Brainport Eindhoven Makes It Together

BRAINPORT MONITOR 2018 - SUMMARY – 11TH EDITION BRAINPORT EINDHOVEN MAKES IT TOGETHER

Dutch Design Week OVERVIEW

The Dutch economy is flourishing, and hinders further economic growth. As the Brainport Eindhoven is an attractive Brainport Eindhoven is in the lead. With economy is doing well, the demand for work region, both nationally and 4.9% economic growth, Brainport labour has dramatically increased in internationally. Just a quarter of the Eindhoven was the fastest growing almost all sectors, and for Brainport people living in Brainport Eindhoven region in the Netherlands in 2017. The Eindhoven in particular in technology work outside the region. The popula- technology industry is the predominant and IT (13,100 job vacancies). More than tion growth in Brainport Eindhoven is driving force behind this. The added 11,000 additional jobs, an increase of overwhelmingly driven by both domestic value of the (technology) industry in 2.8%, the largest growth in 10 years. and foreign migration. This migration Brainport Eindhoven grew seven times Partly as a result of this, the number of compensates the declining population faster than the national equivalent in unemployed has decreased by 5,000 growth resulting from the demographic the period 2005-2015. people, the largest decrease in decades, developments in the Netherlands. and unemployment dropped to 4.4% in 2017. However, this presents us with the This economic prosperity is also reflec- challenge of creating an attractive living ted in the increasing innovative power of Due to the current shortage of talent, it environment for a diverse and changing Brainport Eindhoven. Investments in is becoming increasingly important to demographic. research & development (R&D) are connect international talent to the increasing. The Brainport Eindhoven region. In the last ten years, the number business community spent over €1.9 of foreign nationalities in the region has € 10,000 billion on its own R&D in 2016. This increased over 1.5 times faster than accounts for over a fifth of the total R&D national levels, with an increase of expenditure in the Netherlands. As a 25.0% in the number of Asian nationali- € 8,000 percentage of the GDP, private expendi- ties in 2017. The number of internatio- tures on R&D in Brainport Eindhoven nal technology students in Brainport € 6,000 alone amount to 5.1%. The downside of Eindhoven has more than tripled over a flourishing economy is the significant the last ten years. € 4,000 shortage in the labour market that € 2,000

€ 0 ECONOMIC GROWTH PRIVATE R&D 2017 EXPENDITURES 2016 Brainport Eindhoven OVERVIEW IN NUMBERS The Netherlands

23.1% 4.9% 3.2%

THE NUMBER OF INTERNATIONAL TECHNOLOGY STUDENTS IN BRAINPORT EINDHOVEN HAS MORE THAN TRIPPLED OVER THE PAST TEN YEARS Brainport Eindhoven The Netherlands Total €8.2 billion

GROSS ADDED VALUE INDUSTRY TOP 3 PRIVATE R&D EXPENDITURES (IN MILLION EUROS) 2016 Brainport Eindhoven Brainport Eindhoven € 1.9 Amsterdam € 0.8 € 10,000 ↗ +46.9% Utrecht € 0.6

€ 8,000 € 8,700 0 0.5 1 1.5 2 x billion euros

€ 6,000 € 5,900 € 4,000 THE NUMBER OF JOBS IN BRAINPORT EINDHOVEN INCREASED BY OVER 11,000 JOBS IN 2017, € 2,000 AN INCREASE OF 2.8%, THE LARGEST GROWTH IN 10 YEARS € 0 2005 2015 BUSINESS

Digitalization, robotization, big data and new disruptive technologies such as 3D printing and artificial intel- ligence are generating new production processes and the possibility of further integration of production processes in the manufacturing industry. This digital transformation brings new opportunities for innovation to Brainport Eindhoven and we are ambitious to include industrial manufacturing companies of the entire supply chain in this transition.

