing is also fairly affordable compared to other countries, according to IMD. In addition to the various international schools in the Netherlands, a large and growing number of schools (130 in 2015) teach in two languages (mostly Dutch and English). Finally, the Dutch healthcare system officially ranks among the world’s best. According to the Commonwealth Fund, the Dutch healthcare system is the best in the world in terms of quality, access, efficiency, funding and the healthy lives, on average, of the general population. GENERAL INFORMATION 11 One of the most competitive economies Global Competitiveness Index (2015-2016) Switzerland 5.76 Singapore 5.68 United States 5.61 Germany 5.53 Netherlands 5.5 Japan 5.47 Hong Kong, China 5.46 Finland 5.45 Sweden 5.43 United Kingdom 5.43 Source: World Economic Forum, 2015. 5,2 5,3 5,4 ,45 5,5 ,55 5,6 ,65 5,7 ,75 5,8 According to a number of international league tables published by renowned institutes such as IMD and the World Economic Forum, the Netherlands is among the world leaders when it comes to favourable business climate. There are numerous factors that form the basis for the favourable position that the Netherlands enjoys, including its open and international outlook, its strategic location in Europe, its well-educated, multilingual and flexible workforce, and the high level of labour productivity. The competitive fiscal climate, top-level physical and technological infrastructure and quality of life are key contributors to the country’s success. The Netherlands is thus an attractive location for companies seeking a European base and for those wishing to invest. Source: DSM N.V. 12 GENERAL INFORMATION 2. Macro Indicators The impact of the downturn in world trade as a result of the global economic crisis was immediately tangible in the Netherlands with its buoyant and open economy. However, the Netherlands continues to perform well on many fronts. For example, the Netherlands has one of the highest incomes per capita in the EU, Rotterdam is still Europe’s largest port and the Netherland’s high-quality ICT infrastructure ensures that the country remains the gateway to Europe. Source: Hannah Anthonysz/Rotterdam Image Bank 15 Sixth-largest EU economy High average income GDP in the EU (2015) GDP per capita (2014) 3,025,900 Germany United Kingdom 1,636,372 Spain 1,081,190 Netherlands 444,235 Poland 427,737 Belgium 409,407 Austria Millions of euros. Source: Eurostat, 2016. 500.000 1.000.000 1.500.000 2.000.000 2.500.000 Netherlands 47,634.8 46,171.4 Sweden 45,152.5 Germany 44,985.5 Denmark 44,889.1 36,236.9 US dollars, corrected for Purchasing Power Parity. Source: OECD, 2015. 3.000.000 In terms of surface area and population size, the Netherlands is not a particularly large country and ranks 134th and 65th worldwide. In stark contrast, the country’s economic performance ranks much higher. The size of the economy, or the Gross Domestic Product (GDP), is 679 billion Euros in 2015. The Netherlands has the seventeenth-largest economy in the world and the sixth-largest in the European Union. 16 MACRO INDICATORS 47,795.8 EU-28 337,162 0 Ireland Austria 678,572 Sweden 54,639.9 United States 2,183,631 Italy 57,246.3 Switzerland 2,568,941 France 98,328.5 Luxembourg The Netherlands is one of the wealthiest nations in the European Union. The Dutch GDP per person employed is 47,146 US dollars (figure 2015, The Conference Board, 2015), in Luxembourg 50,499 US dollars and 42,123 in Germany. Compared with other, similar economies outside the European Union, such as that of Canada (50,488 US dollars), the Netherlands also performs as well. The high average income of the Dutch is the result of high labour productivity and a high level of labour participation. MACRO INDICATORS 17 High productivity per hour Prosperous, sustainable and enterprising GDP per hour, corrected for purchasing power parity (2015) Growth in GDP in % (2007-2015) Belgium 67 Switzerland United States 67 Sweden Netherlands 65 United States Ireland 65 Germany Germany 64 United Kingdom France 64 Belgium Denmark 63 Austria Switzerland 61 Netherlands Sweden 60 Euro area Austria 30 35 40 45 50 1.3 1.2 1.1 1.0 0,9 0.7 0.4 -0.1 Source: OECD, 2016. 55 60 65 70 75 The working population in the Netherlands is highly educated, employees have an international outlook, and many speak more than one foreign language. This high level of education and the strong economic structure (enabled by the physical and the knowledge infrastructure, for example) allow employees to be productive. Labour productivity per hour is among the highest in the world. It is noteworthy that the Netherlands has combined this high level of productivity with a high level of labour participation, also among semi-skilled and unskilled workers. 18 MACRO INDICATORS 1.4 Denmark 56 US dollars. Source: The Conference Board, 2015. 1.6 0 0,5 1,0 1.5 2.0 Compared to many other EU Member States, the Netherlands has a highly open economy, which is why the country was hit hard by the sharp downturn in world trade in 2008 and 2009. When considered over a longer period of time, the Netherlands shows reasonable economic growth compared to other prosperous EU Member States and the US. This is a good performance for a highly developed economy with a high standard of living (see also GDP per capita). The structural reforms that have been implemented in areas such as the labour market and the social security system, have created conditions for potentially healthy economic growth that offers room for investments in knowledge and innovation, for example, so that the Netherlands will remain a prosperous, sustainable and enterprising nation. MACRO INDICATORS 19 Moderate inflation High labour participation rate Average annual inflation (2007-2015) Employment rates (2014) Switzerland Euro area 0.0 1.5 75.879.7 Switzerland 1.31.6 74.9 75.7 Sweden Germany 1.7 1.3 Germany Netherlands 1.3 Netherlands 71.6 73.9 Denmark 73.6 70.6 Austria 72.6 70.4 Luxembourg Belgium 1.6 United States 1.6 Denmark Austria United Kingdom 2.1 1.5 2.2 1.8 74.0 72.2 72.0 68.4 United Kingdom 2.3 Finland 68.7 67.6 2.0 United States . 68,5 67.5 2.5 2.6 Average annual price increases as a percentage. Source: OECD, 2016. 66.3 65.7 OECD-countries Source: OECD, 2015. 0 The Netherlands enjoys a good reputation in monetary terms. Long before the introduction of the euro, price rises in the Netherlands were at a moderate level, thanks to sound monetary policies on the part of DNB (the Dutch Central Bank). The product and labour markets also operate relatively well, which helps to moderate price increases. According to the IMD (2016), the Netherlands ranks fifth worldwide in the fight against unfair competition. 20 MACRO INDICATORS 10 20 30 40 50 60 70 75,8 In the period 1990-2015, the level of employment in the Netherlands has increased by 35% (in persons, 23% in labour years). The strong growth in jobs is largely due to the structural economic reforms that have been implemented. The relative stability of the labour market - there are relatively few strikes in the Netherlands - can also be attributed to maintaining a favourable business climate. Thanks to the firm growth in employment, a large proportion of the potential working population is employed. Indeed, the proportion is considerably greater than the average of the OECD- and Euro–area countries (member states of the EU that use the Euro as their currency). MACRO INDICATORS 21 Many part-time employees Relatively low unemployment Part-time work (2013) Average unemployment (2007-2015) 39.9 Netherlands 25.4 Switzerland 19.8 United Kingdom Belgium 19.8 United States Austria 19.3 Sweden 6.3 6.9 7.2 7.1 7.67.8 7.9 8.3 Belgium 14.5 8.4 Euro area 14.3 France 5.96.3 Germany Denmark Luxembourg 5.5 6.2 Denmark 22.8 Germany Measured as a percentage of employment as a whole. Source: OECD, 2015. 0 5 10 15 20 25 10.0 Measured as a percentage of the working population. Source: OECD, 2016. 30 35 37,1 A relatively high proportion of Dutch people work part-time. This is often a deliberate decision, allowing employees to combine work with caring for their family. From an international perspective, the number of people - and particularly women - in the Netherlands who work part-time is high: nearly 75% of all Dutch part-time workers are women. Nevertheless, the average working week for full-time employees is more or less on a par with most other Eurozone countries. The same applies to the number of hours worked in a year by full-time employees. 