Funding public knowledge organisations

Tasks and scope

Public knowledge organisations generate, collect and disseminate knowledge to safeguard the welfare, prosperity and safety of the Netherlands now and in the future. In doing so, they contribute to the fulfilment of government responsibilities (such as food safety) and to the social objectives set by the government (such as economic growth). The public knowledge organisations' right to exist is therefore not based on the research they do, but on the public interests they thereby safeguard. The work of these organisations is driven by the knowledge needs of governments, businesses, industry, the police, social workers, patients and consumers.

The Rathenau Instituut distinguishes five groups of public knowledge institutions in the Dutch knowledge infrastructure based on their functions:

• Policy-oriented organisations focus chiefly on research in support of policymaking. They monitor societal trends, trace the real and potential consequences of policy, and evaluate policy. Think, for example, of the Netherlands Institute for Social Research (SCP) or the Research and Data Centre (WODC).
• Government laboratories support the national government by executing its knowledge-intensive responsibilities. Examples are performing forensic investigations by the NFI or the coordination of the National Immunisation Programme by the National Institute for Public Health and the Environment (RIVM).
• TO2-institutes support businesses, industry and  government by conducting and/or facilitating research and innovation, often pre-competitively and in consortia with public authorities, businesses and knowledge-based organisations. They manage large-scale facilities for this purpose. With these, Deltares conducts applied research into the water and soil system and the Netherlands Aerospace Centre (NLR) into better air and space travel.
• Sector-oriented foundations combine research in support of policymaking with a focus on the knowledge requirements of professionals and their clients in the health care, sports, culture and security sectors. They do so by collecting and proactively sharing available data, monitoring trends and developing tools such as courses, guidelines and information leaflets. This way, the Mulier Institute contributes to the sports sector and Vilans to the health care sector.
• Professional research and training organisations combine research (in support of policymaking) with education. This includes training aspiring and qualified professionals who work in defence, law enforcement by the Netherlands Defense Academy (NLDA) and the Police Academy.

The method section below in this factsheet includes a complete overview with all public research organisations classified per group.

In the next figure we show the size of these five groups, based on their total income in 2024. We see that the TO2-institutes (46%) and the government laboratories (38%) together receive over 75% of the total income of public knowledge organisations.

Types of funding

Public knowledge organisations have different organisational forms (from government agencies to private foundations) and receive funding on differing terms. In this factsheet, we divided the sources of funding into four income sources:

1. Institutional funding is structural funding provided by the national government. This includes the budget allocated by the responsible ministry (for example a government contribution of institutional subsidy) and recurring annual programme funding not obtained in competition with others.
2. Project funding by the national government is for projects commissioned by the national government. This funding can be obtained in competition with other parties by can also be granted for direct one-off commission.
3. Project funding by third parties is funding that organisations obtain in competition with other parties. This includes, for example, European grants (Horizon Europe) or programmes run by the Netherlands Organisation for Health Research and Development (ZonMW). Other sources include contract research for both private and public parties.
4. Other income is income that public knowledge organisations receive for products or services that are not related directly to research or knowledge-intensive activities, such as income from licensing or leasing of facilities. Interest income and charges are not included..

In the figure below, we show that the proportions of the four funding sources for each group of public knowledge organisations. Notably, Policy-oriented organisations, governmental laboratories, and professional research and training organisations rely on institutional funding for over half of their income. TO2-institutes and sector-oriented foundations receive a much larger share of their income through project funding. This reflects the differences in their function: the more a public knowledge organisation is focused on supporting policymaking by the central government, the larger the proportion of their total income comes from the government. 

General financial trends

The figure below shows how the revenues of public knowledge organisations developed between 2010 and 2024. The total income of 2024 is over 3,4 billion euros. This is 1 billion euros (+40%) more than in 2010. The largest part of the total income of 2024 comes from institutional funding (60%). This is followed by project funding by the national government (19%), project funding by third parties (17%) and other income (3%).

Between 2012 and 2018, the total income decreases with 12%. This is reflected in all income sources except for project funding by the government. Project funding by third parties decreases most during this period (-31%), followed by other income (-30%). Institutional funding decreases with 56 million euros during this period, while project funding by the government increases 57 million euros. Led by cabinet Rutte II, the central government thus shifted structural funding to project-based funding.

From 2019 onwards total income increases sharply (+46%). The national government, led by Rutte III, has a big part in this: both institutional funding as well as project funding by the government increase (+63% and +52%, when taken together generating a more than 1 billion increase between 2019 and 2024). Other income also increases (+63%). Project funding by third parties remains roughly the same and hence does not recover from the earlier downturn.

