Government support for R&D, in % of GDP
In short
- Direct Dutch government support for R&D is slightly above the European average.
- Nine countries provide more indirect (fiscal) government support.
- There is a large variation in the extent of public support for companies, with the Netherlands in a middle position.
Direct government support for R&D
2023 | |
JPN | 1,6 |
KOR | 1,29 |
DEU | 1,05 |
CHE | 0,98 |
AUT | 0,87 |
DNK | 0,87 |
FIN | 0,86 |
NOR | 0,83 |
NLD | 0,8 |
OECD | 0,73 |
EU-27 | 0,72 |
SWE | 0,72 |
US | 0,72 |
FRA | 0,65 |
BEL | 0,65 |
ITA | 0,63 |
UK | 0,61 |
ESP | 0,6 |
IRE | 0,21 |
Explanatory note
If we look at the direct government contribution to R&D (the figure above), we see that the Netherlands is comparable to Norway. Several governments of reference countries spend more on direct support than the Netherlands.
Direct and indirect government support for R&D
Indirect support | Direct support | |
JPN | 0,16 | 1,6 |
KOR | 0,19 | 1,29 |
DEU | 0,01 | 1,05 |
CHE | 0 | 0,98 |
DNK | 0,06 | 0,87 |
FIN | 0,01 | 0,86 |
NOR | 0,07 | 0,83 |
AUT | 0,17 | 0,8 |
NLD | 0,13 | 0,8 |
OECD | 0,13 | 0,74 |
EU27 | 0,1 | 0,73 |
SWE | 0,04 | 0,72 |
US | 0,14 | 0,68 |
FRA | 0,28 | 0,65 |
BEL | 0,23 | 0,65 |
ITA | 0,06 | 0,64 |
UK | 0,3 | 0,61 |
ESP | 0,14 | 0,6 |
IRE | 0,22 | 0,19 |
Explanatory note
The figure above shows that the level of fiscal support indirect (fiscal) government support in the Netherlands is average. While the percentage of bbp for the Netherlands is equal to the OECD average and slightly above the EU-27 average, nine countries hoave a higher level of fiscal government support for business R&D. There are major differences between countries in the scope of the tax support. In 2023, fiscal support as a percentage of GDP ranged from no fiscal support for Switzerland to 0.30 percent of GDP for the United Kingdom (2022 figure). The percentage for the Netherlands was 0.13. If we take direct and indirect support together, we see that the Netherlands is just above the average of EU-27 countries.
Direct and indirect government support for R&D of business enterprises
Indirecte overheidssteun (fiscaal) van bedrijven | Directe overheidsfinanciering van R&D van bedrijven | |
FRA | 0,2833 | 0,1366 |
KOR | 0,1928 | 0,222 |
UK | 0,2975 | 0,1013 |
BEL | 0,232 | 0,0873 |
AUT | 0,1696 | 0,0964 |
IRE | 0,2223 | 0,042 |
US | 0,1407 | 0,1055 |
NLD | 0,1282 | 0,1034 |
OECD | 0,1277 | 0,0945 |
ESP | 0,1382 | 0,078 |
JPN | 0,1601 | 0,0504 |
NOR | 0,0698 | 0,1125 |
EU27 | 0,1021 | 0,0796 |
SWE | 0,0416 | 0,0907 |
CHN | 0,0685 | 0,0554 |
ITA | 0,0597 | 0,0338 |
DEU | 0,0112 | 0,0728 |
FIN | 0,0125 | 0,0597 |
CHE | 0 | 0,0336 |
Explanatory note
The figure above focuses on the public support of R&D of companies, which consists of direct financial support and indirect fiscal support. The figure shows that:
- there is a large variation in the extent of public support for companies, with the Netherlands in a middle position;
- the share of fiscal support varies. For the Netherlands, at 55%, the share of business support is slightly low.
The data on indirect fiscal government support only take into account measures that are directed at lowering the costs of R&D activities, in accordance with international statistical agreements as lain down in the OECD Frascati Manual. There are also fiscal measures that provide fiscal advantages on the profits made with R&D activities, such as the Dutch Innovatiebox. They are not included primarily because they reward R&D investments after the fact. More on the Innovatiebox can be read in the publication TWIN 2023-2029 (only in Dutch). More information on tax incentives in international perspective can be found on the website of the OECD.
For an explanation of the used acronyms we kindly refer to the web page Definitions for Science in Figures.
Downloads
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Government budget allocations for R&D, as percentage of GDP, international comparison
file type xlsx - file size 22.4 KB
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Government R&D expenditure per department and socio-economic target
file type xlsx - file size 40.6 KB
Related publications
- Government funding of R&D
- R&D investments in international perspective
- R&D expenditure and capacity by field of science
- R&D expenditure, funded by the government and companies, as a % of GDP
- R&D expenditure in the public sector, privately funded, in %
- R&D expenditure by sector of performance, as a % of GDP (international)