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

data publication
19 April 2022
R&D government Innovation research
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 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.


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 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

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.