The new year has brought concerns for the Dutch business climate, driven by remarks from Peter Wennink, the former CEO of ASML, about the possibility of the company relocating outside the Netherlands. ASML, a leading semiconductor equipment manufacturer based in Veldhoven, plays a crucial role in the global chip industry, especially in the US’s strategic efforts against China’s technological advancements. Wennink’s comments were triggered by government policies aimed at reducing migration and scaling back tax incentives for highly skilled immigrants, which ASML relies on heavily for its workforce.
Past discussions around the Dutch tech ecosystem have also highlighted similar concerns. ASML has consistently been a focal point, with its expansion plans often clashing with restrictive government policies. Previous efforts like “Operation Beethoven” did persuade ASML to continue its investments, but underlying tensions remained. These past events underline a persistent struggle between Dutch policy and the needs of its tech sector.
Another comparative instance is the departure of Bird founder Robert Vis, who cited high taxes and bureaucratic challenges as reasons for leaving the Netherlands. Although his sentiments were echoed by a few other entrepreneurs, the overarching narrative suggests that most Dutch tech leaders, like Vesper’s Robert Gaal, remain committed to staying and thriving in the country, emphasizing the importance of a supportive ecosystem.
Government Policies and Talent Retention
Wennink’s warning aligns with broader concerns in the tech sector about the Dutch government’s restrictive migration policies. Approximately 40% of ASML’s workforce in the Netherlands is international, and these policies could hinder the company’s growth. Other tech leaders share similar worries. Vis pointed out that countries like Switzerland, the US, and Singapore offer a more favorable environment for entrepreneurs due to lower taxes and fewer bureaucratic obstacles.
“Ultimately, we can only grow this company if there are enough qualified people,” Wennink told the Dutch broadcaster RTL.
Despite these challenges, there is no significant trend of tech companies leaving the Netherlands. Robert Gaal, co-founder of Vesper, believes that the sentiment to leave is overblown and that the majority of Dutch entrepreneurs remain dedicated to the country. Gaal, who moved to the US, advocates for staying and improving the local ecosystem.
Calls for Policy Reform and Support
Entrepreneurs like Jacqueline van den Ende of Carbon Equity argue that while the Dutch tech ecosystem does not have the same vibrancy as a decade ago, the narrative of a mass exodus is exaggerated. She highlights the need for government policies that support migration and provide incentives for highly skilled talent. Similarly, Joost Kamermans of Seenons emphasizes the importance of creating a high-performance culture and ensuring that legislation supports growth and talent retention.
“The Dutch government is planning to reduce or cancel the tax incentives for highly skilled migrants which is likely to affect the competitive position the Netherlands has in attracting highly skilled talent from abroad,” van den Ende noted.
The sentiment among many tech leaders is that while criticism of the Dutch business climate is valid, it should be addressed constructively. For instance, Gaal suggests expanding the “Startup Visa” to include talent employed by startups and integrating stock options into employment law to benefit all employees. He believes these steps would help retain talent and foster innovation.
Joost Kamermans and others argue for policies that ensure employees are not heavily taxed on stock options, thus encouraging a high-performance culture. They also suggest maintaining favorable tax conditions for highly skilled migrants to attract and retain international talent. Without these changes, the Dutch tech sector risks losing its competitive edge and ability to attract global talent.
While there is a perception that the Dutch tech ecosystem faces significant challenges, the reality is more nuanced. Many tech leaders remain committed to staying in the Netherlands, calling for policy reforms to support their growth and innovation. Addressing these concerns through supportive government policies, fostering a high-performance culture, and attracting international talent will be crucial for the continued success of the Dutch tech sector.
