The Netherlands and Germany both have strong digital economies, but there are some notable differences in their approaches and progress regarding digitalisation, AI, and innovation:
Digital Infrastructure and Readiness
The Netherlands appears to have a slight edge in overall digital infrastructure and readiness:
- The Netherlands ranks 4th in Europe for digital infrastructure according to the Digital Economy and Society Index (DESI) https://digital-strategy.ec.europa.eu/en/policies/desi.
- The Netherlands jumped from 14th to 9th place on the Oxford Insights Index for Artificial Intelligence readiness.
- The Netherlands has 99.3% 4G network coverage, making it one of the best-covered countries globally[2].
Germany, while still performing well, ranks somewhat lower:
Germany ranks 7th in the EU’s digitalisation indicator https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-Fokus-Volkswirtschaft/Fokus-englische-Dateien/Fokus-2024-EN/Focus-No.-463-June-2024-AI.pdf.
AI Adoption and Strategy
Both countries are actively pursuing AI development, but with some differences:
The Netherlands:
- Has a national AI Coalition with over 400 members https://nlaic.com/en/about-nl-aic/#:~:text=The%20NL%20AIC%20is%20a,AI%20initiatives%20in%20the%20Netherlands.
- 40% of Dutch companies have implemented AI, with 2% considering it vital to their business
- Dutch companies invested over $40 million in AI in 2018.
Germany:
- 12% of German companies used AI in their business activities in 2023, up from 11% in 2021 https://www.zew.de/en/press/latest-press-releases/ai-adoption-stagnates-in-german-companies.
- Germany’s AI adoption rate (11.6%) is above the EU average (8%).
- Germany has set an ambitious goal to become a global leader in AI research, development, and application.
Innovation and Digital Economy
The Netherlands shows strong performance in innovation:
- Ranks 5th on the Global Innovation Index[.
- Has a thriving startup scene and is known for its globally trusted ethical hacker community.
Germany also demonstrates strengths:
– The German AI market is forecast to grow at an annual rate of around 15%, reaching EUR 27 billion by 2030.
– Studies predict AI could contribute an additional EUR 330-430 billion to Germany’s GDP by 2030.
Sector-Specific AI Adoption
In Germany, AI adoption varies significantly by sector:
- IT services lead with 42% adoption, followed by legal and accounting services (36%), and R&D (also 36%).
- Banking (34%), management consulting (27%), and media sectors (26%) also show high adoption rates.
Government Initiatives
Both countries have implemented strategies to promote digitalisation and AI:
The Netherlands:
- Has a Dutch Digitalisation Strategy focusing on areas like AI, blockchain, and cybersecurity.
- Employs a “quadruple helix” approach, fostering collaboration between public, private, and knowledge institutions. 210621-min-ezk-digitaliseringstrategie-en-v03 (2)
Germany:
- Has implemented AI strategies in 2018 and 2020, along with a 2023 Action Plan.
- Promotes AI centers of competence, AI professorships, and support schemes for AI startups.
In conclusion, while both countries are performing well in digitalisation and AI adoption, the Netherlands appears to have an edge in overall digital readiness and infrastructure.
