The Amsterdam metropolitan area is no longer growing faster than the rest of the Netherlands. A shortage of space, a saturated energy grid and a growing labour shortage are putting pressure on the economy. In an opinion piece, Jessica Peters-Hondelink, managing director of the Amsterdam Economic Board, argues the region should not be defined by these constraints, but should instead make sharper choices to make the most of its growth potential.
According to Peters-Hondelink, there is still much to gain by making better use of the entire region, including areas outside the A10 ring road. Alongside AI developments in Amsterdam, she points to opportunities in places such as Almere, Hilversum and Haarlemmermeer, and argues for more cross-pollination between themes, organisations and regions, for instance by connecting tech and AI talent more closely with sectors such as Life Sciences & Health and energy.
The annual Economic Outlook shows, in her view, that the region’s growth engine is clearly starting to falter. To get it running smoothly again, Peters-Hondelink argues, the region needs to make sharp choices about where scarce resources go: investing specifically in themes where the region already stands out, such as Tech & AI, Life Science & Health, and Energy & Industry. She also calls for more room for creative destruction, deliberately choosing activities that contribute to innovation and future earning potential, combined with strong investment in education and lifelong learning.
Finally, she stresses the importance of connecting knowledge institutions with business: groundbreaking research needs to lead to more successful companies, including across regional and national borders. According to Peters-Hondelink, the region has the potential, with sufficient knowledge, entrepreneurship and innovative capacity; the challenge now is to actually capitalise on it.
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