Government support for R&D in the Netherlands - by type of funding
In short
- The share of project funding from the Dutch government in 2021 is about one third.
- The share of project financing is expected to rise to 37% by 2024 due to the National Growth Fund.
- The share of project and institutional funding varies greatly between departments.
Institutional financing refers to expenditure on institutions without competition or direct selection of projects. Institutions are free to spend these resources themselves.
Project or program funding involves resources that are allocated to a group or individual to carry out research activities that are limited in scope, budget and time. Much of this resource is distributed through competition. For a more detailed explanation, see: Totale Investeringen in Wetenschap en Innovatie 2014-2020 (Vennekens and van Steen, 2016, p. 6).
Direct government support for R&D in the Netherlands
Share project funding | Budget and future estimates | |
2005 | 23,3 | |
2006 | 25,4 | |
2007 | 26,4 | |
2008 | 26,3 | |
2009 | 29,2 | |
2010 | 30,8 | |
2011 | 30,4 | |
2012 | 29,2 | |
2013 | 29,4 | |
2014 | 28,3 | |
2015 | 27,6 | |
2016 | 30,8 | |
2017 | 31,3 | |
2018 | 33,4 | |
2019 | 32,6 | |
2020 | 31,3 | |
2021 | 32,9 | |
2022 | 35,3 | |
2023 | 36,8 | |
2024 | 37,4 | |
2025 | 36,1 | |
2026 | 34,2 |
Analysis
Direct government support for R&D can be distinguished by type of funding: institutional funding on the one hand and project funding on the other hand. The share of project funding has been increasing between 2005 and 2010, followed by some fluctuations. Between 2010 and 2015 the share of project funding declined, largely as a result of the phasing out of various types of subsidies. After that, the share of project financing will grow to 33% in 2021 (provisional figures). In the coming years, the share of project funding in the Netherlands is expected to rise even further, to 37% in 2024, due to the National Growth Fund.
In other countries (insofar as information is available) the share of project financing differs greatly. In Austria, for example, in 2020 28% of government R&D expenditure will be spent through project financing and in Ireland the percentage is 61%. At 31% in 2020, the Netherlands has a relatively small share of project financing. Due to the expected increase to 37%, the Netherlands is more average.
Direct government support for R&D per department
Project funding | Institutional funding | |
General Affairs | 0,625 | 0 |
Justice and Security | 23,408 | 0 |
Interior and Kingdom Relations | 9,471 | 0 |
Foreign Affairs | 49,71184405 | 0,31 |
Agriculture, Nature and Food Quality | 208,1115 | 30,739 |
Health, Welfare and Sport | 267,511 | 88,507 |
Social Affairs and Employment | 8,264 | 5,078 |
Economic Affairs | 449,55209 | 347,609005 |
Defence | 42,06 | 45,864 |
Infrastructure and Water Management | 15,368 | 52,731 |
Education, Culture and Science | 821,7967477 | 3596,858644 |
Analysis
The main departments providing institutional funding are Education, Culture and Science (OCW) with 81% and Infrastructure and Water Management with 77% (in 2020). The high proportion of institutional funding in OCW is largely due to the structural funding of universities (first flow of funds), which is two-thirds of the departmental research budget. Economic Affairs & Climate and Public Health, Welfare and Sport, both departments with a relatively large research budget, spent respectively 56% and 75% of their research budget through project financing. General Affairs and the Interior and Kingdom Relations - both departments with a relatively small research budget - spent their research budget in full through project financing.
Download the file with figures on direct government funding, broken down by department and societal goal in a separate Excel file.
For an explanation of the used definitions and acronyms we kindly refer to the web page Definitions for Science in Figures.
Related publications
- Private non-profit research funding
- R&D expenditure by sector of performance and field of science
- Total R&D in the Netherlands by sector of performance and source of funds, R&D activity type and type of costs
- R&D expenditure by sector of performance and field of science
- R&D expenditure in the Netherlands by funding source and sector of performance
- Government funding of R&D
- Funding and performance of R&D in the Netherlands
- Two and a half percent