The Netherlands must invest in four technological areas to safeguard its prosperity in the future. This states Peter Wennink, former top executive of chip machine manufacturer ASML, in a report. According to the report, if radical choices are not made and crucial preconditions are not put in place, the quality of life and prosperity for future generations will deteriorate rapidly.
The report 'The route to future prosperity', prepared under Wennink's leadership, translates the European Draghi report to the Dutch context. The report argues that it is necessary to make structural choices to secure the future prosperity of our country. Among other things, it warns that current economic growth is insufficient to absorb the rising costs of healthcare, pensions, defence and energy transition. If no action is taken, the Netherlands risks losing its ability to meet societal challenges, such as the ageing population, sustainability and pressure on public services.
Major investments needed
The Dutch Central Bank and the Netherlands Bureau for Economic Policy Analysis, for instance, predict growth of only 0.5% to 0.9% per year in the medium term. This is too little to maintain current provisions. To reverse the trend, the report says growth of 1.5% to 2% is needed, which should come mainly from higher labour productivity. This will require substantial investment; €151 to 187 billion is said to be needed over the next 10 years. These investments should largely come from private funds, according to the report.
The report also points out that both the Netherlands and the European Union (EU) are lagging behind the United States (US) and China in key technologies such as artificial intelligence, semiconductors and renewable energy. This leaves us dependent on foreign countries for these technologies, which is a strategic risk.
Four domains
To turn the tide, the report identifies four areas in which the Netherlands can take a leading position:
- Digitisation and AI agents
- Safety and resilience
- Energy and climate technology
- Life sciences and biotechnology
These sectors are crucial for future prosperity, geopolitical influence and solving major transitions such as the energy transition, according to Wennink's report.
Remove structural barriers
Investments in these four areas require the removal of a number of structural barriers, the report warns. These include speeding up and simplifying licensing and regulation. This is particularly true for strategic projects in energy infrastructure. The current nitrogen crisis and slow procedures currently hamper innovation.
In addition, talent development must improve, with Wennink calling for a National Talent Agenda focused on technical education, retraining and further education, and attracting international knowledge workers.
Affordable and reliable energy is also crucial. Congestion on the power grid and high prices threaten to drive away strategic industries, the report warns. In the short term, this can be addressed by focusing on flexible use of grid capacity and tax breaks. In the long term, a robust energy mix and security of supply are necessary.
Economic infrastructure must also be strengthened. Think of the main ports (Rotterdam and Schiphol), Brainport Eindhoven and knowledge clusters such as the Leiden Bioscience Park. Public-private cooperation is essential here, according to the report.
Stronger governance structure
To turn the tide, a stronger governance structure is also needed, Wennink argues. Among other things, the report advocates making the prime minister ultimately responsible for future earning power. In addition, the role of Minister of Economic Affairs should be renewed, and the minister should be given direction over energy and trade policy. Finally, the report argues for an independent Commissioner for Future Prosperity to coordinate interdepartmental tasks and break through impasses through a National Investment Council.
To support a more powerful governance structure, Wennink said the government needs less process-oriented accountability pressure and more room for risk-taking. This should lead to administrators daring to take action again and be able to pursue social goals decisively.
'Not acting is also a choice'
"Not acting is also a choice. Every day we do not invest in the future of our country, the bill for future generations rises further," the report says. "This report shows that the opportunities are there: we know what is needed, what to invest in and how to do it."
"The will to build, innovate and cooperate is everywhere. Let us harness this energy and start making the choices and investments today that will make our country stronger and more resilient. The future does not wait."