Brainport National Agenda Smart Industry, p. 54

ASML ECONOMIC GROWTH Regional economic growth over the 4.6% economic growth in 2017 it is the 2.3% per year over the past ten years. past ten years 2.5 times greater than most rapidly growing city of the five This is over 2.5 times as fast as the national figures. largest cities in the Netherlands. The national economy (0.9%). province of Noord-Brabant also The economic growth of Brainport registered an above average growth of Eindhoven was 4.9% in 2017. As such, 3.7%. The national economy grew by The gross domestic product (GDP) is a Brainport Eindhoven is the fastest 3.2% in 2017. During the crisis in 2008 measure of the size of the economy. The growing region in the Netherlands in and recession in 2012 a shrinkage both changes in volume of the gross domestic economic terms. This is due to a fast regionally and nationally was expe- product (GDP) over a certain period of growing industry in the region. The rienced, but the regional economy has time is a measure of the growth (or economy of the central municipality of been growing faster than the national shrinkage) of the economy. Eindhoven is growing slightly less rapidly economy ever since. The regional than the region as a whole, but with economy has grown at an average of

Economic growth - GDP volume transactions Economic growth - 2017 Brainport Eindhoven The Netherlands Brainport Eindhoven The Netherlands

15%

10%

5% 4.9% 3.2% 0%

-5%

-10% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ADDED VALUE Added value of the industry in Brain- added value of industry in the Nether- increased by 46.9%, seven times stronger port Eindhoven grows seven times lands amounted to €73.1 billion in 2015, than nationally (+6.8%). Over half (59.9%) faster than the national equivalent an increase of 7.5% compared to the of the growth in national added value of over the period 2005-2015. previous year. Over the period 1995- industry over the period 2005-2015 2005, the added value at a regional level comes from Brainport Eindhoven. The added value of industry in Brainport increased by half (+45.9%). This growth Productieproces; bedrijfstakProductieproces; en regio; nationale bedrijfstakEindhoven rekeningenProductieproces; en amounted regio; nationaleProductieproces; to €8.7 bedrijfstak billion rekeningen in enbedrijfstak regio;has continuednationaleProductieproces; en regio; rekeningenover nationale the lastbedrijfstak rekeningen ten years,Productieproces; en regio; nationaleProductieproces; bedrijfstak rekeningen enbedrijfstak regio; nationaleProductieproces; en regio; rekeningen nationale bedrijfstak rekeningenProductieproces; en regio; nationale bedrijfstak rekeningen en regio; nationale rekeningen

Onderwerp: Onderwerp:Bruto toegevoegde waarde2015; basisprijzen 9.7%Onderwerp:Bruto more toegevoegde than Onderwerp: in waarde 2014. basisprijzen The totalBruto toegevoegdewherebyOnderwerp:Bruto waarde the toegevoegde regional basisprijzen waarde added basisprijzen value Onderwerp:Brutohas toegevoegde Onderwerp: waarde basisprijzen Bruto toegevoegdeOnderwerp:Bruto waarde toegevoegde basisprijzen waarde basisprijzen Onderwerp:Bruto toegevoegde waarde basisprijzen Bruto toegevoegde waarde basisprijzen Perioden: Perioden:1995 Perioden:1995 Perioden: 1995 Perioden:2005 Perioden:2005 Perioden: 2005 Perioden:2015 Perioden:2015 2015 Bedrijfstakken/branches (SBI 2008): Bedrijfstakken/branchesC Industrie (SBIGross 2008): added Bedrijfstakken/branchesC Industrie value -Bedrijfstakken/branches basic prices (SBI 2008): in billion C Industrie(SBI euros2008): Bedrijfstakken/branchesC Industrie (SBI 2008): Bedrijfstakken/branchesC Industrie Bedrijfstakken/branches (SBI 2008): C Industrie(SBI 2008): Bedrijfstakken/branchesC Industrie (SBI 2008): Bedrijfstakken/branchesC Industrie (SBI 2008): C Industrie

