The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland

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The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
The Netherlands
Europe’s most attractive and
innovative biopharmaceutical
industry environment
The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
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The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
TABLE OF CONTENTS

		 Foreword                           5   3	BIOPHARMACEUTICAL SECTOR                            53
                                          		 Vibrant and booming Life Sciences & Health sector   55
		 Management Summary
                                          		Attractive biopharmaceutical sector                 61
1    THE NETHERLANDS                  9
                                          		 Employment
                                          		 Turnover and investments
                                                                                                 63
                                                                                                 64
		   Strategic location              12   		 Export and import                                   65
		   Superior infrastructure         13   		 Biotechnology companies in the Netherlands          66
		   Living in the Netherlands       17   		 Mergers and deals                                   69
		   Competitive economy             27   		 Medicine development                                71
		   Entrepreneurial spirit          29   		 Intellectual property – protection of new ideas     72   3
		   Thriving sectors                30   		 Clinical trials                                     74

2
                                          		 Digitalisation in healthcare                        76
     INDUSTRY CLIMATE                35   		 Public-private partnerships                         77
		 International business climate    36
                                          		 References                                          80
   Competitive fiscal climate        37
		 Supportive R&D incentives         39
                                          		 Colophon                                            86
		 Innovation-oriented schemes       40
		 Sustainability-oriented schemes   41
   Further financial support         42
		 Human capital                     45
The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
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The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
FOREWORD
Welcome to the Netherlands, the new home of the European Medicines Agency!

World-class research institutes, a highly educated workforce,                    are already conducting their R&D activities
                                                                                 in the Netherlands. Others, including
an excellent healthcare system, and an innovation-friendly
                                                                                 Amgen, Teva and MSD are taking advantage
government, combined with a central location make the                            of our strategic location for their
                                                                                 distribution activities. The Netherlands is
Netherlands the ultimate R&D innovation hub in Europe and
                                                                                 also home to many promising start-ups and
the ideal base for your biopharmaceutical operations.                            scale-ups such as Galapagos, Genmab,
                                                                                 Pharming and uniQure.
At the Ministry of Economic Affairs and Climate Policy, we are proud of
the Netherlands’ spirit of innovation and enterprise and we work hard to         The relocation of EMA to Amsterdam
strengthen our international competitive position while striving for              in March 2019 will give a boost to the                                        5
sustainability. The Top Sector Life Sciences and Health is one of the priority   biopharmaceutical sector and put the
sectors in which the Ministry actively participates to create an attractive      Netherlands firmly on the map
business climate, foster R&D collaboration and provides optimum                  internationally. At the same time it will create huge opportunities for
conditions for businesses to innovate and grow.                                  biopharmaceutical companies and service providers. The Ministry has
                                                                                 joined forces with other organisations in PharmInvestHolland, to strengthen
Innovation, entrepreneurship and partnership are second nature to the            the Dutch biopharmaceutical sector and create the most attractive and
Dutch. It is connected to our centuries-old battle against the water – a way     innovative biopharmaceutical industry environment in Europe.
of life that has produced innovative and smart solutions, like our famous
dikes, as well as a cooperative mindset.                                         I am pleased to present this bid book, illustrating all that the Netherlands
                                                                                 can offer your company. I hope it will lead you to consider the Netherlands
Our country is one of the main gateways to Europe. Thanks to our first-rate      as a base for your pharmaceutical operations.
infrastructure, we offer excellent and efficient connections to Europe's
500 million consumers. Our world-class airport, top-ranked maritime ports        Yours sincerely,
and high-speed road, rail and broadband networks are second to none.

We’re especially proud of the pharmaceutical sector, which plays an
important role in our economy and acts as a breeding ground for new talent.      Eric Wiebes
Leading pharmaceutical companies like Janssen, AstraZeneca and Synthon           Minister of Economic Affairs and Climate Policy
The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
MANAGEMENT SUMMARY
    Discover Europe’s most attractive and innovative biopharmaceutical industry environment.

    With an unrivalled concentration of biopharmaceutical                             Appealing industry climate
    companies, world-class universities and a long history of                         The Netherlands has an appealing business climate with plenty of room for
    strategic partnerships between science, industry and                              innovation. It has a competitive and stable tax regime, attractive incentives
    government, the Netherlands is a perfect location for                             that support R&D, and outstanding research and education institutions.
    biopharmaceutical innovation in Europe. Many ground-breaking                      In addition, the country is highly regarded for its well-educated, multilingual
    companies have already established themselves in the                              and dynamic workforce.
    Netherlands. The EMA will soon follow in their footsteps and
    relocate to Amsterdam. This confirms once more that the                           Most concentrated biopharmaceutical ecosystem
    Netherlands is the perfect home for biopharmaceutical                             The Netherlands is home to one of the most concentrated Life Science &
    companies all around the globe.                                                   Health clusters in the world. It has over 2,900 innovative R&D Life sciences
6                                                                                     companies, including 420 biopharmaceutical companies. These 420
    Attractive location for your company                                              companies employ over 65,000 people. Scientific research in the Netherlands
    The Netherlands is a thriving and prosperous country, providing an attractive     is internationally ranked as one of the best. This is demonstrated by the high
    place to live and locate your company. With a radius of only 120 miles, the       quality of Dutch research universities and university medical centres, its high
    country has a competitive international business climate which is reflected       citation impact score and the position of its universities in international
    by its status as the sixth largest EU economy, a major global exporter and        rankings. The country has a rich tradition of public-private cooperation, which
    importer of goods and a Forbes ranking as the third best country for doing        has been further stimulated by multiple government-initiated programs.
    business.                                                                         The government actively stimulates private cash investments in public-private
                                                                                      R&D partnerships by topping up these investments.
    The strategic location of the Netherlands, situated between the three largest
    economies in Europe (Germany, the United Kingdom and France), makes the           Most innovative biopharmaceutical environment
    country the perfect gateway to Europe. Its superior infrastructure guarantees     Public and private partners in the Dutch biopharmaceutical sector have joined
    quick and easy access to European markets while ensuring that markets             forces with the ambition of becoming the world’s most attractive and
    around the world are within efficient reach. In addition, the country is a data   innovative biopharmaceutical country. We are dedicated to further improving
    & ICT hub with an excellent information technology infrastructure. And its        our excellent R&D climate that will benefit patients. Together we can make this
    ranking as the sixth happiest place on earth in the World Happiness Report        ambition become a reality, so come join us to further strengthen the sector!
    further demonstrates that the Netherlands is an attractive place to live.
                                                                                      Read all about the advantages of setting up your business in the
                                                                                      Netherlands in this bidbook.
The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
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The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
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The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
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THE NETHERLANDS
The Netherlands Europe's most attractive and innovative biopharmaceutical industry environment - Health Holland
About the
     Netherlands
     Official name:
     Kingdom of the Netherlands

     Form of government:
     A constitutional monarchy and a
     parliamentary democracy

     Head of state:
     His Majesty King Willem-Alexander, King of
     the Netherlands, Prince of Orange-Nassau

     Capital:
     Amsterdam

     Seat of government:

10   The Hague

     Surface area:
     33,800 km2

     Location:
     In Western Europe, bordering the North Sea
     to the west, Belgium to the south and
     Germany to the east

     Number of inhabitants:
     17,200,126 (February 2018)

     Number of inhabitants per km2:
     509 (February 2018)

     Monetary unit:
     Euro

     Languages:
     Dutch, Frisian

     Source: Holland Compared, 2017
THE NETHERLANDS

With its strategic location, highly educated multilingual workforce, top notch
healthcare system and excellent international business climate, the Netherlands
is one of the world’s best locations for foreign companies. What is more,
compared to most European countries, the Netherlands always ranks very
high in matters such as happiness, health, quality of life and freedom.

