Holland Compared 2013

Holland ComparedFacts and figures, Summer 2013

13194 HC compleet ENG summer2013.indd 97 26-07-13 13:49

Source: Koppert



Official nameForm of government

Head of State

Capital Seat of government

Administrative structure

Surface areaLocation

Number of inhabitantsNumber of inhabitants per km2

Monetary unitLanguages

NORTH SEA

's-Gravenhage (The Hague) Utrecht

Maastricht

's-Hertogenbosch

Arnhem

Zwolle

Haarlem

Rotterdam

Amsterdam

Groningen

Lelystad

Leeuwarden

Assen

Middelburg

Eindhoven

Breda

FRIESLAND

GRONINGEN

NOORD-BRABANT

LIMBURG

ZEELAND

FLEVOLAND

BELGIUM

GERMANY

ZUID-HOLLAND

NOORD-HOLLAND

DRENTHE

OVERIJSSEL

GELDERLANDUTRECHT

GERMANY

BELGIUM

FRANCE

UK

2


Official nameForm of government

Head of State

Capital Seat of government

Administrative structure

Surface areaLocation

Number of inhabitantsNumber of inhabitants per km2

Monetary unitLanguages

Kingdom of the NetherlandsConstitutional monarchy, parliamentary democracyHis Majesty King Willem-Alexander, King of the Netherlands, Prince of Orange-NassauAmsterdamThe HagueTwelve 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 Germany16,773,019 (April 2013)496 (April 2013)EuroDutch, Frisian

NORTH SEA

's-Gravenhage (The Hague) Utrecht

Maastricht

's-Hertogenbosch

Arnhem

Zwolle

Haarlem

Rotterdam

Amsterdam

Groningen

Lelystad

Leeuwarden

Assen

Middelburg

Eindhoven

Breda

FRIESLAND

GRONINGEN

NOORD-BRABANT

LIMBURG

ZEELAND

FLEVOLAND

BELGIUM

GERMANY

ZUID-HOLLAND

NOORD-HOLLAND

DRENTHE

OVERIJSSEL

GELDERLANDUTRECHT

GERMANY

BELGIUM

FRANCE

UK

3


Source: Royal Huisman Shipyard

4


1.

2.

3.

4.

5.

6.

7.

Foreword

General Information

Macro Indicators

Trade and Foreign Investment

Top Sectors in Focus

Human Capital and Innovation

Infrastructure

Government

ContentPage

6

9

15

25

37

57

71

79

5


ForewordKnown otherwise as ‘the Netherlands’, Holland has for centuries been one of the most open economies in the world. The Dutch conduct business all around the world.

As a result, the Dutch economy was hit hard by the global economic crisis which began in the autumn of 2008. Nevertheless, the Dutch economy has stayed strong - despite these difficult conditions and Holland continues to occupy a prominent position in world trade. In 2012, the Netherlands was the fifth-largest exporter of goods in the world. According to the World Economic Forum, the Netherlands has the fifth-best business climate in the world. The climate in the Netherlands for investment and for establishing a business also scores highly with other institutes, such as IMD.

The excellent competitive position is due to a number of factors. First, the Netherlands is an enjoyable place to live. The high productivity of Dutch workers has also made the Netherlands the second wealthiest country in the European Union in terms of per capita income and the unemployment figures in the Netherlands are among the lowest in Europe.

The Netherlands has a great deal to offer the business community,

6


including foreign companies. The country’s geographical position in the EU is excellent, for example; the Dutch have an open and internationally-oriented outlook; the workforce is well educated and flexible; people often speak several different languages; and the country has an excellent physical infrastructure. The enormous advances in IT are another reason why the Netherlands is such an attractive location for businesses: the Dutch have the second-highest number of broadband connections per capita in the world. The Netherlands is one of the world’s leading countries as regards the way in which IT is used by the general public, the business sector and the government. All of these factors combined are the reason why the Netherlands is the world’s tenth largest recipient of foreign investment. This publication compares the Netherlands to other EU and OECD countries in relation to this and other economic factors.

Despite all these great success stories, however, we cannot allow ourselves to become complacent. The government is therefore working on further improvements to the Dutch business climate to tackle the challenges of the future. Nevertheless, if you are still not convinced of the quality of life and business in the Netherlands once you have read this publication, please let me know, because it is my ministry that works on constant improvements to the Dutch business climate.

Chris Buijink

Secretary-General, Ministry of Economic [email protected]

7


Source: Flora Holland


1. General Information The Netherlands is traditionally the land of windmills, cheese and tulips, but isn’t this image something of a cliché nowadays? Well, not really. Centuries of expertise in land drainage (using the famous windmills) have made the Netherlands world-renowned for its water management skills. So what about the cheese and the tulips? The answer is that the Netherlands is also one of the largest exporters of agri-food and horticultural products in the world.

9


1. 0-19 23.3% 2. 20-44 32.5% 3. 45-64 28% 4. 65-79 12.1% 5. Older than 79 4.1%

1

2

3

4

5

1. 0-19 23.3% 2. 20-44 32.5% 3. 45-64 28% 4. 65-79 12.1% 5. Older than 79 4.1%

1

2

3

4

5

In total, 16.7 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.

Source: Statistics Netherlands, 2013.

Population by age (2012)

Brake on population growth

10 GeNeral iNformaTioN


Switzerland 9.76

Austria 9.65

Norway 9.45

Australia 9.41

Canada 9.36

Germany 9.28

Netherlands 9.09

Denmark 9.42

Luxembourg 9.17

Sweden 9.15

7 7,5 108,0 8,5 9,0 9,5

Whether you are here for business or pleasure, the Netherlands offers a highly pleasant living environment. It currently ranks tenth 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 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 (119 in 2013) teach in two languages (mostly Dutch and English). Finally, the Dutch healthcare system officially ranks among the world’s best, according to the Common-wealth Fund.

Source: IMD, 2012.

