The Netherlands: An Innovation Leader with a Commercialisation Problem

The Netherlands has once again secured its position as a global innovation powerhouse, ranking 3rd among all EU member states in the 2025 European Innovation Scoreboard (EIS). With top marks for its attractive research systems, robust human resources, and world-leading digitalisation, the nation continues to be a beacon of ingenuity. However, a closer look at the data reveals a critical challenge lurking beneath the surface—a growing gap between creating innovations and successfully selling them.

For a nation that excels at generating novel ideas, the Netherlands shows a surprising weakness in commercialising them. The report highlights a concerningly low rank for "Sales of new-to-market and new-to-firm innovations," where the country places just 20th in the EU. This suggests that while Dutch companies, particularly Small and Medium-sized Enterprises (SMEs), are developing new products and processes, they are struggling to translate them into revenue and market share.

This isn't just a statistical anomaly; it's a direct threat to long-term economic competitiveness. The scoreboard reveals a sharp 38.1-point drop in SMEs introducing product innovations since 2018, accompanied by a decline in venture capital funding, which fell by over 108 points in the last year alone. The message is clear: the journey from a brilliant concept to a market-leading product is becoming more difficult.

This is the "commercialisation gap"—the treacherous gap between creating an innovative product and achieving market traction. Many businesses successfully develop a prototype or even launch a product, only to see it falter, failing to find a scalable customer base and generate meaningful sales.

These results don't come as a surprise to us at Growth Lantern. Our close engagement with clients has provided us with interesting insights as to why we lack in successfully commercialising innovation:

• Building a prototype and having a handful of pilot customers does not necessarily mean you have successfully commercialised your product or service, and thus have a successful business.

• Incubator-type clients often focus on the financial aspects rather than actually developing and building the necessary ecosystem to support the growth of an idea into a successful product, service, or company.

• Commercialisation of innovation goes far beyond the checklists and so-called go-to-market plans.

• Ultimately, having a mishmash of various commercially available tools does not make for a successful venture support program. Having a 'not-invented-here' mindset and sticking to what hasn't worked until now out of fear are common mindsets we often encounter.

At Growth Lantern, we specialise in helping manufacturing SMEs navigate the perilous journey from idea to market leadership. The challenges highlighted in the European Innovation Scoreboard are not isolated incidents but predictable hurdles in the innovation lifecycle. Our structured methodology is designed to guide businesses through each critical stage of the process. Apart from the commercialisation gap, there are two more gaps that SME's need to overcome.

We help companies overcome three distinct gaps that can derail even the most promising innovations:

1. The Prototype gap: An Idea Is Not a Business. The first hurdle is turning a concept into a viable, working prototype that solves a real-world problem. We guide you through a disciplined process to validate your core assumptions, ensuring that what you build has a genuine purpose and a solid foundation before you invest heavily in development.

2. The Commercialisation gap: This is the challenge highlighted in the EIS—turning a functional product into a commercial success. Instead of a broad, unfocused launch, we help you identify and dominate a specific, winnable "beachhead" market. By focusing your resources, you establish a strong foothold, generate initial revenue, and build the crucial case studies and momentum needed to expand.

3. The Mainstream gap: Capturing early adopters (see gaps 1 and 2) is one thing; scaling to a mainstream market is another. To cross this final chasm, you need more than a fantastic product—you need a repeatable, scalable growth engine. We work with you to systematise your sales and marketing processes as well as other relevant parts of your organisation, transforming your innovation from a niche success into a predictable and sustainable revenue stream that fuels long-term growth.

The Netherlands has proven it can generate world-class ideas. The next step is to ensure those ideas become world-class businesses. By implementing a systematic approach to navigate the entire innovation journey, Dutch SMEs can convert their R&D potential into tangible market leadership. Growth Lantern provides the map and the tools to make that journey a success. Visit this page to see how we can help your idea, product, service, or company reach its full potential!

Source: European Innovation Scorecard