Located in the heart of Europe, the Netherlands      expats alike enjoy the country’s rich diversity of
                                                                                                                     The Netherlands
                                                                                                                                             11
                                                                                                            United
borders with Belgium and Germany. While              culture, entertainment, sports and other              Kingdom
generally known for its tulips, bicycles and         activities.                                                                   Germany
windmills, the country has plenty more to
recommend it!                                        Its international focus facilitates easy access to
                                                     Europe, providing international organisations
The Netherlands is a wealthy, flourishing            and companies with opportunities to succeed
                                                                                                                     France
country and is one of the founding European          throughout the region. Its location at the centre
Union member states. It receives high scores for     of Europe’s three largest economies (Germany,
safety, stability and social responsibility thanks   the United Kingdom and France) means the
to its first-rate educational system, excellent      Netherlands is not only attractive and stable but
healthcare, multi-skilled multilingual workforce     also highly accessible. Its business infrastructure
and high market efficiency. The Netherlands’         ranks among the best internationally.
multicultural population enjoys an affordable,
high standard of living. Its urban centres, where    In short, the Netherlands is an ideal environment
most people get around by bike, maintain an          for international companies and organisations
appealing community feel. Meanwhile, the             wishing to solidly position themselves in a variety
Dutch countryside is rarely far from office          of sectors, from research and development to
complexes and metropolitan areas. Locals and         marketing and sales, technology and logistics.
Strategic Location
     The Netherlands is a first-rate, strategic location   the European Economic Area. In other words,
     for international businesses whose activities         it monitors a market that serves more than
     expand into Europe and other areas of the world.      500 million EU residents.
     Known for its favourable location, this compact
     country guarantees quick and easy access to the       The EMA is forced to relocate to the
     European market. In fact, 95% of Europe’s most        Netherlands because of the Brexit. The
     lucrative consumer markets are located within         relocation will boost the attractive Dutch
     24 hours of Amsterdam and Rotterdam.                  pharmaceutical sector even further. Not only
                                                           will it put the Netherlands in the spotlight, it
     The Netherlands is also considered a strategic        will also offer huge opportunities to attract
     hub for distribution within Europe, thanks to its     new biopharmaceutical companies and

12   location and highly ranked airports (including
     Amsterdam Schiphol) and seaports (e.g.
                                                           service providers to the Netherlands. The
                                                           Dutch government expects that with the
                                                                                                                                                    Norway
     Rotterdam). It boasts the greatest number of          arrival of the EMA in Amsterdam, the
                                                                                                                                          1,000 km
     distribution centres and the largest inland           pharmaceutical industry and service sector
     shipping fleet in Europe. In addition, the            will create thousands of new jobs. Moreover,
     Netherlands is one of the most wired countries        specialised lawyers, patent experts and                                                      Denmark    Sweden

     in the world where 98% of all households have         consultants will also relocate to Amsterdam                                     500 km

     access to the Internet.                               in order to be close to the EMA. Insiders
                                                                                                                                     The Netherlands
                                                           expect that the Dutch medicines research
     European Medicines Agency                             industry will also receive a significant boost.    Ireland       United
                                                                                                                           Kingdom                                            Poland
     Amsterdam will host the European Medicines
                                                                                                                                                         Germany
     Agency (EMA) from March 2019. The EMA, a                                                                                            Belgium
                                                                                                                                           Luxembourg
     decentralised agency of the European Union
     (EU), ensures the safety, effectiveness and high
                                                                                                                                                                    Austria
     quality of all medicines available on the EU                                                                                     France
                                                                                                                                                   Switzerland
     market. It will relocate from London.
     The EMA assesses, supervises and monitors the                                                                                                         Italy
     scientific development of medicines in the EU
     and protects human and animal health in
     28 EU Member States and the countries of
                                                                                                                        Spain
Superior infrastructure
The Netherlands ranks second in the world            Airports
for overall logistics performance, thanks in         Alongside Amsterdam’s award-winning
part to its top-ranking seaports and airports,       Schiphol Airport, the Netherlands has four
a comprehensive network of railways and              regional airports offering international flights,
motorways as well as the second highest              making it one of the world’s top air transport
quality broadband network in Europe.                 infrastructures. Schiphol, which has been voted
                                                     the “Best Airport in Europe” for 25 consecutive
The country tops DHL’s Global Connectedness          years by the Business Traveller Awards, is also
Index due to its strategic location and              Europe’s top airport for cargo and passenger
international, business-orientated focus.            transport. The airport is just 90 minutes from
Indeed, half of the Netherlands’ Gross Domestic      all major Dutch cities via the country’s
Product (GDP) is derived internationally. It is no
wonder the country is so attractive to global
                                                     compact, state-of-the-art network of
                                                     motorways and secondary roads. The regional        13
companies wishing to reach millions of               Maastricht-Aachen Airport is considered the
customers in Europe and beyond.                      fastest air cargo handler in Europe. Maastricht-
                                                     Aachen airport is located in the tri-border
                                                     region with Germany and Belgium. After an
                                                     aircraft has landed, it takes only 45 minutes to
                                                     unload the aircraft and get the first trucks on
                                                     their way to some of the most concentrated
                                                     industrial and population centres of Europe.
                                                     The Netherlands’ strategic location and
                                                     world-class airports, give businesses a major
                                                     advantage in serving millions of consumers
                                                     throughout Europe, the Middle East and Africa.
Ports
     Dutch ports handle 54% of all trade shipping in
     Western Europe, transporting over 500 million
     metric tonnes annually. The country’s port
     infrastructure receives top ranking globally.
     Home to three deep-water ports, thousands of
     kilometres of rivers and a sophisticated network
     of canals, cargo from the Port of Rotterdam –
     Europe’s largest and most important harbour –
     can reach Western Europe’s major industrial and
     economic centres in less than a day. This gives
     companies unparalleled access to the European
     market. The Port of Amsterdam (fourth largest

14   in Europe) offers additional logistics and
     distribution benefits. Furthermore, the ports of
     Groningen and Zeeland serve the north and
     south of the country.

                                                        Port of Rotterdam
The Netherlands: a key hub                                                                                EU-28 households with internet access at home

for distribution in Europe                                                                                Netherlands
                                                                                                          Denmark
                                                                                                          Luxembourg
                                                                                                                                                             98%

                                                                                                          Sweden
                                                                                                          United Kingdom
                                                                                                          Finland
                                                                                                          Germany
Digital hub                                           Road & Rail
                                                                                                          Austria
The digital infrastructure in the Netherlands is      Companies looking to locate logistics and
                                                                                                          Estonia
among the best in Europe. Amsterdam hosts one         distribution operations in Europe naturally
                                                                                                          Ireland
of the four key data centre hot spots in Europe:      consider the Netherlands, given its
                                                                                                          EU-28
AMS-IX, which is the biggest internet exchange        comprehensive, state-of-the-art network of
                                                                                                          France
point in the world. In recent years, AMS-IX has       roadways. The country has over 14,000 km

                                                                                                                                                                   15
                                                                                                          Belgium
turned Amsterdam into a digital hub. In addition,     (8,600 miles) of roads, including 2,235 km
                                                                                                          Malta
the Dutch LTE mobile internet broadband scores        (1,389 miles) of highspeed motorways, and
                                                                                                          Spain
highest with regard to coverage and fourth in         more than 12,000 transport companies.
                                                                                                          Czech Republic
speed on a European level.                            With the Netherlands handling 14% of
                                                                                                          Hungary
                                                      Europe’s international road transport, it forms
                                                                                                          Poland
The Netherlands also has one of the highest           a European hub for international road freight
                                                                                                          Slovenia
penetrations of wired household broadband             transportation.
                                                                                                          Slovakia
connections in the world: 98% of all households.
                                                                                                          Italy
It ranks fifth among 25 European countries. The       The country’s rail system boasts 3,200 km
                                                                                                          Cyprus
average broadband speeds in the Netherlands           (2,000 miles) of network rail, directly linked to
                                                                                                          Latvia
are among the world’s fastest and it is also one of   inland container terminals and destinations
                                                                                                          Portugal
the most cyber-secure countries. It also directly     throughout the EU, Scandinavia and the Middle
                                                                                                          Romania
links continental Europe to North America.            East. The Netherlands also has three high-
                                                                                                          Croatia
Eleven of the fifteen transatlantic cables run        speed rail lines as well as the Betuweroute, a
                                                                                                          Lithuania
directly across the Netherlands. What’s more is       dedicated doubletrack freight railway from
                                                                                                          Greece
that, its ultra-modern, fully digital, advanced       Rotterdam to Germany. This gives businesses
                                                                                                          Bulgaria
fibre-optic network serves a multitude of             quick, direct access to Europe’s major logistics
                                                                                                                              0 10 20 30 40 50 60 70 80 90 100%
start-ups, data centres and multinationals, such      centres.
                                                                                                           2017      2015
as Microsoft, IBM, Google, Cisco and Oracle.
                                                                                                          Source: Statistics Netherlands, 2018
CHAPTER 1: THE NETHERLANDS

16
Living in the Netherlands                                                                                Quality of life (2015)

                                                                                                          9.73
The Netherlands is known as a great place to          The Netherlands ranks in the top 10 for quality

                                                                                                                       9.57

                                                                                                                                 9.51

                                                                                                                                           9.38

                                                                                                                                                        9.36

                                                                                                                                                                 9.31
live. With excellent housing facilities, a rich       of life and housing is relatively affordable

                                                                                                                                                                                        9.24
                                                                                                                                                                            9.25

                                                                                                                                                                                                     9.21

                                                                                                                                                                                                               9.17
culture life, and an outstanding health care          according to IMD. For international residents,
system, the Dutch are among the most                  there are several international schools as well
happiest people in the world.                         as increasing numbers of schools that teach
                                                      in both Dutch and English (130 in 2015).
Appealing place to live                               The Commonwealth Fund ranks Dutch
The Netherlands is a very appealing place not         healthcare as the best in the world as regards
only to visit and do business, but also to live in.   quality, access, efficiency, funding and healthy
It features a wide array of conveniently located      lifestyle of the general population. And in
leisure and cultural activities and its historical    2017, the Swedish think-thank Health
cities are an architectural delight. Its many         Consumer Powerhouse rated the Dutch
                                                                                                                                                                                                                        17

