As with Victoria and Vancouver, Technology Clusters that are alternatives to Silicon Valley are developing throughout the world. It is becoming less and less necessary for talented entrepreneurs to move their families and businesses to the Bay Area. Technology clusters around the world may not have the size and scale of the Valley, but they offer other advantages. One such cluster is Amsterdam. There, the ever-growing startup scene is breathing new life into the city and to the Netherlands overall. Amsterdam is quickly joining cities like Berlin and London at the forefront of the European tech sector. We thought it would be interesting to share some insights into Amsterdam, and other markets that are developing around the world.
Developing Technology Clusters
It’s becoming clearer with each year that passes that technology is an increasingly significant part of the economy and of society as a whole. It is also becoming clearer that Silicon Valley no longer monopolizes the tech sector in terms of talent, entrepreneurship, or investment. While it still may be the most obvious of places to start a tech endeavour, it is not the only place to do so and entrepreneurs and investors are recognizing this fact.
One of the largest tech hubs in Europe is the city of Amsterdam hosted The Next Web Conference on May 26th and 27th. The 11th edition of this conference brought together the world’s technology leaders, entrepreneurs, and venture capitalists to discuss the future of technology, innovation, marketing, communication, and imagination. Keynote speakers included:
- Co-founder and CEO of Reddit, Steve Huffman,
- VP of Product Design at Facebook, Julie Zhuo,
- Co-founder and CEO of Basecamp, Jason Fried,
- Co-founder of The Pirate Bay, Peter Sunde,
- Co-founder and CDO of Indiegogo, Danae Ringelmann, and more.
The Next Web will also host another conference in New York City on November 16th, 2016.
The annual TNW Conference is just one of many indicators that establish Amsterdam as a global thriving tech ecosystem. The city’s position as a transport hub, the Netherlands’ long-standing history of trade and entrepreneurship, encouragement and support from public and private organizations, and the nuances of Dutch culture all contribute to the successful rise of tech and startup life in the region.
Amsterdam is a City of Business
The narrow, winding streets and canals of Amsterdam have been home to innovators and entrepreneurs for hundreds of years. Buildings that used to function as warehouses for merchants and trades of olden days now function as offices for startups and supporting businesses. The city is a gateway to the rest of Europe, with Schiphol Airport ranking as the 6th largest airport in the world in terms of traffic. It is a tourist destination, an international city that is home to a significant expat population and more than 2,500 foreign companies, and an ideal place for entrepreneurship and investment.
Fully embracing startup culture, initiatives like StartupAmsterdam aim to support and encourage more companies to set up shop in the Dutch capital. With over 1,100 companies, more than 100 investors, and nearly 60 services, the organization is a public and private initiative with the goal to accelerate the city’s startup scene.
An acceptance of international workforces and an open-minded attitude also provide Amsterdam with an advantage as many residents and workers in the city are fluent in English and are driven by a global ambition.
Netherlands as a Leader of Innovation
The Dutch have always been known as successful traders, innovators, and business-savvy people. From the Dutch Golden Age to modern day, this small country has changed the world time and time again. With names like TomTom, Booking.com, WeTransfer, and many more, it is evident that the country has become a global leader in innovative tech solutions.
The emphasis on higher education, practical knowledge, and experiential learning in Dutch institutions produces an increasing talent pool in every area of tech. Student cities like Delft and Eindhoven are world-renowned for the programs they offer, attracting young people from all over the world to learn and train in the Netherlands. The open borders in the EU and relatively low tuition fees also work to increase the knowledge economy that the Dutch government has worked so hard to build the foundations for.
What’s more, the Dutch government encourages the development and growth of tech, international entrepreneurship, and investment by adopting progressive policies. Startup Fest Europe, an event that ran May 24th until May 28th, is another international showcase of what the Netherlands has to offer the world when it comes to tech. Promoting the lowlands as the “west coast of Europe” and a parallel to Silicon Valley’s tech ecosystem, the event is one of the Dutch government’s initiatives as part of their 2016 European Union presidency.
How Dutch Business Culture Breeds Success in the Tech Sector
Another thing that the Netherlands is known for is “Dutch directness”. Raised to be blunt, honest, and very direct in their communication, the Dutch provide a culture that allows young businesses to validate their concepts at an incredible pace. Feedback is given quickly, directly, and unabashedly, meaning that “fail often, fail fast” is blatant for companies that get their start here.
Corporate culture in the Netherlands is also embracing the rise of startups. Many of the bigger, established corporations recognize that they may be slower at adapting or evolving and are therefore looking to startups for innovative, applicable solutions to further their business.
The Netherlands also benefits from its small size, but exceptional infrastructure. This plays into their opportunity to develop on of the region’s strong technology clusters. Small in terms of landmass (41,543 sq km), but fairly large in terms of population (~17 million), the Dutch have an increasing pool of talent to draw upon. With great social systems, outstanding public transport services, and an advanced infrastructure, bigger cities like Amsterdam, Rotterdam, Eindhoven, The Hague, and Utrecht can create innovative companies and talented employees that function as one collective entity. This gives the Dutch another advantage that cities like Berlin or London do not have. The ease of commuting and cooperating in the Netherlands allows multiple sources to feed into one combined effort.
Room to Grow
As with anything though, there is room for improvement. Funding is still lacking in Amsterdam, a problem that many tech ecosystems seem to face as startup culture begins to thrive. It is also often difficult for international students to remain in the Netherlands permanently, even after completing a degree there. Although the Dutch government is working towards adjusting policies to rectify that, for many talented graduates, the changes will come too late. Another significant problem is space. Amsterdam, and the Netherlands as a whole, lacks affordable office space for teams that have grown beyond the startup stage, but have not yet become large enterprises. Having to move as the team grows can be both challenging and frustrating in a rental market that is often impossible to navigate.
Nevertheless, the ever-growing startup scene is breathing new life into the city of Amsterdam and the Netherlands overall.
Establishing itself as an ideal place to start a company, Amsterdam is quickly joining cities like Berlin and London at the forefront of the European tech sector. And while it might not be on the same level as Silicon Valley yet, the city proves to be an increasingly important hotspot for both entrepreneurship and investment.