The Netherlands, long admired for their progressive policies and open economies, is now making a bold move to become Europe’s new tech powerhouse. The country has attracted $2.5bn worth of tech investments by combining AI with sustainability and an ethical framework in 2024, a 39% increase from the previous year. The Netherlands is positioning itself to be the epicenter of Europe’s next technology renaissance with a government-backed push towards responsible innovation. According to VC company Atomico, the Netherlands is now one of Europe’s most rapidly growing tech ecosystems. Euronext Amsterdam is the largest stock exchange in Europe by market capital. It has become a cornerstone for the digital ecosystem of the country. Euronext Amsterdam now has a total market of 23% tech, which is more than the New York Stock Exchange.
Ethical artificial intelligence is a key part of the Netherlands’ technology ambitions. Kickstart AI is a collaboration between five major Dutch companies – Ahold Delhaize ING KLM NS Philips – that focuses on driving innovative ethical AI solutions that align with societal value and can solve real world challenges. GPT-NL is another key initiative spearheaded by the non-profits TNO NFI and SURF. It aims to ensure fair and transparent AI usage while adhering to Dutch, European and ethical standards.
In these developments, the Dutch government has played a major role. It has implemented policies that encourage tech growth at all stages — from grants to early-stage startups, to tax incentives for R&D. Programs like the Dutch Good Growth Fund, and the Innovation Box tax scheme, encourage businesses to invest into sustainable, high-tech solutions.
The Dutch government released its vision for generative AIlast year. It outlined a framework that would allow the technology to be developed and used responsibly, while still maintaining control over its social impacts. The vision is organized around six key action areas: fostering collaboration between stakeholders, closely monitoring AI advances, developing appropriate legislation and regulation; expanding AI skills and knowledge (especially through education); experimenting safely and controlled with generative AI in government; and ensuring strict oversight with enforcement measures if necessary.
It is important that the Netherlands doesn’t remain on the sidelines in regards to artificial intelligence,” said Micky Adriaansens during a briefing held last year. “Generative AI is becoming one of the most important technologies of our times, whether it’s in everyday life or for machines and more efficient industrial systems. Asia and the US are leading the way, and Europe must catch up.
These plans are in line with significant investments — amounting millions of euros — that have already been made by research institutes, private enterprises, as well as the government to keep pace with the rapid development of AI.
The Dutch approach to ethical AI is a distinctly European balance of innovation and privacy rights, said Creek Guin’sco-founder and chief executive officer of Amsterdam-based digital ID startup Fourthline. By establishing clear guidelines on data protection and algorithmic transparent through frameworks such as the GDPR, Europe built a foundation for trust that is crucial for the adoption AI-driven solutions within the digital identity space. Amsterdam and Eindhoven are leading the way with IoT technology, 5G networks, AI-driven solutions, and urban living. A new pillar is emerging at the Hague where a spinoff of the Netherlands Organisation for Applied Scientific Research, TNO, recently revealed plans for the creation of digital twins for smart cities.
Gunning said that the partnership between Dutch government and leading universities from Delft and Eindhoven was also instrumental in fostering innovative. TU Delft collaborates with the Dutch Government, industry partners and other technical universities in order to develop materials that will be used for sustainable energy sources. TU Eindhoven is at the center of the Brainport Eindhoven ecosystem of innovation, one of Europe’s most advanced high-tech regions.
Gunning said that the model is particularly effective because it focuses on practical innovation, ensuring that research leads to real solutions. ASML is a Dutch university that has worked in partnership with both the private sector and government.
Sustainability is another promising sector. In 2024, Dutch green tech startups raised a record amount of funding. Voltfang – a company that focuses on renewable energies storage – and Vind – a pioneer of wind energy optimization – are emerging leaders in this sector. The country is also experimenting in circular economy models where waste is minimized and resources are re-used. Anders Indset, chairman of Njordis Group (a VC firm that invests in technology companies), says that sustainability advancements can boost AI progress.
Indset told us that the Netherlands places a high priority on renewable energy. This ensures a stable energy supply to train and develop AI models. The Netherlands’ biggest challenge is retaining AI talent. The Netherlands has become a magnet of investment, with VC funds such as Peak Capital and Speedinvest investing in high-impact startups. Institutional investors like pension funds are also increasingly investing in Dutch technology. However, its ability to retain talented talent could impede the country’s growth.
Global technology hubs such as Silicon Valley and Shenzhen present highly lucrative opportunities. To compete, the Dutch ecosystem needs to keep innovating while providing compelling incentives to retain top talents.
Gunning explained that tax benefits are one of the key competitive advantages for attracting top tech talent from around the world. This allows us to compete with tech hubs such as London, Berlin and Singapore in order to attract top specialists in AI and cybersecurity. The Netherlands is a popular destination for international tech professionals during their peak years of work, which are typically between late twenties and early forties.
The Netherlands could be a good example of how to address this challenge. Adyen, a Dutch fintech company, built a solid local foundation before expanding internationally. By 2015, its valuation had surpassed $2bn. Catawiki, a platform for collectors, evolved into a premier auctioneer of rare finds. After refining their business model in The Netherlands, they expanded internationally and raised EUR150mn ($155mn in 2020) to fuel growth.
Indset says that stock market processes should be further simplified, and incentives for top talent created to ensure a commitment to the location. He suggests using this advantage to build a “scale-up ecosystem for funding to hold tech firms in Europe once they have reached later-stage financing.”
So what’s next for Dutch blueprint?
By 2020, startups founded in The Netherlands could contribute between EUR250bn (USD259) and EUR400bn (USD414bn]) in market capitalisation. The Netherlands’ commitment towards ethical innovation is likely to influence EU-wide policy, setting benchmarks for responsible technology development. Indset praised Holland’s practical priorities. “While European countries are more reactive and focused on ideologies and political correctness, the Netherlands seem to understand that putting capitalism and economic growth at the forefront does not contradict an environmentally-friendly technological future,” said he.
Victor Dey, a tech analyst, writes about AI, data science and metaverse. He also covers startups and cybersecurity. Former AI editor at VentureBeat. His work has also appeared in New York Observer and Fast Company. He is also a contributing author for Espacio Media Incubator which has reporters in the US, Europe Asia and Latin America. Victor has mentored students founders in accelerator programs at leading Universities including the University of Oxford, the University of Southern California and holds a Masters degree in data science.