Quality of life (2012)

Attractive place to live

GeNeral iNformaTioN 11


Switzerland

Singapore

Finland

Netherlands

Germany

United States

Japan

Sweden

United Kingdom

Hong Kong, China

5.72

5.67

5.55

5.5

5.48

5.47

5.4

5.53

5.45

5.41

5 5,1 5,65,2 5,3 5,4 5,5

Source: DSM N.V.

Global Competitiveness Index (2012-2013)

One of the most competitive economies

Source: World Economic Forum, 2012.

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 producti-vity. 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.

12 GeNeral iNformaTioN


Source: DSM N.V.


13 13


Source: Hannah Anthonysz/Rotterdam Image Bank


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, apart from luxembourg, the Netherlands has the highest income 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.

15


Germany 2,643,900

France 2,029,877

United Kingdom 1,901,001

Spain 1,048,491

Netherlands 600,638

Sweden 408,467

Austria 309,901

Italy 1,565,916

Poland 381,361

Belgium 376,840

0 500.000 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000

In terms of surface area and population size, the Netherlands is not a particularly large country, coming in at 133rd and 61st, respectively, on the worldwide list. In stark contrast, the country’s economic performance ranks much higher. The size of the economy, or the Gross Domestic Product, was 601 billion euros in 2012. The Netherlands, consequently, has the sixteenth-largest economy in the world and the sixth-largest in the European Union.

Millions of euros. Source: Eurostat, 2013.

GDP in the EU (2012)

Sixth-largest EU economy

16 maCro iNDiCaTorS


Luxembourg

Switzerland

United States

Ireland

Austria

Sweden

Netherlands

Denmark

Germany

EU-27 32,797

39,518

41,136

41,467

41,993

42,189

42,838

48,043

51,224

89,164

0 83.80220.000 40.000 60.000 80.000

The Netherlands is one of the wealthiest nations in the European Union. Only Luxembourg has higher per capita earnings, but the Luxembourg figure is increased considerably by the presence of Belgians, French and Germans resident in the country’s border regions whose incomes contribute towards Luxembourg’s gross domestic product. The Nether-lands also performs well compared to similar economies outside the European Union, such as that of the United States. The high average income in the Netherlands is the result of high productivity and a high level of labour participation.

US dollars, corrected for Purchasing Power Parity. Source: OECD, 2012.

GDP per capita (2011)

High average income

maCro iNDiCaTorS 17


Luxembourg

Norway

United States

Netherlands

France

Ireland

Austria

Belgium

Germany

Sweden

30 35 40 45 50 55 60 65 70 75

74.95

74.88

63.27

61.85

60.74

58.93

57.08

56.89

54.47

54.34

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.

US dollars. Source: The Conference Board Total Economy Database™, 2013.

GDP per hour, corrected for purchasing power parity (2012)

High productivity per hour

18 maCro iNDiCaTorS


Switzerland

Sweden

Germany

Belgium

Netherlands

Finland

EU-27

Austria

United States

France

0 1,00,5 1.5 2.0

2.1

2.1

1.7

1.6

1.3

1.3

1.3

0.9

0.9

0.8

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 down-turn in world trade in 2008 and 2009. Nevertheless, the economic downturn in the Netherlands was, in fact, slightly smaller than the fall in GDP for the entire Euro zone. 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.

Source: Eurostat, 2013.

Growth in GDP in % (2006-2012)

Prosperous, sustainable and enterprising

maCro iNDiCaTorS 19


Switzerland 1.5

Ireland 1.6

Sweden 1.7

Germany 2.1

France 2.2

Euro area 2.2

United States 2.6

Netherlands 2.0

Austria 2.3

Denmark 2.4

0.5

1.2

1.8

1.8

1.8

1.9

2.1

2.2

2.2

2.3

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 IMD (2012), the Netherlands ranks second worldwide in the fight against unfair competition.

Average annual price increases as a percentage. Source: Eurostat, 2013.

Average annual inflation (2006-2012)

Moderate inflation

20 maCro iNDiCaTorS


75.8Switzerland

Netherlands

Sweden

Denmark

Germany

Austria

United Kingdom

Finland

United States

Euro area

75.7

72.2

70.6

70.4

68.4

66.3

71.6

67.6

67.5

0 10 20 30 40 50 60 70 75,8

79.4

75.2

74.2

72.9

72.8

72.4

69.6

69.4

66.9

64.0

In the last two decades, the level of employment in the Netherlands has increased by more than 15%. The strong growth in jobs is largely due to the structural economic reforms that have been implemented. The lack of unrest in the labour market - there are relatively few strikes in the Netherlands - is also a contributory factor as regards maintaining a favourable business climate. Thanks to the firm growth in employment, a large proportion of the potential working population is in work. Indeed, the proportion is considerably greater than the average of the OECD countries.

Source: OECD, 2012. * Euro area = member states of the EU that use the euro as their currency

Employment rates (2012)

High labour participation rate

Average annual price increases as a percentage. Source: Eurostat, 2013.

maCro iNDiCaTorS 21


Netherlands 37.2

Ireland 25.7

United Kingdom 24.6

Denmark 19.2

Austria 18.9

Belgium 18.8

United States 12.6

Germany 22.1

Sweden 13.8

France 13.6

0 5 10 15 20 25 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.

Measured as a percentage of employment as a whole. Source: OECD, 2012.

Part-time work (2011)

Many part-time employees

22 maCro iNDiCaTorS


3.8

4.3

4.8

5.9

6.3

7.1

8.4

5.5

7.8

8.3

0 2 4 6 8

Switzerland

Netherlands

Austria

Luxembourg

Denmark

United Kingdom

Germany

United States

Sweden

Finland

3.9

4.0

4.4

5.1

5.5

6.9

7.2

7.3

7.3

7.6

Average unemployment (2006-2012)

Relatively low unemployment

The rate of unemployment in the Netherlands is one of the lowest in Europe. From 2006 to 2012, an average of 4.0% of the potential working population was unemployed, while the corresponding rate in the euro countries was 9.1%. The economic crisis has led to an increase in unemploy-ment in the Netherlands to 6.2% as of February 2013 (Eurostat), but this is still below the average of many other European countries. Youth unemploy-ment in the Netherlands is also low. In February 2013, the proportion of the potential working population aged under-25 that was unemployed was 10.4%, compared to the EU-27 average of 23.9%.

