Perception of the Netherlands Among Corporate Executives Shows Dutch Strengths Amid Brexit, Biden and the Pandemic

Nearly one year after the start of the COVID-19 pandemic, the Netherlands Foreign Investment Agency (NFIA) set out to update a study conducted in 2019 designed to understand perceptions among North American corporate executives and site selectors of the Netherlands’ business climate for foreign direct investment (FDI). Beyond the pandemic, the study was particularly timely given the simultaneous global political and economic shifts.

A total of 212 professionals responded to the online survey, representing industries from IT and finance to life sciences and energy. I was excited to dig into what the study means for the future of North American expansion to the Netherlands, and I’m happy to share the key findings with you now. 

Brexit, Biden and the pandemic’s impact on North American business expansion to the Netherlands

An important takeaway from the study was that 61% of site selectors and 46% of corporate executives surveyed said the Biden Administration’s economic plans have not had any effect on their FDI strategy. Similarly, just over half of respondents said that Brexit was a good reason to relocate operations into mainland Europe. Finally, 34% of both site selectors and corporate executives from North America have modified their projects in the last year due to COVID, while 48% of corporate executives proceeded as planned. This shows that many industries were resilient in adapting and continuing to plan for future FDI projects.

None of this is surprising when you consider the extensive amount of research and development (R&D) happening throughout Europe and the Netherlands’ strong track record of innovation.

Whether or not a company decides to expand overseas of course depends on a variety of factors from size, maturity, profit margin and more. For example, companies working in quantum technology and artificial intelligence (AI) will want to expand R&D efforts internationally sooner than other businesses may, to remain frontrunners in their industries.

A second component many companies are grappling with, especially when considering expansion, is whether a company truly requires a 400-person campus in places like Silicon Valley, or if they can find high-skilled personnel at a different location. Companies looking to expand or relocate will benefit from considering places like the Netherlands with highly educated, multilingual talent pools.

Unique advantages to doing business in the Netherlands

When asked what came to mind when thinking about the Netherlands from a business perspective, survey respondents said words like logistics, sustainability and progressive. Additionally, 78% of site consultants and 64% of corporate executives noted the fact that 90% of the Dutch speak English as a top reason for considering the Netherlands in light of Brexit. Businesses that expand from North America to the Netherlands also benefit from the country’s political stability, strong business infrastructure and the digitalization and digital economy. Let’s dive in deeper. 

Digital Economy

The Silicon Valley startup Splashtop, a leader in remote desktop access and supporter of industrial equipment and the Internet of Things (IoT), established its first EMEA headquarters in Amsterdam last year and upon further realization of the Netherlands’ digital economy, already opened a new office in the city this year.

Avenue Code, a top IT consulting firm headquartered in San Francisco that specializes in end-to-end solutions for e-commerce, brought their firm to Amsterdam in 2019 after exploring dozens of countries. Cofounder and Chief Technology Officer Amir Razmara noted the country’s top talent, culture of innovation, expertise in emerging technologies and world’s largest data-transport hub as the top reasons for the move.

Another San Francisco-based company that has been in Amsterdam since 2017 is Databricks. The firm, which helps businesses make sense of their big data through AI, chose the Netherlands because of the “sizable chunk of database developers” already residing in Europe. Co-founder Reynold Xin also noted that the area was a great place to live, which brings us to our next point.

Quality of Life

With the pandemic and Brexit stirring up the world economy, quality of life is now more at the forefront of corporate decision making. Corporate executives have been including everything from where their kids can go to school to theatres and sports (once reopened to the public) in their search criteria.

Based on our survey of site selectors, 50% of respondents perceive the Netherlands as more attractive when it comes to quality of life than other Western European locations. The European Medicines Agency (EMA) is a prime example of this. Oracle employees also agreed that the Netherlands rose above Sweden, Barcelona, Germany, and more, when it came to having a central European headquarters.

Logistics

For decades, businesses have relied on the Netherlands’ central location and proximity to customer suppliers — especially North American companies seeking a “gateway to Europe. The country is a stable business environment with one of Europe’s leading logistics locations — the Port of Rotterdam.  

Many businesses have expanded into the Netherlands based on the uncertainty of Brexit, such as Monster Group, Snag Tights, Azimo and Velocity Global. NFIA’s perception study echoes the strong need for Dutch logistics capabilities, with the need for supply chain redundancy during the pandemic ranking more important than many other factors.

Cost and Availability of Skilled Workers

Based on the perception study, the availability of skilled workers, labor and overall operating costs are major considerations for site selectors. The Netherlands offers strength in each of these areas — in fact, 50% of the corporate executives we surveyed believe the Netherland’s availability of skilled workers surpasses that of other Western European locations.

Sustainability/Green Initiatives 

Sustainability/green initiatives were also top of mind for being associated with the Netherlands among the survey group. Companies that invest in the Netherlands can collaborate with like-minded companies no matter the industry. For example, Amsterdam Airport Schiphol is aiming to become emission-free by 2030 and energy positive by 2050, while Coca-Cola has been working to reduce its impact in Brabant since the 1950s.

Change can be an opportunity to stand at the forefront of innovation

Last year, Beyond Meat, a leader in plant-based meat, announced the company’s first production facility outside of the U.S., landing in the Netherlands. Beyond Meat joined other top agrifood companies in the Netherlands, including Cargill, Kraft Heinz and more which are taking advantage of innovative R&D opportunities with institutions such as Wageningen University & Research, Brightlands Future Farming Institute, and TU Delft’s AgTech Institute to revolutionize the future of food.

Withstanding unprecedented circumstances, the Netherlands has seen innovation in every possible sector over the past year — from life sciences & health to agrifood and high tech systems, just to name a few. Consumers are making more use than ever before of meal and grocery delivery through services like DoorDash and Amazon. The world has its ears and eyes open for the next innovative company that will make life even more convenient.

I was pleased to see that, even with a challenging 2020, executives have shown a positive outlook on FDI and have a positive perception of the Netherlands for international expansion. An investment in the Netherlands is an investment in a global future. Our country continues to be the gateway to the European market with potential for collaboration in any industry.

NFIA is well versed to advise foreign clients throughout the various stages of establishing, rolling out and expanding their international activities in the Netherlands. With millions of people getting vaccinated each day, the light is at the end of the tunnel for the next surge in FDI. I would like to extend a personal invitation to any business leaders looking to tap into the Netherlands’ high quality of life, strong digital economy and robust logistics sector.

From industry innovations to top talent, Holland Has It. I would love to hear your thoughts in the comments, or you can send me an email at [email protected]