22 MACRO INDICATORS 5.1 5.5 Netherlands 23.9 United Kingdom 4.1 4.3 Austria 25.1 Ireland 3.8 Switzerland 0 2 4 6 8 The rate of unemployment in the Netherlands is one of the lowest in Europe. From 2007 to 2015, an average of 5.5% of the potential working population was unemployed, while the corresponding rate in the euro countries was 10.0%. As a result of the crisis the unemployment in the Netherlands increased. In March 2016 it amounted to 6.4% (Eurostat, 2016), compared to an average of 10.2% in the euro countries. Moreover, youth unemployment is also still low in the Netherlands. In March 2016, the portion of Holland’s potential working population aged under-25 that was unemployed amounted to 11.4%. In the euro countries, the average was 21.2%. MACRO INDICATORS 23 3. Trade and Foreign Investment The Netherlands plays a prominent role in the world economy due to its exports, imports, attracting foreign investors, and investments abroad. Its favourable location in relation to the European hinterland and its world-class infrastructure – such as the Port of Rotterdam and Schiphol Airport – have helped the Netherlands become an important distribution centre. Harbour Vlissingen Source: Netherlands Enterprise Agency 25 Open economy World’s fifth-largest exporter of goods Dutch exports of goods and services as a proportion of GDP in % Top 10 exporters of goods (2015) 5 6 10 7 8 15 Millions of US dollars 1975 20 11 12 13 14 25 18 21 23 17 19 20 22 24 25 30 42 16 Share in world exports (%) 2,281,856 United States 1,503,870 9.2 52.3 1985 Germany 62.1 1995 15 14.0 49.8 1980 10 China 44.8 1970 9 8.2 Japan 56.1 2000 70.1 2005 69.6 2015 1,331,194 625,025 3.8 Netherlands 567,700 3.5 81.8 South Korea 526,901 3.2 Measured as a percentage of GDP. Source: CPB, 2016. 0 10 20 30 40 50 60 France 506,130 3.1 70 72,6 Hong Kong, China 498,558 United Kingdom 465,922 Italy 458,751 3.1 2.9 2.8 Source: International Trade Organisation, 2016. The Netherlands has traditionally always had an open economy and the level of trade with other countries is very significant. According to research carried out by the Netherlands Bureau for Economic Policy Analysis, the Netherlands earns some 33% of its income from the export of goods and services. In 2015, the value of exports was 81.8% of the Netherlands’ GDP. 26 TRADE AND FOREIGN INVESTMENT As the fifth-largest exporter of goods in the world, the Netherlands occupies a prominent position when it comes13 to world trade. In 2015, the 21 23 8 11 16 18 6 Netherlands exported goods5worth of almost 668 billion US 14 19 7 a 9total 12 10 20 22 24 25 15 17 dollars, which is about 3.5% of the world’s total exports. The Netherlands is also a significant exporter of commercial services - exports of commercial services amounted to 189 billion US dollars (138 billion Euros) in 2014, which placed the country sixth in the world rankings. TRADE AND FOREIGN INVESTMENT 27 Strong in agri-food production Major importer of goods and services Top 10 importers of goods (2015) Top 5 exporters of agricultural products (2014) Millions of US dollars Share in world imports (%) United States 182,235 Millions of US dollars Share in world imports (%) United States 2,306,822 14.0 10.3 Netherlands 112,061 China 1,681,671 10.2 6.3 Germany 100,777 Germany 1,056,341 6.4 5.7 Brazil 87,890 United Kingdom 629,229 3.8 5.0 France 81,187 Japan 626,083 3.8 4.6 Source: World Trade Organisation, 2015. France 572,693 3.5 Hong Kong, China 547,568 3.3 Netherlands 506,972 3.1 The Netherlands is the world’s second-largest exporter of agri-food products. For decades, the Dutch agriculture sector has succeeded in maintaining its lead over international competitors through continual investment in innovation in agri-food value chains. The Netherlands is a hotbed of R&D in the area of agri-food, due largely to the excellent knowledge infrastructure and close collaborations between knowledge institutes, government and the private sector, the so-called “golden triangle”. Key R&D centres include Wageningen University and Research Centre (WUR), the Top Institute Food & Nutrition and the public-private innovation program FND+. Some 12 out of the 40 largest Food & Beverage companies in the world have R&D facilities located in the Netherlands. WUR is the foremost university in Europe in the field of agriculture, and second in the world, according to the Higher Education Evaluation & Accreditation Council of Taiwan. 28 TRADE AND FOREIGN INVESTMENT South Korea 436,548 Canada 418,801 2.6 2.5 Source: International Trade Organisation, 2016. As well as being a major exporter, the Netherlands also imports large quantities of goods: 507 billion-US-dollars-worth in 2015. With a 3.1% share of the global total, the country is the eight-largest importer of goods in the world. The Netherlands is also a significant importer of commercial services - imports of commercial services amounted to 157 billion US dollars (118 billion Euros) in 2014, which placed the Netherlands seventh in the world rankings. TRADE AND FOREIGN INVESTMENT 29 Most significant trading partner: Western Europe Geographical destination of Dutch exports (2015) 6 66 4 4 4 5 55 Gateway to Europe Geographical origin of Dutch imports (2015) 7 7 77 Total Centroamérica y América del Sur Total Centroamérica yy América del Sur Total Centroamérica América 77 6 66 3 33 2 22 5 55 4 44 3 33 1 11 1. Europe 329.5 1. 1.Europe Europe 329.5 329.5 2. Africa 14.2 2. 2.Africa Africa 14.214.2 3. North America 21.2 3. 3.North North America America 21.221.2 4. Middle and 4. 4.Middle Middle andand South America 10.2 South South America America 10.2 10.2 5. Near and Far East 13.4 5. 5.Near andand FarFar EastEast 13.413.4 Near 6. Asia 34.4 6. 6.AsiaAsia 34.434.4 7. Oceania 2.7 7. 7.Oceania 2.7 2.7 Oceania Values in billions of euros. Source: Statistics Netherlands, 2016. The role of the Netherlands as a key distribution location is also indicated by the volume of import and export activities. Almost 79% of Dutch exports remain within Europe, especially Western Europe. Germany is easily the Netherlands’ most significant trading partner, followed by Belgium, the United Kingdom and France. 30 TRADE AND FOREIGN INVESTMENT 2 22 Europe 231.9 1. 1.1. Europe 231.9 Europe 231.9 2. Africa 11.5 2. 2. Africa 11.511.5 Africa 3. North America 34.3 3. 3. North America 34.334.3 North America 4. Middle and 4. 4. Middle andand Middle South America 11.6 South America 11.611.6 South America 11 1 Near and Far East 9.8 5.5. 5. Near andand Far Far EastEast 9.8 9.8 Near 6. Asia 77.5 6. 6. AsiaAsia 77.577.5 7. Oceania 1.4 7. 7.Oceania 1.4 1.4 Oceania Values in billions of euros. Source: Statistics Netherlands, 2016. The Netherlands has become a key hub for distribution in Europe because of its favourable location in relation to the European hinterland and the country’s world-class air and sea ports such as the Port of Rotterdam (Europort) and Amsterdam Airport Schiphol. The Netherlands is home to more distribution centres than anywhere else in Europe and has the largest inland shipping fleet in Europe. TRADE AND FOREIGN INVESTMENT 31 Dutch paints add a touch of colour to the world Biggest trading partner: Germany Composition of Dutch exports (2014) Composition of Dutch imports (2014) 9 9 9 10 10 10 1 1 99 9 1 10 10 10 11 1 22 2 33 3 2 2 2 3 3 3 8 8 44 4 4 4 8 4 88 8 5 5 5 7 7 7 1. 1.Food and livestock 56.4 Food and livestock 56.4 1.Beverages Food andand livestock 56.4 2. 2. tobacco 6.16.1 Beverages and tobacco 2.Non-edible Beveragesresources and tobacco 6.1 3. 3. 19.8 Non-edible resources 19.8 3.Mineral Non-edible resources 19.8 4. 4. fuels and oilsoils 57.0 Mineral fuels and 57.0 4.OilsMineral fuels and oilsand 57.0 5. 5. and fats of of animal Oils and fats animal and 5.plant Oilsorigin and fats of animal and 3.53.5 plant origin plant origin 3.5 Values in billions of euros. Source: Statistics Netherlands, 2015. 66 6 6 6 6 6. 6.Chemical products 78.3 Chemical products 78.3 Chemical products 78.3 7.6.7. Manufactured goods 36.9 Manufactured goods 36.9 Manufactured goods 36.9 8.7.8.Machinery and transportation Machinery and transportation 8. devices Machinery and transportation 119.1 devices 119.1 devices 119.1 9. 9.Other manufactured Other manufactured 9. goods Other45.9 manufactured goods 45.9 goods 45.9 10.10. Others 2.72.7 Others 10. Others 2.7 The Netherlands is the second-largest exporter of agricultural products worldwide, after the United States. Horticulture is by far the most important segment within the agricultural sector. Other significant Dutch exports include chemical products (e.g. Sikkens paint), machinery (e.g. ASML lithography systems) and vehicles (DAF trucks and Scania trucks). The Netherlands is also a well-known exporter of high-quality aerospace components and systems (Fokker), ships (IHC Merwede), yachts (Royal Van Lent Shipyard) and busses and car parts (VDL Group). 32 TRADE AND FOREIGN INVESTMENT 55 5 1. Food and livestock 37.2 1. 1.Food andand livestock 37.2 Food livestock 37.2 2. Beverages and tobacco 4.1 2. 2.Beverages andand tobacco 4.14.1 Beverages tobacco 3. Non-edible resources 13.7 3. 3.Non-edible resources 13.7 Non-edible resources 13.7 4. Mineral fuels and oils 64.2 4. 4.Mineral fuels andand oilsoils 64.2 Mineral fuels 64.2 5. Oils and fats of animal 5. 5.OilsOils andand fatsfats of animal of animal and plant origin 4.0 andand plant origin 4.04.0 plant origin 7 7 7 6. 6. 7. 7. 8. 8. Chemical products 53.7 products 53.7 6.Chemical Chemical products 53.7 Manufactured goods 36.9 goods 36.9 7.Manufactured Manufactured goods 36.9 Machinery and transportation andand transportation 8.Machinery Machinery transportation devices 115.6 devices 115.6 devices 115.6 9. Other manufactured goods 47.7 9. 