Measured as a percentage of the working population.

Source: OECD, 2013.

Measured as a percentage of employment as a whole. Source: OECD, 2012.

maCro iNDiCaTorS 23


Source: Europe Container Terminals BV, Rotterdam


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.

25


1970 44.8

1975 49.8

1980 52.3

1995 56.1

2000 70.1

2005 69.6

1985 62.1

2012 86.7

0 10 20 30 40 50 60 7072,6

Dutch exports of goods and services

The Netherlands has traditionally 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 about 30% of its income from the export of goods and services. In 2012, the value of exports was 86.7% of the Netherlands’ GDP.

Measured as a percentage of GDP. Source: CPB, 2013.

Open economy

26 TraDe aND foreiGN iNveSTmeNT


United Kingdom

Belgium

Italy

South Korea

France

Netherlands

Japan

Germany

United States

China 1,899,244

1,480,522

1,440,387

823,575

637,627

595,794

561,397

511,899

466,422

472,096

10.8

8.4

8.4

4.7

3.3

3.2

3.0

2.7

2.7

3.8

As the fifth-largest exporter of goods in the world, the Netherlands occupies a prominent position when it comes to world trade. In 2011, the Netherlands exported goods worth over 638 billion US dollars, which is 3.8% of the world’s total exports. The Netherlands is also a significant exporter of commercial services - exports of commercial services amounted to 131 billion US dollars in 2011, which placed the country ninth in the world rankings.

Source: International Trade Centre, 2012

Top 10 exporters of goods (2011)

World’s fifth-largest exporter of goods

Millions of US dollars Share in world exports (%)

Measured as a percentage of GDP. Source: CPB, 2013.

TraDe aND foreiGN iNveSTmeNT 27


France

Brazil

Germany

Netherlands

United States 168,208

108,069

94,482

86,458

83,438

10.1

6.5

5.7

5.2

5.0

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.

Source: World Trade Centre, 2012.

Top 5 exporters of agricultural products (2011)

Strong in agri-food production

Millions of US dollars Share in world imports (%)



Hong Kong, China

South Korea

Italy

Netherlands

United Kingdom

France

Japan

Germany

China

United States 2,262,586

1,743,395

1,255,878

854,626

700,852

634,412

599,619

557,511

524,405

510,855

12.7

9.8

7.0

4.8

3.6

3.4

3.1

2.9

2.9

3.9

As well as being a major exporter, the Netherlands also imports large quantities of goods: almost 600 billion US dollars-worth in 2011. With a 3.4% share of the global total, the country is the seventh-largest importer of goods in the world. The Netherlands is also a significant importer of commercial services: imports of commercial services amounted to 119 billion US dollars in 2011, which placed the Netherlands eighth in the world rankings.

Source: International Trade Centre, 2012.

Top 10 importers of goods (2011)

Major importer of goods and services

Millions of US dollars Share in world imports (%)



1. All of Europe 340.8

2. All of Africa 14.7

3. All of North America 21.8

4. All of Central and

South America 10.5

5. Near and Middle East 5.9

6. Asia 38.4

7. Oceania 2.6

3

4

1

2

5

67





South America 10.5


6. Asia 38.4

7. Oceania 2.6

3

4

1

2

5

67





South America 10.5


6. Asia 38.4

7. Oceania 2.6

3

4

1

2

5

67

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.

Values in billions of euros. Source: Statistics Netherlands, 2013.

Geographical destination of Dutch exports (2012)

Most significant trading partner: Western Europe







South America 17.2


6. Asia 78.4

7. Oceania 1.5

3

4

12

5

6

7

Total Centroamérica y América del Sur





South America 17.2


6. Asia 78.4

7. Oceania 1.5

3

4

12

5

6

7






South America 17.2


6. Asia 78.4

7. Oceania 1.5

3

4

12

5

6

7


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.


Geographical origin of Dutch imports (2012)

Gateway to Europe

Most significant trading partner: Western Europe



1. Animal feed and live animals 50.2

2. Beverages and tobacco 7.2

3. Raw materials,

inedible (not fuels) 21.4

4. Mineral fuels, lubricants 83.4

5. Animal and vegetable

oils and fats 4.2

6. Chemical products 77.1

7. Manufactured goods 35.8

8. Machinery and transportation

equipment 110.5

9. Miscellaneous manufactured

goods 38.4

10. Other goods 3.2

1

67

4

5

2

3

8

910



3. Raw materials,




oils and fats 4.2




equipment 110.5


goods 38.4

10. Other goods 3.2

1

67

4

5

2

3

8

910



3. Raw materials,




oils and fats 4.2




equipment 110.5


goods 38.4

10. Other goods 3.2

1

67

4

5

2

3

8

910

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).


Composition of Dutch exports (2012)

Dutch paints add a touch of colour to the world





3. Raw materials, inedible

(not fuel)s 14.7



oils and fats 5.1




equipment 105.4


goods 39.4

10. Other goods 1.7

8

67

910 1

2

3

4

5




(not fuel)s 14.7



oils and fats 5.1




equipment 105.4


goods 39.4

10. Other goods 1.7

8

67

910 1

2

3

4

5




(not fuel)s 14.7



oils and fats 5.1




equipment 105.4


goods 39.4

10. Other goods 1.7

8

67

910 1

2

3

4

5

In 2012, 16% 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.Belgium (9.7% of total imports of goods) and China (8.2%) were respectively second and third Dutch import partner.In 2012 the value of Dutch imports (of goods) was 389.9 billion euros.


