“Where Europe once played a leading role in innovation, that hasn’t been the case for years,” states a report requested by the outgoing government in early September. It was written by a team led by former ASML CEO Peter Wennink.

The parties currently forming a coalition, D66 and CDA, already anticipated the report in their joint proposals. They say they indeed want to invest heavily in research and innovation. They are now continuing discussions with the VVD, which previously implemented budget cuts in this area.

Billions

Others have gone before Wennink. Just last week, for example, the advisory council AWTI made a similar case for major spending on knowledge and innovation.

The report distributes billions generously. Wennink is not worried about an increasing national debt, as long as the money is used for sensible investments that strengthen the economy. One of the ideas is that additional public spending would encourage companies to open their wallets as well. Altogether, the report estimates that 151 to 187 billion euros will be needed over the next ten years. These are “largely private investments.”

Internationalization

But it’s not just about money. Attracting international researchers and students is also crucial. Wennink criticizes the budget cuts targeting international students, who actually generate revenue for the treasury. He seems especially concerned about the impact on science and engineering programs.

Wennink calls for an “active and targeted migration and settlement program that encourages international talent to come to the Netherlands and stay to work here.” He is referring primarily to students and knowledge workers in engineering, ICT, energy, and biomedical technology—including those from outside Europe.

“Increase the structural funding for engineering across all levels of education, from MBO to university,” the report states. That would allow programs to admit more students and improve educational quality.

Another, related recommendation: “Restrict admissions to programs with limited labor-market potential and limited societal benefits.” The report does not specify which programs he is referring to.

Retraining

In addition to these measures, more opportunities should be created for retraining and upskilling. “Develop public-private training programs so that retraining aligns more closely with labor-market demand,” the report says. This will be music to the ears of universities of applied sciences, which have been advocating for a larger role in lifelong learning for years.

Related to this, Wennink proposes limiting employee rights. Severance packages, he argues, should place greater emphasis on retraining and upskilling. Overall, he believes the social security system and labor-market policies need a “recalibration.” “Permanent contracts are too rigid, flexible contracts too insecure.”

Response

Initial reactions from trade unions are skeptical. “We recognize the urgency of investment, but reducing regulatory pressure cannot come at the expense of workers’ social protection,” says Nic van Holstein, president of the trade union federation VCP. “Within my constituency I already hear harsh criticism of this attack on workers’ rights—anger, too, about the erosion of basic security. It’s unimaginable that people are talking about us without involving us.”

The “sounding board group” Wennink worked with includes CEOs, directors, mayors, and chairs of advisory councils, but no representatives of the trade unions.

Universities of the Netherlands (UNL) embraces the report. Chair Caspar van den Berg says: “The message to a new government is clear: if we want to maintain our current level of prosperity ten years from now, the government must act quickly and make strong investments in knowledge, innovation, and talent.”

ASML

Chip-machine manufacturer ASML threatened to leave the Netherlands in early 2024, partly because of plans to restrict the inflow of international students. In response, the government launched a major investment plan to strengthen the microchip sector: project Beethoven, which also allocates funding for engineering programs in Eindhoven, Twente, Groningen, and Delft.

This article was translated using AI-assisted tools and reviewed by an editor.