9.Other manufactured goods 47.747.7 Other manufactured goods 10. Others 1.0 10.10. Others 1.01.0 Others Values in billions of euros. Source: Statistics Netherlands, 2016. In 2015, 17.2% of all imports into the Netherlands originated in Germany. Almost half of all products purchased by the Netherlands in Germany were related to chemical products and machinery. Of all of the cars imported into the Netherlands, more than 90% came from Europe, particularly Belgium, France and Germany. Belgium (9.8% of total imports of goods) and China (9.1%) and were respectively second and third Dutch import partner. TRADE AND FOREIGN INVESTMENT 33 Seventh-largest foreign investor in the world Main recipients of foreign investment in Europe (2014) Foreign investors in the world (2014) 6,319 United States China (incl. Hong Kong) Attractive for inward foreign investments 2,190 1,663 United Kingdom Germany 744 United Kingdom 1,584 France 729 Germany 1,583 Spain 722 France 1,279 Switzerland 682 664 Japan 1,193 Netherlands Switzerland 1,131 Belgium Netherlands 985 Russian Federation 379 Canada 715 Italy 374 Ireland 369 Spain 674 Most important foreign investors in the world, in billions of US dollars. Source: UNCTAD, 2015. 1k 2k 3k 4k 5k 6k Dutch businesses are truly international in their orientation. Dutch-based multinationals, such as AkzoNobel, Heineken, KPN, ING, Philips, Rabobank, Unilever and Shell have made substantial foreign investments in the past. The total amount of Dutch investments in other countries is considerable. In late 2014, investments overseas totaled in excess of 985 billion US dollars, making the country the eight-largest foreign investor in the world. 34 TRADE AND FOREIGN INVESTMENT 526 Stocks, in billions of US dollars. Source: UNCTAD, 2015. 200 600 1000 1400 1800 In 2014, foreign companies made inward direct investments worth 664 billion US dollars or 82.2% of the Netherlands’ GDP. As a result, the Netherlands is the world’s tenth-largest recipient of foreign investment. Foreign investors provide 15% of Dutch employment in the private sector (935,310 jobs). It is remarkable that a small country such as the Netherlands attracts so much foreign investment. In all, more than 6,300 foreign companies have established over 8,110 operations in the Netherlands. Among the many prominent international companies that have taken advantage of NFIA (the Netherlands Foreign Investment Agency) services as they located their operations in the Netherlands, are North American companies like Abbott Laboratories, Boeing, Bombardier, Cisco Systems, Dow, Eastman Chemical, Heinz, Medtronic, NCR Corporation and Reebok. They also include European companies such as Bosch, Danone, Siemens and RWE. Additionally, NFIA assisted a large number of companies from Asia and the Middle East in their location selection, companies such as Astellas, BenQ, Daewoo, Fujifilm, Giant, Hitachi, Huawei, ICBC, LG Electronics, SABIC, Samsung, Saudi Aramco, Tata Consultancy Services, Teijin and Yakult. TRADE AND FOREIGN INVESTMENT 35 Foreign Investors in the Netherlands What companies say about the Netherlands Strategic location “Opening a base at Schiphol is an important strategic move for easyJet. easyJet is already the second largest airline at Amsterdam one of Europe’s leading airports serving a large and growing aviation market with strong passenger demand both to and from the Dutch capital.” easyJet (UK) Digital Gateway “Now, this is just the European Headquarters, but it is a matter of time before this office will serve as the headquarters for Africa and the Middle East as well.” Netflix (USA) Superior logistics and technology infrastructure “Aside from the great infrastructure and the Netherlands excellent location in Europe, the Netherlands also appeals to us because of developments in the fields of smart cities, smart environments, and smart mobility.” Huawei (China) www.investinholland.com Source: Netherlands Enterprise Agency TRADE AND FOREIGN INVESTMENT 37 4. Holland Digital Gateway The Netherlands is a leading ICT innovator and a digital gateway to Europe. It has strong ICT infrastructure and an open innovation model that leads to high-level research. Moreover, the Dutch are keenly focused on cyber security and have developed various centres of expertise such as The Hague Security Delta. The Netherlands plays a key role in global Internet traffic. About a third of Europe’s Internet traffic with the US goes via the Amsterdam Internet Exchange. The quality of ICT infrastructure and security in The Netherlands makes it an attractive location for foreign investors: 25% are ICT related. Source: Netherlands Enterprise Agency 39 The Dutch and ICT Strong in innovation, security and connectivity •The Netherlands is an international internet hub. It has the most competitive internet market and the second highest online connectivity in the world. 98% of households are connected to (broadband) internet compared to the European average of 62%. •The Dutch are active internet users: 91% of Dutch aged 16-74 compared to average 75% of Europeans in same age group. 75% of Dutch between 16-74 years have basic ICT skills. The European average is 59%. •Businesses from within and outside Holland invest in data centres and fibre optics connections in Holland, due to the country’s good digital infrastructure. •As a result, a third main-port of large economic importance has come into being: the digital hub. This hub has created 140,000 jobs (Research by Deloitte. In comparison, Schiphol airport has 166,000 jobs and the Port of Rotterdam, 184,000.) •For further economic growth, The Netherlands continues to invest in economic opportunities in the cyber domain and to stimulate research there •In addition, the Netherlands is committed to renewing laws and regulations that limit restrictions to digital innovation and growth. •The Netherlands actively supports the adoption of international internet standards and open and secure international internet hosting. •COMMIT is the biggest ICT research project in The Netherlands, including 100 ICT companies, users and universities, working together. 40 HOLLAND DIGITAL GATEWAY HOLLAND DIGITAL GATEWAY 41 42 HOLLAND DIGITAL GATEWAY HOLLAND DIGITAL GATEWAY 43 Everyone’s into ICT Most advanced ICT economies (2015) Singapore 6.00 Finland 6.00 Sweden 5.80 Netherlands 5.80 Norway 5.80 5.70 Switzerland United States 5.60 United Kingdom 5.60 Luxembourg 5.60 Japan 5.60 Source: World Economic Forum, 2015. 7,5 7,6 7,7 7,8 5,5 5,6 5,7 5,8 5,9 6 8,5 Research done in 20158, by the WEF into network readiness, awarded Holland an excellent score: 4th place (in 2013 and 2014) in a list of 143 countries. The WEF-Networked Readiness Index (NRI) is one of the most comprehensive and authoritative assessments of the impact of ICT on competitiveness of nations and the well-being of their citizens. The NRI assesses the preparedness of an economy to fully leverage ICT in terms of: (1) ICT infrastructure, cost of access and the presence of the necessary skills to ensure an optimal use; (2) Uptake and use of ICT among governments, business and individuals; (3) Business and innovation environment, and the political and regulatory framework; and (4) Economic and social impacts accruing from ICT, and according to the International Telecommunication Union, the Netherlands ranks 7th among the world’s most advanced ICT economies, above countries such as Japan and the U.K. ITU’s ICT Development Index ranks 166 countries according to their level of ICT access, use and skills. 44 HOLLAND DIGITAL GATEWAY HOLLAND DIGITAL GATEWAY 45 Leading the field in broadband Number of broadband connections (2013) 44.9 Switzerland 40.4 Netherlands 35.6 40.0 Denmark 37.6 33.9 France 33.5 Korea 32.8 Norway United Kingdom 31.9 37.0 35.8 32.4 Iceland 37.5 35.2 30.4 Germany 34.8 30.3 Belgium 34.4 Measured per 100 inhabitants. Source: OECD, 2015. 