Composition of Dutch imports (2012)

Biggest trading partner: Germany



United States 4,500

United Kingdom 1,731

China(incl. Hong Kong)

1,442

France 1,373

Switzerland 992

Japan 963

Germany 1,442

Belgium 944

Netherlands 943

Spain 640

500 550510 520 530 540

Dutch businesses are truly international in their orientation. Dutch-based multinationals, such as AkzoNobel, Heineken, KPN, ING, Philips, Unilever and Shell have made substantial foreign investments in the past. The total value of Dutch investments in other countries is considerable. In late 2011, investments overseas totalled in excess of 943 billion US dollars, making the Netherlands the ninth-largest foreign investor in the world.

Most important foreign investors in the world, in billions of US dollars. Source: UNCTAD, 2012.

Foreign investors in the world (2011)

Ninth-largest foreign investor in the world



United States 3,509

China (incl. Hong Kong)

1,851


Belgium 958

Germany 714

Brazil 670

France 964

Spain 635

Canada 595

Netherlands 589

500 550510 520 530 540

It is remarkable that a small country such as the Netherlands attracts so much foreign investment. According to the Netherlands Foreign Invest-ment Agency, the country has provided a home for around 6,300 foreign companies, including the likes of BASF, Cisco Systems, Microsoft, Nike, Sabic, Siemens and Yakult. Foreign companies have made direct investments worth 589 billion US dollars. As a result, the Netherlands is the world’s tenth-largest recipient of foreign investment, with foreign investors providing 15% of the total number of jobs in the private sector in the Netherlands.

Stocks, in billions of US dollars. Source: UNCTAD, 2012.

Main recipients of foreign investment (2011)

Attractive for inward foreign investments

Most important foreign investors in the world, in billions of US dollars. Source: UNCTAD, 2012.

35TraDe aND foreiGN iNveSTmeNT 35


Source: Netherlands Board of Tourism and Conventions


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 world-class 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.

4. Top Sectors in Focus

Top Sectors- Agriculture and Food- Chemical Industry- Creative Industries- Energy- High Tech

- Horticulture- Life Sciences and Health- Logistics- Water

37


Source: Unilever


• Holland is the world’s 2nd largest exporter of agricultural products, after the USA. Together with the USA and France, Holland is one of the top 3 exporters of vegetables and fruit.

• The total value of Dutch agricultural exports was 75.4 billion euros in 2012.

• The Dutch agri-food industry contributes 52.5 billion euros of added value to Dutch GDP.

• The Netherlands is responsible for 22% of the world’s potato exports.

• The Netherlands has the second highest private R&D investment rate (as % of GDP) in agri-food in Europe.

• Four of the world’s top 25 food and beverage companies are Dutch and 12 have a major production site or R&D facilities in the Netherlands.

• Two Dutch universities are in the European top 10 with regard to the number of publications on agri-food subjects.

• The Food Valley region, centred at Wageningen University and Research Center, is one of the most authoritative agri-food and nutrition research centres in Europe.

• NIZO food research owns the largest food testing pilot plant in Europe and is open to the entire food and ingredient industry.

• Holland is a global market leader in machinery for, for example, poultry and red meat processing, bakery and cheese production.

• Dutch agricultural entrepreneurs use efficient and sustainable production systems and processes, resulting in a productivity that is five times higher than the European average.

World-leading supplier of agri-food products

Agriculture & Food Sector

TOP SECTORS IN FOCUS 39


Source: AkzoNobel


• The chemical industry is one of the leading business sectors in the Netherlands, making a significant contribution to the economy. In 2011, the turnover was 58 billion euros.

• The Netherlands is the world’s 4th ranking chemical exporting country. In 2011, Dutch chemical exports were valued at some

71 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 19 of the world’s top 25 leading chemical companies, including BASF, AkzoNobel 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.

• 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 three COCIs are Chemelot, the Green Chemistry Campus and Plant One.

• 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.

Chemical portal to Europe

Chemical Sector



Source: Peter Stigter


Masters in architecture, design, fashion and gaming

Creative Industries

• Holland’s creative industry ranks among the world’s top 10 in terms of trade figures, jobs and registrations of brands and patterns.

• The annual turnover of Dutch creative industries is 7.1 billion euros.• 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.

• Dutch fashion designers with international acclaim Viktor & Rolf, Spijkers and Spijkers, Iris van Herpen, Jan Taminiau and Marlies Dekkers. 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. Famous Dutch leisure games include Killzone and Age of Wonders.

• The Netherlands is a pioneer in the area of dance music and large dance events such as Sensation. In 2012, Dutch DJ Armin van Buuren was voted the world’s best DJ for the fourth year in a row.



Source: Energising the Future


Innovative, sustainable energy solutions

Energy Sector

• 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.

• 15 to 20% of the gas consumed in Europe comes from Holland. • The distribution network for gas is the densest in Europe and of a

very high standard. • 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, due, in part, to the work of the energy research centre ECN.

• The Dutch have leading expertise in offshore wind energy, co-combustion of biomass in coal-fired power plants, pre-treatment 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. This has made Dutch industry one of the most energy efficient in the world.

• 7.2 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.

• The Netherlands plays a key role as a major oil‐refining centre in Europe, with an extensive supply network of ports, storage facilities and pipeline connections playing a critical role for oil supplies to the continent.



Source: ASML Netherlands B.V.


New technologies for health, mobility, energy and security

High Tech Sector

• 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.

• Dutch companies invented WiFi, the CD and the DVD. Bluetooth was invented by Dutchman Jaap Haartsen. And high-tech equipment from Dutch companies are used in 90% of all silicon chips produced worldwide.

• The Netherlands ranks among the world’s top 3 nano science countries, together with Switzerland and the USA. MESA+, the institute for technology located at the University of Twente, is one of the largest nanotechnology research institutes in the world.

