No longer looking only at the number of jobs, but primarily at the value for the Netherlands and the region. That is the new acquisition strategy of the NOM and the Netherlands Foreign Investment Agency (NFIA), in which the added value of international companies that want to establish themselves in the North is sought and examined in a much more focused way. 'We are now looking for the missing links, which are the perfect addition to the industries and companies we already have here.
And it has to, because the business climate in the Northern Netherlands has changed considerably in recent years. There is less space, we have to deal with grid congestion and a huge shortage of personnel. 'So we have to be a lot more critical,' says Anne-Wil Lucas, manager Innovation and Internationalization of the NOM. 'Because why should we all bring big companies with a high demand for workers to the Netherlands if we have a labor shortage here? I was already working on that as a member of parliament at the time, so I am glad that the NFIA and the NOM, acting together with other regions as the Invest in Holland Network, finally took this step.'
From volume to value
The new “From volume to value” strategy was spearheaded in 2022 by Hilde van der Meer, NFIA commissioner at the Netherlands Enterprise Agency. “When I joined the NFIA in 2021, we were still trying to attract every company that wanted to come to the Netherlands,” said Van der Meer. “With the new approach, the entire organization essentially had to make a 180-degree turn, and that was certainly nerve-wracking at first. We now take a much more selective look at innovative sectors abroad and how companies in those sectors can best complement existing sectors in the Netherlands.”
'Indeed, the whole world is in transition,' Van der Meer continues. 'But those transitions are often handled in different ways. In the Eemshaven it might be different from, say, the port of Houston. So how nice is it to find companies in Houston that can fill the gaps in Eemshaven perfectly? And vice versa, of course.'
We now look much more selectively at innovative sectors abroad and how the companies in them can complement existing sectors in the Netherlands as well as possible.
- Hilde van der Meer, NFIA, RVO
From the inside out
'We have drawn up lists by sector with criteria for valuable companies,' says Lucas. 'That is good in itself, but it should not be the case that this only narrows the funnel. It's also mainly about working from the inside out and mapping very well what the specific needs are here in our region. That way you can also send the people in the NFIA's outside offices out in a more focused way. I think that in that respect we at NOM are now even a step further ahead than the NFIA'.
'Together with NOM's sector teams and external experts, we are looking for the missing links that are the perfect addition to the industries and companies we already have here,' says Fleur Mulder, strategist for Team Internationalizing at NOM. 'These kinds of companies make a contribution that is so crucial that an ecosystem does not develop as well if such a company is missing. For each sector, we draw up a plan for this, which we update annually.'
Challenge-based acquisition
Still, mapping everything out is not always easy according to Mulder: "A while back, for example, we set up a missing links campaign, where companies in the various sectors could indicate what they thought were the missing links in the region. But companies found that quite difficult to indicate. And that is quite logical, because companies do not always have an immediate idea of what is missing in their ecosystem. So we turned it around and first looked, together with internal and external sector experts, at which technologies could complement the chains or improve existing processes. By doing so, you also give companies a better idea of the opportunities that are available.'
'We are also increasingly setting up challenge-based acquisition,' Mulder continues. 'Here, companies from the region draw up specific challenges and we look at home and abroad for innovative parties who can solve these issues. By setting up this kind of collaboration, you also give international startups with promising innovations a good reason to come to the Northern Netherlands if they have their launching customer here. The NFIA and the other regions are watching with great interest how we approach this.
- Anne-Wil Lucas, NOMIt's also mainly about working from the inside out and identifying very well what the specific needs are here in our region.
The winning strategy
According to Mulder, we don't even have to look abroad alone. 'We have a lot of international students and researchers in the Northern Netherlands. And that is the talent you do want to keep here, because they know the region well. Initiatives like Founded in the North, for example, pay a lot of attention to enthusing this target group to start their own ventures. We have a Startup Visa to keep them here and also nice incubator programs like the VentureLab of the RUG, so that's definitely something to keep in mind as well.'
'If we can bring companies here that fit perfectly within our ecosystems and at the same time retain the talent here, then we really have the winning formula at hand,' says Lucas. 'Then we will help existing companies to grow further and at the same time solve the personnel shortage and the aging population, so then we as northerners will be bacon buyers. And that is the story we as NOM have to keep repeating and propagating.
We are also increasingly setting up challenge-based acquisition.
- Fleur Mulder, NOM
The missing links so far
According to Mulder, Lucas and Van der Meer, what are the textbook examples of missing links that have landed in the North in recent years:
Hilde van der Meer:“NewAge Industries is a wonderful example of a perfect match. This American company manufactures high-quality hoses, fittings, and clamps for various industries. I attended the opening in Coevorden and heard from several customers that their move to the Northern Netherlands will really help them grow. It solves a major logistical problem for them.”
Anne-Wil Lucas: “A great example of a smaller company with tremendous value is Aquacycl from California; they’ve now set up shop in Leeuwarden. They offer a real solution for industrial wastewater from companies in the northern Netherlands and came here specifically for the knowledge and expertise of the local ecosystem, which will enable them to grow even further.”
Fleur Mulder: “We at NOM weren’t involved, but I think GreyParrot from England is a great example. They’ve developed AI technology that can very accurately distinguish between different types of plastic in the recycling process. They’ve entered into a strategic partnership with Bollegraaf in Appingedam and have therefore set up operations in our region.’