28 29 30 32 33 34 35 36 37 38 39 40 41 42 43 44 In December 2013, the Netherlands had the second-highest number of broadband connections per 100 inhabitants in the world. Almost every household in the Netherlands can be reached by a cable or DSL connection. With the world’s largest digital data distributor, the Amsterdam Internet Exchange (AMS-IX), the Netherlands also has an outstanding data connection network, which is essential for businesses such as banks, insurers, internet-based companies and computer and advertising companies. Source: Netherlands Enterprise Agency 46 HOLLAND DIGITAL GATEWAY 47 5. Top Sectors in Focus In its economic policy, the Dutch government is focussing on nine business sectors that are key to Holland’s international trade and investment. These are sectors that are leading the way in innovation and sustainability, collaborating with Holland’s knowledge institutes on worldclass research and development. Expertise and products from these Dutch sectors is on demand around the world. Together, these sectors are the drivers of the Dutch economy. Floating Greenhouses at Flora Holland/Naaldwijk Source: Netherlands Enterprise Agency 49 Agriculture & Food Sector World-leading supplier of agri-food products •For edible vegetables has Holland the second place in the world export. Only China is a greater exporter for edible vegetables. The Netherlands has the fourth largest export for fruits. More fruit is exported by the USA, Spain and Chile. •The total value of the Dutch agricultural exports was 82.4 billion euros in 2015. This is 0.7 billion euros less than 2014. Germany is the largest consumer of the Dutch agricultural goods (with 11.1 billion euros in 2015). •The contribution of the Dutch agricultural sector, including trade and processing of products to the GDP and employment is 10% (=10.943 billion euros) of the total GDP in 2014. •The most important export products for 2015 were potatoes, vegetables and fruit (AGF), with 11.1 billion euros as value. •Three out of the world’s top-25 food and beverage companies in 2015 are settled in The Netherlands. •The Food Valley region, centered at Wageningen University and Research Center, is one of the most authoritative agrifood and nutrition research centres in Europe. Wageningen University occupies the first place worldwide in the QS World University Rankings by Subject 2016, in the category Agriculture & Forestry. •NIZO food research is a leading global center in proteins, bacteria, and processing. It is an independent company and one of the most advanced contract research centers in the world. The latest food technologies are brought to life in our own food grade processing plant. •Holland is one of the world’s leading developers and manufacturers of food processing machinery. •Dutch industry produces 80% of the world’s capacity of poultry processing machinery, and a substantial amount of cheese production machinery. •Dutch agricultural entrepreneurs use efficient and sustainable production systems and processes, resulting in a productivity that is five times higher than the European average. • Amsterdam is still the largest cocoa port in the world. Source: Netherlands Enterprise Agency TOP SECTORS IN FOCUS 51 Chemical Sector Chemical portal to Europe •For the chemical sector The Netherlands has the basic materials or materials can easily be imported. A network of logistics to the hinterland is spread out through the whole EU-market. The chemical research and development and education are top of the world. In 2014 the turnover was 56 billion euros. (49 billion euros exclusive pharma). •80% from the chemical products has been exported. The Dutch chemical exports were valued at some 76 billion euros. •Holland is one of Europe’s leading suppliers of chemical products and services. •The competitiveness of the Dutch chemical industry lies in its internal and inter-company integration. Chemical companies work together on innovation and production, and take advantage of regional clustering. •The Netherlands hosts 16 of the world’s top 25 leading chemical companies, including BASF, AkzoNobel, Dow Chemical, SABIC and Shell. •Holland is also home to world-class R&D institutes for fundamental and applied research such as TNO, Delft University, Twente University, Wageningen University and Eindhoven University. Some 1.25% of the turnover goes to internal R&D: about 750 million euros (2012). •Within the strong chemical community, the Dutch have formalized and structured the approach to co-operation. This is done with formal, long-term public-private partnerships (such as BE-Basic, the Institute for Sustainable Process Technology and the Dutch Polymer Institute) as well as through ‘open innovation’ in so called Centres for Open Chemical Innovation (COCI). The five COCIs are Chemelot; the Green Chemistry Campus; Plant One; Biotech Campus; and Green Polymer Application Valley. •In the area of advanced materials (polymers, composites, etc.), the Netherlands consistently punches above its weight, producing world-renowned innovations in materials such as Twaron, Dyneema and Glare, as well as the folding tires for the automotive industry. Source: Netherlands Enterprise Agency TOP SECTORS IN FOCUS 53 Creative Industries Masters in architecture, design, fashion and gaming •The Dutch creative industry ranks among the world’s top 10 for trade, jobs and brands. Holland’s creative industry helps innovation in other sectors, like health, security and energy. The sector also creates solutions for environmental challenges such as plastic pollution in oceans and new ways to build cars. •Dutch architects are commissioned to design prestigious buildings around the world such as the Mercedes Benz Museum in Stuttgart, the CCTV Headquarters in Beijing and Battery Park in New York. Renowned Dutch architects/agencies include Rem Koolhaas (OMA), Francine Houben (Mecanoo), Ben van Berkel and Caroline Bos (UNStudio). •Holland has a long tradition of interior design, epitomized by Rietveld’s furniture designs. Marcel Wanders is currently one the world’s best known furniture designers. Droog Design is also famous for the furniture and total design for houses and hotels. •Dutch fashion designers with international acclaim are Viktor & Rolf, Spijkers and Spijkers, Iris van Herpen, Sjaak Hullekes and Studio Jux. World-famous Dutch fashion brands include G-Star, Sandwich, Gsus and Supertrash. •Holland is the world’s 3rd largest exporter of television formats. TV producers such as John de Mol, Endemol and Eyeworks are the creative engine behind some of the world’s most popular TV shows, such as The Voice, Big Brother, Deal or No Deal, Obese and So You Wannabe a Popstar. •The Netherlands is a world-leading developer of computer games including serious games such as VStep’s Ship Simulator and Guerilla Games. Famous Dutch leisure games include Killzone and Age of Wonders. Layar gives ICT solutions for augmented reality on mobile devices. Games will help elderly people to keep moving, when playing a game like tennis on the Nintendo devise WII. •In the top100 DJ list are 5 Dutch DJ’s: Hardwell, Martin Garrix, Armin van Buuren, Tiësto and Afrojack. Intell hotel Zaandam / WAM architects TOP SECTORS IN FOCUS 55 Energy Sector Innovative, sustainable energy solutions •The Netherlands is a major natural gas producer and the source of advanced gas technology. Besides it is also Europe’s leading gas broker and a strategic gas hub. The country produced 2481 billion cubic metres (bcm) in 2014; gas exports amounted to 2094 bcm. Holland ranks number 8 in the top 10 natural gas production countries. USA is leading, followed by Russia. •The distribution network for gas is the densest in Europe and of a very high standard. The reliability is 99,995%. Households have had in 2013 no electricity for 23 minutes and gas for 1 minute due to breakdowns in the distribution. •The Dutch have unmatched capacity to cope with seasonal fluctuations in gas demand, providing north-western Europe with much-needed flexibility. •Holland has an international reputation for research in renewable energy, for instance in the field of solar energy, with institutes such as FOM and ECN, as well as various universities. The Dutch team from Delft University of Technology has won the World Solar Challenge, the biennial competition for solar cars, in 2001, 2003, 2005, 2007 and 2013, 2014 and 2015 (Nuna 8). •The Dutch have leading expertise in offshore wind energy, co-combustion of biomass in coal-fired power plants, pretreatment methods of biomass, the use of landfill gas, and the use of heat pumps combined with heat and cold storage. •There is extensive experience in the field of energy efficiency due to a long tradition of multi-annual voluntary agreements on energy efficiency between Dutch industry and the government. The industry has to save energy 2% each year of the energy household. And they have to use more and more sustainable energy like solar- or wind power. •7.6 million tons of municipal waste is converted in 13 efficient and clean waste incinerators to power, heat and reusable resources from the ashes. •The Netherlands is establishing itself as leader in green gas. ‘Green gas’ technology, the gasification of biomass, has been patented by Dutch energy company ECN. Due higher costs for biomass and lower pricing for the electricity of warmth from the biomass is the market less booming business than a few years ago. Driving on bio-LNG is an opportunity for the energy sector and subsidy bio gas is still necessary. Source: Nuon / Jorrit Lousberg TOP SECTORS IN FOCUS 57 High Tech Sector New technologies for health, mobility, energy and security •Holland’s high-tech sector is a world leader in the development of new technologies and materials for use in communication systems, aircraft and automobiles, medical devices, energy generation and semiconductor production. Brabant and Utrecht are the forerunners of innovation in The Netherlands in 2015. •Dutch companies invented WiFi, the CD and the DVD. Philips came with Blu-ray discs. Bluetooth was invented by Dutchman Jaap Haartsen. And high-tech equipment from Dutch companies is used in 90% of all silicon chips produced worldwide. •The Netherlands is strong in nanotechnology