• The Netherlands is also world leader in designing, developing and making high-tech equipment and micro/nano components. Characteristic features of this equipment are: highly intelligent (embedded systems, software, sensors); very precise (nano-electronics, high precision manufacturing), and highly efficient (mechatronics and smart electronics)

• Dutch multinational ASML is the world’s leading provider of lithography machines for the semiconductor industry.

• In 2010 the export value from the HTSM sector was 41 billion euros, the production value 95 billion euros, and the added value 32 billion euros.



Source: NL Agency


World’s leading supplier of flowers, plants and trees

Horticulture Sector

• The Dutch horticulture sector is a global trendsetter and the undisputed international market leader in flowers, plants, bulbs and propagation material.

• A quarter of the world trade in horticultural products (24%) is in Dutch hands. Holland has a 50% share of the worldwide trade in floricultural products, making it the dominant global supplier of flowers and flower products. Some 80% of all flower bulbs traded worldwide come from the Netherlands, the majority of which are tulips.

• The sector is the number 3 exporter in nutritional horticulture products.

• 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.

• Of the approximately 1,800 new plant varieties that enter the European market each year, 65% originate in the Netherlands. In addition, Dutch breeders account for more than 33% of all applications for community plant variety rights.

• The Dutch are the world’s largest exporter of seeds: the exports of seeds amounted to 1.5 billion euros.

• In 2010, for the fourth year in a row, the Netherlands was the world’s biggest exporter (in value) of fresh vegetables. The Netherlands exported 4.6 billion kilos of vegetables in 2010, with a market value of 4.2 billion euros.



Source: © Koninklijke Philips Electronics N.V.


Helping to advance health worldwide

Life Sciences and Health Sector

• The Netherlands ranks 8th worldwide in life sciences and health patents.

• With approximately 350 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’.

• In 2011, Brainport Eindhoven’s Brainport region was named the world’s most intelligent ICT and health cluster.

• 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.

• Within the European Commission’s R&D Programme 49% of initiatives in the health cluster involve Dutch participants (total budget of 2.48 billion euros).

• The industry annually exports around 37 billion euros in total of which 25 billion euros is pharmaceutical and the rest medical technology and medical and laboratory instruments.

• 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.



Source: FloraHolland Aalsmeer


Strategic gateway to Europe and the world

Logistics Sector

• The Netherlands was ranked 5th in the 2012 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 fourth-largest and Europe’s largest port with a throughput of 441.5 million tons in 2012. From the Port of Rotterdam, all major industrial and economic centres in Western Europe can be reached in less than 24 hours.

• Amsterdam Schiphol Airport won two awards at the 2012 Asian Freight & Supply Chain Awards for best airport in Europe and the Best Air Cargo Terminal in Europe. In 2012, Schiphol also won the ‘ACI EUROPE Best Airport’ award for the third time.

• 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, and railroad transport, ranked 1st, 4th, and 9th, respectively in 2012. IMD Business School ranked the Netherlands 2nd worldwide with regards to the quality of its water transport infrastructure.

• Dutch inland shipping accounts for 54% of all trade shipping in Western Europe. The Dutch fleet is, with 6,900 vessels, the biggest and most modern in Europe.

• Over 1,000 American and Asian companies have centralised their European distribution activities in the Netherlands. The country hosts over 19 million square metres of distribution centres (about 3,000 soccer fields).

• The Netherlands has the second-largest cooling and freezing storage capacity in the EU.



Source: Paques


World leaders in hydraulic engineering, water treatment and

shipbuilding

Water Sector

• 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 purification, the Netherlands ranks 5th 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 181,000 employees and generate turnover of 26.1 billion euros. The cluster has a strong international focus: 61% of the seagoing ships produced in the Netherlands are destined for export.



Source: Aeroview Rotterdam


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.

5. Human Capital and Innovation

57


United States 89

Sweden 87

Switzerland 86

Finland 83

Austria 82

Denmark 76

Netherlands 73

Germany 86

United Kingdom 75

Ireland 73

0 10 20 30 40 50 60 70 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 Commission, 2012). According to the EF English Proficiency Index, the Netherlands ranks third out of 54 countries. In addition to English, and in comparison with neighbouring countries, a good proportion of the population also speak German and French. 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.

Measured as percentage of population (25-64 years old) that has attained upper secondary education. Source: OECD, 2012.

Education level: upper secondary education (2010)

Well-educated working population

58 HUmaN CaPiTal aND iNNovaTioN


Finland

South Korea

Japan

Canada

New Zealand

Australia

Netherlands

United States

Switzerland

Germany

500 550510 520 530 540

544

541

529

527

524

519

519

519

517

510

Dutch schoolchildren achieve good scores in the OECD Programme for International Student Assessment (PISA): seventh 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. According to the OECD this is an indicator for the economic potential of a country. PISA 2010 provides a detailed picture of how well schoolchildren all over the world are prepared for the knowledge-based society.

Measured as PISA scores (points). OECD average = 500. Source: OECD, 2010

PISA Score

Dutch schoolchildren are second in the EU

HUmaN CaPiTal aND iNNovaTioN 59


0.971

0.963

,58 ,71,69 ,60 ,61 ,62 ,63 ,64 ,65 ,66 ,67 ,68 ,69 ,70

Norway

Australia

United States

Netherlands

Germany

New Zealand

Ireland

Sweden

Switzerland

Japan

0.955

0.938

0.937

0.921

0.920

0.919

0.916

0.916

0.913

0.912

According to the UNDP, the Netherlands ranks 4th place worldwide with regard to prosperity. 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. Of the 186 countries listed in the UNDP index, the Netherlands ranks 4th.

Source: United Nations Development Programme, 2013.

