Dutch adopts pick-the-winner industrial strategy

The Dutch cabinet has formally adopted a new industrial strategy, marking the end of the current “Topsectoren” approach. The Ministry of Economic Affairs and Climate Policy announced that the Netherlands will now concentrate on six markets in which it has winning potential globally: semiconductors, machine and equipment manufacturing, defense-related applications (including 6G and laser satellite communication), biotechnology, digital services (including AI) and innovative chemistry.

“Given the major challenges we face, such as a tight labor market, a congested power grid and increasing geopolitical tensions, we can’t afford to stand still or avoid making choices. If we want to remain at the top in 2040, we must have the courage to choose now. By investing in these six markets where we can truly make a difference and win, we strengthen our security, economic growth and future prosperity. In the end, it’s very simple: those who don’t choose, lose,” says Economic Affairs Minister Vincent Karremans.

Chosen sectors will enjoy dedicated programs to support their respective ecosystems. These programs are currently under development, and the government will explore how funding will be allocated or reallocated. Former top sectors that didn’t make it to the short list will still be able to take advantage of generic R&D support instruments such as the WBSO.

The new industrial strategy aims to ensure that by 2030, industry will represent at least 15 percent of Dutch GDP and contribute to joint R&D investments of no less than 3 percent of GDP.