research. Dutch publications in nanotechnology are the most frequently cited by patents, compared to all other countries in the world. The country ranks 3rd in citation impact in 2014. • The Netherlands has also been a leader in technologies that aid water management, giving it a leading perspective on the use of satellite data for improving life on Earth. •Dutch multinational ASML is the world’s leading provider of lithography machines for the semiconductor industry and ranks number 98 on the most innovative companies in the world in 2015. •In 2012 the export value from the HTSM sector was 45 billion euros, and the added value 42 billion euros. To make more value, the HTSM sector have to invest more in their R&D departments, up to 800 billion euros in 2019 (70% private investors). The main goal is to double the export for the HTSM sector in 2025. •Three out of the five widely used milking robots are manufactured in the Netherlands, two of the biggest worldwide operational semen organizations are based in the Netherlands, and two of the three internationally used Herd management programs are controlled by Dutch based companies. •To make HTSM more successful the target countries for the coming years are Japan, Brazil, India, Israel, Singapore,Turkey, Belgium, Germany, France, China (Taiwan), the USA and South-Korea. •The Netherlands has been a leader in technologies that aid water management, giving it a leading perspective on the use of satellite data for improving life on Earth. From the 1960’s onwards, the Dutch applied ground-based knowledge of the Earth and the atmosphere to the evolving space sector, developing instruments for Earth observation and astronomy. TOP SECTORS IN FOCUS 59 Horticulture Sector World’s leading supplier of flowers, plants and trees • The Dutch horticulture sector is a global trendsetter and the undisputed international market leader in flowers, plants, bulbs and propagation material. • Holland has a 44% share of the worldwide trade in floricultural products, making it the dominant global supplier of flowers and flower products. Some 77% of all flower bulbs traded worldwide come from the Netherlands, the majority of which are tulips. 40% of the trade in 2015 was cut flowers and flower buds. • The sector is the number 1 exporter to the world for live trees, plants, bulbs, roots and cut flowers. • Dutch horticultural innovations include intelligent greenhouses that can float on water, moving platforms, robots, innovative lighting, water and waste recycling, and greenhouses that generate more energy than they consume and thus contribute to a reduction in CO2. Office premises which are not in use are transformed into urban agriculture sites, like Greennest Amsterdam or urban vineyards. • Worldwide the Dutch horticulture sector has 6% of all the patent applications on nutrition. SME’s have the most technological innovations. •Holland is one of the world’s largest exporters of seeds. In the world ranking The Netherlands is 5th on the list: first is the USA, followed by Brazil, Canada, Argentina and then The Netherlands. The total value of exports was more than 3.4 billion US dollars in 2014. • In 2014 the Netherlands was the world’s second largest exporter (in value) of fresh vegetables. The Netherlands exported vegetables with a market value of 7.6 billion US dollars. Source: Netherlands Enterprise Agency TOP SECTORS IN FOCUS 61 Life Sciences and Health Sector Helping to advance health worldwide • The Netherlands ranks 8th worldwide in patent applications for technology and 2nd in patent applications for biotechnology, according to OECD figures. • With approximately 375 innovative life sciences companies clustered within a 120 mile radius, Holland is the most geographically concentrated region in the world when it comes to creating economic and social value in Life Sciences and Health. • Expertise in healthcare infrastructure is characterised by a turn-key plus approach: Dutch companies are able to cover all aspects from hospital design & engineering, financing, waste management, medical equipment etc. while paying special attention paid to energy efficiency and ‘healing environments’. • Brain port Eindhoven spends 9 % of the gross national product on R&D. Brain port Eindhoven is the only region in the Netherlands which hits the target of 3%. • The excellent medical research infrastructure is strongly focused on translational research in the different medical fields such oncology, cardiovascular, immunology and neuroscience. • The Netherlands is a global market leader in mobile health care, which enables the Dutch to contribute to rural health care in developing countries around the globe. • The top sector helps upcoming markets to develop their basic form of healthcare, for all segments of the populations, from wealthy to poor. This can be done by developing vaccines, innovative health systems and giving education about health and healthcare. Mobile medical care units are a solution for secluded communities. • The sector invests over 2 billion euros in R&D in the Netherlands each year and is becoming a globally recognized stronghold of open innovation. It already accounts for 2.5% of GDP. • Philips is the world leader in medical imaging and patient monitoring; DSM is a biomaterials leader. • The Dutch public-private partnership model, such as the Netherlands Genomics Initiative (NGI) and the three top institutes (TI Pharma, CTMM and BMM), have set an international standard. TOP SECTORS IN FOCUS 63 Logistics Sector Strategic gateway to Europe and the world •The Netherlands was ranked 2nd in the 2015 World Bank global Logistics Performance Index (based on terms of efficiency and effectiveness of its customs, quality of transport, IT infrastructure for logistics and ease and affordability of shipping). •The Port of Rotterdam is the world’s 9th-largest and Europe’s largest port with a throughput of 466 billion tons in 2015. From the Port of Rotterdam, all major industrial and economic centres in Western Europe can be reached in less than 24 hours. •In 2013, Schiphol won the ‘ACI EUROPE Best Airport’ award for the fourth time. In 2015 Amsterdam Schiphol Airport was second best in the category ‘over 25 million passenger’ category. Schiphol won the award for Best Airport in Europe for the 20th time at the 2015. At the 2014 World Airport Awards air travellers voted Amsterdam Airport Schiphol the Best Airport in Western Europe. •According to the World Economic Forum, the quality of the Dutch infrastructure is among the best in the world, reflecting excellent facilities for maritime, air, road and railroad transport, ranked 1st, 4th, 2th and 7th, respectively in 2015. IMD Business School ranked the Netherlands first worldwide in 2015 with regards to the quality of its water transport infrastructure. •The port of Rotterdam is eighth in the world in terms of transhipment volume for overseas transport. •Dutch inland shipping accounts for 54% of all trade shipping in Western Europe. The Dutch fleet is, with 7,000 vessels, the biggest and most modern in Europe. 79% of all containers transported via inland navigation in the EU-28 countries passes through Dutch territory. •Foreign companies generate almost 13% of the employment in The Netherlands. 66% has European owners, 23% has owners from the United States. Source: Netherlands Enterprise Agency TOP SECTORS IN FOCUS 65 Water Sector World leaders in hydraulic engineering, water treatment and shipbuilding •The Dutch are renowned for their integrated water management and multi-disciplinary approach that balances social, economic, environmental and engineering needs (‘Building with Nature’). •Dutch companies are involved in the sustainable development of low-lying urban agglomerations such as Jakarta and Bangladesh, and coastal development in areas such as Dubai, Vietnam and Romania. •40% of the freely accessible market for water management is in Dutch hands. •The Dutch Delta Works are listed in the Guinness Book of Records as the largest flood defence project in the world. With almost 16,500 kilometres of dykes and 300 structures, the project is one of the most extensive engineering projects in the world. The Oosterscheldedam is the largest single tidal barrier in the world, at 9km in length. •The Dutch invest heavily in innovation and R&D through public private partnerships. These include renowned institutes such as Deltares, MARIN, Wetsus and KWR Watercycle Research Institute. TNO and large Dutch private firms are also recognised for their water R&D. •In the field of water technology and maritime technology, the Netherlands ranks 8th worldwide for global patents. •The Dutch began using innovative waste water treatment techniques in the 1970s. Some 99.9% of Dutch households have access to clean, entirely chlorine-free drinking water. Additionally, the level of recycling of industrial waste water is high, and this recycled water is of such high quality that it can be used in the food and beverage industries. •The Dutch maritime cluster comprises 12 sub sectors and 12,000 companies, which employ 224,000 employees. The cluster has a strong international focus: 60% of the seagoing ships produced in the Netherlands are destined for export. And de sustainability standards of the ships are higher each year. •The total export was 22.5 billion euros. The maritime cluster accounts for 4% of the total Dutch export. Harbour infrastructure represents the top export (32%), followed by seagoing vessels (23%). Source: Netherlands Enterprise Agency TOP SECTORS IN FOCUS 67 6. Human Capital and Innovation Dutch products are ‘typically’ highly innovative. The Netherlands provides solutions to keep rising water levels in check, create islands in the sea and make waterways navigable. Apart from solutions for use in the natural environment, the Dutch also have the knowledge and the skills to develop products such as navigation systems with worldwide appeal (TomTom). This capacity to innovate is evidenced by the large number of patents that are applied for every year, and by the presence of several world-renowned knowledge and research institutes in the Netherlands. 