Human Development Index (2012)

Fourth most prosperous country



12.2

12

11.6

9.9

9.7

11.4

11.3

8.5

6.9

8.8

Australia

Canada

Netherlands

Belgium

EU-27

Ireland

United Kingdom

Germany

Finland

United States

14.4

12.3

11.9

11.5

11.5

11.4

11.4

9.8

9.3

9.3

The Dutch have always been well known for their entrepreneurial spirit, which is reflected in the country’s large number of entrepreneurs: 11.9% of the Dutch working population is self-employed. The Dutch government promotes start-ups because they create economic vitality and innovation and because they challenge existing firms, giving them the incentive to adapt and continue to innovate.

Measured as a percentage of the working population Source: Statistics Netherlands, 2012.

Number of entrepreneurs (2009)

Entrepreneurs create dynamism



Taiwan

Finland 5.98

Singapore 5.96

Sweden 5.91

Switzerland 5.66

United Kingdom 5.64

Netherlands 5.81

Norway 5.66

United States 5.57

5.47

Denmark 5.58

8, 7,5 7,6 7,7 7,8 7,9 8 8,1 8,2 8,3 8,54 8,5

WEF-research into network readiness, awarded the Netherlands an excellent score: 4th place in a list of 144 countries. The WEF-Networked Readiness Index 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. To measure this, this index 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. Furthermore, according to the ITU the Netherlands ranks 6th among the world’s most advanced ICT economies. ITU’s ICT Development Index ranks 155 countries according to their level of ICT access, use and skills.

Most advanced ICT economies (2013)

Everyone’s into ICT




United States

Switzerland 68.2

Sweden 64.8

Singapore 63.5

Netherlands 60.5

Denmark 59.9

Finland 61.8

United Kingdom 61.2

Ireland 58.7

57.7

Hong Kong, China 58.7

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) 2012 of INSEAD and the World Intellectual Property Organisation. According to the GII ranks 125 countries on parameters such as ‘Knowled-ge Diffusion’ (7th), ‘Online Creativity’ (2nd) and ‘Creative Goods and Services’ (3rd). According to the 2013 Innovation Union Scoreboard (IUS), the Netherlands ranks 5th in the EU (European Commission/UNU-MERIT, 2013). The IUS distinguishes between 3 main types of indicators (enablers, firm activities and outputs) and 8 innovation dimensions, capturing in total 24 different indicators.

Source: INSEAD, 2012.

Most innovative countries (2012)

Worldwide innovation index: sixth position



3.7

2.7

2.0

1.9

1.7

1.8

2.7

2.6

1.8

1 3,81,5 2,0 2,5 3,0 3,5

Finland

Sweden

Denmark

United States*

Germany

Austria

France

Belgium

Netherlands

Ireland

3.88

3.40

3.06

2.90

2.82

2.76

2.25

1.99

1.85

1.77

R&D expenditure in the Netherlands, at 1.85% of GDP, is modest from an international perspective. However, this can partly be explained by the Dutch sector structure. The services sector, which ‘naturally’ has a low R&D intensity, makes up 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) (2008).

Measured as a percentage of GDP *= 2009Source: Eurostat, 2012.

R&D expenditure (2010)

Modest R&D expenditure



Philips

ASML

KPN

Shell*

Royal DSM

NXPSemiconductors

Unilever*

Océ-Technologies

DAF Trucks

AkzoNobel

7443,943

3,747619

1,225448

568314

242

1,481

1,260210

925150

785144

881140

55099

R&D expenditure (millions of euros) R&D personnel (FTE)

The Dutch economy has a broad and solid base. Leading multinationals with worldwide operations such as AkzoNobel, ASML, 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). Additionally, there are also many other global businesses that conduct R&D activities in the Netherlands, such as Danone, Dow and Yakult.

*Calculated by TW.Source: Technisch Weekblad, 2013.

Top 10 innovative Dutch businesses (2012)

Home-grown knowledge multinationals



TNO

ECN

Deltares

FOM

ESTEC

NLR

MESA +

MARIN

NEN

UNESCO-IHE

5873,859

937145

821111

1,07695

80

2,683

66673

37050

32842

23636

16634

2000 300010000 4000

Budget in millions of euros (2012) Personnel in FTE (2012)

Dutch universities score quite highly for teaching and research in a number of international rankings (see: www.vsnu.nl). Wageningen University (WUR), for example, is a global leader in green biotechnology, and Leiden University leads the way in the biomedical life sciences (see box). In addition, the Netherlands is also 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.

Source: Technisch Weekblad Special R&D, april 2013.

A selection of knowledge and research institutes

Large base of knowledge and research



TNOOrganisation for Applied Scientific ResearchECNEnergy Research Centre of the NetherlandsDeltaresInstitute for DeltatechnologyFOMFoundation for the Fundamental Research on MatterESTECEuropean Space Research and Technology Centre NLRNational Aerospace LaboratoryMESA+Institute for NanotechnologyMARINResearch Institute in Hydrodynamics and Nautical ResearchNENThe Netherlands Standardization InstituteUNESCO-IHEInstitute for Water Education

Leiden Bio Science Park (www.leidenbiosciencepark.nl) is the leading life sciences cluster in the Netherlands and ranks among the top five most successful science parks in Europe. It is fully dedicated to biomedical life sciences and offers opportunities for both start-ups and established companies.

Food Valley NL (www.foodvalley.nl) hosts one of the largest agri-food and nutrition communities in the world. With Wageningen University and Research Centre (www.wur.nl) at its heart, Food Valley NL accommodates over 1,440 agri-food related companies, 70 research companies and more than 20 research institutes. Food Valley NL has been designated by the EU as a European hotspot for R&D investments in agri-food and nutrition.



Norway

Switzerland 1.34

Denmark 1.33

Netherlands 1.30

Sweden 1.21

Belgium 1.20

United States

United Kingdom

Ireland

Canada 1.17

1.28

1.23

1.16

1.14

1,40 1,651,42 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.

Source: WTI2, 2012, data processing: NL Agency.

