The Netherlands
Prime Moves
A publication of the Netherlands Foreign Investment Agency | December 2011 | UK & Ireland Edition
Ever closer ties
Source: ANP
The UK and the Netherlands are key economic partners with a long history of trade and friendship. So, it is no surprise, that both governments are determined to work together to support trade, investment and business. Last month, Dutch Prime Minister Mark Rutte led a business delegation to the UK. The trip had a strong focus on the creative industries, innovation, transport and logistics. Prime Minister Rutte was joined by a large number of innovative Dutch media and tech companies, bringing their Dutch design and digital talent across the North Sea. He also discussed the euro and the EU growth agenda with David Cameron calling the relationship between the UK
and the Netherlands as being traditionally “very strong and very solid”.
Thank you for investing in the Dutch economy and society”.
Dinner with foreign investors Part of the programme was an exclusive dinner with foreign investors at the Ambassador’s residence in London on 14 November. A small group of NFIA contacts joined the Prime Minister, the Ambassador Mr Pim Waldeck and Mrs Liesbeth Staps for this event. Mr Rutte spoke warmly in his appreciation of the operations foreign companies have in the Netherlands. Mr Rutte said: “I am very pleased to be here talking about doing business in the Netherlands. From our small corner of the globe, large investments are moving back and forth all over the world. And the people behind it, innovative entrepreneurs like yourselves, have plenty of ideas for creating even more opportunities in the future.
Natural business partners On Tuesday 15 November Mr Rutte co-hosted a Downing Street Strategic Business Dialogue (SBD) breakfast with Nick Clegg for some of the largest British and Dutch multinationals. Within the SBD both governments support businesses and promote bilateral trade and investment through their respective embassies. Mr Rutte and Mr Clegg elaborated on how the UK and the Netherlands are natural partners. Mr Rutte and Mr Clegg: “There are countless small and medium sized enterprises with business partners on either side of the North Sea. This is a testament of the closeness of the UK and the Netherlands business environments, the creativity of our citizens, and the innovation of our companies.”
Contents
An economic agenda for action
2
Leading the world in digital infrastructure
3
O3b Networks’ and Brit Insurance’s Dutch expansion 4
NFIA News
5
Prime Moves
6
An economic agenda for action The Dutch government launched a new business policy in February 2011. The guiding principle of the new economic growth strategy is that the government is no longer steering with regulations and subsidies, but is giving companies room to do business, invest, innovate, and export. The focus will be on entrepreneurs, government and knowledge institutions creating economic growth, employment, and prosperity together. To this end, the Dutch government has identified nine key sectors in its new business growth strategy, called ‘Naar de top’ or Towards the top.
The Golden Triangle The Netherlands is already strong in each of these sectors – Agri-food, Horticulture, High Tech Materials and Systems, Energy, Logistics, Creative, Life Sciences, Chemicals, Water and Corporate Headquarters. However, the new strategy is designed to further strengthen the country’s global position within these sectors and will involve close collaboration between business, government and knowledge institutions – the Golden Triangle. Experience shows that when this Golden Triangle works effectively towards a common vision, action plans are implemented, joint investments are made and education is attuned to the needs of business.
An economic agenda for action | page 2
The Top Team Each sector has selected a high profile representative and an MD from an innovative SME to work alongside a senior civil servant and a representative from a knowledge institution. The ‘top teams’ presented their agenda and action plan to the Minister for Economic Affairs, Agriculture and Innovation in June this year. Government taking action The sector action plans focus on better utilization by the corporate sector of the knowledge infrastructure, fewer and simpler regulations and less subsidies in return for lower taxes. The Government has allocated € 1.5 billion for this economic stimulus package and we look forward to bringing you more details in future editions of Prime Moves. Following the proposals of the top teams the Dutch government has already taken measures that will strengthen the competitiveness and the knowledge infrastructure.
Some implemented measures • In 2013, the Cabinet will provide an additional innovation tax package of € 100 million for initiatives of public-private cooperation. • The guarantee scheme for corporate financing (GO) will be extended for loans up to € 50 million for SME innovations. • Effective January 1, 2013, the Cabinet is abolishing more than € 2 million in annual fees for the Chambers of Commerce. • A pilot to simplify the admission of short-stay knowledge migrants.
Improved competitiveness rankings The Netherlands has risen from eighth to seventh place in the World Economic Forum’s index of the most competitive economies, scoring particularly highly in innovation, new technology, education, efficient markets and a supportive business environment. Source: ASML Netherlands B.V.
