Update from The Hague: New government embraces innovation as the way forward
The Dutch government’s ambitions, set out in its coalition agreement 'Confidence in the Future’ published in October 2017, are rapidly being put into action. In this ‘Update from The Hague’, the most relevant policy developments regarding funding and innovation for Life Sciences & Health (LSH) entrepreneurs and companies are addressed.
€400M research infrastructure boost
The ‘Rutte III’ Dutch Cabinet explicitly couples its innovation stimulating policy to solving societal challenges, attributing a clear role to start-ups and SMEs. As one of the pillars for a strong LSH sector, the Dutch research infrastructure received a €400 million boost to strengthen fundamental and applied research.
Recalibration of top sector policy and PPPs
As a result of the above-mentioned linking of innovation and economic opportunities to societal challenges, the Ministry of Economic Affairs and Climate Policy is currently recalibrating the top sector policy. This implies a stronger emphasis on a select number of themes: energy transition/sustainability; agriculture/water/food; and quantum/high-tech/nano/photonics. Existing top sectors are expected to focus more strongly on activities that contribute to societal challenges and relevant themes, such as health and digitalisation. We do not expect any updates on the recalibration process before the summer. The government has already announced a €15 million budget increase for public-private partnerships (PPPs) in 2018 as well as an increase of the PPP Allowance from 25% to 30%.
Boost for SME innovation instruments
TIn February, the Ministry of Economic Affairs and Climate Policy announced the extension of the budgets for 2018 of the MIT Arrangement (from €35 million to €40 million) and the Innovation Credit (from €60 million to €70 million). Both instruments are key in providing the much-needed capital for SMEs to make the next step. In addition, research institutes for applied research that fulfil a market need will receive extra funding totalling €42 million, with Wageningen Research and TNO amongst the beneficiaries.
Invest-NL taking shape
The outlines of Invest-NL are taking shape. Planned to launch in 2019, this national investment platform will have an annual budget of €500 million to spend (to a total of €2.5 billion). The budget is meant to provide risk capital to scale up companies and activities that in the current market find it difficult to attract funding due to either the risks involved or the long research and development timelines. In line with government policy, this platform has been set up with the goal of enabling companies to make the next step in bringing products to the market that benefit society as a whole. From that perspective, Invest-NL could be an ideal match for LSH entrepreneurs.
“The Innovation Credit receiving additional funds and Invest-NL steadily taking shape, illustrate the growing range of funding possibilities that life sciences entrepreneurs have at their disposal. This will help start-ups and SMEs to contribute even more towards a healthy and sustainable society”, says Annemiek Verkamman, Director of HollandBIO, the industry association of the strong and vibrant Dutch biotech sector.
