Innovation in Multinationals

Innovation in Multinationals

Multinational companies play a crucial role in fostering innovation, and their significance to the Dutch economy is substantial, contributing significantly to overall added value and employment. Multinationals have a particularly notable impact on driving technological advancements.

Multinationals are characterized as companies that are either under foreign control or have subsidiaries established abroad.

According to Statistics Netherlands, a distinction is made between Dutch multinationals and foreign multinationals. The former refers to companies that are under (ultimate) Dutch control and have subsidiaries abroad, with at least one majority shareholding. The latter includes foreign subsidiaries operating within the Netherlands, which are ultimately controlled from abroad.

Table 5.3.3 illustrates that the highest proportion of innovative companies can be found within the category of Dutch multinationals with over 50 employees. Furthermore, Dutch multinationals exhibit an above-average share of innovative companies. Within this group, smaller multinationals demonstrate a relatively high frequency of innovation. On the other hand, foreign multinationals show a greater proportion of innovative companies among those with up to 50 employees compared to non-multinationals. However, foreign multinationals have a smaller percentage of larger SMEs and companies. Hence, foreign control or control from abroad is connected to fostering creative activities.
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