Dutch economy needs innovation boost to tackle geopolitical risks, says CPB report
The Netherlands faces slowing productivity and geopolitical uncertainty, threatening economic strength. A new CPB report urges policies to spur innovation and business growth, balancing resilience with global trade while protecting citizens' purchasing power and jobs.
| Key Data Point | Details |
|---|---|
| Report Title | Analysis CEP 2026: Resilience through innovation |
| Issuing Body | CPB (Netherlands Bureau for Economic Policy Analysis) |
| Key Reports Referenced | Draghi Report, Wennink Report |
| Productivity Trend | Slowing in the Netherlands and Europe |
| Policy Focus | Stimulating innovation, business dynamics, and strategic autonomy |
| Economic Outlook (2026-2027) | Purchasing power rises in 2026, stable in 2027 due to tax increases |
| Government Finances | Under pressure from higher expenditures, including defence |
| Download Link | CPB Analysis (PDF, 491.14 kB) |
The CPB (Netherlands Bureau for Economic Policy Analysis) is an independent government agency that conducts economic research and provides policy advice to the Dutch government. Its analyses, like this report, shape national economic strategies and inform decisions on productivity, trade, and fiscal policies.
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Read the full translated article below
Resilience through innovation
Geopolitical uncertainty has increased significantly in recent years. As a result, Europe and the Netherlands are reconsidering economic policy adjustments. Reports such as the Draghi Report and the Wennink Report emphasize that innovation is crucial to maintaining economic strength and a strong position in global production and trade chains. At the same time, productivity growth in the Netherlands and Europe has been slowing for a long time.
Recent research by CPB (Netherlands Bureau for Economic Policy Analysis) shows that the process of creative destruction—where new companies and technologies replace old ones—has weakened. Policy can help strengthen this process. By stimulating innovation and business dynamics, policy can contribute to restoring productivity growth.
However, this may conflict with policies aimed at reducing international dependencies, for example by protecting domestic production. In this analysis, we examine where these policy objectives intersect and how a resilient economy can limit the costs of strategic autonomy.
Downloads
- Analysis CEP 2026: Resilience through innovation Pdf, 491.14 kB
Authors
Gerdien Meijerink +31 88 9846153 Contact Read more
Koen Kramer +31 88 9846138 Contact Read more
Leon Bettendorf +31 88 9846173 Contact Read more
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Central Economic Plan (CEP) 2026
The Dutch economy is growing steadily, but international uncertainty remains high. Purchasing power is expected to rise in 2026, but will remain roughly stable in 2027 as tax increases offset real wage growth. Government finances are under pressure due to higher expenditures, including on defence.
Taxation Macro-economics Public finances