NL

COUNTRYPROFILE NETHERLANDS

CONTENTS<<COUNTRY>>

IMD World Competitiveness Yearbook 2020, Talent & Digital 2019: summaries

WORLD COMPETITIVENESSRANKING 2020

All data are available from theWorld Competitiveness Online.

Visit our eShop

BASIC FACTSCapital

Land area (square km '000) 422019

Exchange Rate (per $) 0.8932019

Population - market size (millions) 17.412019 33

Gross Domestic Product (GDP) (US$ billions) 880.52019 17

GDP (PPP) per capita (US$) 57,7322019 10

Real GDP growth (%) 1.82019 38

Consumer price inflation (%) 2.672019 42

Unemployment rate (%) 3.402019 12

Labor force (millions) 9.302019 30

Current account balance (% of GDP) 10.552019 4

Direct investment stocks inward ($bn) 1,673.82018 4

Direct investment flows inward (% of GDP) 3.192019 16

PEER GROUPS RANKINGSEUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries)

COMPETITIVENESS TRENDS - OVERALL

NETHERLANDSOVERALL PERFORMANCE (63 countries) Rank

Amsterdam

CHALLENGES IN 2020Counter the economic downturn from Covid-19 by decisive fiscal

policy response without unduly burdening public debt.

Confederation of Netherlands Industry and Employers (VNO-

NCW), The Hague

COMPETITIVENESS LANDSCAPE

85 4

64

2016 2017 2018 2019 2020

12

2 5 3

46

8

50

4 48 7

2 4

159 9

3

13 15 14

Dom

estic

Eco

nom

y

Inte

rnat

iona

l Tra

de

Inte

rnat

iona

l Inv

estm

ent

Empl

oym

ent

Pric

es

Publ

ic F

inan

ce

Tax

Polic

y

Inst

itutio

nal F

ram

ewor

k

Busi

ness

Leg

isla

tion

Soci

etal

Fra

mew

ork

Prod

uctiv

ity &

Effi

cien

cy

Labo

r M

arke

t

Fina

nce

Man

agem

ent

Prac

tices

Att

itude

s an

d V

alue

s

Basi

c In

fras

truc

ture

Tech

nolo

gica

l Inf

rast

ruct

ure

Scie

ntifi

c In

fras

truc

ture

Hea

lth a

nd E

nvir

onm

ent

Educ

atio

n

Economic Performance Government Efficiency Business Efficiency Infrastructure

5

2 13 3

2016 2017 2018 2019 2020

74 3

5 4

2016 2017 2018 2019 2020

• Counter the economic downturn from Covid-19 by decisive fiscal policy response without unduly burdening public debt.

• Increased focus, especially due to this crisis, on R&D (notably Key Enabling Technologies e.g. A.I. and Biotechnology) that support the health and resilience of society and stimulate productivity growth.

• Continue to push for ambitious climate change plans to reduce emissions without compromising competitiveness.

• Ensure Dutch position in international trade networks and maintain an attractive investment climate.

Provided by:Confederation of Netherlands Industry and Employers (VNO-NCW), The Hague

IMPROVEMENTSWCY 2019

WCY 2020 DECLINES

WCY 2019

3.2.14 Labor force long-term growth 0.23 1.24 1.5.01 Consumer price inflation 1.60

2.3.08 Exchange rate stability 0.046 0.005 2.5.02 Homicide 0.55

1.4.08 Long-term unemployment 1.40 1.00 4.1.07 Population - growth 0.99

3.3.10 Stock market capitalization (%) 108.42 137.37 1.1.14 Real GDP growth 2.7

4.3.05 Business expenditure on R&D (%) 1.17 1.45 1.1.15 Real GDP growth per capita 1.67

4.2.16 High-tech exports (%) 18.58 22.70 4.4.27 Environmental laws 7.01

2.1.02 Government budget surplus/deficit (%) 1.47 1.78 4.4.26 Pollution problems 6.95

1.2.12 Exports of commercial services ($bn) 216.47 261.74 2.3.05 Central bank policy 7.50

4.3.18 Number of patents in force 797.4 962.1 2.1.11 Pension funding 7.76

1.2.13 Exports of commercial services (%) 26.06 29.73 2.3.12 Bureaucracy 5.86

4.3.07 Total R&D personnel per capita 8.07 9.10 2.4.18 Immigration laws 7.63

2.3.07 Foreign currency reserves per capita 2,223 2,486 2.3.09 Legal and regulatory framework 7.39

1.4.07 Unemployment rate 3.83 3.40 3.4.11 Women in management 26.59

4.3.10 Researchers in R&D per capita 5.0 5.5 4.4.23 Environment-related technologies 1.35

4.4.18 Renewable energies (%) 5.1 5.5 4.2.18 Cyber security 7.16

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

NETHERLANDSCOMPETITIVENESS EVOLUTION

2.67

1.16

5.72

5.80

6.57

7.02

5.31

1.26

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2020

6.74

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

0.77

0.64

1.8

7.08

6.87

24.76

3.3%10.7%11.5%17.2%18.0%19.7%27.9%30.3%33.6%34.4%49.2%53.3%59.0%59.8%63.9%

0% 10% 20% 30% 40% 50% 60% 70%

Cost competitivenessCompetency of government

Quality of corporate governanceAccess to financing

Competitive tax regimeEffective labor relations

Effective legal environmentStrong R&D culture

Dynamism of the economyBusiness-friendly environment

Open and positive attitudesPolicy stability & predictability

Reliable infrastructureSkilled workforce

High educational level

WORLD COMPETITIVENESSDIGITAL RANKING 2019

All data are available from theWorld Competitiveness Online.

