European Investments in Innovation Crucial for the Dutch Technological Industry

The Dutch technological industry is at a critical juncture. With European investments playing a significant role in innovation, it is essential to continue strengthening these financial flows. The latest figures and insights, presented by FME in their position paper, show that Europe lags behind other world powers such as China and the US in R&D spending. This article provides an in-depth analysis of the current state of affairs and the necessary steps to strengthen the technological industry in the Netherlands and Europe.

European Innovation Investments: The Key to Progress

Importance of European Investments for the Netherlands

The technological industry in the Netherlands strengthens its innovation capacity with European investments. According to FME, 37% of Dutch R&D spending is done by the technological industry. European innovation investments, such as those from Horizon Europe, play a crucial role in this. By collaborating within Europe, the latest innovations are developed, ranging from cleaner buses and trucks to advanced photonics for sustainable fuels. Every euro invested in innovation yields up to 6 euros, significantly contributing to the Dutch economy and strategic autonomy.

Current State of R&D Investments in Europe

Despite the benefits that innovation investments offer, Europe invests only 2.2% of its GDP in R&D, and the Netherlands is slightly above this with 2.3%. This contrasts with China and the US, who have increased their investments. Currently, Europe lags in 44 critical key technologies, with China leading in 37 and the US in 7. FME emphasizes that increasing R&D investments is necessary to maintain technological leadership and ensure economic security.

Sectoral Analysis of European Innovation Challenges

Lagging Private R&D Investments

A significant part of the lag in European R&D investments is due to lagging investments in the private sector. Only 1.5% of the EU GDP is invested in private R&D, compared to 1.6% in China and 2.2% in the US. FME suggests that one-third of the budget of the new Framework Program (KP10) should go to the private sector to increase private R&D investments and secure key positions in global value chains.

The Three Pillars of Innovation

FME highlights the importance of the three-pillar structure within KP10:

• Pillar 1: Focus on European leadership in fundamental knowledge.
• Pillar 2: Reform to focus on key technologies, similar to the European Chips Act.
• Pillar 3: Focus on scaling up innovations, including deep tech start-ups and scale-ups.

These pillars should create connections between fundamental research, applied research, and scaling.

Challenges and Recommendations for the Future

Need to Reduce Administrative Burdens

FME points out that administrative burdens deter companies from participating in European innovation programs. Reducing these burdens must be a top priority to strengthen industrial competitiveness.

Stability and Flexibility of KP10

Innovation requires long-term planning and cooperation between various parties. Stability in both budget and objectives is crucial to attract additional investments from the private sector. At the same time, KP10 must be flexible enough to address changing circumstances.

Focus on Dual-use Technologies

FME highlights the potential of dual-use technologies (applications in both the civil and military domains) and advocates for strategic considerations and stability in objectives and definitions regarding dual-use within KP10.

Conclusion

European innovation investments are crucial for maintaining technological leadership and economic security in the Netherlands and Europe. By making targeted investments, reducing administrative burdens, and focusing on key technologies, the Dutch technological industry can remain competitive. FME calls for an ambitious KP10 program with a budget of 200 billion euros, which will benefit both the Netherlands and Europe.

"Increasing R&D investments is an urgent necessity. Only then can we compete with technological leadership, the foundation of our economic security." - FME

Bekijk de position paper van FME hier.