Interview Henk-Jan Bakker

Head of the Economic Department of the Embassy of the Netherlands

Why is the IT sector so important to the Netherlands?
The IT sector is crucial for economic growth, in two ways. First, IT as a sector (hardware and software) is becoming more and more important. The Netherlands has many innovative IT-companies. Second, about half of the growth of labour productivity of the economy as a whole in the Netherlands is due to the use of IT. Both in industry and in services the use of IT is becoming more and more important.

What's the economic forecast for the Netherlands in the next five years?
After a number of difficult years during which economic growth was sluggish and many necessary economic reforms were implemented, the Netherlands is now back at the top of the European scoreboard, showing healthy growth figures. The OECD expects the Dutch economy to grow by about 3% annually until at least the end of 2008 and there is every reason to be optimistic about the long-term economic future of the Netherlands as well.

Why should IT companies in the UK choose for the Netherlands to expand their business?
The Netherlands offers many opportunities:
• A well educated, internationally orientated, flexible and multilingual workforce
• High-tech infrastructure
• Central geographical location within Europe
• The Dutch are more adventurous, so it’s a good “try-out” market before going into the rest of Europe
• The British and the Dutch have many similarities and therefore understand each other much better than is the case with other countries

What makes the Netherlands such a strong option compared to other European destinations?
The Netherlands is much more advanced in IT than many other European countries. Just a few figures:
• The Netherlands is worldwide nr. 1 in broadband connections (25% of households, nr. 2 is South Korea with 17%)
• In the Netherlands, 37% of R&D expenses are done by the IT-sector
• 5% of the population works in the IT sector
• Favourable tax climate – Corporate Tax rate of 25.5%
• The Netherlands is the gateway to Europe and the rest of the world, also in IT!

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