Visit our eShop

Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 2

10.5 4 4 2 2

2015 2016 2017 2018 2019

6 4 6 9 6

14 13 11 12 13

15 10 9 8 6

1 2 3 4 3

OVERALL

Future readiness

COMPETITIVENESS & DIGITAL RANKINGS

PEER GROUPS RANKINGS

EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries)

Knowledge

Technology

DIGITAL TRENDS - OVERALL

NETHERLANDS

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

64

6

9

6

15

8

54

6

2015 2016 2017 2018 2019

Digital

Competitiveness

3 24

64

2015 2016 2017 2018 2019

4 35

75

2015 2016 2017 2018 2019

13 3 36 19

6 6 5 106

3 9 7 3

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

u Overall top strengths

w Overall top weaknesses

Subfactors 2015 2016 2017 2018 20195 4 3 3 3

33 33 32 31 36

15 16 18 16 19

Talent Rank Rank Rank

Educational assessment PISA - Math 10 8 17u International experience 3 18 12 Foreign highly-skilled personnel 4 22 w 48 Management of cities 4 24 24 Digital/Technological skills 5 w 60 12 Net flow of international students 9 30 16 27

Subfactors 2015 2016 2017 2018 201917 14 9 10 6

12 9 5 7 5

16 13 14 14 10

Regulatory framework Rank Rank Rank

Starting a business 12 8 u 3w Enforcing contracts 46 6 15u Immigration laws 3 5 w 34 Development and application of technology5 u 1 4 Scientific research legislation 9 4 8 Intellectual property rights 5 w 44 12

Subfactors 2015 2016 2017 2018 20193 3 5 7 9

3 2 7 12 7

5 2 3 7 3

Adaptive attitudes Rank Rank Rank

E-Participation 4 10 13 Internet retailing 6 18 3 Tablet possession 13 10 8 Smartphone possession 24 10 13 Attitudes toward globalization 6 u 2

Scientific concentration

Training & education Scientific concentration

Talent

Robots in Education and R&D

FUTURE READINESS

IT integration

Business agility IT integration

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

NETHERLANDS

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capita

TECHNOLOGY

Technological framework

Capital Technological framework

Training & education

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Regulatory framework

Capital

IT & media stock market capitalization Communications technologyFunding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Higher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

Employee training

KNOWLEDGE

Agility of companies Cyber securityUse of big data and analytics Sofware piracyKnowledge transfer

WORLD TALENTRANKING 2019

All data are available from theWorld Competitiveness Online.

Visit our eShop

Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

5.1 % 21 23.1 % 16 10,110 US$ 13w 16.65 ratio 41w 17.04 ratio 53 6.64 Survey [0..10] 7 7.02 Survey [0..10] 8 46.59 % 24 8.52 Survey [0..10] 3

Value

w 84.30 index 40 7.97 Survey [0..10] 6 7.44 Survey [0..10] 5 7.40 Survey [0..10] 4 9.50 Survey [0..10] 5 8.06 Survey [0..10] 4 46,077 US$ 13 255,478 US$ 12w 26.42 % 57u 8.90 Survey [0..10] 2 12.07 micrograms 20

Value

1.17 % 26 6.66 Survey [0..10] 9 7.89 Survey [0..10] 3 7.55 Survey [0..10] 3u 7.20 Survey [0..10] 2 8.69 Survey [0..10] 4w 14.70 % 60u 8.82 Survey [0..10] 2u 8.23 Survey [0..10] 2u 9.22 Survey [0..10] 1 5.62 number 11 510 Average 12

Investment & Development 2019 Rank

Health infrastructure meets the needs of society

2019 Rank

Total public expenditure on education Percentage of GDP

Pupil-teacher ratio (secondary education)Apprenticeships are sufficiently implemented

Readiness 2019 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

is readily available

Labor force growth Percentage change

Skilled labor

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Primary and secondary education meets the needs of a competitive economy

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Finance skills are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

Justice is fairly administered

Remuneration in services professions Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Cost-of-living index Index of a basket of goods & services in the main city, including housing (New York City = 100)

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Gov. expenditure on education per student Percentage of GDP per capita (secondary education)

Total public exp. on education per student

NETHERLANDS

Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Ratio of students to teaching staff

Employee training is a high priority in companies

Female labor force Percentage of total labor force

IMD World Talent Ranking 2019

OVERALL PERFORMANCE (63 countries)

8 8

65

9

1514

15 1516

11

13

7

10

76

3 3 3

7

2015 2016 2017 2018 2019

Overall

Investment &Development

Appeal

Readiness

16

79

7

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

2020

IMD WORLDCOMPETITIVENESSYEARBOOK

IMD

Wor

ld C

ompe

titive

ness

Year

book

About the Institute for Management Development (IMD)

IMD is an independent academic institution with Swiss roots and global

reach, founded almost 75 years ago by business leaders for business

leaders. Since its creation, IMD has been a pioneering force in developing

leaders who transform organizations and contribute to society.

Based in Lausanne (Switzerland) and Singapore, IMD has been ranked

in the Top 3 of the FT’s annual Executive Education Global Ranking for

the last nine consecutive years and in the top five for 17 consecutive

years. Our MBA and EMBA programs have repeatedly been singled out

among the best in Europe and the world.

We believe that this consistency at the forefront of our industry is

grounded in IMD’s unique approach to creating “Real Learning. Real

Impact”. Led by an expert and diverse faculty, we strive to be the trusted

learning partner of choice for ambitious individuals and organizations

worldwide. Challenging what is and inspiring what could be.

www.imd.org

IMD, IMD INTERNATIONAL, REAL LEARNING. REAL IMPACT, IMD BUSINESS SCHOOL and IMD WORLD COMPETITIVENESS YEARBOOK are trademarks of IMD - International Institute for Management Development