Recently, Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, appeared on a BNR Nieuwsradio broadcast to give his expertise on how Europe and the Netherlands are lagging behind in the tech race. There is too little capital available for tech startups in key areas such as quantum and AI, regulations are oppressive and we have not had successful technology IPOs for years.
The message at the fifth State of Dutch Tech conference in The Hague was clear: a lot needs to be done if we want to keep up with the rapid technological development in which China and the United States in particular are now leading the way. According to Prime Minister Schoof, it must become more fiscally attractive to invest in start-ups. But whether tax breaks will attract investors to the tech sector is still unclear, says Kavelaars.
Many different studies have shown that incentives are not always successful. The idea of investing more in tech startups is good, says Kavelaars, but tax incentives may not be the right tool. This is because they often cost the government a lot of money, while it is unclear whether the increase in investment is attributable to those measures. After all, the question is whether people would not have invested if those incentives had not been introduced.
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You can listen to the full episode from BNR Nieuwsradio, 12 February 2025, here.