                                                                                                                                          New Zealand

                                                                                                                                                                                       Netherlands
                                                                                                         Switzerland
museums include the famous Van Gogh                   healthcare system as ‘outstanding’ (#1)

                                                                                                                                                                 Denmark

                                                                                                                                                                                                     Germany
                                                                                                                                                                           Australia
                                                                                                                                 Norway

                                                                                                                                                                                                               Sweden
                                                                                                                                                        Canada
                                                                                                                       Austria
Museum and the Rijksmuseum in Amsterdam.              among its European peers.
                                                                                                            1           2         3          4           5         6         7            8            9       10
                                                                                                         Source: IMD,2016
Human Development Index (2015)

     0.944

                 0.935
                                                                                                                                         The Netherlands is ranked the fifth most                         the Netherlands took sixth place in the World
                             0.930                                                                                                       prosperous country out of 188 listed in the                      Happiness report’s ranking of happiness, based

                                          0.923

                                                     0.922
                                                                                                                                         United Nations Development Programme                             on factors such as caring, generosity, health and

                                                                  0.916

                                                                                0.916

                                                                                           0.915
                                                                                                                                         (UNDP) Human Development Index. Alongside                        freedom. Compared to most major European

                                                                                                          0.913

                                                                                                                        0.913
                                                                                                                                         GDP, UNDP considers other factors in                             countries, the country has a lower cost of living
                                                                                                                                         determining ‘prosperity’, such as life expectancy,               while still maintaining a high standard.
                                                                                                                                         literacy levels and public health. In addition,

                                                                                          United States

                                                                                                                       New Zealand
                                                    Netherlands
                            Switzerland

                                          Denmark

                                                                  Germany
                Australia
     Norway

                                                                                                          Canada
                                                                                Ireland

      1           2            3           4           5            6            7           8             9           10

18   Source: United Nations Development Programme, 2015

     Ranking of Hapiness 2014-2016

     1        Norway (7,537)                                                                                                                                      Explained by: GDP per capita
     2        Denmark (7,522)                                                                                                                                     Explained by: social support
     3        Iceland (7,504)                                                                                                                                     Explained by: healthy life expectancy
     4        Switzerland (7,494)                                                                                                                                 Explained by: freedom to make life choices
     5        Finland (7,469)                                                                                                                                     Explained by: generosity
     6        Netherlands (7,377)                                                                                                                                 Explained by: perceptions of corruption
     7        Canada (7,316)                                                                                                                                      Dystopia (1.85) + residual
     8        New Zealand (7,314)                                                                                                                                 95% confidence interval
     9        Australia (7,284)
     10 Sweden (7,284)

                                                        0                   1                  2                   3                 4   5     6      7      8
     Source: World Happiness Report 2017
19
Global Access to Healthcare Index
     Score out of 10

                                                                                                                                                                                             Healthcare in the Netherlands                                                                                                           Since 2005, the Netherlands is the only country
      9.1

                   9.0

                                  9.0

                                                              8.8
                                                8.8

                                                                                     8.6

                                                                                                        8.5

                                                                                                                                     8.4
                                                                                                                         8.4

                                                                                                                                                 8.3

                                                                                                                                                           8.3
                                                                                                                                                                                             One of the good things about living in the                                                                                              to consistently hold a top-three ranking.
                                                                                                                                                                                             Netherlands is its first-rate standard of                                                                                               The country also ranks number one on the
                                                                                                                                                                                             healthcare. The Dutch healthcare system is                                                                                              Economist Intelligence Unit’s Global Access to
                                                                                                                                                                                             based on the principles: access to care for all,                                                                                        Healthcare Index, which measures countries
                                                                                                                                                                                             a compulsory medical insurance and high-                                                                                                worldwide on accessibility of healthcare and
                                                                                                                                                                                             quality healthcare services. Indeed, it ranks                                                                                           the overall healthcare system. Not only is
                                                                                                                                                                                             first on the list of 35 countries in the 2017                                                                                           healthcare in the Netherlands highly ranked
                                                             United Kingdom

                                                                                                                                                                                             Euro Health Consumer Index, which is                                                                                                    and accessible, but also affordable. Health

                                                                                                                                                          United States
     Netherlands

                                                                                                                                                                                             considered the industry standard, for providing                                                                                         spending grew by an annual average of only 1%
                                  Germany

                                               Australia

                                                                                     Canada
                   France

                                                                                                                                    Japan

                                                                                                                                                Spain                                        the best healthcare services.                                                                                                           from 2009-2016, according to the OECD.
                                                                                                        Cuba

                                                                                                                     Italy

        1           2              2             4              4                     6                  7               8               8      10        10

20   Source: The Economist Intelligence Unit, Global Access to
     Healthcare Index

     EHCI 2017 total scores
      924

                    898

                                     864

                                                     850

                                                                         850

                                                                                              846

                                                                                                                                             830
                                                                                                               836

                                                                                                                               832

                                                                                                                                                                          816
                                                                                                                                                        825

                                                                                                                                                                                    807

                                                                                                                                                                                             749

                                                                                                                                                                                                         747

                                                                                                                                                                                                                   735

                                                                                                                                                                                                                                    726

                                                                                                                                                                                                                                               726

                                                                                                                                                                                                                                                                695

                                                                                                                                                                                                                                                                        691

                                                                                                                                                                                                                                                                                  673

                                                                                                                                                                                                                                                                                           673

                                                                                                                                                                                                                                                                                                   649

                                                                                                                                                                                                                                                                                                                   642

                                                                                                                                                                                                                                                                                                                           630

                                                                                                                                                                                                                                                                                                                                     623

                                                                                                                                                                                                                                                                                                                                                  620

                                                                                                                                                                                                                                                                                                                                                            596

                                                                                                                                                                                                                                                                                                                                                                      587

                                                                                                                                                                                                                                                                                                                                                                               584

                                                                                                                                                                                                                                                                                                                                                                                        584

                                                                                                                                                                                                                                                                                                                                                                                                  574

                                                                                                                                                                                                                                                                                                                                                                                                              569

                                                                                                                                                                                                                                                                                                                                                                                                                       548

                                                                                                                                                                                                                                                                                                                                                                                                                                  439
                                                                                                                                                                                                                                                                                                                                                                                                                                            0
                                                                                                                                                                                                                   United Kingdom

                                                                                                                                                                                                                                                                                                   FYR Macedonia
                                                                                                                                                                                                                                               Czech Republic
     Netherlands

                                                                                                                                                                                                                                                                                                                                     Montenegro
                                                                        Luxembourg
                    Switzerland

                                     Denmark

                                                                                                                                                                                                                                                                                                                                                                                                  Lithuania
                                                                                                               Germany

                                                                                                                                                                                                                                                                                                                                                                                                                                  Romania
                                                                                                                                                                                                                                                                                                                                                                                        Hungary
                                                                                                                                                                                                        Portugal

                                                                                                                                                                                                                                    Slovenia

                                                                                                                                                                                                                                                                                                                                                                                                                       Bulgaria
                                                                                                                                                                                             Slovakia
                                                                                                                               Belgium
                                                    Norway

                                                                                                                                                                                    Sweden

                                                                                                                                                                                                                                                                                                                                                            Albania
                                                                                                                                                                                                                                                                                                                                                  Croatia
                                                                                                                                                                                                                                                                        Estonia
                                                                                              Finland

                                                                                                                                                                          Austria
                                                                                                                                             Iceland

                                                                                                                                                                                                                                                                                                                                                                                                              Greece

                                                                                                                                                                                                                                                                                                                                                                                                                                            Cyprus
                                                                                                                                                                                                                                                                                                                           Ireland

                                                                                                                                                                                                                                                                                                                                                                               Poland
                                                                                                                                                        France

                                                                                                                                                                                                                                                                                  Serbia

                                                                                                                                                                                                                                                                                                                                                                      Latvia
                                                                                                                                                                                                                                                                                                                   Malta
                                                                                                                                                                                                                                                                Spain

                                                                                                                                                                                                                                                                                           Italy

     Source: Euro Health Consumer Index 2017
Greece                                                                        5.4
                                                                    -5.0
                                                  Portugal                                             2.2
                                                                           -1.3

                                      2003-2009
                                                  Italy                                              1.6
                                                                                  -0.3
                                                  Ireland                                                                                6.9
                                                                                         0.1
                                                  Czech Republic                                                           4.9

                                      2009-2016
                                                                                         0.1
                                                  Spain                                                          3.4