69 Well-educated working population Dutch schoolchildren are second in the EU Education level: upper secondary education (2014) PISA Score United States 90 Switzerland 88 Hong Kong, China Germany 87 South Korea Finland 87 Japan Austria 84 Sweden 80 Canada Ireland 79 Netherlands United Kingdom 79 Switzerland 76 0 10 20 30 40 50 60 70 540 535 529 522 519 518 515 Germany Measured as PISA scores (points). OECD average = 500. Source: OECD, 2013 80 90 The internationally-oriented working population of the Netherlands is well educated, with many people able to speak more than one foreign language (European and their languages - European Commission, 2014). According to the EF English Proficiency Index 2014, the Netherlands ranks second out of 63 countries. In addition to English, and in comparison with neighbouring countries, a good proportion of the population also speak German and French. Besides, according to the OECD the Dutch labour force is well equipped for the dynamic, fast changing IT-society of the 21e century (OECD Skills Outlook 2013). In comparison to other OECD-countries the Dutch employees have leading positions at literacy proficiency, numeracy proficiency and proficiency in problem solving in technology-rich environments. Moreover, according to the European Commission, the Netherlands has a world-class vocational education and training (VET) system, with built-in mechanisms to adapt to current and future skills needs so that training is more demand-driven. Furthermore, compared to many other EU member states, life-long learning is commonplace in the Netherlands: adults regularly engage in further education in order to continually improve their skills and knowledge levels. 70 HUMAN CAPITAL AND INNOVATION 543 Finland Denmark Measured as percentage of population (25-64 years old) that has attained upper secondary education. Source: OECD, 2015. 554 Taiwan 82 Netherlands 555 Singapore 500 510 520 530 540 550 Dutch schoolchildren achieve good scores in the OECD Programme for International Student Assessment (PISA): fifth place within the OECD and second in the EU. The PISA survey is conducted every three years among 500,000 school pupils across 70 countries, and evaluates the capacity of 15-year-old schoolchildren to understand and solve academic problems. Moreover, according to the OECD the Dutch labour force is well equipped for the dynamic, fast changing IT-society of the 21e century. In comparison to other OECD countries, Dutch employees have leading positions in literacy proficiency, numeracy proficiency and proficiency in problem solving in technology-rich environments. HUMAN CAPITAL AND INNOVATION 71 Fourth most prosperous country Human Development Index (2015) 0.971 0.944 Norway 0.935 Australia 0.930 Switzerland 0.923 Denmark 0.922 Netherlands Germany 0.916 Ireland 0.963 0.916 United States 0.915 Canada 0.913 New Zealand 0.913 Source: United Nations Development Programme, 2015. ,58 ,69 ,60 ,61 ,62 ,63 ,64 ,65 ,66 ,67 ,68 ,69 ,70 ,71 According to the UNDP, the Netherlands is the fourth most prosperous country in the world. In determining ‘prosperity’, the UNDP takes into account a country’s GDP as well as other aspects of human well-being, such as life expectancy, public health, literacy levels and educational standards. The Netherlands ranks fifth out of a total of 188 countries listed in the UNDP index. 72 HUMAN CAPITAL AND INNOVATION HUMAN CAPITAL AND INNOVATION 73 Worldwide Innovation index: fourth position Most innovative countries (2014) 64.8 Switzerland United Kingdom 62.4 Sweden 62.4 Netherlands 61.6 United States 60.1 Finland 60.0 Singapore 59.4 Ireland 59.1 Luxembourg 59.0 Denmark 57.7 Source: INSEAD, 2015. 4 4,1 4,2 4,3 4,4 4,5 4,6 4,7 4,8 4,9 The Netherlands scores well on the Global Innovation Index (GII) 2015. The GII ranks 141 countries on parameters such as ‘institutions’, ‘human capacity’ and ‘business sophistication’, so as to arrive at a global innovation ranking for each country. The Netherlands scores particularly well on parameters such as ‘knowledge diffusion’, ‘online creativity‘ and ‘creative goods and services’. According to the Innovation Union Scoreboard 2015 (IUS) the Netherlands ranks fifth in the EU (European Commission/UNU-MERIT, 2015). The IUS distinguishes between 3 main types of indicators (enablers, firm activities and outputs) and 8 innovation dimensions (as human resources, research systems, finance and support, intellectual assets), capturing in total 25 different indicators. 74 HUMAN CAPITAL AND INNOVATION Photo: Nuon Solar Team / Jorrit Lousberg HUMAN CAPITAL AND INNOVATION 75 Modest R&D expenditure Home-grown knowledge multinationals R&D expenditure (2014) Top 10 innovative Dutch businesses (2015) R&D expenditure (millions of euros) Finland 3.17 Sweden 3.16 ASML 3.7 Belgium 2.46 2.0 Netherlands 1.8 United Kingdom 1.8 VDL Groep 1.70 Source: Eurostat, 2016. 1 1,5 2,0 262 1221 230 1285 132,3 882 DAF Trucks 1.97 1.71.52 Ireland 475 1525 Royal DSM 2.26 1.9 France 768 4038 NXP Semiconductors 2.87 2.6 Germany 4404 KPN 2.99 2.7 Austria 770 Royal Philips 2.73.05 Denmark 2,5 3,0 3,5 3,8 87 878 Rijk Zwaan 67 Friesland Campina 64 Synthon R&D personnel (FTE) 521 520 61,7 232 *Calculated by TW. Source: Technisch Weekblad, 2015. At 2.0% of GDP in 2014, Research & Development expenditure in the Netherlands is modest from an international perspective (EU-average was 2.0% in 2014). However, this can partly be explained by the Dutch sector structure because the services sector, which ‘naturally’ has a low R&D intensity, accounts for a relatively large share of the Dutch economy. Public-private partnerships in scientific research are a major factor, and the Netherlands is ranked sixth worldwide in this area, according to the Netherlands Observatory of Science and Technology (NOWT). 76 HUMAN CAPITAL AND INNOVATION The Dutch economy has a broad and solid base. Leading multinationals with worldwide operations such as AkzoNobel, ASML, DAF Trucks, Heineken, NXP Semiconductors, Philips, Shell and Unilever have their roots in the Netherlands. Dutch industry includes a large number of innovative and knowledge-intensive companies that enjoy a sound reputation the world over and that carry out a great deal of R&D (including the aforementioned multinationals). In addition, there are also many other global businesses that conduct R&D activities in the Netherlands, such as Danone, Dow and Yakult. HUMAN CAPITAL AND INNOVATION 77 Large base of knowledge and research A selection of knowledge and research institutes (2015) Budget in millions of euros Personnel in FTE 518.4 TNO 2935 138 ECN 435 Deltares 110 FOM 108 NLR 108 2639 1019 323 KNMI 73,3 MESA + 66,7 358 MARIN J.M. Burgercentrum TI Food and Nutrition 610 47,5 595 46,1 368 26,4 223 Source: Technisch Weekblad, 2016. 0 1000highly for 2000 3000 Dutch universities score relatively teaching and research 4000 in a number of international rankings (see: www.vsnu.nl/Focus-areas/ Key-objectives/Top-research/TopresearchNew.htm en Dutch Scientists frequently cited). Wageningen University (WUR), for example, is a global leader in green biotechnology, and Leiden University leads the way in the biomedical life sciences. In addition, the Netherlands is home to a significant number of renowned knowledge and research institutes such as ECN and TNO, which play an important role in the government-initiated public-private innovation programmes. 