3 Reasons Why the Netherlands is the Digital Gateway to Europe

With increased pressure placed on digital networks and connectivity, the Netherlands digital infrastructure remains strong.

Over the last couple months, we’ve put our digital networks to the test with virtual meetings, school, workouts and even birthday celebrations. As we continue to navigate the COVID-19 pandemic and ease into recovery, our reliance on these digital networks to go about our lives will remain.

The Netherlands’ world-class digital infrastructure and strong talent pool continue to support innovative startups, at-home connections and digital-first multinational companies regardless of the circumstances. Now more than ever, the Dutch digital infrastructure is a prime advantage to doing business in the Netherlands. Here are three of the top reasons why the Netherlands is the digital gateway to Europe.

1. Top Digital Infrastructure

From seaports to highways and digital networks, infrastructure is a strong suit of the Netherlands’ business climate. Digitally speaking, the Dutch digital infrastructure is one of the best in the world with a state-of-the-art, 100% digital, advanced fiber-optic network.

The Netherlands also has one of the highest broadband penetrations per capita in the world and the majority of households in the Netherlands have access to the Internet (99%), which is higher than the U.K. (93%), France (90%) Ireland (89%) and Germany (94%).

The Netherlands also embodies what it means to be “digitally ready.” Cisco recently conducted a study to determine the digital strength of countries around the world in addition to their readiness to create a digital economy. The study measured countries in skill development, meeting people’s basic needs, a stimulating business environment and governmental investments. The study ranked Netherlands No. 6 overall in the Digital Readiness Index 2019 and scored the Dutch highly in the field of Technology Infrastructure (No. 2) and Business & Government Investments (No. 6).

Amsterdam Internet Exchange (AMS-IX) in particular has helped the Netherlands solidify its reputation as a digital hub. AMS-IX is one of the world’s largest internet exchanges and for more than 25 years, it has ensured that internet service providers, telecom companies and cloud providers route their global traffic in an efficient, secure and stable way.

2. Skilled and Digitally Savvy Workforce

When it comes to the talent in the Netherlands’ digital economy, the Dutch do not disappoint. In fact, the Netherlands has the largest share of inhabitants who are proficient in using internet, computers and software.

In 2019, half of the Dutch population aged 16 to 74 years had above basic overall digital skills, versus an average of 33 percent in the European Union, according to recent research. The skills measured in the ranking were based on performance in four areas (information, communication, problem solving skills and software), which means that the Dutch population is knowledgeable in several digital areas.

When asked about the top reason for investing in the Netherlands, David Hyman, General Counsel at Netflix said, “We have access to a very educated and English-conversant workforce. The UK and Ireland are of course attractive in that area as well, but the second factor was that we wanted to be on the continent.”

The Netherlands is also known for strong relationships between businesses, knowledge institutions and the government and the country’s education system prepares talent for jobs that require digital and analog skills. Together, these factors boost the Netherlands ambition to become Europe’s digital frontrunner. Additionally, in case you’re wondering whether the Dutch workforce speaks English, the answer is yes. In fact, more than 90% of the Dutch population is fluent in English and a higher percentage speaks German and French than their counterparts elsewhere.

n 2017, Jama Software, a US-based computer software company, opened its European headquarters in the Netherlands. “The ability to recruit highly-skilled, entrepreneurial and bilingual talent was a significant factor in our decision to open a European headquarters in the Netherlands,” said CEO Scott Roth.

3. Global Companies Focused on Digitalization Choose the Netherlands

Multinational digitally-focused companies choose the Netherlands for its workforce, unmatched infrastrucutre and the growth potential. Uber, Discovery, Netflix and Google are prime examples of that, with each company making multiple significant investments in the Netherlands’ digital economy.

Uber, for example, established its international headquarters in Amsterdam in 2012. It then launched its Uber Freight app in the Netherlands for the sophisticated logistics network and more recently, doubled down on its commitment to the Netherlands by relocating within the Dutch capital to a larger facility. Netflix has also expanded its initial investment in the Netherlands and now employs more than 350 skilled Dutch workers in Amsterdam. Tech-giant Google is building a data center at Agriport in Middenmeer and chose the Netherlands for its first data center outside the U.S. for its “excellent digital infrastructure, enough renewable energy sources and qualified personnel.”

With this only being a selection of the companies advancing digital technology in the Netherlands, it’s no wonder why the Dutch were recognized as digital frontrunners by the European Investment Bank Investment Survey.

The NFIA: Here to Help

For more than 40 years, the Netherlands Foreign Investment Agency (NFIA), has assisted companies at every stage of establishing or expanding operations in the Netherlands with free and confidential services. 

Interested in doing business in the Netherlands or setting up a private meeting to discuss international investments? If you’re based in North America, please feel free to contact me at [email protected]. If you are based outside of North America, please contact one of our directors in your local market: https://investinholland.com/contact-us/. I also encourage you to sign up for our e-newsletter for future updates on doing business in the Netherlands.