Source: OECD Health Statistics 2017
                                                                                         0.3
                                                  Denmark                                                        3.4
                                                                                         0.3
                                                  New Zealand                                                            4.5
                                                                                           0.6
                                                  Slovenia                                                    3.2
                                                                                           0.7
                                                  France                                          1.6
                                                                                               0.9
                                                  United Kingdom                                                    3.9
                                                                                               0.9
                                                  Sweden                                             1.8
                                                                                               0.9
                                                  Luxembourg                                         1.8
                                                                                               0.9
                                                  Austria                                              2.1
                                                                                               1.0
                                                  Finland                                                        3.4
                                                                                               1.0
                                                  Netherlands                                                 3.2
                                                                                               1.0
                                                  Belgium                                                  2.7
                                                                                             1.0
                                                  Iceland                                 0.4
                                                                                             1.0
                                                  Canada                                                      3.1
                                                                                               1.1
                                                  Mexico                                        1.3
                                                                                               1.1
                                                  OECS35                                                           3.6
                                                                                                 1.4
                                                  Turkey                                                                  4.6
                                                                                                     1.7
                                                  Japan                                                      2.9
                                                                                                     1.8
                                                  Germany                                              2.2
                                                                                                     1.8
                                                  Norway                                              2.1
                                                                                                     1.8
                                                  Slovak Republic                                                                                    12.2
                                                                                                     1.9
                                                                                                                                                            Annual average growth rate in per capita health expenditure, real terms, 2003 to 2016 (or nearest year) in %

                                                  United States                                         2.5
                                                                                                      2.1
                                                  Israel                                               2.3
                                                                                                      2.2
                                                  Latvia                                                                               6.5
                                                                                                        2.4
                                                  Hungary                         -0.4
                                                                                                           2.7
                                                  Australia                                                2.7
                                                                                                           2.7
                                                  Switzerland                                    1.4
                                                                                                             2.8
                                                  Poland                                                                                6.6
                                                                                                              3.1
                                                  Estonia                                                                        5.6
                                                                                                                   3.6
                                                  Korea                                                                                        8.5
                                                                                                                                 5.7
                                                  Chile                                                                         5.5
                                                                                                                                  5.9
                                                                                                             21
Dutch healthcare system                            The same applies to the Dutch Life Sciences &       Although, the Dutch healthcare system is
     The success of the healthcare system in the        Health sector, which is characterised by            essentially a private system, the government
     Netherlands is driven by the tenets of access to   collaboration and knowledge-sharing among           maintains a controlling role in the system to
     care for everyone, solidarity through compulsory   companies and research institutions, with full      protect the public interest. The overhaul has
     medical insurance and high-quality services.       government support. Dutch healthcare                led to various improvements that benefit
     The fact that the country is given top rankings    products and services related to medical            patients, including more focus on effectiveness
     for healthcare is partly due to this philosophy    equipment, remote care and other areas are          and quality, partly through selective
     of cooperation and spirit of joint effort.         equally innovative, providing comprehensive         contracting. In addition, waiting lists now are
                                                        ‘smart solutions’. The Dutch model, which leads     shorter and red tape has been reduced.
                                                        to affordable and sustainable products and          Patients have the freedom to switch healthcare
                                                        solutions, reflects its highly inter-disciplinary   insurers each year and can influence the
                                                        approach and resulting expertise throughout         policies of insurers and health providers.
                  Private individual/
                Private individual/
                   Insured person
                                                        the healthcare chain.

22               Insured person
                                                        The healthcare system currently in place in the
                                                        Netherlands is the result of various changes in
                                                        recent years, which took the supply-driven
                                                        system and made it demand-driven. The new
                                                        Health Insurance Act, which entitles all Dutch
                                                        residents to a comprehensive basic health
                                                        insurance package, went into effect in 2006.
                                                        This means that all legal residents are required
                                                        to take out health insurance from among the
                                                        24 competitive private (mainly non-profit)
                                                        health insurers. The package includes essential
                                                        medical care and residents have the option to
                                                        take out supplementary dental and other
     Healthcare                            Health       coverage. Meanwhile, under the Long-term
      Healthcare                            Health      Care Act, residents are legally insured against
     providers
       providers
                                           insurer
                                            insurer     the risk of long-term care.
23
Dutch healthcare facts                           The sector employed approximately 1.1 million          Jobs in the Dutch healthcare sector
     The Netherlands is very much aware of the        people in that year. The number of hospitals
     rising costs of healthcare and the Ministry of   is declining because many hospitals are                > 2,525 pharmacists
     Health, Welfare & Sport devotes a great deal     partnering up, with a shift towards specialised
                                                                                                             > 2,852 midwives
     of attention to keeping these costs in check     institutions. On the other hand, accessibility
     so the country’s healthcare system remains       to healthcare is increasing thanks to its              > 8,775 dentists
     affordable and accessible. In 2016, healthcare   availability at more locations and homecare.
                                                                                                             > 8,865 GPs
     spending in the Netherlands amounted to
     96 billion euros, or 13.8% of the GDP.           Patient organisations play a crucial role in           > 17,082 physiotherapists
                                                      formulating healthcare policies in the
                                                                                                             > 22,585 specialists
     In 2015, there were 85 hospitals at 131          Netherlands. The largest patient association
     locations in the Netherlands, eight of which     is the umbrella organisation NPCF who acts             > 400,000 nurses / carers / home helps
     were university medical centres. In addition,    as the representative for approximately

24
                                                                                                             Source: Dutch Ministry of Health, Welfare and Sports, 2016
     there were 112 outpatient clinics.               170 different patient associations.

     Financing of health expenditure

     Health Insurance Act

     Long-term Care Act

     Government

     Own payments

     Additional insurance

     Other

                                            0   10     20             30              40                50
      2016     2015                                                                              bln euro

     Source: Statistics Netherlands, 2017
Availability of medicines                             Rate of availability
In 2016, the Netherlands had a medicine
availability rate of 30. The rate of availability     160

is measured by the number of medicines                140
available to patients in European countries.
For most countries this is when the product is        120

placed on the reimbursement list. With an

                                                                                                                                                                                                                                                                                                                           47
                                                      100
availability rate of 30, the Netherlands ranks 6 th

                                                                                                                                                                                                                                                                                                                37
                                                                                                                                                                                                                                                                   23

                                                                                                                                                                                                                                                                                                37
                                                                                                                                                                                                                                                                                     33
                                                                                                                                                                                                                                                                           34
among the EU countries.                                80

                                                                                                                                                                                                                                       26

                                                                                                                                                                                                                                                     30
                                                                                                                                                                                                                             18
                                                                                                                                                                                                                    17
                                                                                                                                                                                                           15
                                                                                                                                                                                     12
                                                       60

                                                                                                                                                                                                16
Furthermore, the Netherlands also provides

                                                                                                                                                                          6

                                                                                                                                                                                                                                                                                                                           53
                                                                                                                                                               9

                                                                                                                                                                                                                                                                   40
                                                                                                                                                     9

                                                                                                                                                                                                                                                                                                                45
                                                                                                                                            9

                                                                                                                                                                                                                                                                                     43

                                                                                                                                                                                                                                                                                                44
quick patient access to medicines after

                                                                                                                                                                                                                                                     35
                                                                                                                                   7

                                                                                                                                                                                                                    24

                                                                                                                                                                                                                                       38

                                                                                                                                                                                                                                                                           42
                                                                                                                                                                                                                             27
                                                       40

                                                                                                                          15 7

                                                                                                                                                                          23

                                                                                                                                                                                                           28
                                                                                                                                                               19
                                                                                                     3

                                                                                                                16 6

                                                                                                                                                                                     27
                                                                                                                                                     19

                                                                                                                                                                                                24
                                                                                           5
marketing authorisation and ranks in the

                                                                                                                                           20
                                                                                7 3

                                                                                                                                   22
                                                                                                     13
                                                                                                                                                                                                                                                                                                                                         25
                                                       20

                                                                      14 3 4

                                                                                           9
top 5 countries of Europe. On average, it takes

                                                             7 10

                                                                                19

                                                                                                     18

                                                                                                                19

                                                                                                                          23

                                                                                                                                   21

                                                                                                                                           25

                                                                                                                                                     28

                                                                                                                                                               30

                                                                                                                                                                          31

                                                                                                                                                                                     29

                                                                                                                                                                                                28

                                                                                                                                                                                                           31

                                                                                                                                                                                                                    37

                                                                                                                                                                                                                             36

                                                                                                                                                                                                                                       37

                                                                                                                                                                                                                                                     38

                                                                                                                                                                                                                                                                   43

                                                                                                                                                                                                                                                                           37

                                                                                                                                                                                                                                                                                     39

                                                                                                                                                                                                                                                                                                39

                                                                                                                                                                                                                                                                                                                42

                                                                                                                                                                                                                                                                                                                           46
228 days for patients to obtain access to their         0
medicines in the Netherlands. The average

                                                                                                                                                                                                                                                                                               United Kingdom

                                                                                                                                                                                                                                                                                                                          EMA Apporved
time between marketing authorisation and

                                                                                                                                                                                                                                                    Netherlands
                                                                                                                                                                                                                                      Switzerland

                                                                                                                                                                                                                                                                                     Denmark
                                                                               Lithuania

                                                                                                                                                                                                                                                                                                                Germany
patient access is measured by the number

                                                                                                                                           Hungary

                                                                                                                                                               Portugal

                                                                                                                                                                                     Slovenia
                                                                                                     Bulgaria

