Prosperity in Amsterdam is growing, inequality between regions is increasing
The further to the edge of the country, the lower the prosperity. This is apparent from a study by Rabobank into regional economic development. The country is divided into 40 regions. “What you see is that the received A2 axis, Amsterdam, Utrecht and Eindhoven, is doing well,” says Otto Raspe, one of the authors of the report. “The growth there is above average. The Wageningen region, with the Food Valley, and Zwolle and Apeldoorn are also doing better than average.”
The inequality between the good and less good regions is increasing. “The strong region gets a bigger share of the economic pie,” says Raspe. That does not mean that the lagging regions are getting poorer. The pie also grows, so regions are getting richer, but most of the wealth gains go to the rich regions.
The fast-growing regions are benefiting from a few developments. “Knowledge, creativity and innovation are important for growth. And many of those innovative companies, for example fintech companies, opt for Amsterdam and the Utrecht region. Eindhoven has again clearly opted for the high-tech manufacturing industry,” says Raspe.
Well-educated workforce
It is no coincidence that companies establish themselves there. There are knowledge institutions, universities, many professional companies and a well-educated population. And the more companies that settle there, the more companies that settle there. “That’s the snowball effect.”
Wageningen with its agricultural university proves that the attractive effect of a university can be great. A cluster of food companies has settled there in the Food Valley, one of the development and development centers in the world in the field of food.
But the presence of a university is no guarantee for growth, contacts. “The Arnhem-Nijmegen region, for example, is not doing very well in terms of growth. To be attractive, there must be good cooperation between government, university and business. They did that very well in Eindhoven. But you see that much less in Nijmegen and Groningen, for example.”
The Twente region also benefits too little from the university present. “But he was also unlucky that many start-up companies quickly move to Amsterdam.” They have now handled things better in Twente, says Raspe. “There you see that the university is now becoming the pivot in regional development.”
Not all Randstad above average
In addition to the A2 axis, the rapid growth in the Apeldoorn and Zwolle regions is particularly striking. “These regions are somewhat of an overflow area for the Randstad conurbation”, Raspe says. do not include the entire Randstad above average. Rotterdam is growing along with the nation, while the The Hague region is lagging behind. This has to do with the fact that the fast-growing activity is less there. Rotterdam, for example, still relies heavily on chemistry and logistics growth.
The further a region is away from the successful regions, the lower the growth. That in itself is not news. Twenty years ago, Limburg also lagged behind the Randstad. But that backlog is not a law. There are good opportunities for lagging regions. “A few things are important for that. Choose a clear niche. Limburg has a lot of chemistry. Bet on green chemistry, from the materials industry. The energy transition offers opportunities in Groningen, for example,” says Raspe.
In order to seize opportunities, a good start must be made between businesses and knowledge institutes. It must be made attractive for companies to establish in the periphery. That also calls for a good living and working climate. So sufficient houses, recreational opportunities and good cultural facilities, but also good accessibility and investments in the training of people.