Citation impact (2006-2009)

Dutch scientists frequently cited



Sweden

United States 51,092

Japan 43,656

Germany 18,755

France 7,844


China 18,614

South Korea 11,846

Netherlands 3,988

3,586

Switzerland 4,186

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 is well represented in this area and is ranked ninth in the world (fourth in the EU). 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 stimulating.

Source: World Intellectual Property Organisation, 2013.

Number of PCT-patent applications (2012)

Refreshing business approach



Source: Amsterdam Airport Schiphol


6. 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.

71


Denmark 9.26

Netherlands 9.26

Finland 9.18

Singapore 9.11


Germany 8.78

Sweden 8.59

Iceland 9.15

Norway 8.68

Canada 8.66

0 2 4 6 8 9,6

The Netherlands has a good physical infrastructure, with the world- class mainports 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. After Denmark, the Netherlands has the best water transport infrastructure in the world. It also has an extensive road transport network and is third in the world with regard to road network density. According to IMD (2012), the Dutch energy infrastructure also scores well, taking fifth place overall.

Harbours, canals, locks, etc. Source: IMD, 2012.

Quality of water transportation (2012)

Navigable inland waterways

72 iNfraSTrUCTUre


Singapore 4.13


Finland 4.05

Netherlands 4.02

Denmark 4.02

Belgium

United Kingdom 3.90

Germany 4.03

Japan 3.93

United States 3.93

3.98

3,8 3,9 4,24,0 4,1

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 2012, where the Netherlands is ranked fifth. 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.

Source: World Bank, 2012.

Logistics performance index (2012)

Strong in logistics

iNfraSTrUCTUre 73


Paris Charles de GaulleFrance

1,986FrankfurtGermany

1,950

Amsterdam Airport SchipholNetherlands

1,483

London HeathrowUnited Kingdom

1,465

61,490

69,985

50,976

57,274

Cargo transport x1,000 tonnes

Passenger transport x1,000 passengers

Amsterdam Airport Schiphol is the third-largest freight and fourth-largest passenger airport in Europe. More than 51.0 million passengers passed through the airport in 2012. Cargo volume decreased slightly to 1.5 million tons. A total of 101 airlines offer direct flights from Schiphol to 317 destinations all over the globe. Schiphol is also renowned for its outstan-ding baggage handling system. Furthermore, the airport has won more than 180 national and international awards since 1980. Schiphol is home to a museum which is the first of its kind in the world and features exhibits that include paintings by old Dutch masters such as Vincent van Gogh and Rembrandt. It is also the first airport in the world with a library and an airport park.

Source: Schiphol Group, 2013.

European airport traffic and transport (2012)

Third-largest airport in Europe

74 iNfraSTrUCTUre


132.2

441.5

183.8

GermanyHamburg*

NetherlandsRotterdam

BelgiumAntwerp

7.2

8.6

9,743

11.9

Trans-shipment (in millions of tonnes)

Containers (in millions of TEU)

The Port of Rotterdam is the largest port in Europe. The trans-shipment in Rotterdam added up to 441.5 million tons in 2012, a new record. Also the number of containers handled stayed at a record level in 2012 of 11.9 million TEU.Business often choose to locate in and around the Port of Rotterdam because of its strategic location in north-west Europe, its depth, the many port facilities, and its excellent links with the hinterland. Many companies from America and Asia use Rotterdam as their base for the distribution of goods throughout Europe. Work on the ‘Maasvlakte 2’ project is currently on-going. This historic land reclamation project will expand the area of the Port of Rotterdam. The first phase will be completed in 2014, which is when the first containers will cross the quay. The combined activities of the port account for about 5% of GDP. More than 90,000 people work directly for the port of Rotterdam.

* Trans-shipment 2011Source: Port of Rotterdam, 2013 and Hafen Hamburg, 2013.

Trans-shipment of goods (2012)

Largest port in Europe

Source: Schiphol Group, 2013.

iNfraSTrUCTUre 75


35.6

33.5

32.8

30.3

33.9

31.9

30.4

32.4

28 3829 30 32 33 34 35 36 37

Switzerland

Netherlands

Denmark

South Korea

Norway

France

Iceland

Germany

United Kingdom

Belgium

41.6

39.4

38.3

36.2

36.1

35.5

34.3

33.8

33.6

32.7

In June 2012, 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.

Measured per 100 inhabitants. Source: OECD, 2013.

Number of broadband connections (2012)

Leading the field in broadband

76 iNfraSTrUCTUre


Source: istockphoto

Measured per 100 inhabitants. Source: OECD, 2013.

77 77


Source: Hans Kouwenhoven


7. 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. Apart from recent extra stimulus expenditure, government finances are relatively healthy.

79


Germany

Finland 100

Denmark 99.5

Sweden 98.6

Australia 95.3

Belgium 93.8

Canada 97.2

Netherlands 96.7

United Kingdom 92.4

91.9

Austria 93.4

75 85 90 1 2 3 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.

Source: World Bank, 2013.

Government effectiveness (2011)

Effective government

80 GoverNmeNT


9.4

9.3

9.2

9.0

8.9

8.9

8.7

9.2

8,7

8.7

0 10 20 30 40 50 60 70 80 90

Denmark

Finland

New Zealand

Sweden

Singapore

Switzerland

Australia

Norway

Canada

Netherlands

90.0

90.0

90.0

88.0

87.0

86.0

85.0

85.0

84.0

84.0

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).

Source: Transparency International, 2012.

Corruption perception index (2012)

One of the least corrupt countries

GoverNmeNT 81


0 10 20 30 40 50 70 80 9060

Luxembourg

Sweden

Denmark

Finland

Netherlands

Austria

Germany

United Kingdom

France

Euro area*

20.9

37.3

45.9

50.1

67.4

74.3

82.0

86.1

89.1

90.1

The Netherlands was able to dramatically reduce its level of government debt in the years preceding the global economic crisis thanks to a favourable 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 the first half of 2012, but it was still well below the average for the Eurozone.