78 HUMAN CAPITAL AND INNOVATION TNO Organisation for Applied Scientific Research ECN Energy Research Centre of the Netherlands ESTEC European Space Research and Technology Centre Stichting FOM Foundation for the Fundamental Research on Matter Deltares Institute for Deltatechnology NLR National Aerospace Laboratory KNMI Royal Netherlands Meteorological Institute MESA+ Institute for Nanotechnology MARINResearch Institute in Hydrodynamics and Nautical Research CTIT ICT research centre at University of Twente that make the societies of today and tomorrow smart Brainport Eindhoven Region is a top technology breeding ground for innovation and home to world-class businesses, knowledge institutes and research institutions. The five key target sectors are High Tech Systems & Materials, Food, Automotive, Lifetec and Design. Brainport Eindhoven Region is a powerful innovative player in a European and global context. It accounts for a third of all Dutch private R&D expenditure, and is one of Europe’s top three regions in terms of patent density. In 2011 the Intelligent Community Forum declared Brainport the world’s smartest region. In 2012 Fortune magazine suggested that this region could be the new Silicon Valley. Energy Valley is the energy cluster in the north of the Netherlands. The Energy Valley Region is an incubation zone for clean, reliable and innovative energy. The region is strategically positioned, centrally in the European gas and power grid, and directly at the North sea with excellent harbour facilities for transport of raw materials and offshore wind developments. Companies, knowledge institutes and governments work closely together to create a sustainable energy economy and new green jobs. Currently there are over 3,000 companies en 22,500 employees in the Northern energy cluster. HUMAN CAPITAL AND INNOVATION 79 Dutch scientists frequently cited Refreshing business approach Citation impact (2009-2012) Number of PCT-patent applications (2015) Netherlands 1.6 Netherlands Ireland 1.44 Germany Finland 1.44 Austria 346 307 230 Belgium 1.42 Norway 365 Denmark 1.49 United States 392 Finland 1.5 United Kingdom 419 Sweden 1.56 Switzerland 873 Switzerland 1.63 Denmark 180 Sweden 1.37 Japan 169 Belgium 1.37 France 162 Source: WTI2, 2015, data processing: Netherlands Enterprise Agency, 2015. *Number of patent applications per million inhabitants. Source: European Intellectual Property Organisation, 2016. 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 The citation impact score is a key indicator of scientific quality. The score refers to the number of times a scientist is cited by other scientists. These citations indicate how much they value each other’s work. The global average citation impact score is ‘1’. Dutch scientists are cited above the global average and claim third place in the world. Furthermore, Dutch scientists score highly for joint publications, which is evidence of the international significance of research taking place in the Netherlands. 80 HUMAN CAPITAL AND INNOVATION 75 . 85 95 105 115 125 135 145 155 165 175 185 195 205 210213 PCT (Patent Cooperation Treaty) patents are patent applications that are registered with the World Intellectual Property Organisation (WIPO). The Netherlands has the second highest (first in the EU) number of patent applications per million inhabitants in the world. Patents are in many cases the result of R&D activities which, if successful, can lead to greater labour productivity and an advantage over foreign competitors. This high score means that Dutch industry is an attractive potential partner - one that is innovative, inviting and dynamic. HUMAN CAPITAL AND INNOVATION 81 7. Infrastructure The Netherlands has a number of key logistics hubs such as the Port of Rotterdam and Schiphol Airport, as well as a high penetration of broadband Internet. This provides the country with a sound physical infrastructure and consequently enables it to be a top performer in terms of logistics. 83 Navigable inland waterways Strong in logistics Quality of water transportation (2016) Logistics performance index (2014) Netherlands 9.65 4.12 Germany Denmark 9.31 Netherlands Singapore 9.27 Belgium Hong Kong, China 9.26 United Kingdom 4.05 4.04 4.01 Finland 8.87 Singapore Norway 8.81 Sweden 3.96 3.96 Iceland 8.78 Norway Sweden 8.76 Luxembourg UAE 8.59 Germany 3.91 Source: World Bank, 2014. 8,5 8,75 9 9,25 9,5 9,75 10 The Netherlands has a good physical infrastructure, with the world-class (main)ports and the navigable inland waterway system being prime examples. The extensive network of inland waterways has excellent connections to the waterways in the rest of Europe. The Netherlands has the best water transport infrastructure in the world. The country also has an extensive road transport network and is second in the world as regards road network density (IMD, 2015). According to IMD (2016), the Dutch energy infrastructure also scores well, taking the seventh place overall. 84 INFRASTRUCTURE 3.92 Japan Harbours, canals, etc. Source: IMD, 2016. 8,25 3.95 United States 8.49 8 4.00 3,8 3,9 4,0 4,1 4,2 The Netherlands’ strong position in terms of logistics is due to the favourable geographic location of the country, at the heart of Europe; a sound infrastructure that includes the Port of Rotterdam, the Port of Amsterdam, Amsterdam Airport Schiphol; and a sophisticated logistics sector. This is reflected in the World Bank Logistics Performance Index 2014, where the Netherlands is ranked second. The Netherlands came out on top in terms of the efficiency and effectiveness of its Customs and other border procedures, the quality of its transport and IT infrastructure for logistics, the ease of use and affordability of its shipping, and the level of professionalism in the Dutch logistics industry. INFRASTRUCTURE 85 Third-largest airport in Europe Largest port in Europe European airport traffic and transport (2015) Trans-shipment of goods (2015) Frankfurt am Main Germany 9,743 Cargo transport x1,000 tonnes Trans-shipment (in millions of tonnes) Passenger transport x1,000 passengers Containers (in millions of TEU) Netherlands 1,993 466.4 Rotterdam 12.2 60,900 Paris Charles de Gaulle France Belgium 1,861 208,4 Antwerp 9,7 65,700 Amsterdam Airport Schiphol Netherlands Germany 1,621 Hamburg 137.8 8.8 58,200 London Heathrow United Kingdom 1,497 Source: Port of Rotterdam, 2016. 75,000 Source: Schiphol Group, 2016. In 2015 Amsterdam Airport Schiphol was Europe’s fifth-largest airport in terms of passenger numbers and third in cargo volumes. In 2015 the Airport was welcoming 58,2 million passengers and processing 1.6 million tonnes of cargo. A total of more than 100 airlines offer direct flights from Schiphol to 295 destinations. This makes Amsterdam Airport Schiphol one of the five most important Main Ports (or hubs) in Europe. It is also one of the two European home bases of Air France-KLM and the SkyTeam alliance. In addition, Schiphol is an important contributor to the regional economy, providing direct employment for around 65,000 people at the airport. The contribution to the national economy amounts to about 26 billion euros, and a total of 290,000 jobs nationwide. Schiphol is also renowned for its inspiring facilities for passengers and innovative technical solutions such as the extensive baggage handling system. The airport has won over 200 national and international awards since 1980. Recently, Schiphol was awarded for example Best Airport Western Europe 2014 (SKYTRAX), Best Airport for Business Travellers 2015, Best Air Cargo Terminal Operator Europe and Cargo Airport Europe and Best Airport in the world in Social Media, Simplifying Awards for Excellence 2013. Schiphol is home to a museum which is the first of its kind in the world and features exhibits that include paintings by Dutch masters from the Golden Age. It is also the first airport in the world with a library and an airport park. 86 INFRASTRUCTURE The port of Rotterdam is the largest port in Europe. The trans-shipment in Rotterdam added up to 466.4 million tons in 2015. The number of containers handled amounted 12.2 million TEUs in 2015. Rotterdam is the largest port in Europe. Businesses often choose to locate in-and-around the Port of Rotterdam because of its strategic location in north-west Europe, depth of its harbours, the many port facilities, and its excellent transport links with the hinterland. An entirely new freight railway route, the Betuwe Line, connects the Port of Rotterdam with the German Ruhr valley. Many companies from America and Asia use Rotterdam as a base for the distribution of their goods throughout Europe. A significant number of large European distribution centres are located in the immediate vicinity of the container terminals, and these ensure that products can be dispatched efficiently to anywhere on the contingent or to overseas destinations, such as the United Kingdom, Scandinavia and the Baltic region. The combined activities of the port account for about 5% of GDP. In other words, five cents out of every euro are earned in the port. More than 90,000 people work directly for the Port of Rotterdam. Work on the ‘Maasvlakte 2’ project is almost completed. This historic land reclamation project has expanded the area of the Port of Rotterdam by 2,000 hectares (20%). Maasvlakte 2 provides Rotterdam with an excellent springboard for the future. INFRASTRUCTURE 87 8. Government The complex of buildings known as the ‘Binnenhof’ [‘Inner Court’] in The Hague is the seat of the Dutch government, which enjoys a good international reputation and functions effectively. The Netherlands is one of the most stable nations in the world with a competitive fiscal climate. Besides, government finances are relatively healthy. 