250 – 2000 2000 – 3500 3500 – 5500 5500 – 7000 More than 7000

1995 2005 2015

275 tot 1 958 (mln euro) 275 tot 1 958 (mln euro) 275 tot 1 958 (mln275 euro) tot 1 958 (mln euro) 275 tot 1 958 (mln euro) 275 tot 1 958 (mln275 euro) tot 1 958 (mln euro) 275 tot 1 958 (mln euro) 275 tot 1 958 (mln euro) 1 958 tot 3 641 (mln euro) 1 958 tot 3 641 (mln euro) 1 958 tot 3 641 (mln1 958 euro) tot 3 641 (mln euro) 1 958 tot 3 641 (mln euro) 1 958 tot 3 641 (mln1 958 euro) tot 3 641 (mln euro) 1 958 tot 3 641 (mln euro) 1 958 tot 3 641 (mln euro) 3 641 tot 5 323 (mln euro) 3 641 tot 5 323 (mln euro) 3 641 tot 5 323 (mln3 641 euro) tot 5 323 (mln euro) 3 641 tot 5 323 (mln euro) 3 641 tot 5 323 (mln3 641 euro) tot 5 323 (mln euro) 3 641 tot 5 323 (mln euro) 3 641 tot 5 323 (mln euro) 5 323 tot 7 006 (mln euro) 5 323 tot 7 006 (mln euro) 5 323 tot 7 006 (mln5 323 euro) tot 7 006 (mln euro) 5 323 tot 7 006 (mln euro) 5 323 tot 7 006 (mln5 323 euro) tot 7 006 (mln euro) 5 323 tot 7 006 (mln euro) 5 323 tot 7 006 (mln euro) meer dan 7 006 (mln euro) meer dan 7 006 (mln euro) meer dan 7 006 meer(mln euro)dan 7 006 (mln euro) meer dan 7 006 (mln euro) meer dan 7 006 meer(mln euro)dan 7 006 (mln euro) meer dan 7 006 (mln euro) meer dan 7 006 (mln euro) JOBS Total jobs - 2007=100 (for line graph) There were over 11,300 additional jobs Brainport Eindhoven The Netherlands in Brainport Eindhoven in 2017, an increase of 2.8%, the largest growth in 10 years.

There was a total of 418,200 jobs in Brainport Eindhoven has Brainport Eindhoven in 2017. This is over 5.0% of the number of jobs 11,300 more than in 2016, an increase of in the Netherlands in 2017 2.8%, the largest growth in 10 years. The number of jobs is increasing nationally by 1.5% compared to 2016. The top sector High Tech Systems & Materials 110% (HTSM) represents a significant share of this growth in jobs. There are 64,200 109% jobs in the top sector HTSM (+6.6%) in 108% Brainport Eindhoven in 2017. A quarter of 107% job growth (25.8%) in the top sector HTSM in the Netherlands in 2017 is 106% accounted to Brainport Eindhoven. 105% In 2017 11.1% of all jobs in the top sector 104% HTSM in the Netherlands can be found in Brainport Eindhoven. The top sector 103% Creative Industry also creates many jobs 102% in Brainport Eindhoven. A total of 11,400 101% in 2017. This is an increase of 500 more compared to 2016, a growth of 4.6%. 100% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 PEOPLE

The downside of the flourishing economy is the increasing demand for labour that does not match with what is available. A lack of technical talent is the most significant limiting factor for the further growth of the knowledge- intensive manufacturing industry and thereby an important focus point for Brainport Eindhoven. Major efforts are being made to attract, keep and develop our own talented workers at all levels of education.