                                                                                                                                                                          Slovakia

                                                                                                                                                                                                Belgium

                                                                                                                                                                                                                    Norway

                                                                                                                                                                                                                             Sweden
                                                                                                                Croatia
                                                                                           Estonia

                                                                                                                                                                                                                                                                           Austria
                                                                                                                                                     Ireland
                                                                                                                          Poland

                                                                                                                                                                                                           France
                                                             Serbia

                                                                      Latvia

                                                                                                                                   Spain
of days between the date of EU marketing

                                                                                                                                                                                                                                                                   Italy
authorisation (or effective marketing
authorization in non-EEA countries) and the
date of completing the post-marketing                 Source: EFPIA, Patient W.A.I.T. Indicator 2017                                                                                                      2014        2015            2016                        Data N/A – EMA approved
authorisation administrative processes.
Average time between marketing authorisation and patient access
                                     979

                            1,000

                             800
     Average delay (days)

                                              632

                                                       606

                                                                   563

                             600                                              535

                                                                                         500

                                                                                                  490

                                                                                                             479

                                                                                                                       467

                                                                                                                                438

                                                                                                                                        436

                                                                                                                                                  411

                                                                                                                                                            396

                                                                                                                                                                      379

                                                                                                                                                                                 329

                                                                                                                                                                                         329
                             400

                                                                                                                                                                                                   291

                                                                                                                                                                                                            281

                                                                                                                                                                                                                     269

                                                                                                                                                                                                                                228

                                                                                                                                                                                                                                              123
                             200

                                                                                                                                                                                                                                                           111

                                                                                                                                                                                                                                                                 106
                               0-

26

                                                                                                                                                                                                                               Netherlands

                                                                                                                                                                                                                                             Switzerland
                                                                                                                                                                                                                     Denmark
                                                                  Lithuania

                                                                                                                                                                                                                                                                 Germany
                                                       Portugal

                                                                                                  Slovenia
                                                                              Bulgaria

                                                                                                                                                                      Slovakia
                                                                                                                                                  Belgium

                                                                                                                                                                                                   Norway

                                                                                                                                                                                                            Sweden
                                                                                                             Croatia

                                                                                                                                        Estonia

                                                                                                                                                                                         Austria
                                                                                                                                                            Ireland
                                              Poland

                                                                                         France
                                     Serbia

                                                                                                                       Latvia

                                                                                                                                                                                 Spain
                                                                                                                                Italy

                                                                                                                                                                                                                                                           UK
                             For most countries patient access equates to granting of access to the reimbursement list, except for hospital
                            products in DK, FI, NO, SE where some products are not covered by the general reimbursement scheme and so the
                            zero-delay is artificially declining the median and average.

                            In France, some innovative products without competitors can be made available prior to market authorisation under
                            the system of Temporary Authorisations. As these are not taken into account in the analysis, the average for France is
                            higher than in reality.

                            Source: EFPIA, Patient W.A.I.T. Indicator 2017
Competitive economy
The Dutch business climate is attractive and         It is also a major importer, ranking eighth and    Global Competitiveness Index (2017-2018)
its economy competitive. Actually in 2017, the       taking 3.1% of the global share of imports (504
Netherlands ranked third on Forbes’ annual Best      billion US dollars in 2016). The Netherlands

                                                                                                         5.86

                                                                                                                       5.85

                                                                                                                                       5.71

                                                                                                                                                   5.66

                                                                                                                                                                5.65

                                                                                                                                                                           5.53

                                                                                                                                                                                                    5.51

                                                                                                                                                                                                                    5.49
                                                                                                                                                                                          5.52

                                                                                                                                                                                                                            5.49
Country for Business list. The Netherlands also      exports and imports a significant amount of
receives high marks for its favourable business      commercial services, totalling 180 billion and
climate from the World Economic Forum and            173 billion US dollars respectively in 2015.
IMD. It draws significant investor interest,         This puts the country in sixth place for exports
including from a wide range of multinationals        and seventh place for imports of commercial
in various sectors. Businesses consider the          services.
Netherlands an attractive place to locate in
Europe thanks not only to its competitive tax        Labour productivity in the Netherlands is among

                                                                                                                                                                                                   United Kingdom
                                                                                                                                                                          Hong Kong SAR
climate and stable business relations, but also to   the highest worldwide, thanks to a highly
                                                                                                                                                                                                                                      27

                                                                                                                      United States

                                                                                                                                                  Netherlands
                                                                                                        Switzerland

                                                                                                                                      Singapore
its international focus, its well-educated highly    educated workforce and solid economic

                                                                                                                                                                Germany

                                                                                                                                                                                          Sweden

                                                                                                                                                                                                                            Finland
                                                                                                                                                                                                                    Japan
productive labour force, its sophisticated (IT-)     structure. Dutch employees also have an
infrastructure, its strategic location and its key   international focus and the majority is
                                                                                                           1             2              3            4           5           6             7          8              9      10
role as a European transportation hub, as well       multilingual. Overall, the country has a high
as its good quality of life.                         level of labour participation among both highly    Source: The Global Competitiveness Report 2017-2018
                                                     educated and lower educated employees.
The Netherlands has the sixth-largest economy        In summary, the Netherlands is one of the
in the European Union (17th in the world), with a    European Union’s wealthiest nations. GDP per
Gross Domestic Product (GDP) of 697 billion          capita of employed persons is 48,326 US dollars
euros in 2016. That is impressive for a country      (The Conference Board, 2015), compared to the
whose surface area comes in at 134th worldwide.      EU average of 37,829 US dollars.

Furthermore, the Netherlands takes fifth place
worldwide when it comes to export, making
it a major player in world trade. In 2016, the
Netherlands exported just under 570 billion US
dollars in goods, accounting for some 3.6% of
total global exports.
28
                                                                                                                                   2,249,661

                                                                                                                                                                                                                                                          1
                                                                                                                                                                                                                                                               Germany

                                                       1
                                                                              United States                                                                                                                                                                                                               3,132,670
                                                                                                                       14.0
                                                                                                                         1,588,696

                                                                                                                                                                                                                                                          2

                                                       2
                                                                              China                                                                                                                                                                            United Kingdom                      2,366,912
                                                                                                                 9.9
                                                                                                                 1,060,672

                                                                                                                                                                                                                                                          3

                                                       3
                                                                              Germany                                                                                                                                                                          France                              2,225,260
                                                                                                           6.6
                                                                                                           635,570

                                                                                                                                                                                                                                                          4

                                                       4
                                                                              United Kingdom                                                                                                                                                                   Italy                        1,672,438
                                                                                                        4.0
                                                                                                          606,924

                                                                                                                                                                                                                                                          5

                                                       5
                                                                                                                                                                                                                                                                                                                                                GDP in the EU (2016)

                                                                              Japan                                                                                                                                                                            Spain                 1,113,851
                                                                                                        3.8
                                                                                                           560,555

                                                                                                                                                                                                                                                          6

                                                       6
                                                                              France                                                                                                                                                                           Netherlands        697,219

                                                                                                                                                                                  Millions of euros. Source: Eurostat, 2016
                                                                                                        3.5
                                                                                                         547.124

                                                       7
                                                                                                                                                                                                                                                          7
                                                                              Hong Kong                                                                                                                                                                        Sweden           462,417

Source: International Trade Organisation, 2017
                                                                                                       3.4

                                                                                                                                               Top 10 importers of goods (2016)
                                                                                                          504,185

                                                       8
                                                                                                                                                                                                                                                          8
                                                                              Netherlands                                                                                                                                                                      Poland           424,269
                                                                                                       3.1
                                                                                                         406,060

                                                       9
                                                                                                                                                                                                                                                          9
                                                                              South Korea                                                                                                                                                                      Belgium          421,611
                                                                                                       2.5
                                                                                                         404,578
                                                                              Italy

                                                       10
                                                                                                       2.5
                                                                                                                                                                                                                                                          10
                                                                                                                                                                                                                                                          1    Austria          349,493

                                                                                                                                                                                                                                                               Ireland                                                   76
                                                                                                                                                                                                                                                          2

                                                                                                                                                                                                                                                               Belgium                                              69
                                                                                                                                                                                                                                                          3

                                                                                                                                                                                                                                                               Singapore                                            68

                                                                              Millions of US dollars
                                                                                                                                                                                                                                                          4

                                                                                                                                                                                                                                                               United States                                    67

                                                 Share in world imports (%)
                                                                                                                                                                                                                                                                                                                              power parity (2016)

                                                                                                                                                                                                                                                          5

                                                                                                                                                                                                                                                               Netherlands                                      66.4
                                                                                                                                                                                                                                                          6

                                                                                                                                                                                                                                                               France                                           65.7
                                                                                                                              2,118,981

                                                       1
                                                                              China
                                                                                                                              13.4
                                                                                                                                                                                                                                                          7

                                                                                                                                                                                                                                                               Germany                                         65
                                                                                                                                                                                  US dollars. Source: The Conference Board, 2017

