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Innovation, Agricultural Productivity and Sustainability in the Netherlands

image of Innovation, Agricultural Productivity and Sustainability in the Netherlands

The Dutch food, agriculture and horticulture sector is innovative and export oriented, with high value-added along the food chain and significant world export shares for many products. Continuous adoption of innovation has permitted to reach high levels of productivity and sustained productivity growth, in particular at the farm level, in a context of increasing environmental regulatory constraints. The challenge is whether marginal improvements in current technologies and know-how will be enough to pursue current rates of productivity growth – sustainably – and whether the innovation system will be able to generate the new ideas that are needed to face future challenges, including those linked to climate change.

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General incentives for investments in the Netherlands

This chapter reviews general incentives in the Netherlands for investments by firms, including farms, input suppliers, and food companies. It examines basic conditions for investments established by the overall regulatory environment; Trade and investment policy, which influences the flow of goods, capital, technology, knowledge and people needed to innovate; and access to credit needed to innovate. The general fiscal policy and the treatment of agriculture are then examined. The chapter is mainly based on the latest OECD Economic Survey of the Netherlands (OECD, 2014b). Specific obstacles and incentives for investment in the agricultural sector are dealt with in later chapters of this report.

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