The Annual Growth Survey 2016 highlighted that investing in R&I at national level is critical for growth and that therefore Member States should continue to prioritise public investments in R&I, ensuring their efficiency and leverage with regard to business investment. Member States need to keep up the pace of reforms to ensure an investment-friendly environment. See more information about the European Semester.
The European Semester supports Member States' structural reforms in different policy areas to promote jobs, growth and investment. Research and innovation play a key role in this context. That is why the Commission gives recommendations to and closely work with the Member States to increase the performance of their national R&I systems.
Have a look and see how the country is performing.
Public and private R&D spending is relatively low in the Netherlands, limiting the growth potential of the economy. Productivity in the Netherlands is generally high, but productivity growth remains below pre-crisis averages. Low investment in R&D and low knowledge diffusion are potential explanations. Although the Netherlands is currently an 'innovation leader', the total R&D intensity of 2.01 % of GDP in 2015 is still significantly below the Europe 2020 target of 2.5 %. Private R&D intensity (1.12 % of GDP) remains low compared to other innovation leaders.
There is scope to transform the Netherlands’ world-class science base into a more innovation-intensive economy, including more investment in knowledge-based capital. Also, labour market institutions have potential negative implications for productivity growth and innovation performance. Framework conditions, such as a high-quality educational system and well-functioning product and labour markets, are vital for productivity growth.
The Netherlands has a strong and highly educated workforce for innovation, but has faced challenges responding to emerging labour market needs. The share of graduates in science, technology, engineering and mathematics (STEM) fields is low, at only 14.7 %, notably because STEM fields attract a low share of women.