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There are concerns that not enough companies benefit from a Dutch R&D tax rebate programme

Every year, the Dutch government gives companies a tax rebate worth approximately €1.5 billion on profits made from new, innovative products. Of the provisions in this programme, called the Innovation Box, more than three-quarters end up going to about 20 companies.

“The Innovation Box does not stimulate new R&D investments,” says Evert-Jan Velzing, who researches sustainability and innovation policy at the University of Applied Sciences Utrecht. “It provides companies with a tax break for innovations that are already completed and successful. On top of that, they are not obliged to reinvest this benefit in R&D.”

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