                                                                                                                       1,453,167

                                                       2
                                                                              United States
                                                                                                                       9.2
                                                                                                                                                                                                                                                          8

                                                                                                                                                                                                                                                               Denmark                                         63.4
                                                                                                                       1,340,752

                                                       3
                                                                              Germany
                                                                                                                       8.5
                                                                                                                                                                                                                                                          9
                                                                                                                                                                                                                                                                                                                              GDP per hour, corrected for purchasing

                                                                                                                                                                                                                                                               Switzerland                                     63.2
                                                                                                           644,932

                                                       4
                                                                              Japan
                                                                                                           4.1
                                                                                                                                                                                                                                                               Sweden                                          62
                                                                                                                                                                                                                                                          10

                                                       5
                                                                              Netherlands                 569,384
                                                                                                          3.6
                                                                                                         516,588
                                                       6

                                                                              Hong Kong
                                                                                                         3.3
                                                                                                                                                                                                                                                          1

                                                                                                                                                                                                                                                               Luxembourg                                      102,101
                                                                                                         495,466
                                                       7

                                                                              South Korea
Source: International Trade Organisation, 2017

                                                                                                         3.1
                                                                                                                                                                                                                                                          2

                                                                                                                                               Top 10 exporters of goods (2016)

                                                                                                                                                                                                                                                               Ireland                              65,122
                                                                                                         488,885
                                                       8

                                                                              France
                                                                                                         3.1
                                                                                                                                                                                                                                                          3

                                                                                                                                                                                                                                                               Switzerland                      61,041
                                                                                                         461,529
                                                       9

                                                                              Italy
                                                                                                         2.9
                                                                                                                                                                                                                                                          4

                                                                                                                                                                                                                                                               United States                   56,065
                                                                                                         415,856
                                                                              United Kingdom
                                                       10

                                                                                                        2.6
                                                                                                                                                                                                                                                          5

                                                                                                                                                                                                                                                               Netherlands                   48,326
                                                                                                                                                                                                                                                                                                                                                GDP per capita (2015)

                                                                                                                                                                                                                                                          6

                                                                                                                                                                                                                                                               Austria                       48,091
                                                                                                                                                                                                                                                          7

                                                                                                                                                                                                                                                               Germany                      47,221
                                                                                                                                                                                                                                                          8

                                                                                                                                                                                                                                                               Sweden                       46,702
                                                                                                                                                                                                                                                          9

                                                                                                                                                                                                                                                               Denmark                      46,574
                                                                              Millions of US dollars
                                                 Share in world exports (%)

                                                                                                                                                                                                                                                               EU-28                      37,829
                                                                                                                                                                                                                                                          10
                                                                                                                                                                                  US dollars, corrected for Purchasing Power Parity. Source: OECD, 2016
Entrepreneurial spirit
The Netherlands is historically famous for being
a nation of entrepreneurs. This is reflected in
the fact that nearly 12% of Dutch workers are
self-employed. To this day, the government
encourages start-ups as a way of boosting
economic vitality as well as competition and
innovation among existing businesses. Many
leading multinationals also got their start in the
Netherlands, including Philips, Unilever, ASML
and Booking.com. And there are numerous
smaller international companies with Dutch
roots, including G-Star and eBuddy. There is a
lot of creative talent in the Netherlands as         29
evidenced by its top-five spot on the Global
Innovation Index. It earned its number three
ranking thanks to its test market, open culture
and flexible consumers.

The Netherlands also is an innovator in the field
of ICT, thanks to its solid infrastructure, high-
level security and advanced research. The
country, moreover, is a major player in internet
traffic, with around one-third of Europe’s traffic
with the US routed via the Amsterdam Internet
Exchange. Meanwhile, The Hague Security Delta,
among other centres of expertise, reflects the
Netherlands’ concern for cyber security. Foreign
investors are taking advantage of the
opportunities the country has to offer and
one-fourth are ICT-related.
Thriving sectors
     As a nation of traders, the Netherlands has long    Materials (HTSM), Horticulture & Starting
     benefitted from its spirit of entrepreneurship      Materials, Life Sciences & Health, Logistics and
     and innovation, enabling it to grow into one of     Water. In a joint effort, governments,
     the world’s twenty largest economies in the         companies, researchers and civil society
     world. Even during times of economic and social     organisations are working together to facilitate
     adversity, this spirit has helped the country       innovation and create a climate for continuous
     prosper. In an effort to maintain its edge in the   innovation. In addition to the benefits of
     global marketplace, Dutch government policies       cooperation, the sectors benefit from cross-
     focus on nine top sectors that are considered       fertilisation in creating the best products and
     the driving forces of the economy. These sectors    services using the best people. This also helps

30   are: Agriculture & Food, Chemistry, Creative
     Industries, Energy, High-Tech Systems &
                                                         the sectors thrive internationally.

     The Netherlands: one of the
     world’s twenty largest economies
The Netherlands’ nine top sectors for innovation:

  AGRICULTURE & FOOD                         CHEMISTRY                          CREATIVE INDUSTRIES

                                                                                                       31

        ENERGY                 HIGH TECH SYSTEMS AND MATERIALS (HTSM)   HORTICULTURE AND STARTING MATERIALS

LIFE SCIENCES AND HEALTH                     LOGISTICS                                WATER
Top Sector Chemistry                                       Current efforts are focused on increasing the    Top Sector Life Sciences & Health are close
     With over 400 high-quality chemical companies              (re)use of environmentally friendly and          cooperation between government, knowledge
     across the supply chain, the Netherlands takes             sustainable raw materials for the energy,        institutions, the industry and patient
     a leading position in the supply of chemical               transport, food and healthcare industries.       organisations. In the Netherlands, this is called
     products and services in Europe. With exports                                                               the “quadruple helix”. The top sector covers
     valued at 7.8 billion euros, 19 of the top                 Top Sector Life Sciences & Health                not only health infrastructure, but medical
     25 global chemical companies have major                    The Netherlands excels in the area of life       technology, biopharmaceuticals and
     operations in the Netherlands, including                   sciences and is home to 2,500 Life Sciences &    regenerative medicine as well.
     AkzoNobel and Shell.                                       Health companies and research organisations,
                                                                85 hospitals and 12 research universities. Its   One of its goals is to improve health and the
     The Top Sector Chemistry is earmarked to play              excellent healthcare system and infrastructure   quality of life, address the problems of an
     a key role in the shift to green and sustainable           are further supported by its advanced            ageing population and ensure care remains
     chemistry. Like other industries, the chemical             technological know-how in patient monitoring     affordable and accessible. Dutch companies

32   sector is facing a shortage of raw materials.              and medical imaging. The key features of the     and universities are contributing to major
                                                                                                                 innovations in the international biomedical and
                                                                                                                 healthcare fields. This sector grew 25% from
                                                                                                                 2010 to 2016, outpacing the other top sectors.

     Development in value added by top sector, 2010-2016
                                                                                                                 Top Sector Logistics
                                                                                                                 Traditionally an internationally trading nation,
     Top sectors
                                                                                                                 the Netherlands is an important global
                                                                                                                 economic player. Given the growing
     Life Sciences & Health
                                                                                                                 importance of sustainability, the Logistics top
     Agriculture & Food
                                                                                                                 sector must focus its efforts on reducing CO2
     High Tech Systems and Materials
                                                                                                                 emissions while ensuring better accessibility
     Water
                                                                                                                 – including through the country’s main airport
     Horticulture and Starting Materials
                                                                                                                 (Amsterdam Schiphol) and seaport
     Creative Industries
                                                                                                                 (Rotterdam). To preserve the Netherlands’
     Chemistry
                                                                                                                 competitive position, this sector also
     Logistics
                                                                                                                 concentrates on international logistics and
     Energy
                                                                                                                 supply chain management.
                                              -25   -20   -15   -10   -5   0    5    10   15   20    25    30
     Source: Statistics Netherlands, 2017                                                   % change 2010-2016
Industry Clusters in the Netherlands

                                                                                                      Groningen

                                        €               Amsterdam

                                        €               Utrecht

                                                                                                      Enschede
                                                        Leiden

                                                                                                       Arnhem
                                                Den Haag

                                                                                                  Wageningen
                                                Delft

                                    Rotterdam
                                                                                             Nijmegen                                      33

                                                        Eindhoven                    Maastricht & Chemelot

         Creative Hub & Advertising                                 Automotive            Chemicals               Mathematics (CTIT)

         Software, Multimedia & Gaming                              Cyber Security        Materials               Hardware Manufacturing

         Life Sciences                                              Telecom               Computer Science        Engineering

 €       Finance                                                    Healthy Aging         Nanotech (MESA +)       Health & Food

Based on: Invest in Holland, 2016
34
35

INDUSTRY CLIMATE
INDUSTRY CLIMATE

     The Netherlands is home to an attractive business climate with a wide-ranging scope

     for innovation. It is known for its competitive and stable tax regime, attractive R&D

     incentives, excellent research facilities and top-rated educational institutions that

     produce a well-educated and multilingual workforce with a high level of productivity.