Leading the world in digital infrastructure The Netherlands is famous as a logistics gateway to Europe and the wider world. In the 21st century this tradition continues with the Netherlands rapidly becoming a world leader in digital infrastructure. In fact, this IT infrastructure is one of the main reasons so many leading technology companies, such as Microsoft, Tata, Cisco, Infosys, Huawei and Google, come to the Netherlands. Additionally, the government acknowledges the innovative strength of the ICT sector and its ability to facilitate efficiency and collaboration within the new key priority business policy. The broadband market in the Netherlands is already one of the most advanced in Europe. However, high
Innovative tax climate The Dutch tax system offers a range of attractive tax incentives for technology companies. Fiscal R&D policy includes: an effective corporate tax rate of 5% on qualifying innovation R&D, income tax reductions for qualifying expatriates and a tax deduction on every euro spent on R&D operating costs and investments in R&D assets. The Netherlands has a top 10 ranking in the Global Innovation Index and the fiscal climate for innovation is to improve further.
Source: Amsterdam Internet Exchange
penetration broadband and rapid connections are increasingly taken for granted so other more sophisticated aspects of IT infrastructure now play a leading role in determining a nation’s ‘IT readiness’. Many companies take the following factors into particular consideration when choosing their location:
An Internet hub The Amsterdam Internet Exchange (AMS-IX) is one of the largest in the world with over 350 members. It is also professional, neutral and leading the way in global peering services so offering high tech companies significant cost savings and network optimisation. Data centre expertise The Netherlands has an enviable reputation for expertise in this area. When opening their new flag-
Leading the world in digital infrastructure | page 3
ship European data centre Herman Oggel, President of Terremark’s European business, said: “The NAP of Amsterdam was strategically built to access one of the world’s largest Internet hubs in terms of traffic and members. This will enhance our ability to provide secure and highly sophisticated solutions to our customers”.
Readily available skills The Netherlands has a highly skilled and flexible workforce. EU citizens are able to work in the Netherlands, with flexible and freelance contracts widely available. There is also an efficient, fast-track work/ residence permit procedure for knowledge workers from overseas. Dutch people are multi-lingual with around 90% speaking English – many also speak French and German – and many Dutch managers have significant international business experience.
O3b Networks and Brit Insurance expand to the Netherlands O3b Networks opens operational headquarters in The Hague O3b Networks is a developer of a new satellite-based network, which will allow fast internet access in parts of the world where internet connectivity has either been limited thus far or not available at all. From the location in The Hague the company’s worldwide activities will be coordinated. O3b – the ‘Other 3 billion’ – focuses on the development of a satellite network that will provide access to broadband internet for all regions across the globe 45° south and 45° north of the equator.
Brit Insurance highlights the excellent service delivered by the NFIA Brit Insurance is an international general insurance and reinsurance group specialising in commercial insurance. The Group writes a diverse portfolio of insurance and reinsurance, offering worldwide protection and is one of the most successful companies in its sector. When seeking an office location in the Netherlands, there was a compelling business case why they
From the operational headquarters in The Hague all O3b’s worldwide activities in the field of product development, finance and marketing will be managed. To that end staff in The Hague will be expanded considerably. “I am delighted to be celebrating the opening of our operational headquarters here in The Hague. I have lived in The Hague for more than ten years and from experience I know it is a great international base from which to work. It also has a very high number of professionals and as we are recruiting locally as well, that is attractive to us”, according to Steve Collar, CEO at O3b Networks. Based on a thorough location bid book and introductions with the
first turned to assistance from the NFIA explains Dan Lowe, Corporate Services Manager at Brit Insurance.“Over the past 12 months we’ve opened up offices in Chicago, Tokyo and Sydney but it was the support and assistance we received from the NFIA in the Netherlands that really stood out. “NFIA’s offices in London and Amsterdam were able to obtain introductions and build a network of reliable contacts in real estate, IT, fit out and construction that we couldn’t have done without, allowing us to hit the ground running.” “We were balancing multiple global office openings simultaneously, so the strong network and relationship management skills of the NFIA, and their
O3b Networks and Brit Insurance expand to the Netherlands | page 4
Source: O3b Networks
tax authorities and services providers for housing and recruitment, the company eventually decided on The Hague. During the follow-up process, the NFIA provided support for knowledge migrant applications and the immigration of O3b employees. www.o3bnetworks.com
continued and unobtrusive support were really welcome,” says Dan Lowe. “They had useful connections with city officials and this led to Amsterdam inbusiness, the foreign investment agency of Amsterdam, acting as a point of contact when required – something of a bonus for us that we hadn’t expected and didn’t get offered in other cities around the world,” adds Dan Lowe. He concludes: “I’d strongly recommend NFIA to any other company or organisation that could benefit from their vast expertise and experience. They certainly helped us navigate through the thickets of premises identification and fit out process.” www.britinsurance.com
NFIA News SBD announces Contact Group During his visit to the UK, the Dutch Prime Minister Mark Rutte announced the new Strategic Business Dialogue SBD Contact Group of the CEO’s of Abellio, Royal Haskoning, Shell and Vodafone. At least once a year this Contact group will facilitate a high level SBD event to discuss best strategies for economic growth and jobs and improving the business climate in both countries.
