The Netherlands is in danger of falling behind in the field of AI, researchers say

The Netherlands is no investing enough in technological innovation, and is therefore in danger of falling behind in the field of artificial intelligence (AI), warned Tjark Tjin-A-Tsoi, the head of Dutch innovation and research non-profit TNO. He noted that the Netherlands is also not particularly inviting to investment from big business at the moment, largely due to domestic politics.

The Netherlands has invested several hundred million euros in AI in recent years, he stated. "It means it is not much when you compare that with other countries. Especially at a time when this technology is really taking off, with such great opportunities and breakthroughs as right now. It's a race. And the gap with the rest is growing," he said.

TNO has been insisting for some time that the Netherlands spends too little when investing money in knowledge and technology. "This market has become incredibly competitive in a short time, mainly due to the rise of the large tech groups. Countries such as China, Japan, Taiwan and South Korea have joined in. Saudi Arabia is investing $40 billion in AI."

Major American tech companies Amazon, Microsoft, Meta, Alphabet and Apple invest more individually in technological development than what happens in the Netherlands as a whole, according to TNO. The Netherlands does not look better when compared to neighboring countries. Countries such as Germany and Belgium have invested much more in knowledge and development in recent years than the Netherlands.

In 2022, expenditure in the Netherlands in this area amounted to 2.3 percent of gross domestic product, well below the European Union target of 3 percent. In Germany, the percentage is 3.1 percent of GDP, and in Belgium the amount is equivalent to 3.5 percent.

Yet the Netherlands still presents itself as a country for knowledge and innovation, which is only partially correct, said Tjin-A-Tsoi. "Our scientific research is among the best. It is just not enough to convert that knowledge into new successful companies. The large research institutions from Shell, Philips and DSM have largely disappeared. Successful tech companies such as ASML, NXP and VDL have emerged from them. A new generation has not yet presented itself."

The Netherlands may have become too complacent, the TNO top executive suggested. "The urgency is not felt, even though it is very high. Dutch politics currently has very different priorities. There is a mood that is not really conducive to the investment climate."

According to the TNO CEO, the Netherlands has entered a critical phase. "We must make a change now, otherwise it will be too late. If we want to keep the energy transition, aging population and healthcare affordable, we will have to innovate enormously. This will not be possible with current technology."