Productivity review of the Netherlands: Supporting business dynamism to revive productivity growth

Oecd

No 41, OECD Productivity Working Papers from OECD Publishing

Abstract: The Netherlands has one of the highest levels of labour productivity in the OECD, but growth has slowed over the past decade. The slowdown partly mirrors global trends but has been accentuated by weak investment and declining business dynamism. Against this background, this paper provides a cross-country comparative analysis of the role of firm entry, exit, growth and resource reallocation across firms, in shaping recent Dutch productivity performance. A set of policy simulations suggests that, even though the country performs well on a wide range of policy indicators, some reforms could boost business creation and job reallocation, thereby lifting productivity. The most promising measures include streamlining labour legislation, upgrading education and training, reducing the administrative burden on start-ups, refining the insolvency regime and further encouraging R&D and venture capital investment.

Keywords: Business dynamism; firm-level analysis; investment; labour policy; netherlands; productivity; R&D; regulation; venture capital (search for similar items in EconPapers)
JEL-codes: D24 E22 G24 G34 J08 O32 O47 (search for similar items in EconPapers)
Date: 2026-11-12
New Economics Papers: this item is included in nep-eec and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaac:41-en

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