Tech leaders demand swift of establishment NADI innovation agency

The Netherlands ranks among the world’s leaders in scientific research. Yet we are not doing enough to turn this knowledge into thriving companies. Promising technologies often fail in the early stages of development. This gap is known as the “Valley of Death.” A broad coalition of universities, investors, and major technology companies is now calling for action 🔗︎. In an open letter to the House of Representatives, they advocate for the rapid establishment of the National Agency for Disruptive Innovation (NADI) 🔗︎. This agency is intended to ensure that groundbreaking inventions no longer remain on the back burner or are lost to other countries 🔗︎. The coalition promises to participate immediately and invest its own funds if the government steps up 🔗︎.

The gap between the lab and the market

The fundamental problem in the Dutch innovation chain is the lack of venture capital for early-stage, unproven technologies. Universities produce excellent research. However, funding for this research stops as soon as the theory has been proven. For private investors, the step toward a commercial product is still far too risky at this stage. This creates a yawning gap in which promising ideas are lost. Sometimes foreign parties acquire the technology. As a result, the Dutch economy does not benefit from its own public investments. The signatories of the open letter now want to break this pattern 🔗︎. Among them are ASML CEO Peter Wennink and various university presidents 🔗︎. They see NADI as the missing link that dares to shoulder this technological risk 🔗︎. By investing precisely during this vulnerable phase, the Netherlands can begin building and scaling up its own inventions 🔗︎.

The proven ARPA model

The concept behind NADI is not new, but is based on successful international examples 🔗︎. The U.S. agency DARPA has been known for decades for its revolutionary breakthroughs, such as the internet, GPS, and mRNA technology 🔗︎. The United Kingdom, with ARIA, and Germany, with SPRIND, also operate according to this philosophy 🔗︎. This approach differs significantly from traditional grant processes. Within these agencies, a single program manager is given full authority over a specific societal problem 🔗︎. This manager receives a generous budget and the freedom to fund multiple potential solutions simultaneously 🔗︎. Projects that show results quickly receive additional funding 🔗︎. Projects that stall are immediately shut down 🔗︎. This agile and rapid approach ensures that innovations reach the market in record time 🔗︎.

Debate over budget

A major sticking point in the plans is funding. In its coalition agreement, the current cabinet has set aside 500 million euros for the agency 🔗︎. However, this amount is earmarked as revolving capital 🔗︎. This means the money must ultimately pay for itself. The innovation sector and various experts have strongly criticized this. The Institute for Public Economics argues that this requirement undermines the agency’s effectiveness. After all, disruptive innovation, by definition, entails significant risks. Many projects will fail. The requirement for a financial return has a paralyzing effect at this early stage. The influential Wennink report therefore recommends a different model 🔗︎. This report advocates for an initial capital of at least 300 million euros, supplemented by 150 million euros per year 🔗︎. According to the experts, a total of 1.5 to 2 billion euros in direct funding is needed to make a real impact 🔗︎.

Independence as a success factor

In addition to a sufficient budget, political independence is crucial to NADI’s success 🔗︎. In its draft plan, the NADI Exploration Project Group emphasizes that the agency must operate outside the political issues of the day 🔗︎. Civil servants and politicians must not interfere with the day-to-day decisions of the program leaders. The legal framework for this autonomy is currently still under development 🔗︎. The Ministry of Economic Affairs is seeking a balance between public accountability and operational freedom 🔗︎. The legislation must ensure that NADI can act quickly and flexibly, just like its foreign counterparts. If the agency is hampered by slow bureaucracy and complex rules, it will lose its effectiveness. The House of Representatives will debate the exact legal status of the new organization in the coming months.

Collaboration within the ecosystem

NADI will not operate in isolation but must integrate seamlessly into the existing Dutch ecosystem 🔗︎. The plans call for close collaboration with the national investment agency Invest-NL 🔗︎. The roles of both organizations are strictly separate but complementary. While NADI focuses on the early, high-risk research phase, Invest-NL focuses on the later scaling-up phase 🔗︎. As soon as a technology from a NADI program proves viable, Invest-NL can step in with growth capital. Private investors and regional development agencies are also ready to take on this role 🔗︎. This value-chain approach prevents innovations from ultimately failing after the initial research has been completed. The collaboration is intended to ensure that capital is deployed efficiently and that promising technologies remain in Dutch hands.

Looking to the future

The establishment of NADI is now in a decisive phase. The Ministry of Economic Affairs is currently working on further elaborating the mission and operating procedures 🔗︎. New policy letters are expected before the summer of 2026 to provide greater clarity.