36
     International business climate
     The Netherlands has a highly attractive
     international business environment and is
     home to over 8,000 foreign companies. Their
     decision to locate in the Netherlands is based
     on several factors. The country’s workforce is
     highly productive and has a strong work ethic.
     In addition, the Netherlands has several
     superior (technical) universities as well as an
     excellent business infrastructure. And the
     corporate sector enjoys an open relationship
     with government, knowledge institutes and
     other companies and institutions. As a matter
     of fact, many companies in the Netherlands
     often attribute their success to this
     environment of mutual transparency.
Competitive fiscal climate
International companies see the Netherlands         • 	A broad participation exemption of 100% from           royalties (the latter often to 0%).
as a great place to locate, thanks in part to its       Dutch corporate income tax for all benefits        • 	An efficient fiscal unity regime that provides
investment-friendly corporate income tax                related to qualifying shareholding. This measure       tax consolidation for domestic activities
system. It has a competitive corporate tax rate         is aimed at preventing double taxation.                within a corporate group.
of 20-25% as well as excellent incentives for       • 	Advance tax ruling from the tax authorities        • 	There is no statutory withholding tax on
innovation and R&D, and a cooperative tax               as well as the option for an Advance Pricing           outgoing interest and royalty payments.
authority. Dutch tax practices have met OECD            Agreement (APA). These give companies certainty    • 	A tax relief programme for sustainable energy
standards for the past 30 years. This, combined         concerning their tax position in the future.           investments (EIA).
with its cooperative tax authority and stable       • 	A transfer pricing practice that is aligned with   • 	No up-front payment of VAT upon importation:
government, means businesses can be                     OECD Transfer Pricing Guidelines.                      no actual payment of VAT.
confident that future changes will not pose         • 	An R&D tax credit for qualifying R&D wage costs    • 	An ‘Innovation Box’ to stimulate technical
significant obstacles or disadvantages to
foreign investors.
                                                        and other related costs and investments (WBSO).
                                                    • 	Pro-active and practical customs authorities.
                                                                                                               innovation, which means an effective
                                                                                                               corporate tax rate of 7% for qualifying profits.   37
                                                    • 	A beneficial tax programme with a 30% personal     • 	A relatively low statutory corporate income tax
Investment-friendly corporate tax                       tax income advantage for qualified foreign             rate of 25%.
system                                                  workers.                                           • 	Tax relief for environmentally friendly
The Dutch tax system offers several                  • 	Nearly 100 bilateral tax treaties to prevent           investments (MIA/Vamil).
competitive features for companies looking to           double taxation and many companies enjoy           • 	Tax authorities allow access to the tax
relocate or expand their operations in Europe:          lower withholding tax on dividends, interest and       inspector.

The Netherlands: excellent incentives
for innovation and R&D
38
Supportive R&D Incentives
The Netherlands has several measures in place      Innovation Box
that promote research & development. These         Under the Innovation Box regime, companies
include general corporate and specific R&D         can benefit from an effective tax rate of only
tax incentives. These pro-innovation R&D tax       7% for R&D income from patented and
measures not only cut R&D costs but also lower     unpatented intangible assets. This includes
a company’s taxable base.                          technological innovations created by the Dutch
                                                   taxpayer and for which an R&D tax credit was
R&D Tax Credit (WBSO)                              received. The normal corporate income tax rate
The WBSO tax credit is an example of a             is 20% to 25%. Companies are not required to
scheme for businesses involved in developing       apply for the Innovation Box and the level of
technically new products and production            income allocated is restricted. This means that
processes as well as those performing
scientific research in biotechnology, physics,
                                                   as more R&D activities are outsourced, fewer
                                                   profits can be allocated to the intangible assets   39
chemistry, production technology and IT            that result from those activities. There is a
technology. Clinical trials are also included in   flat-rate regulation for SMEs, which can decide
this scheme. The WBSO provides a payroll tax       each year to apply 25% of their profit to the
deduction as well as compensation for other        Innovation Box with a cap of 25,000 euros.
costs for companies involved in R&D. Self-         The corporate income taxpayer claims the
employed entrepreneurs can also qualify and        lower 7% rate on their return. The lower rate is,
are entitled to a fixed deduction of 12,623        in fact, an exemption of 72% of the profits that
euros, while start-up entrepreneurs can receive    can be allocated to the Innovation Box, giving
an additional deduction of 6,315 euros.            an effective rate of approximately 7%.
Companies may be entitled to as much as a          The effective rate applies to profits exceeding
32% reduction on the first 350,000 euros in R&D    any development costs and losses made. Such
wage costs and other R&D-related expenses          losses and expenses are deductive at the
and 14% for costs over 350,000 euros. Public       normal tax rate of 25%.
knowledge institutes are excluded from the
scheme.
Innovation-oriented schemes
     Innovation Credit                                      PPP Allowance                                       sequencing is currently one of the projects
     The Dutch Ministry of Economic Affairs & Climate       Top Sector Life Sciences & Health supports          financed with a PPP Allowance.
     Policy offers Innovation Credit in the form of a       innovative research carried out by public-
     risk-bearing loan that companies can use in the        private partnerships (PPPs) in the Dutch LSH        MIT Scheme
     (technical) development phase of a product,            sector. Stakeholders from research                  The MIT (SME Innovation Stimulation) Scheme
     process or service that is considered ‘technically     organisations, health foundations and               offers SME entrepreneurs the opportunity to get
     new’. Funding, which can also be applied to the        companies (start-ups, SMEs and industry) are        additional funding for innovative R&D activities
     development of medical products that require a         invited to jointly invest in R&D to perform         within the Top Sector. The funding, partly national
     clinical study, varies from 25% for large companies    groundbreaking innovations and to contribute        and regional instruments, can be used in several
     to 45% for SMEs. This can be applied to project        to a strong and sustainable LSH sector that         ways: knowledge vouchers, innovation consultancy
     costs capped at 10 million euros with a minimum        plays a major role in finding solutions for         projects, feasibility projects and R&D joint

40   project size of 150,000 euros. Any additional
     expenses must be financed from the company’s
                                                            healthcare challenges around the world. With
                                                            the PPP (Public-Private Partnership) Allowance,
                                                                                                                ventures.

     own resources.                                         the Top Sector provides stakeholders, like          Knowledge vouchers: An SME entrepreneur can
                                                            research organisations, knowledge institutes,       present a knowledge voucher to a centre of
     Companies must repay the loan within ten years         companies, and health foundations with a            expertise for a scientific inquiry into a research
     after the settlement date. This requirement may        financial tool to carry out their innovative        question.
     be waived if the project fails for technical reasons   ideas. Partnerships are offered the opportunity
     or a change in the commercial environment.             to apply for a PPP Allowance twice a year and       Innovation consultancy projects: To get
     During the development phase, interest is              they can get funding for up to 75 % of the R&D      innovation advice and recommendations
     added to the loan. Generally at 7% for technical       costs provided that both the company and the        from a centre of expertise or independent
     development projects and 10% for clinical              research organization, make a substantial           consultancy, such as answering a research
     development projects. Businesses can only              contribution in cash and/or in kind to jointly      question or addressing a request for advice.
     apply for the credit if they lack sufficient           bear the costs and risks of the R&D project.
     resources to finance their project. Both SMEs          The Top Sector Life Sciences & Health               Feasibility projects: To identify the potential
     and large companies, whose activities are              ‘Health~Holland’, matches every euro invested       technical and financial risks of a proposed
     based in the Netherlands can apply for a loan          by private partners with up to 30 cents by the      innovation project.
     for their projects, which must have a maximum          Dutch government. The Top Sector LSH
     duration of four years. Applicants must have           currently finances nineteen projects in the field   R&D joint venture: A collaboration with at least
     a systematic development approach and a                of biopharma with a PPP Allowance. Unraveling       one other SME entrepreneur to innovate or
     detailed project plan.                                 the genetic basis of ALS by large-scale genetic     develop a product, production process or service.
Sustainability-oriented schemes
The MIA and Vamil schemes                             EIA and SDE+ schemes                               Under the Sustainable Energy Production
The Netherlands also provides tax relief              Under the Energy Investment Allowance (EIA),       Scheme (SDE+), producers of sustainable
programmes for sustainable energy and                 the Dutch government provides a 54.5%              electricity and heat or a combination of
environmentally friendly investments, including       deduction to companies that invest in energy-      sustainable heat and electricity (CHP) or green
the MIA and Vamil schemes. Any Dutch                  saving installations, or that make use of          gas, are compensated for the renewable energy
entrepreneur paying income or corporate tax           sustainable energy. The deduction, which is        generated. The scheme is aimed at companies,
can apply and the two schemes can usually be          made on the amount invested sum and comes          institutions and non-profit organisations
combined. Under the MIA scheme, they can              on top of the usual depreciation, is deducted      whose projects are realised in the Netherlands;
deduct up to 36% of an environmentally friendly       from their taxable profits in the year in which    private producers of renewable energy are
investment from their tax profit. However, the        the goods are purchased. The allowance is          not eligible. Energy generated using biomass
investment must be included on the Environment        applicable to new fixed assets within three        is controlled to ensure it adheres to the
List. This list of approximately 270 investments is
updated annually and is found on the MIA/Vamil
                                                      months of purchase and must be included on
                                                      the Energy List. Any investment grant for that
                                                                                                         sustainability criteria. Renewable energy
                                                                                                         production may not be profitable because the      41
website of the Netherlands Enterprise Agency          asset must be deducted from the costs, with        cost to generate it can outstrip the market
(in Dutch only). In 2018, the minimum investment      the exception of operating subsidies. In 2018,     price. This unprofitable component is
amount is 2,500 euros and the maximum is              the investment must be at least 2,500 euros        compensated under SDE+ for a set number of
25,000,000 euros.                                     and the deduction applies to investments up        years, depending on the technology involved.
                                                      to 121 million euros. Any energy advice and
The Vamil scheme provides entrepreneurs with          additional expenses to make an asset
an advantage in liquidity and interest as they can    operational can also be included in the
decide when to write off 75% of their Environment     deduction. On average, the EIA gives a 13.5% tax
List-related investment spending. For the             advantage.
remaining 25%, they can apply the regular
investment rebate procedure. The schemes
encourage companies investing in building/
operating a manufacturing plant to do so in an
                                                                           The Netherlands provides
environmentally friendly way. They are particularly
beneficial to businesses in the shipping,
agricultural and industry sectors.
                                                                           tax relief programmes for
                                                                                   sustainable energy
Further financial support
     Other governmental incentives                    This could be because there is uncertainty          Agenda was to connect existing research
     The Dutch government offers several other        about the relationship between risk and return      agendas, like the EU Horizon 2020 programme
     incentives to companies. One example is the      or because of a long and uncertain return on        with questions out of the Dutch society. It is
     Corporate Finance Guarantee Scheme (GO), in      investment. Invest-NL offers entrepreneurs          expected that the National Science Agenda
     which capital providers are granted a 50%        support in risk capital, guarantees, export         will be an important building block for future
     government guarantee to facilitate medium        credit insurances and international financing       research programmes at universities and
     and large companies wishing to borrow large      programs. Moreover, Invest-NL will develop          institutions. While further developing the
     amounts of money. For SMEs there is the          large-scale social projects in the Netherlands      health agenda, alternative methods to test
     Growth Facility Scheme, under which the          and abroad and co-finance where necessary.          the clinical effectiveness of new medical
     government provides a 50% guarantee for                                                              interventions (including medicines) will also be
     financiers providing venture capital to these    Public financing of R&D                             investigated, as well as research into outcome

