2022 presented a new reality. A reality of a war in Ukraine, ongoing supply chain problems, tight labor markets, resource scarcity and sharply rising energy prices. At the same time, this new reality has given a huge boost to sustainable business. The three transitions more sustainable, healthier and smarter are more important than ever. European funds and the National Growth Fund are driving investment; innovative SMEs in the Northern Netherlands are also making an important contribution to these transitions.
NOM results 2022 in brief:
- 5 new innovation projects with a total value of €13.4 M
- 6 innovative companies chose Northern Netherlands as their place of business. They invested for 137.8 million euros and realized 172 new jobs
- 40 new investments
- Accelerating toward a more sustainable, healthier and smarter Northern Netherlands
The development of ecosystems
As a driver of innovation and development, NOM has set itself the goal of forming ecosystems (collaborations between entrepreneurs, governments and knowledge institutions) around important issues in the North. One of these is Chemport Europe, with the goal of accelerating the transition to a sustainable, circular economy and putting the chemical sector in the region on the global map. In 2022, the province of Fryslân and the municipality of Heerenveen joined, so the Northern Netherlands now forms the green chemistry ecosystem as a whole.
Scarce raw materials and high energy prices, labor shortages and the drawbacks of global supply chains, these are developments that are also driving change in the manufacturing industry. Industry 4.0 focuses on smart factories, in which production is extensively digitized. With this, processes and productivity can be optimized. In 2022, the Northern proposal for a 'European Digital Innovation Hub' (EDIH), led by NOM, was approved. EDIH North Netherlands will work on the transition themes of Smart Agro, Factory of the Future, Smart Health and Smart Utilities.
Much is also happening on the road to sustainable and future-proof food production. For example, in the program Fascinating (Food Agro Sustainable Circular Nature Technology). Fascinating focuses on the agricultural system of the future that balances sustainability, nature, healthy food and economic impact. NOM focuses on getting SMEs connected. Where are the opportunities?
Gertjan Lankhorst, Chairman of the Supervisory Board: "Maintaining and strengthening ecosystems is crucial for sustainable growth and prosperity for all parties involved. At the basis of this is cooperation. And that is happening here. Together, taking steps."
Internationalization
2022 convinced 6 innovative companies of the value of locating in the Northern Netherlands. These included RelyOn Nutec, a company that provides safety and compliance training for critical industries and has committed to opening a new training center in Eemshaven. Here the company will focus, among other things, on the increasing demand from the offshore wind industry.
New Age Industries also chose the northern Netherlands and will establish its first European production site for high-quality hoses and tubes in Coevorden. Products will be distributed to customers, mainly in Europe and Asia, from the new facility.
The 6 companies will provide €137.8 million in investments in the Northern Netherlands and they will eventually realize 172 new jobs.
From volume to value
Yet there are also challenges. Due to scarcity of space, energy and water, it is increasingly difficult to find suitable business locations for major international projects throughout the Netherlands and in the Northern Netherlands. The new strategy From volume to value, developed by the Netherlands Foreign Investment Agency (NFIA) in 2022, takes a critical look at which companies are offered available space in the Northern Netherlands. These companies must add value to existing ecosystems.
TopDutch
In the fall of 2022, NOM was asked, by the provinces of Groningen, Fryslân and Drenthe, to take up regional branding from the TopDutch brand. The goal is that more innovative (foreign) companies, which are forerunners in the transition, know how to find the Northern Netherlands by informing, inspiring and activating them from the TopDutch brand.
Export
Export and international growth also fall under internationalization activities. By 2022, approximately 80 customized counseling sessions will have been conducted in the province of Drenthe. The ambition is to take up these services throughout the Northern Netherlands. In 2022, exploratory talks were held with the provinces of Groningen and Friesland and the Deputies of the three provinces decided to cooperate in the field of export promotion and become part of the Trade & Innovate network. This decision will hopefully be ratified in 2023.
Invest
From the NOM funds, by 2022, 40 investments have been made in companies in various sectors, with an investment level of €14.1 million. By the end of 2022, the NOM portfolio consists of 89 companies, 94% of which contribute to the social transitions more sustainable, healthier and/or smarter.
NOM's income consists of interest, dividends and the sale of NOM's interest in portfolio companies. The portfolio companies are characterized by a high risk profile. Investments are mostly made where the market does not (yet) dare to. NOM is also involved in portfolio companies for a longer period, on average about seven years. The financial result is strongly influenced by the sale of participations.The 2022 financial year closed with a profit of 10.8 million euros, mainly thanks to the sale of two portfolio companies, Polyganics and Smit Kwekerijen. A nice positive result with which to invest again in various innovative companies in the Northern Netherlands.
At the same time, many a business owner has to deal with the high cost of energy. Costs so high that the survival of the company is at stake. This also happened at PMC, in which NOM invested in 2021. A promising and socially relevant company that unfortunately did not overcome the energy crisis.
Accelerating toward a more sustainable, healthier and smarter Northern Netherlands
Dina Boonstra, director NOM: "The new reality demands acceleration. The crises of the past two years have accelerated the thinking around sustainability and digitalization. Of course we were already working on this, but the scale and required pace is different now."
It is important to work together integrally to realize the transitions. Within the ecosystems, the connection with large and small companies must be made, fragmentation of separate initiatives and stakeholders must be avoided, and focused action must be taken with a joint plan for major themes such as energy transition and circular economy. All this to continue to accelerate towards a more sustainable, healthier and smarter Northern Netherlands.