*Euro area = member states of the EU that use the euro as their currency. Source: Eurostat, 2012.

National debt as a percentage of GDP (first half of 2012)

Moderate level of government debt

82 GoverNmeNT


Ireland 12.5

Switzerland 21.17

Austria 25.0

Netherlands 25.0

United Kingdom

Sweden

25.0

26.3

France 38.33

Denmark 25.0

Luxembourg 28.8

Germany 30.2

0 10 20 30 40 50 70 7960

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.

Source: IMD, 2012.

Corporate tax rate on profit 2012 (%)

Competitive taxation climate

GoverNmeNT 83


Explanatory notes regarding this publication

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.

84


Sources

Amsterdam Airport Schiphol www.schipholgroup.nl

The Conference Board www.conference-board.org

Economist Intelligence Unit www.eiu.com

European Commission www.ec.europa.eu

Eurostat www.epp.eurostat.ec.europa.eu

IMDwww.imd.ch

IMF www.imf.org

INSEAD www.globalinnovationindex.org

Ministry of Foreign Affairswww.government.nl/ministries/bz

Netherlands Bureau for Economic Policy Analysiswww.cpb.nl

The Netherlands Observatory of Science and Technology www.nowt.nl

The Netherlands Organisation for Applied Scientific Researchwww.tno.nl

OECDwww.oecd.org

Port of Rotterdam Authority www.portofrotterdam.com

Social and Cultural Planning Office of the Netherlands www.scp.nl

Statistics Netherlandswww.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 Bankwww.worldbank.org

World Economic Forumwww.weforum.org

World Trade Organization www.wto.org

85


Ministry of Foreign Affairswww.government.nl/ministries/bz

Statistics Netherlands www.cbs.nl

General information about the Netherlands

Other sources of information

More detailed information is available on the websites below, almost all of which include sections in English.

Statistics Netherlands www.cbs.nl

Netherlands Bureau for Econo-mic Policy Analysiswww.cpb.nl

Ministry of Social Affairs and Employmentwww.government.nl/ministries/szw

Benelux Office for Intellectual Propertywww.boip.int


Ministry of Economic Affairswww.government.nl/ministries/ez

Association of Universities in the Netherlandswww.vsnu.nl

Netherlands Organization for International Cooperation in Higher Educationwww.nuffic.nl

Netherlands Patent Officewww.agentschapnl.nl/ octrooicentrum

NL Agencywww.agentschapnl.nl/innovatie

Trendwatchers for Innovation and Technologywww.agentschapnl.nl/en/nost

Information regarding innovation

Information regarding the labour market and higher education

86


Ministry of Economic Affairswww.government.nl/ministries/ez

Netherlands Foreign Investment Agencywww.nfia.nl

NL Agency, focus on sustainability, innovation and internationalwww.hollandtradeand invest.comwww.nlagency.nl

Ministry of Finance www.government.nl/ministries/fin


Chambers of Commerce www.kvk.nl

Information regarding enterprise (including internationally), investing and partnerships in the Netherlands

87


Food Tech Hollandwww.foodtechholland.nl

Dutch Federation of Agriculture and Horticulture (LTO)www.lto.nl

Association of the Dutch Chemical Industrywww.vnci.nl

Dutch Design Fashion Architecture Programme (DFA)www.dutchdfa.com

Dutch export platform for Dutch clean tech companieswww.cleantechholland.nl

Energy Research Centre of the Netherlandswww.ecn.nl

Association of Suppliers of Environmental Technologywww.vlm.fme.nl

Holland High Tech Sectorwww.hollandhightech.nl

Plantum (Dutch Association for Plant Propagation Material)www.plantum.nl

Dutch Flower Auctionwww.floraholland.com

Information regarding Top Sectors

88


Dutch Water Sectorwww.dutchwatersector.com

Wetsus, Dutch Centre of Excellence for Sustainable Water Technologywww.wetsus.nl

Holland Shipbuilding Associationwww.hme.nl

Greenport Holland (Dutch Horticultural Association)www.greenportholland.com (Dutch only)

Life Sciences and Health Sectorwww.lifescienceshealth.com

Holland International Distribution Councilwww.hidc.nl

Port of Rotterdamwww.portofrotterdam.com

Amsterdam Airport Schipholwww.schipholgroup.com

89


Source: Heerema Marine Contractors Nederland B.V.

Imprint Summer 2013 Edition

This publication, Holland Compared 2013, is published by the Dutch Ministry of Economic Affairs. For further information please contact the Dutch embassy, consulate or Netherlands Business Support Office in your area, or visit www.hollandtrade.com to learn even more about Dutch commerce.

Editor-in-ChiefCarin Bobeldijk

Economic editorRon HogenboomGea Blok (assistant)

English language editorsDonald MacdonaldJacqueline Meeuwisse

CoordinationSonja Haase

CopyrightArticles may be reprinted or reproduced only with acknowledgement of the source: Source: Holland Compared 2013

No rights may be derived from the contents of this publication.

Photo front, source: Energising the Future

Editorial addressHolland ComparedNL Agency Intelligence UnitP.O. Box 201052500 EC The HagueThe Netherlands

DesignTigges, Voorburg

90


Source: Heerema Marine Contractors Nederland B.V.

Editorial addressHolland ComparedNL Agency Intelligence UnitP.O. Box 201052500 EC The HagueThe Netherlands

DesignTigges, Voorburg


Source: Flowercouncil of Holland


Source: Flowercouncil of Holland


Superior logistics and technology infrastructure “There’s no better place for logistics than the Netherlands”FedEx (USA) innovation “innovation and reliability are our most important drivers, which are guaranteed thanks to the openness and good infrastructure in the Netherlands”Yokogawa (Japan)

Quality of life “...we plan to be here long term ... …the Netherlands does feel like home!”Nike (USA)

www.hollandtrade.com


Holland Compared 2013

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