SDG 9.3 Knowledge and innovation

The third part of SDG 9 focuses on public and private sector investment in knowledge, technological developments and access to ICT and the internet. Knowledge is essential for the economy and for finding solutions to major social issues.

• Expenditure on R&D and tangible fixed assets is stagnating as a percentage of GDP, while the share of investment in ICT is falling.
• Private expenditure on R&D as a proportion of GDP is trending upwards.
• The Netherlands is among the leaders in the EU27 in both academic publications and patents, and the percentage of technologically innovative companies is higher than in all previous measurements.

Dashboard and indicators

Colour codes and notes to the dashboards in the Monitor of Well-being

Knowledge can be converted into new technologies and processes to make products and production processes more efficient and sustainable, and into new solutions to society's problems. But knowledge also has sociocultural and intrinsic value.

Resources and opportunities concern the money, manpower and infrastructure that are needed to develop, share and apply knowledge and innovation. In 2023, research and development (R&D) was 2.2 percent of gross domestic product. Businesses, institutions and the higher education sector in the Netherlands together spent 23.8 billion euros on R&D in 2023 using their own and hired personnel. Companies spent 16.6 billion euros, institutions 1.2 billion euros and higher education 6.0 billion euros. The trend in total and public R&D expenditure (as a percentage of GDP) is stable thanks to two years of high spending in 2020 and 2021. In 2020, GDP fell, but in 2021 expenditure on R&D actually increased. Private expenditure on R&D is trending upwards. The share of total R&D expenditure accounted for by companies is gradually increasing.

In 2022, the Netherlands was among the leaders within the EU27 for both total and private R&D expenditure. In 2023, the Netherlands was lower in the ranking (ninth as opposed to seventh), with a position towards the middle. At 0.7 percent of GDP, the Netherlands is around the middle of the EU ranking for public expenditure on R&D (12th out of 27 countries). The ratio between public and private R&D expenditure can differ significantly by country.

Gross investment in tangible fixed assets (such as buildings, housing, machines and transport vehicles) is relatively low in the Netherlands. In 2024, the country ranked 19th in the EU, at 16.1 percent of GDP. Only Ireland, Denmark and Malta invest less. Gross investments in tangible fixed assets are often lower in the Netherlands than in other EU countries. Investments in ICT as a percentage of GDP are on a downward trend. Prior to 2015, relative investments in ICT grew gradually from less than 3 percent to a peak of 4 percent. In the subsequent years, investments in ICT as a proportion of GDP fell to 2.9 percent. In other countries, such as France, Estonia, Czechia and Denmark, the share of GDP invested in ICT has continued to grow. As a result, the Netherlands has gradually slipped down the EU ranking from first place to 9th place.

The trend for the number of per capita hours worked on R&D is also increasing. In 2023, for every inhabitant, 4.4 hours were spent developing new software, products or production processes, or conducting technical-scientific research. In that year, the number fell for the first time in over ten years.

Use concerns knowledge produced, innovation implemented and knowledge networks formed. The trend in the number of scientific publications with contributions by Dutch researchers is rising. The number of publications per million inhabitants fell by 1.8 percent in 2023 to 3,631. Since the 2000s, the number of PCT patent applications per million inhabitants has been gradually declining. In 2023 and 2024, however, the proportion increased again. Over the trend period, the number is stable. The Netherlands is among the leaders in the EU27 for both academic publications and patents. In 2022, the share of technologically innovative companies as a share of all companies with more than ten employees was 45 percent higher than in all previous measurements since 1996.

Outcomes concern the extent to which new technology and knowledge are embedded in the capital goods stock. The capital goods stock (machinery, tools and other means of production) is calculated per hour worked. Capital goods are based on knowledge. In the form of machine technology and mechanical equipment, software and databases, intellectual property and accumulated R&D results, this knowledge makes a major contribution to the development of the productivity of the Dutch economy.

The trends for physical and knowledge capital stocks per hour worked are stable. However, the long-term picture is less rosy. The physical capital goods stock rose to 177 euros per hour worked up until 2013, but has since gradually fallen back to 170 euros in 2023. The total physical capital goods stock is steadily increasing in absolute terms (adjusted for inflation), but the number of hours worked is rising faster. Between 1995 and 2015, the knowledge capital goods stock increased from 7.5 euros to 12.9 euros per hour worked. After 2015, a slight decline is observable. The total knowledge capital goods stock is also steadily increasing in absolute terms (adjusted for inflation), but the number of hours worked is rising faster. In other countries, such as Belgium, Germany, France and Denmark, the knowledge capital goods stock per hour worked continues to increase. In 2023, the Netherlands still occupied fifth place in the EU ranking, which includes 13 other countries, but it is gradually losing its advantage.

Subjective assessment relates to people’s trust in science and innovation. Trust in science is measured every three years by the Rathenau Institute. In the last measurement, in 2021, trust in science was rated 7.4 (on a scale from 1 to 10).