Brainport National Agenda Talent, p. 22

TU/e UNEMPLOYMENT AND JOB VACANCIES which again is lower than the average in the (+19.5%). Over a quarter of these (27.3%) There were 21.7% less unemployed Netherlands (4.9%) this year. are vacancies in tech and IT. in 2017 in Brainport Eindhoven than in 2016. Increase of 19.5% in job vacancies in From 2013 to 2017 we saw an annual 2017 in Brainport Eindhoven. increase in the number of available The drop in unemployment levels is vacancies and a reduction in the number continuing both regionally and nationally for In the improving economy, the demand of unemployed people. In 2017 this the third year in a row. In 2017 there were for labour is increasing and unemploy- resulted in a total of 18,000 unemployed 18,000 unemployed in Brainport Eindhoven, ment is decreasing. In 2017 the number and 48,100 vacancies. 5,000 less than the previous year. The of job vacancies increased by 7,800 unemployment percentage is thereby 4.4%, vacancies to a total of 48,100 vacancies

Unemployment percentage Development vacancies and unemployment labour force Brainport Eindhoven The Netherlands Vacancies Unemployed labour force

6% 50,000

5% 40,000

4% 4.9% 4.4% 30,000 3% 20,000 2%

10,000 1%

0% 0 2017 2013 2014 2015 2016 2017 TECHNOLOGY STUDENTS Vocational education students - 2017 The number of technology students other students technology students grows by 4.3% in 2017 to a total of 30,100. 40.7% of the vocational In Brainport Eindhoven there was a total 8,700 education students in Brainport of 30,100 students in technology Eindhoven followed a courses during the 2017/2018 school technology education in 2017 year. This is a growth of 4.3% in 2017 compared to the previous year. During the past ten years the total number of Total 21,400 students technology students in the region has increased (+50.6%) over twice as rapidly Technology students vocational education - 2007=100 as nationally (+22.8%). Looking at the Brainport Eindhoven The Netherlands level of education, the number of 220% technology students at vocational education level has been on the increase 200% since 2015, after a drop between 2009 180% and 2014. The number of university of applied sciences technology students 160% has more than doubled over the last ten 140% years to a total of 10,100 in 2017. The 120% number of technology students in research university has undergone 100% positive development over the last ten 80% years, but the regional increase 60% (+60.6%) is not as strong as the national increase (+80.6%). 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 University of applied sciences students - 2017 Research university students - 2017 other students technology students other students technology students

10,100 22.4% of the university of 99.4% of the research university applied sciences students in students in Brainport Eindhoven Brainport Eindhoven followed followed a technology education a technology education in 2017 11,300 in 2017

Total 45,100 students Totaal 11,400 studenten

Technology students university of applied sciences - 2007=100 Technology students research university - 2007=100 Brainport Eindhoven The Netherlands Brainport Eindhoven The Netherlands

220% 220%

200% 200%

180% 180%

160% 160%

140% 140%

120% 120%

100% 100%

80% 80%

60% 60% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 INTERNATIONAL

Companies and knowledge institutes in Brainport Eindhoven operate worldwide and work together in both European and global settings on innovation and research. Brainport Eindhoven wants to actively enrich the high tech ecosystem with international knowledge, companies and talent. The key is that the international innovation collaboration can lay the foundations for international trade and investment through the exchange of knowledge, development of networks and mutual trust.

Brainport National Agenda Knowledge, Innovation and Entrepreneurship, p. 34 Dutch Design Week INTERNATIONAL TRADE International trade – export (excl. re-exportation) to trading country - 2017 Brainport Eindhoven exported €19.7 billion worth of goods (excl. re-exportation) in 2017 and is thereby the largest export region in the Netherlands.