89 Effective government One of the least corrupt countries Government effectiveness (2014) Corruption perception index (2015) 2.2 Singapore Switzerland 2.1 Finland 2.0 New Zealand 1.9 Denmark 9.491.0 Finland 9.3 91.0 Sweden 9.289.0 New Zealand 9.289.0 Hong Kong, China 1.8 Netherlands 9.086.0 Netherlands 1.8 Norway 8.986.0 Japan 1.8 Switzerland Norway 1.8 Singapore Denmark 1.8 Canada 8.7 81.0 Germany 8.7 81.0 Sweden 1.7 Source: World Bank, 2015. 75 85 90 1 2 3 8,7 83.0 Source: Transparency International, 2016. 4 5 6 7 8 9 100 1 2 213 According to the World Bank, the government of the Netherlands is one of the most effective in the world, thus making it easier for companies to make medium and long-term decisions. The figures for government effectiveness capture the perceptions of the quality of public services; the quality of the civil service and the degree of its independence from political pressures; the quality of policy formulation and implementation; and the credibility of the government’s commitment to such policies. 90 GOVERNMENT 8.9 85.0 0 10 20 30 40 50 60 70 80 90 According to the Transparency International Corruption Perception Index, levels of corruption and nepotism in the Netherlands are among the lowest anywhere in the world. Among the aspects of corruption that were examined were the degree to which people in authority - such as customs officers, police officers, politicians, judges and other officials – misuse their position for personal gain (financial or otherwise). IMD (2016) also concludes that bribery and corruption are rare in the Netherlands: the country ranks fifth worldwide. GOVERNMENT 91 Moderate level of government debt Competitive taxation climate Corporate tax rate on profit 2016 (%) National debt as a percentage of GDP (2015) 21.4 Luxembourg 12.5 Ireland Denmark 40.2 43.4 Sweden Finland 20.0 United Kingdom 20.0 Finland 63.1 Switzerland Netherlands 64.4 Denmark 22.0 Sweden 22.0 71.2 Germany 86.2 Austria 89.2 United Kingdom Austria 25.0 Netherlands 25.0 Euro area 90.7 Luxembourg Ireland 93,8 Germany Source: Eurostat, 2016. 0 10 20 30 29.2 30.2 Source: IMD, 2016. 40 50 60 70 80 90 The Netherlands was able to dramatically reduce its level of government debt in the years preceding the global economic crisis thanks to a stable economy and a reasonably stringent fiscal policy. In 2008, there was even a budget surplus for the third consecutive year. Dutch government debt as a percentage of GDP was higher than the EMU standard of 60% in 2015 (64.4% (Rijksoverheid, May 2016)), but it was still well below the average for the Euro zone (90.7%) (Eurostat, 2016). According to the CPB – Netherlands Bureau for Economic Policy Analysis – the budget deficit will amount to 1.7% of GDP in 2016 and 1.2% in 2017. 92 GOVERNMENT 21.2 0 10 20 30 40 50 60 70 79 The corporate income tax rate is 20% on the first 200,000 euros and 25% for taxable profits exceeding 200,000 euros which is well below the EU national average. Furthermore, companies can benefit from an effective tax rate of only 5% for R&D income from self-developed, patented, intangible assets and also from self-developed, unpatented, intangible assets which qualify for the WBSO subsidy. Other features of the Dutch tax system include a wide tax treaty network - the participation exemption which states that all benefits related to a qualifying shareholding are exempt from Dutch corporate income tax, and, finally, a 30% tax-break for highly qualified foreign employees. GOVERNMENT 93 Explanatory notes regarding this publication Sources This publication is intended to provide a concise and representative picture of the state of the Dutch economy. Every attempt has been made to carefully and judiciously select indicators from internationally renowned and reliable sources. In the case of most of the indicators, the Dutch economy has been compared with surrounding countries and the United States, many of which are similar in terms of their economic structures. Comparisons have also been made in a number of cases with other countries, such as with various worldwide rankings. Amsterdam Airport Schiphol www.schipholgroup.nl OECD www.oecd.org The Conference Board www.conference-board.org Port of Rotterdam Authority www.portofrotterdam.com Economist Intelligence Unit www.eiu.com Social and Cultural Planning Office of the Netherlands www.scp.nl European Commission www.ec.europa.eu Eurostat www.epp.eurostat.ec.europa.eu IMD www.imd.ch IMF www.imf.org INSEAD www.globalinnovationindex.org Ministry of Foreign Affairs www.government.nl/ministries/bz Netherlands Bureau for Economic Policy Analysis www.cpb.nl The Netherlands Observatory of Science and Technology www.nowt.nl The Netherlands Organisation for Applied Scientific Research www.tno.nl 94 Statistics Netherlands www.cbs.nl Technisch Weekblad www.technischweekblad.nl Transparency International www.transparency.org UNCTAD www.unctad.org United Nations http://comtrade.un.org/ United Nations Development Programme www.hdr.undp.org World Bank www.worldbank.org World Economic Forum www.weforum.org World Trade Organization www.wto.org 95 Other sources of information More detailed information is available on the websites below, almost all of which include sections in English. Information regarding innovation Benelux Office for Intellectual Property www.boip.int Netherlands Patent Office www.agentschapnl.nl/ octrooicentrum Statistics Netherlands www.cbs.nl Netherlands Enterprise Agency www.rvo.nl/innovatie Ministry of Economic Affairs www.government.nl/ministries/ez Trendwatchers for Innovation and Technology www.rvo.nl/en/nost Information regarding the labour market and higher education http://www.studyinholland.nl/ Statistics Netherlands www.cbs.nl Netherlands Bureau for Economic Policy Analysis www.cpb.nl Information regarding enterprise (including internationally), investing and partnerships in the Netherlands Ministry of Economic Affairs www.government.nl/ministries/ez Ministry of Finance www.government.nl/ministries/fin Netherlands Foreign Investment Agency www.nfia.nl Statistics Netherlands www.cbs.nl Netherlands Enterprise Agency, focus on sustainability, innovation and international www.hollandtradeandinvest.com www.rvo.nl Chambers of Commerce www.kvk.nl Association of Universities in the Netherlands www.vsnu.nl Netherlands Organization for International Cooperation in Higher Education www.nuffic.nl Ministry of Social Affairs and Employment www.government.nl/ministries/szw General information about the Netherlands Ministry of Foreign Affairs www.government.nl/ministries/bz 96 Statistics Netherlands www.cbs.nl 97 Information regarding Top Sectors Food Tech Holland www.foodtechholland.nl Dutch Federation of Agriculture and Horticulture (LTO) www.lto.nl Association of the Dutch Chemical Industry www.vnci.nl Dutch Design Fashion Architecture Programme (DFA) www.dutchdfa.com Dutch export platform for Dutch clean tech companies www.cleantechholland.nl 98 Energy Research Centre of the Netherlands www.ecn.nl Association of Suppliers of Environmental Technology www.vlm.fme.nl Holland High Tech Sector www.hollandhightech.nl Plantum (Dutch Association for Plant Propagation Material) www.plantum.nl Dutch Flower Auction www.floraholland.com Greenport Holland (Dutch Horticultural Association) www.greenportholland.com (Dutch only) Life Sciences and Health Sector www.lifescienceshealth.com Holland International Distribution Council www.hidc.nl Port of Rotterdam www.portofrotterdam.com Amsterdam Airport Schiphol www.schipholgroup.com Dutch Water Sector www.dutchwatersector.com Wetsus, Dutch Centre of Excellence for Sustainable Water Technology www.wetsus.nl Holland Shipbuilding Association www.hme.nl The Association of Dutch Suppliers in the Oil and Gas Industry (IRO) www.iro.nl and www.iro-noc.nl 99 Imprint 2016 2nd Edition This publication, Holland Compared 2nd editon, is published by the Netherlands Enterprise Agency on behalf of the Ministry of Foreign Affairs. For further information please contact the Dutch embassy, consulate or Netherlands Business Support Office in your area, or visit www.hollandtradeandinvest.com to learn even more about Dutch commerce. Editor-in-Chief Hielke Venema Editors Ron Hogenboom Jacquie Meeuwisse Production coordinator Elles van Egmond Editorial address Holland Compared Netherlands Enterprise Agency Intelligence Unit P.O. Box 20105 2500 EC The Hague The Netherlands Copyright Articles may be reprinted or reproduced only with acknowledgement of the source: Source: Holland Compared 2016 No rights may be derived from the contents of this publication. Photo front, source: Nescio bridge Amsterdam; longest cycle and pedestrian bridge of the Netherlands. 100 101 The Dutch shaped their land, and the land in turn shaped the way they think and work. The Dutch have partnership and innovation in their DNA – they forge international partnerships to create smart solutions to the big challenges facing the world today. Work with us to co-create sustainable growth and a more liveable world. hollandtradeandinvest.com