R&D investments in international perspective

R&D as percentage of GDP

R&D as percentage of GDP

The figure below shows developments in the total expenditure on R&D as a percentage of GDP, in the Netherlands, the EU and OECD-countries (on average). This figure is also used to measure whether the Netherlands reaches the internationally agreed R&D-percentage of 3% GDP. The data collection and analysis is based on international agreements published in the Frascati Manual, concerning R&D-related definitions and which types of expenditure are included and which not.

In the national R&D statistics, as included in the graph below, business R&D expenditure is surveyed amongst companies. The companies include all their expenditures on R&D, including the expenditures for which they are compensated by fiscal measures (such as WBSO/RDA). Hence the foregone tax income due to these fiscal measures is not separately added to the R&D expenditures, otherwise there would be double-counting.

In line with international R&D statistics, the Innovation Box (which resembles so called 'patent boxes') is not included in fiscal support for R&D and innovation. This is due to the fact that it does not lower the cost of R&D-expenditure, but rather lowers the tariff for tax paid over profits relating to R&D and innovation activities (see Frascati Manual 2015, p. 346).

Between 2013 and 2024, the Netherlands consistently remained below the OECD average but above the EU-27 average. In 2024, the Netherlands spent 2.29% of its GDP on R&D. This percentage remained more or less stable during the 2013–2019 period. The increase in 2020 was driven not only by a rise in expenditure but also by a decline in GDP resulting from the COVID-19 crisis.

R&D expenditure by performing sector

The graph below shows the amount of R&D performed by various sectors in a number of countries, expressed as a percentage of GDP. There is a significant difference in total R&D intensity between countries. Differences in R&D intensity also exist between the various sectors. This reflects differences between countries in the structure of R&D performance. Furthermore, it is notable that the Netherlands has a lower R&D intensity than a number of countries with which it seeks to compare itself.
 

R&D expenditure by the Dutch business sector amounts to 1.61 percent of GDP in 2024, above the EU-27 average but below the OECD average.
 

R&D expenditure by funding source

Of the total €26.4 billion in R&D performed in the Netherlands in 2024, €15.9 billion is funded by businesses. Almost a third is publicly funded (€8 billion), while the remainder comes from other national sources and from abroad.

Development of R&D funded by business

The indicator shows that the amount of R&D funding by the business sector in the Netherlands, expressed as a percentage of GDP, is below the OECD average but above the EU-27 average in the period 2013-2024. Our data publication on R&D-expenditure by source of funds shows that it is also below that of most reference countries.
 

Development of R&D funded by government

The figure below shows the development is government funded R&D, as percentage of GDP. Until 2023, Dutch government funding is just above EU27 and OECD averages. The data publication about R&D expenditure funded by the government and business enterprises shows that there are considerable differences between countries in terms of government funded R&D intensity. 

Business funding of R&D at public knowledge institutions

Public knowledge institutions (HE institutions and public research institutions) receive funding from various sources. The government is the main source, but part of their funding also comes from industry.

The figure below shows the extent to which R&D activities at public knowledge institutions are funded by the business enterprise sector, in 2023. The share of private funding at public knowledge institutions is relatively higher in the Netherlands than in other countries. This share is slightly higher in neighbouring countries Belgium and Germany. Our data publication on privately funded R&D-expenditure in the public sector shows that private funding is for the public research institutions and higher education around 8%.