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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure NL-2013-9/2668 – measures in Netherlands

Grant scheme for demonstration projects, feasibility studies and investment

Subsidieregeling voor demonstratieprojecten, haalbaarheids- en investeringsvoorbereidingsstudies (DHI)

Country Netherlands , applies nationwide
Time period Open ended, started on 01 March 2013
Context Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Thomas de Winter (Panteia) and Eurofound
Measure added 23 June 2022 (updated 07 November 2024)

Background information

The DHI measure focuses on Dutch SMEs (EU definition) in all sectors with international ambitions (export and foreign investment), and an interest in emerging markets, developed countries and in developing countries. These include all countries except the Netherlands and countries under sanction.

The SMEs should have at least three people working at the company, enough business experience, and a sound track record. They should already have finished the orientation phase (market orientation) in the country in which they which to become active. The DHI is not focused specifically on start-ups, though if young enterprises meet the acceptance criteria they can make use of the measure.

Content of measure

The DHI scheme supports Dutch enterprises wishing to invest in or execute a project in emerging markets and in developing countries. The scheme consists of three modules:

  • demonstration projects: presentation of a technology, capital good or service in one of the DHI countries to potential customers in the relevant market, not consumers;

  • feasibility studies: assessment of the profitability of a foreign investment by a Dutch enterprise in one of the DHI countries regarding a product or service (study whether it is profitable for foreign customers to invest in a product or service);

  • investment preparation studies: assessment of the technical and commercial profitability of an investment in a company in one of the DHI countries (study whether it is profitable to invest in a foreign company).

The costs of the projects are subsidised up to a maximum of 50%, with a maximum of €200,000 for demonstration projects and €100,000 for both feasibility studies and for investment preparation projects. Eligible costs are costs of an enterprise’s own activities, or for hired experts, costs of use of technologies (in case of demonstration projects), and travel and subsistence costs.

The budget is divided into a portion dedicated to emerging markets and developed countries and a part dedicated to developing countries. The available budget for 2022 is €8,5 million.

Use of measure

The last evaluation dates from 2023. The evaluation found that the scheme aligns well with public goals, contributing to sustainable earning capacity for Dutch businesses and promoting employment and poverty reduction in target countries. The scheme achieved positive export results, with 40% of projects reaching export targets, but showed limited impact on poverty reduction. Recommendations include enhancing spillover effects, improving coherence with other instruments, and expanding collaboration with national and regional programmes to maximise the scheme's impact.

The DHI scheme had a total budget of €53.4 million for the period 2016-2021, with an annual budget of around €9 million. Out of this total, approximately €43.6 million was allocated to DHI projects, indicating that around €9.8 million (18%) of the available budget remained unused​. The underutilisation was particularly noticeable in 2017, 2018, and 2021, which can be attributed to the introduction of the QuickScan process and the impact of the COVID-19 pandemic on the international business environment​. This suggests moderate uptake of the scheme, with some challenges in full budget utilisation.

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
Does not apply to citizens

Actors and funding

Actors Funding
National government
Employer
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

Citation

Eurofound (2022), Grant scheme for demonstration projects, feasibility studies and investment, measure NL-2013-9/2668 (measures in Netherlands), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NL-2013-9_2668.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.