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

Direct government support for R&D in the Netherlands

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 32% in 2022. In the coming years, the share of project funding in the Netherlands is expected to rise even further (43% in 2024), due to the National Growth Fund. After 2024, the share of project funding is expected to decrease. The savings anounced by the government in the Voorjaarsnota and Hoofdlijnenakkoord are not included in these numbers. They will affect both the institional and project funding.

In other countries (insofar as information is available) the share of project financing differs greatly. In Austria, for example, in 2022 26% of government R&D expenditure was spent through project financing. In Ireland this percentage was 56%. With 32% in 2022, the Netherlands had a relatively small share of project financing. With the expected increase, the Netherlands will be more average in 2024.

Direct government support for R&D per department

Analysis
The main departments providing institutional funding are Education, Culture and Science (OCW) with 84% and Infrastructure and Water Management with 93% (in 2022). 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 65% and 79% 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.