€ 1.0 billion The export of goods from Brainport United Kingdom Eindhoven amounted to €19.7 billion (5.0%) (excl. re-exportation), an increase of €1.2 billion (+6.2%) compared to 2016. The € 1.4 billion € 2.2 billion share of Brainport Eindhoven in the total Belgium Germany export of the Netherlands has been (7.1%) (11.1%) increasing since 2012 and grew to 9.6% € 2.0 billion € 0.9 billion € 1.1 billion United States France China in 2017. Brainport Eindhoven is the third (10.3%) (4.7%) (5.5%) largest export region in the Netherlands, after region Rotterdam (€27.0 billion) and region Amsterdam (€19.9 billion). Germany is the most important trading country for the Netherlands and Brainport Eindhoven. It is striking that exports to the United Kingdom have dropped by almost €0.4 billion and the share in total exports reduced from 9.6% in 2016 to 5.0% in 2017. Brainport Eindhoven accounts for 31.1% of the total exports (excl. re-exportation) in machines and transport equipment in the Netherlands. INTERNATIONAL TECHNOLOGY STUDENTS Over a quarter (25.9%) of students in the Netherlands studies in Top 5 countries of origin - 2017 international technology students Brainport Eindhoven. The number of in the Netherlands study in international technology students in Brainport Eindhoven. Brainport Eindhoven was over 3.5 times greater in 2017 than ten years ago. The number of international technology Nationally, this number has tripled. Most students in Brainport Eindhoven has international technology students in Germany Bulgaria grown significantly both regionally and Brainport Eindhoven come from Germany 440 students 340 students nationally. Compared to 2016, the (440), followed by Bulgaria (340) and 13.7% in technology 45.3% in technology number in Brainport Eindhoven has China (300). 260 technology students increased in 2017 by 9.8% to a total of come from India, which is 90.7% of the 3,100 students in 2017. Over a quarter total number of Indian students in (25.9%) of the international technology Brainport Eindhoven.

International technology students - 2007=100 Brainport Eindhoven The Netherlands China India 300 students 260 students 400% 57.6% in technology 90.7% in technology

325%

250%

175% Romania 100% 220 students 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 54.8% in technology FOREIGN Top 10 foreign nationalities - 2017 NATIONALITIES The number of people of Asian nationality. This share is lower in the Nationality Number nationality increased by a quarter Netherlands (5.7%). Almost two third Polish 9,300 (+25.0%) in 2017. of the non-Dutch people in Brainport Turkish 3,400 Eindhoven are from Europe. This share German 2,300 There were 48,900 residents with a has remained reasonably stable over the foreign nationality in Brainport Eind- last ten years. The proportion of Asian Chinese 2,200 hoven (+9,1%) in 2017. During the period nationalities, on the other hand, increased Belgian 1,700 2007-2017, the number of foreign from 12.8% in 2007 to 21.5% in 2017. British 1,700 nationalities in Brainport Eindhoven Spanish 1,500 increased by 72.6% and nationally by Italian 1,400 42.6%. The number of people of Asian Unknown Portuguese 1,300 nationality in Brainport Eindhoven 3,000 Moroccan 1,200 (-6.3%) increased by a quarter (+25.0%) in 2017 and during the period 2007-2017 this number even almost tripled in Brainport Eindhoven (+190.4%). The number of people with a European nationality also European shows a clear increase over the same 30,400 period (+82.2%). The number of people American (+6.5%) 1,700 Asian with African nationality has been (-1.1%) 10,500 increasing since 2015, after years of (+25.0%) decline. African 3,300 (+11.8%) Looking at the share of foreign nationali- Oceanic ties in the total population of Brainport 120 Eindhoven, 6.4% are of a non-Dutch (-4.6%) TECHNOLOGY

The primary force of Brainport Eindhoven lies at the front of the value chain: knowledge and innovation. The region – especially the business world – has invested heavily in R&D. In an open collaboration, new products will be investigated, developed, designed, manufactured and sold. Technology and design go hand in hand in this and reinforce each other. With a large concentration of R&D, the Brainport region has a certain volume whereby it can make a difference for numerous social issues.

Brainport National Agenda Knowledge, Innovation and Entrepreneurship, p. 34 Effect Photonics - photo: Peter van Trijen RESEARCH & DEVELOPMENT Private R&D expenditures - in billion euros, 2016 Private R&D expenditure in Brainport Eindhoven increases to €1.9 billion in 2016.

