The corona pandemic will hit the Dutch tech industry hard in Q3, according to a survey conducted by industry association FME (link in Dutch). Close to three-quarters of participating companies expect to see a revenue decline next quarter. Almost 40 percent even braces for a revenue drop of 20 percent or more. Things will pick up a bit from there, but full recovery is not expected in 2021.
By far the most important cause of the worsening business climate is a decrease in demand (85 percent). Implementing social distancing measurements is a major contributor too, followed by supply and logistics issues and absenteeism.
In addition to generic business support measures, FME calls on the government to stimulate R&D. “Companies need to innovate themselves out of this crisis,” says FME chair Ineke Dezentjé. The industry association suggests expanding tax credits on the wages for employees working in R&D (WBSO). It would also like to see the accelerated introduction of the so-called “Groeifonds,” a large-scale innovation fund that has been put on hold since the start of the corona crisis.