Source: ANP
NFIA Brazil expands office in Sao Paulo The NFIA is to open a full-fledged office in Sao Paulo in January 2012. The Brazil-Dutch economic relationship is strong and the increased presence in Brazil will further improve the service to Brazilian
companies interested in expanding to the Netherlands. Currently many investors from the agro-food, petrochemical and healthcare sectors find their base for continental Europe in the Netherlands.
New Senior Project Manager Désirée Poldermans The NFIA London office has strengthened the team with Ms Désirée Poldermans as Senior Project Manager succeeding Mr Tobias van den Hoven. Désirée is looking forward to fully supporting all new business initiatives for the Netherlands out of the UK & Ireland, saying: “I strive to make landings in the Netherlands smooth and effortless by providing companies with the right connections and up-to-date information on doing business in the Netherlands”. Désirée has many years of experience assisting foreign investors in her previous role within the NFIA UK & Ireland. She brings with her a wealth of project management experience from former senior positions
NFIA News | page 5
Director’s Cut
within communication, advertising and media companies. Désirée holds a BA in Political Science and a MA Communication Science specialising in Internal Corporate Communication from the University of Amsterdam.
Liesbeth Staps, Executive Director NFIA UK & Ireland, shares her views The Dutch Prime Minister, Mr Mark Rutte, underlined the strong economic ties between the UK and Netherlands with his visit to London, Birmingham and Manchester. We were proud to host a dinner with a select number of foreign companies with interests in the Netherlands. Mr Rutte underlined the added value of foreign companies’ investments for the Dutch economy. There are almost 6,000 foreign companies with establishments in the Netherlands; 4% of our companies are foreignowned. These generate 16% of private employment in the Netherlands. Most importantly they generate 24% of the added value of Dutch business and contribute 31% to the total turnover and 30% of R&D investments! The Dutch government endeavors to stimulate private investments in R&D and introduces a new tax deduction for investments in R&D, effective January 1 2012. In 2012 the NFIA UK & Ireland will gear its efforts on the earlier mentioned priority sectors and more specifically on food, high tech and energy.
Prime Moves International Baccalaureate (IB), the world’s leading organisation for international education opened their new EMEA head office in The Hague. The cities international image made The Hague a natural location. New York-based Anomaly, communications & branding agency, continues global expansion with an Amsterdam office. Richard Mulder, partner: “The creative spirit and attitude of Amsterdam fits the Anomaly culture perfectly.” US-based ReachLocal, a leader in local online marketing solutions, expand into Amsterdam. John Mazur, CEO ReachLocal Europe: “The Netherlands ranks as one of the highest digitally connected countries in the world”. Malaysian-based Basis Bay opened their first European office in Amsterdam. The company is looking to provide their cost saving Green IT solutions such as data centers and cloud-based programs throughout Europe. Texas-based SoftLayer Technologies, a provider of on-demand data center and hosting services, has chosen Amsterdam in the Netherlands for its European headquarters. Westbridge Food Group, based in the UK, will open a new office in Leiden for customers in mainland Europe. “Our location is exactly half way between the Port at Rotterdam and Schiphol Airport and perfect for us to gain access for our product and service throughout the European Community”.
Season’s Greetings Wishing you all a very successful 2012
Meet the NFIA at the following events IoD Wednesday Club, Networking Reception & Private View Wednesday 25 January 2012, OMA Exhibition, Barbican, London Northern Ireland - Netherlands New Year’s Dinner Wednesday 1 February, Belfast
Netherlands Foreign Investment Agency The Netherlands Foreign Investment Agency (NFIA), an operational unit within the Dutch Ministry of Economic Affairs, Agriculture and Innovation provides assistance to companies interested in setting-up, expanding or restructuring their pan-European operations in the Netherlands. The NFIA is here to assist you at every stage of your strategic decision making by offering a combination of information, advice and practical help. Free of charge, without obligation and on a confidential basis. While information in this newsletter has been compiled from reliable sources, the Government of the Netherlands takes no legal responsibility for any of the statements made. Articles in this newsletter may only be reproduced with permission of the Netherlands Foreign Investment Agency.
Editorial: Wendy Sayer
NFIA UK & Ireland 38 Hyde Park Gate London SW7 5DP United Kingdom T: +44 20 7225 1074 F: +44 20 7584 3396 info@nfia.co.uk www.nfia.co.uk www.twitter.com/NFIALondon