Nearly 14.3 billion euros was spent on Research & Development (R&D) in 2016 by the enterprises, institutions and the higher education sector spent, the highest expenditure on R&D ever recorded in the Netherlands.Statistics Netherlands (CBS) gathered the information in their latest edition of the Internationalisation Monitor 2017, for the third quarter.The province of Noord-Brabant was the front-runner in private spending on R&D.In 2016, expenditure by companies, in higher education and at other institutions towards their own R&D grew by more than 4 per cent. Corporate R&D spending increased by 462 million euros relative to 2015, amounting to 8.1 billion euros.R&D expenditure in higher education and other institutions was also up, albeit more modestly by 2 per cent.The number of labour years also went up by 3 per cent to more than 133 thousand.

R&D intensity stable in the Netherlands

Expenditure in R&D is generally presented in relation to gross domestic product (GDP). In 2016, R&D intensity stood at 2.03 per cent, roughly equal to 2015 (2.02 per cent) and 2014 (2 per cent), but higher than in previous years (1.9 per cent).The Dutch government seeks to achieve an R&D intensity of 2.5 per cent.At roughly two per cent, the Dutch intensity reflects the European average. Similar amounts are spent by countries such as Sweden, Denmark and Austria, but these have a higher R&D intensity as set against GDP.The UK and Italy both spent more on R&D, but the R&D intensity was lower than the Netherlands.

More corporate R&D carried out abroad

Companies can break down their production processes into smaller projects, which may be set up around the world.This can be done with the knowledge-intensive parts of the process or even with entire R&D divisions. Dutch R&D expenditure abroad increased by nearly one-third between 2014 and 2016, from nearly 1.5 billion euros in 2014 to 2.2 billion euros in 2016. The majority of outsourced R&D abroad is on account of the private sector.The Netherlands is also generating more R&D revenues from abroad. Revenues increased from 1.7 billion euros in 2014 to 2.2 billion euros in 2016, representing around one-sixth of total R&D expenditure in the Netherlands.Net expenditure by the private sector is significantly higher abroad than spending by institutions and in higher education. The latter are net recipients of R&D revenues from abroad.

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Also in the news for the Netherlands:

• PREMIER SUITES PLUS opens apartments in Rotterdam
• ASAP to launch first overseas chapter in the Netherlands
• HSBC survey reveals top destinations for expatriates

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Noord-Brabant leads in private R&D expenditure

Around 30 per cent of private R&D expenditure is on account of enterprises in Noord-Brabant. Together with Zuid-Holland, this province represents nearly half of total private R&D expenditure in the Netherlands. Noord-Holland province follows in third place.The bulk of R&D activity can be found in the southeastern part of Noord-Brabant around Eindhoven. In this region spent the private sector more than 1.5 billion euros on its own R&D, equivalent to 13 thousand labour years. In Noord-Holland province, the Greater Amsterdam region is a dominant player with around half of all corporate R&D activities in the province undertaken there.For related news and features, visit our Enterprise section.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory  

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