Government support for R&D in the Netherlands - by type of funding

Investments

Data publication

Government R&D funding can be divided between institutional funding and project or program funding. In this data publication we show the development of the share of project financing by the Dutch government over the years. We then look at the distribution of project and institutional funding of R&D expenditure per department.

In short

  • The share of project funding from the Dutch government in 2023 is 33%.
  • The share of project financing is expected to rise 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. 


Direct government support for R&D in the Netherlands

Source: Rathenau Instituut/ TWIN data

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 increased to 33% in 2023. In the coming years, the share of project funding in the Netherlands is expected to rise even further (41% in 2025), due to the National Growth Fund. After 2025, the share of project funding is expected to slowly decrease. 

In other countries (insofar as information is available) the share of project financing differs greatly. In Austria, for example, in 2023 26% of government R&D expenditure was spent through project financing. In Belgium this percentage was 52%. With 33% in 2023, the Netherlands had a relatively small share of project financing. With the expected increase, the Netherlands will be more average from 2024 onwards.


Direct government support for R&D per department

Source: Rathenau Instituut/ TWIN data
Notes: Institutional financing: expenditure on institutions without competition or direct selection of projects. Institutions are free to spend these funds themselves. Project or programme funding: funds allocated to a group or individual to carry out research activities that are limited in scope, budget and time. .

Analysis
The main departments providing institutional funding are Education, Culture and Science (OCW) with 83% and Infrastructure and Water Management with 95% (in 2023). 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 69% and 80% of their research budget through project financing. General Affairs, Justice and Security and the Interior and Kingdom Relations - both departments with a relatively small research budget - spent their research budget in full through project financing.  
 

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