The Netherlands ranks fifth in the European Union (EU) in terms of technology investments. The Netherlands also scores high when we look at the number of transactions by the most active tech investors.
This is according to research by the European Patent Office (EPO). In the study, the agency identifies investors vital to the successful commercialisation of breakthrough innovations. The report also discusses the challenges tech startups face in attracting public and private funding in both Europe, drawing a comparison with the United States (US).
'Funding gap hinders transformation to scalable start-ups'
"Start-ups play a crucial role in commercialising disruptive ideas with great potential to drive progress. However, as highlighted in Mario Draghi's report, many innovative companies face financial obstacles to their growth within Europe," reports EPA president António Campinos. "This funding gap hinders the transformation of innovation into scalable start-ups, leading entrepreneurs to seek opportunities abroad. Bridging this gap is essential to revitalise sustainable growth across Europe."
Between 2000 and 2023, 5,903 transactions took place in the Netherlands involving 1,154 investors. The total investment amounted to €21.7 billion. This puts our country among the top countries in Europe.
UK by far leading
The UK leads the ranking by far. Over the period 2000-2023, no less than 42,576 transactions took place in the UK with a total investment of €224.79 billion. France and Germany follow at the space distance with 17,169 and 16,017 transactions respectively, and a total investment of €82.2 billion and €84.7 billion respectively.
Netherlands also has to beat Spain. A total of 11,566 transactions took place in The Southern European country, accounting for a total investment of 44.8 billion euros, according to EPO figures.
Technology Investor Score
The report also charts the so-called Technology Investor Score (TIS). This score shows the share of companies in an investor's portfolio that have filed patent applications. The measure of this runs from zero to one, with higher values showing the involvement of more specialised investors in patented technology.
In this respect, the Netherlands scores relatively high at 0.27. Leader is Switzerland, which achieves a TIS of 0.37. Belgium and France follow with 0.31 and 0.29 respectively. The Netherlands also has to beat Denmark, which achieves a TIS of 0.28. Other countries achieving a TIS of 0.27 are Austria, Slovenia and Sweden.
In total, the EPA calculated the TIS for 6,100 investors worldwide operating in Europe, involving both public and private investors. It also calculated the TIS for some 8,000 investors active in the US. This shows that 88% of European investors have a portfolio that includes companies with patent applications. 8% additionally have a portfolio that includes more than half patent-holding organisations. According to the EPA, this shows the strong commitment of investors to startups filing patent applications.
Top five Dutch investors
The top three technology investors in the Netherlands are the European Innovation Council (EIC), the SME-focused programme Eurostars and investor BOM Brabant Ventures. EIT Health and Rockstart round out the top five.
Author: Wouter Hoeffnagel
Photo: Rudy and Peter Skitterians via Pixabay
