Healthy markets, healthy growth: Dynamics, market power and misallocation in the Dutch business sector
Published in DNB Analysis, 2026
🆕 As the population ages, economic growth in the coming decades will have to come mainly from productivity gains. Healthy business dynamism and competition help boost such gains. A new DNB Analysis shows that there is still room for improvement on both counts. Business dynamism in the Netherlands is low and can mostly be ascribed to small businesses that barely show any growth. Furthermore, a comparatively large amount of capital and labour remains tied up in less productive companies. The government can change this situation by creating more conducive conditions for competition and innovation. Untargeted financial support for consumers and businesses, as well as some tax schemes, distort these market processes.
Download the English version of the DNB Analysis here. The original Dutch version can be downloaded here
DNB Background news note can be seen here in English and here in Dutch.
Recommended citation: Brouwer, G.S.P and J.M. de Winter (2026), Healthy markets, healthy growth: Dynamics, market power and misallocation in the Dutch business sector , De Nederlandsche Bank, DNB Analysis.