42   enterprises. And employers can get a tax-free
     budget for benefits equal to 1.2% of their
                                                      The Dutch government finances approximately
                                                      one third of the annual national expenses on
                                                                                                          measures at the level of the individual patient.
                                                                                                          In addition, attention will be paid to new
     annual taxable wage under the Work-related       R&D. There are several ways in which R&D is         approaches, such as customised and
     Costs Scheme. For employees, there is a Travel   publicly funded. In general terms, basic            regenerative medicines.
     Allowance scheme for commuting costs to and      financing allows universities and institutions to
     from a fixed workplace.                          allocate the funds themselves. There is also        Venture capital and private equity
                                                      project or programme financing. Here, funds         The Netherlands not only has a highly
     Invest-NL                                        are provided for a specific time, budget and        appealing tax regime and incentive schemes
     There will be an additional, new government      content. In most cases there is also a              but an abundance of venture capital
     incentive called Invest-NL. This was announced   competitive element. Health research is funded,     companies that invest in the country’s
     by the Dutch government in 2017. The objective   among others, by the Netherlands Organisation       innovative enterprises as well. A total of
     of this scheme is to stimulate investments in    for Health Research and Development (ZonMW).        3.7 billion euros was invested in 365 companies
     the Netherlands. Invest-NL will be a             This organisation also promotes the actual use      in 2016. These funds included venture capital
     development and financing institute with a       of the knowledge this research produces.            injections in fast-growing start-ups and private
     capital of 2.5 billion euros aimed at helping                                                        equity investments in mature companies.
     companies experiencing difficulties with         Recently, the National Science Agenda gave a        Venture capitalists in the Netherlands often
     raising capital.                                 big boost to the Dutch science policy, which        focus on life sciences and ICT companies.
                                                      was generated in 2016. The purpose of the
Venture capital investments                                                                                                                             Venture capital investments by sector

280,000                                                                                                                        ’000 €                                                                                                                                      ’000 €
260,000

                                                                                                                                                                    23,414
240,000                                                                                                                                                 260,000
220,000
200,000
                                                                                                                                                        240,000
180,000

                                                                                                        33,475
                             107,682
                126,780

160,000

                                                                                           60,372

                                                                                                                     32,440
140,000                                                                                                                                                 220,000
                                          55,060

                                                      49,485
120,000
                                                                   67,207

                                                                                                                                  90,944
                                                                                92,819
100,000

                                                                                                                                                                    64,776
                                                                                                                                                        200,000
 80,000
 60,000
                130,545

 40,000                                                                                                                                                 180,000
                                                                                           124,720
                             139,684

                                                                                                                                  80,274
                                                                                                        149,191

                                                                                                                     121,337
                                          101,483

                                                      102,195

                                                                   91,089

                                                                                80,701

 20,000

                                                                                                                                                                    27,715

                                                                                                                                                                                    106,469
        0
                                                                                                                                                        160,000
                ’07          ’08          ’09         ’10          ’11          ’12        ’13          ’14          ’15          ’16
 Seed       Start-up                      Later stage venture
                                                                                                                                                                                                                                                                                                                           43

                                                                                                                                                                                                                                                                             55,914
Source: Nederlandse Vereniging van Participatiemaatschappijen (NVP)                                                                                     140,000

                                                                                                                                                                                    28,853
                                                                                                                                                                    44,649
Private equity investments
                                                                                                                                                        120,000

                                                                                                                                                                                                                                                         90,722
                                                                                                                                                                                                   60,552
6,000,000                                                                                                                      ’000 €

                                                                                                                                                                                                                                                99,094
                                                                                                                                                                                    25,326

                                                                                                                                                                                                            62,940
5.500,000
                                                                                                                                                        100,000
5,000,000

                                                                                                                                                                                                                                                                  84,445
                                                                                                                                                                                                            6,691 15,438
4,500,000                                                                                                                                                                                                                                                                             Agriculture

                                                                                                                                                                                                   28,943
                                                                                                                                                                                                                                                                                      Business products and services

                                                                                                                                                                                                                                      112,270
4,000,000                                                                                                                                                 80,000

                                                                                                                                                                                                                                                                  16,316
3,500,000                                                                                                                                                                                                                                                                             Chemicals and materials

                                                                                                                                                                                                                            111,912
3,000,000                                                                                                                                                                                                                                                                             ICT
                                                                                                                                                          60,000

                                                                                                                                                                                                                                      18,066
2,500,000                                                                                                                                                                                                                                                                             Construction
2,000,000                                                                                                                                                                                                                                                                             Consumer goods and services

                                                                                                                                                                                                                                                                             76,462
1,500,000                                                                                                                                                 40,000                                                                                                                      Energy and environment

                                                                                                                                                                                                                                                         62,212
                                                                                                                                   2,826,704
                                                                                                                      2,499,496

                                                                                                                                                                                                                                                54,370
                                                                    2,634,598
                                            276,597

                                                                                                         2,348,342
                              2,050,978
                 5,091,955

                                                       1,498,958

                                                                                                                                                                                                   42,714
                                                                                            1,886,357

                                                                                                                                                                                                                                                                                      Financial and insurance activities
                                                                                                                                                                                                            12,013 49,166

                                                                                                                                                                                                                                                                  39,452
1,000,000
                                                                                 987,899

                                                                                                                                                                    12,060 90,686

                                                                                                                                                                                    7,305 80,594

                                                                                                                                                                                                                                      25,948
                                                                                                                                                                                                                                                                                      Real estate

                                                                                                                                                                                                                                                                             21,835
 500,000
                                                                                                                                                                                                                            37,176

                                                                                                                                                                                                                                                         19,370
                                                                                                                                                                                                                                                16,809
                                                                                                                                                          20,000
                                                                                                                                                                                                   16,060

            0                                                                                                                                                                                                                                                                         Healthcare and biotechnology
                ’07          ’08          ’09         ’10          ’11          ’12        ’13          ’14          ’15          ’16                           0                                                                                                                     Transportation
 Growth                   Rescue/Turnaround                                      Replacement Capital                                           Buyout               ’07             ’08            ’09      ’10             ’11       ’12       ’13      ’14      ’15        ’16      Other
Source: Nederlandse Vereniging van Participatiemaatschappijen (NVP)                                                                                     Source: Nederlandse Vereniging van Participatiemaatschappijen (NVP)
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