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European technology last faced a crisis in 2000 and 2008, which left it structurally weak, but it has become much more potent and resilient today. European tech (State of European Tech, 2023) shows that Europe is closing its early-stage funding gap with the US, investing more in artificial intelligence companies, and focusing more on climate and other purpose-driven companies. This initiative has helped Europe become a global leader in technological innovation and continue to grow in the coming years. As a result, Europe is well-positioned to capture a larger share of the worldwide technology market and become a significant player in the tech industry.
The European Union (EU) is gearing up to allocate €180 million towards pioneering digital technologies. It is part of the ongoing Horizon Europe Programme, which fosters collaborative research and development throughout the European Union.
Among the key technologies driving Europe toward an inclusive and digital future are artificial intelligence, robotics, and advanced materials (European Commission, 2023). A State of European Technology report released in 2023 indicates that by the end of the first half of 2023, total European investments will approach $50 billion (State of European Tech, 2023).
ICT refers to storing and transmitting information via computers, networks, and other electronic systems. This term encompasses a wide variety of technologies, including internet and intranet use, mobile phones, and other digital media, to name just a few. ICT is a highly developed field used by small and large companies in the Netherlands. With the government’s heavy investment in ICT infrastructure and resources, the ICT industry has become an integral part of the Dutch economy.
The Netherlands is set to become a significant player in the ICT export sector, with exports reaching $23.4 billion by 2026. It is a 2.4% year-on-year growth on average since 1987, when the industry began to take off (ReportLinker, 2022). In addition, with an increased emphasis on ‘valorisation’, universities and research institutes have ramped up their efforts to support science-based ventures, substantially increasing their numbers over the past eight years. Technical universities are the most common source of spin-offs, accounting for 30% of all spin-offs, followed by UMC’s 28%), general universities (25%), and research organisations (7%) (TechLeap, 2023).
Several factors contribute to Dutch technology expertise aligning with the global and European needs for technology, including a multilingual workforce, a digital infrastructure, and favourable business conditions. As a result, many companies have located their headquarters in the Netherlands to take advantage of the numerous opportunities available in the technology sector. Known for its high-quality talent and diversity of professionals, the Netherlands has become one of Europe’s most important innovation hubs.
The Netherlands is reaching the centre of innovation concerning investment in the tech industry. Many tech companies are choosing to relocate to the Netherlands because of the low tax rate and the availability of talented workers. Several initiatives have become intriguing, namely the merger and acquisition market, climate and sustainability technologies, and the management of a technology-based workforce (Invest In Holland, 2015:2023; Chambers & Partners, 2022).
The Dutch government has adopted a technology-based approach. With the development of technology, citizens gain access to digital infrastructures that support their economy. This infrastructure provided them with financial services, online shopping, and government services that helped the country’s economy. In the Netherlands, for instance, the Amsterdam Internet Exchange (AMS-IX) is one of the world’s largest digital data distributors (Invest In Holand,2015:2023; Startup Headway, 2023).
According to the SODT report 2023, startups continue to drive employment growth in the Netherlands. It is due to an annual job growth rate of 7.6% in the technology sector in 2022. From 109K jobs in 2020 to 130K in 2021 and 135K in 2022 (Silicon Canals, 2023), the number of employees at startups, scale-ups, and grownups has steadily increased. Despite being the most successful EU ecosystem, Dutch startups have stagnated in their combined valuations (TechLeap, 2023).