Simultaneously with these financial trends, inflation has risen since 2010, the last years especially. This means that €1 from 2010 is worth only €0,71 in 2024. By correcting for this, we can better understand whether the strongly increased total income of the last couple of years also means that public knowledge organisations can actually do more than in 2010. We therefore compare the income with the amount that organisations would have received if their income would have increased with the GDP price index (in other words, the real economic development since 2010).

With this correction, total income of public knowledge organisations decreases sharply during the first couple of years. The low point lies in 2018, when the income is worth 17% less than in 2010. The total income increases again during the following period. Because of this, the 2024 income is relatively the same as in 2010. This is mainly due to a turnaround in institutional funding: since 2018, this source increases more than the inflation. 

Hence, the growth of 1 billion euros between 2010 and 2024 cancels exactly with the inflation during that same period. Bottom line: the revenue of public knowledge organisations is - after years of relative decrease - just as big in 2024 as in 2010.

Trends within the five groups

The figure below shows the income development over the period 2010-2024. This shows that not every group of public knowledge organizations has the same financial development. We will go through the five groups below.

The group of policy-oriented organisations has out of all groups the least to spend since 2010. Their income does increase compared to 2010 (+38%). Corrected for inflation, however, their 2024 income is about the same as in 2010. All public knowledge organisations in this have seen a growth in their income between 2010 and 2024. At the Netherlands Bureau for Economic Policy Analysis (CPB) and the SCP the income increases more than the inflation, meaning that these organisations can also do more with their money. At the Netherlands Environmental Assessment Agency (PBL) experiences real decline: their income grows less than the inflation. The 2024 income of the WODC is relatively the same as in 2010.

The income of the government laboratories as a group is 79% more in 2024 than in 2010. Their income grows the most out of all groups. This also translates into the biggest real growth (+28%) of all groups. In particular, the income of the RIVM increases sharply. This is mainly due to combatting the coronavirus pandemic. The RIVM received more than 80 million euros for vaccination and research programmes tailored to COVID-19 in 2020 and saw an extra increase of 175 million euros in their institutional funding in 2021. Herewith, the revenue of the RIVM increase with 96% since 2010 and in particular since 2019. The income of the Royal Netherlands Meteorological Institute (KNMI), NFI, and Netherlands Institute for Public Safety (NIPV) grow just as much or even more. The income of the CBS also increase but, as the only one within this group, not enough to match the inflation. The CBS is therefore the only organisation going through real decline, whereas the others experience real growth.

TO2 institutions together have the most to spend. After some years of decline, their income grows again since 2018. Their icome is therefore higher in 2024 than in 2010 (+20%). This is mainly the result of the investments in applied research resulting from the coalition agreement of the Rutte III cabinet. Nevertheless, this increase is not enough to compensate for inflation and so the real development is -14%, meaning that TO2 institutions decrease the most of all groups since 2010. Although the income of all TO2 institutions grows since 2010, this translates into real growth only for the Maritime Research Institute Netherlands (MARIN) and NLR. At Deltares, TNO (including ECN, since 2018), and Wageningen Research (WR) the income declines relatively.

The total income of the sector-oriented foundations fluctuate around the same level between 2010 and 2015, after which they start to increase. Because of this the income of this group increases with 52% between 2010 and 2024. Together, the foundation experience 8% real growth. The revenue of the Mulier Institute grows the most since 2010 (+250% in 2024), not just of all foundations but also of all public knowledge organisations. Hence the Mulier Institute has the most real growth (+99% in 2024). Similarly, the Boekmansstichting, Vilans, and the Trimbos-instituut can do more with their income in 2024 than in 2010. ARQ National Psychotrauma Centre (ARQ) and VeiligheidNL can do about the same with their 2024 revenue as in 2010. Movisie is the only organisation (both in this group as well as of all public knowledge organisations) of which the income decreases in 2024 compared to 2010, meaning a real decline in their income. Geonovum, Nivel, the Netherlands Youth Institute (NJi), the Institute for Road Safety Research (SWOV), and the National Knowledge Institute for Culture Education and Amateur Art (LKCA) experience a real decline since 2010 (or the first year of measurement), despite increased income.

Within the group of professional research and training organisations the income in 2024, after a period of decline, increases with 27% compared to 2010. This is insufficient to match the inflation in this period. Their real development is therefore -12%. Such increased revenues but real decline applies to both the NLDA and Police Academy. Notably, the income of the Police Academy, after years of decline, increases strongly the last five years and consists solely out of institutional funding from 2024 onwards.