Amsterdam is described as the most important location for AI companies in the Netherlands. How do you explain this?

“It is important to realise that this is not unique to the Netherlands. In many countries, we see AI companies clustering in one central city, usually the capital. You see this in countries such as Denmark, Norway, France, and Latin American countries as well. In Chile, for example, three-quarters of all companies are located in the capital, Santiago, while in Uruguay as many as 95 percent are located in the capital. There are exceptions, such as the United States, with Silicon Valley and other strong clusters, and Germany, where things are somewhat more decentralised, although Berlin is also a major hub there.”

What makes the city so attractive?

“The main reasons why companies tend to locate in such a capital are a combination of talent, the presence of universities where groundbreaking research is conducted, and access to the capital market. Once a number of companies are established, you get a self-reinforcing effect. As an AI developer, it is easier to find a job in Amsterdam, and you will probably earn a higher salary than in the provinces, simply because there are fewer employers there. In addition, many spin-offs and fundamental AI knowledge emerge from universities. Investors and banks are also often located in the capital. Finally, Amsterdam provides access to international markets and major customers, especially if you are developing solutions in the B2B domain for larger companies.”

Do you see Amsterdam distinguishing itself from other cities in this respect?

“Every country has its own profile. The Netherlands, for example, is very strong in AI consultancy and customised solutions, which fits with our service-based economy. We have many companies that develop AI solutions for other businesses. Compared with countries such as Norway, Denmark, or Germany, however, we are somewhat less strong in AI product development, such as SaaS or hardware solutions that you sell to multiple customers. Denmark, for example, is very strong in robotics and industrial solutions. Norway is strong in industry, energy, and aquaculture, such as salmon farming. You can see that AI solutions move in line with the economic structure of a country. The Netherlands is therefore very service-oriented, with a relatively strong focus on consultancy, content creation, and marketing. That does not mean that we do not also have some great tools in areas such as health and agri in the Netherlands, but relatively speaking, that is less prominent.”

How would you describe Amsterdam’s AI profile?

“If you look at Amsterdam’s specialisation compared with the national average, it is very similar. Amsterdam is by far the largest hotspot: more than a quarter, 26 percent, of all AI tools and companies in the Netherlands are located there. It is a very diverse and rich ecosystem in which almost all sectors and domains are represented. It does not excel specifically in one thing, because it is actually very complete. In the Netherlands, Amsterdam is simply the place to be if you want to take your AI company to the next level.”

How does Amsterdam differ from other Dutch cities?

“Other cities do have clear differences in emphasis. Utrecht, for example, is more specifically focused on data science, analytics, and health. Eindhoven, logically, focuses relatively heavily on health and industry. Groningen has a strong presence in consultancy, health, and energy. The Hague, on the other hand, is relatively active in finance, legal services, and productivity tools.”

Do these regional AI clusters therefore have to compete with a city like Amsterdam?

“The largest group of companies in the Netherlands is engaged in consultancy and customised solutions. These companies are generally less tied to a specific location because they can serve customers in different sectors and regions. On the other hand, cities do compete with Amsterdam when it comes to access to talent, employees, capital, and knowledge. We see that companies sometimes move to Amsterdam as they develop further. And when companies become really large, they sometimes move to Silicon Valley to gain access to the global market and big money.”

Do you also see advantages to these clusters?

“The Netherlands is a small country with many strong universities, including those in Eindhoven, Groningen, Tilburg, Rotterdam, Leiden, Delft, and Wageningen. Very important fundamental AI research is conducted there, which leads to spin-offs and new companies around these university cities. That makes the Netherlands strong.”

How does the Amsterdam ecosystem compare with other major metropolitan areas?

“In Norway, the concentration of AI companies is also high: almost 50 percent of companies are located in Oslo. But across Norway, only 15 percent of companies are consultancy firms, which is significantly lower than in the Netherlands. They are much more focused on B2B and industry-oriented sectors. This confirms that the economic structure of a country determines which AI solutions are developed. Countries with strong industries attract AI companies that build solutions for those industries because that is where the paying customers are. Because the Netherlands has less of that strong industrial structure, consultancy and customised solutions are particularly prominent here.”

Paris and Berlin have large physical AI clusters where companies, investors, and researchers come together. Do you think Amsterdam can learn something from this?

“I think Amsterdam is indeed still lagging behind in this respect. If you look at our map of Amsterdam, you can see significant clustering in certain business centres, co-working spaces, and AI hubs. But companies are often located there because they want to maintain easy contact, learn from one another, and exchange knowledge, as well as because of relatively affordable accommodation compared with having their own office building. Not necessarily because of access to capital or specific infrastructure. Amsterdam can still take a step forward in this area, and that will probably happen with the arrival of The Stack as well. They have the ambition to be more than the current AI hubs and have a substantial amount of space in a central location, not far from the station. Many parties and stakeholders are involved in giving Amsterdam an extra boost as the leading hub in the Netherlands. It is very important to facilitate companies as much as possible so they can innovate, grow, and thrive. As a municipality, you need to ensure that there are places in the city where this clustering can take place and where companies can establish themselves effectively.”

What initiatives should the government take to strengthen the AI landscape in the Netherlands?

“As a government, you need to make investment and innovation funding available. In Norway, for example, you have Innovation Norway, a large organisation that has provided approximately 440 million US dollars in grants and loans to AI companies since 2013. Almost two-thirds of all AI companies in Norway have received financial support from Innovation Norway. The Netherlands could learn something from that. Norway is, of course, an exceptionally wealthy country because of its oil and natural gas revenues, which means it can invest heavily in the economy, but the Netherlands could also go a step further. The Netherlands is known worldwide as an innovative country, but for many companies it is difficult to translate that innovation into commercial potential and sustainable scaling because it is difficult to obtain capital. The government should provide better support for this through incentive funds.”

Where do you think the Netherlands falls short?

“Certain measures do not help, such as the current discussion surrounding Box 3. If you own shares in a startup that increase significantly in value on paper, but you have not yet earned any money from them, the taxation on those shares can become a problem. Measures like these are detrimental to innovation. If you want to compete internationally, not only with the United States but also with other European countries, you simply cannot afford this; it makes setting up and growing a successful company very difficult. The government needs to be careful not to shoot itself in the foot, because AI is one of the most important growth sectors of the future. It will generate enormous economic value, both directly and indirectly. So you need to ensure that there is an attractive business climate in which startups can thrive.”

Interview by Bodiel Siebers