Information Technology in the

Netherlands

Analysis:  IT Strengths and Weaknesses
	About The Netherlands	Overview A close examination of the Netherlands reveals that it has had a history of success that can be traced back hundreds of years. The Dutch established a successful trading industry in 17^th century and was leading commercial and maritime power in Europe. The industrious attitude helped the Dutch reclaim a small country that was situated under the sea. The Dutch have also produced such inspirational people and Rembrant and Anne Frank. Much of this success can be traced to the Protestant work ethic that was found in the people. Like the US, the Dutch have a strong work ethic and entrepreneurial spirit. The Dutch enjoy making money and it is viewed as a noble pursuit. This explains how a country of only 15 million people has become so successful. Success in the Netherlands has not resulted solely because of IT but rather the Dutch have adopted IT because they realize that it has the ability to transform their economy and lives. The country’s geographic location, work ethic, and entrepreneurial spirit have helped the Dutch become successful at most pursuits. IT Strengths The Dutch possess several strengths that make it a strong IT area. · Gateway to Western Europe- Countries can establish a European foothold by locating in the Netherlands. · Entrepreneurial sprit- This is the essential driving force behind the new companies leading the IT revolution. · Well-educated public led by the universities who are conducting innovative R&D. · English is well spoken which is important since it is the global language. The Dutch also speak French and German in addition to their native Dutch. · Good telecom infrastructure- The sector was privatized fairly early leading the European market in privatization and liberalization. · Low unemployment. · The Government has been very supportive in the IT industry and it is an important initiative they have adopted. · Strong software industry. IT Weaknesses Like many countries involved in the IT revolution the Dutch also suffer from several weaknesses. · High cost of labor- This may make foreign companies think twice about establishing locations in the Netherlands. · Shortage of tech workers- The Netherlands is a small country with only 15 million people and is also faced with issues involving “brain drain.” It is essential to work to insure that there is an ample supply of technology workers. Cost of building out telecommunications infrastructure- As business grows and data applications consume more network traffic much of the infrastructure is reaching its capacity. This will require huge investments in costly equipment.
	Telecommunication Infrastructure
	Liberalization and Deregulation
	Internet Diffusion
	Electronic Commerce
	Hardware manufacturing
	Software development
	Who Uses IT
	IT Geographics
	IT Financing
	IT Labor Market
	Government Policies
	Legal Environment
	Transborder Data Flows
	Analysis: IT strengths and weaknesses
	Analysis :Impacts on the Business
	Sources and Links
	About the authors

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Last update: December 18, 2000