The business community of Brainport Eindhoven spent over €1.9 billion on its own research & development (R&D) in 2016, an increase of €179 billion (+10.4%) compared to 2015. As such, the business community in Brainport Eindhoven therefore accounts for over a fifth of the total private R&D expenditure in the Amsterdam Netherlands (23.1%). Of the ten largest 0.8 Veluwe 0.3 regions in the Netherlands, the business Den Haag Utrecht community in Brainport Eindhoven 0.1 0.6 Arnhem-Nijmegen invests by far the most in R&D. The Rotterdam 0.3 business community region with the 0.4 Noordoost- second highest R&D expenditure is Brabant region Amsterdam with €0.8 billion. West-Brabant 0.3 0.2 As a percentage of the GDP, private R&D Brainport Eindhoven expenditures in Brainport Eindhoven 1.9 alone amount to 5.1%. A striking development is the decline of €125 Zuid-Limburg billion in public R&D expenditure at a 0.2 national level compared to 2015, while private R&D expenditures have risen by €572 billion. BASICS

Attracting talent and companies demands a good business climate and facilities of urban quality and appearance, whereby good accessibility is an important component of the business climate. Due to the economic growth and competition with other economic regions, the (inter)national connections with other regions demand continued attention.

Brainport National Agenda Business Climate, p. 44

Demer INCOMING COMMUTERS Number of jobs - to residential area, 2016 Over three in five of the people 5000 working in Brainport Eindhoven also live in the region.

1000 A relatively large proportion of the 0 incoming commuters live outside the region, but still within the South-eastern Netherlands (21.0%), with the provinces Noord-Brabant and Limburg strongly represented. The remaining 14.9% of employees in Brainport Eindhoven live outside the South-eastern Netherlands, of which a large number in the province of Gelderland. Of the municipalities outside Brainport Eindhoven, most of the workers live in the other cities of Noord-Brabant: ‘s-Hertogenbosch (6,800), Tilburg (9,200) and Breda (4,800). Of the remaining largest five cities, most workers live in Amsterdam (2,200), Rotterdam (1,800), Utrecht (1,300) and The Hague (800). REPORTS COLOPHON

Important factors for the economic growth of cities are a well-qualified Editing workforce, good accessibility, an attractive living-working environment Brainport Development NV with high quality education opportunities and plenty of cultural and culinary facilities. Sources Urban regions as motors of economic growth – Plan agency for Living CBS, LISA, Platform Bètatechniek, Arbeidsmarktdashboard, environment Textkernel Jobfeed, Nuffic

The Netherlands drops to sixth place in global competitiveness ranking list. Disclaimer Global Competitiveness Index - World Economic Forum Various sources of information, made available by many organisations, have been used in the compilation of this publication. Brainport Development NV Expenditure on science and innovation lay behind national ambitions. cannot guarantee the correctness or accuracy of the data, information or Total investment in Science and Innovation - Rathenau opinions included in this publication, nor its suitability for any purpose, situation or other application. Brainport Development NV is thus also not liable In order to be a long-term growth engine, the technology industry must for any damage, losses or other consequences that may arise from the use of accelerate its efforts in digitization. the data, information or opinions included in this publication. My Smart Industry - ING Brainport Development NV Foreign investors advise: more support for high tech industry. Emmasingel 11 Netherlands Attractiveness Survey - EY P.O. Box 2181 5600 CD Eindhoven Only 62% of global human capital is sufficiently developed. +31 40 751 24 24 The Human Capital Report 2016 - World Economic Forum [email protected] www.brainporteindhoven.nl/monitor City centre Eindhoven ranked 5th best economically performing city No rights can be derived from this publication. centres, basic facilities and accessibility lay behind. © Brainport Development NV, 2018 Living and working in the Dutch city centres - Bureau Louter