Startup Amsterdam 2019-2022Strengthening the startup and scaleup ecosystem by promoting innovative and

sustainable entrepreneurship

Amsterdam’s ecosystem for startups and scaleups has become more sophisticated over the last few years. During its initial phase from 2015-2018, the public-private action programme, Startup Amsterdam, generated a lot of momentum that put Amsterdam on the map as a startup hub. The speed at which Amsterdam’s economy has transformed ever since, along with technological developments and far-reaching globalization, guarantees there is no going back for the city. During this new, follow-up phase of the programme (during 2019-2022), the ecosystem will be further optimized for the long-term. We want a well-functioning ecosystem that serves innovative companies wishing to grow sustainably — in continued collaboration with public and private stakeholders. This fulfills the current desire of the Mayor and Aldermen of Amsterdam to strengthen the climate of development for startups and scaleups (see coalition agreement 2018).

Based on Startup Amsterdam’s initial experiences and on conversations held with numerous stakeholders in recent months, the follow-up programme contains a number of important shifts in its emphasis, compared to the first programme:

a) The focus of the new programme will not only lay on companies from the traditional internet and IT sectors, i.e. the digital startups. After all, technology is transforming every sector and industry. Therefore, the focus is on innovative entrepreneurship, sustainable economic growth, and job creation. This type of entrepreneurship is visible in all parts of the city (from Amsterdam North to the port and from Riekerpolder to Science Park) and includes SMEs that have the ambition and potential to grow.

b) In addition, we have reached a point where growth of the local ecosystem does not have to mean that the local government wants to encourage as many companies in Amsterdam as possible; the local government will particularly embrace commercial activities that add value to the city in new ways. In other words, this does not mean developing an ecosystem that focuses on yet another delivery service or handy app, but on innovative companies that, in addition to a profit objective and the ambition to scale up internationally, also aim to bring about a positive change. We will therefore have to look carefully at which companies add value to the ecosystem and to the economy. This new phase asks: What is missing? How can we bring together those parties that can jointly create added value?

c) In the coming years, we must also lay the foundations for a more inclusive society, in which the local startup and scaleup ecosystem also plays a role. A step towards inclusiveness means significantly increasing the business sector’s ambitions for social responsibility. For example, the proportion of women and people with a migrant background is far too low among innovative companies in the city. This offers Amsterdam opportunities to distinguish itself from other cities worldwide, but we must begin work on improving the situation.

d) Finally, we must collaborate on both regional and national scale. Indeed, the economy of a city does not stand alone. We can distinguish a regional startup and scaleup ecosystem because a) the region houses all types of parties that are part of that ecosystem, including large companies and high schools, but also some innovation clusters and knowledge parks, and b) because many employees of Amsterdam-based companies live throughout in the region. The new programme will explicitly seek cooperation with stakeholders from the region — be they municipalities, companies or knowledge institutes. We are also looking for more connections with StartupDelta to jointly position other innovative hubs (such as in Eindhoven, Wageningen, Delft, Rotterdam) in the Netherlands as the place where sustainable and innovative companies come to fruition.

This focus leads to an action-oriented programme centering on the following five pillars:

1. Talent and DiversityThe aim of this pillar is to mobilize the enormous potential of practically- and theoretically-trained people for working in fast-growing companies. The specific aim is to stimulate in particular more women and young people with a migrant background to work for fast-growing companies or to start a business themselves. Talent with a technical background is in high demand. Because the need for staff is so great, we will also continue to focus on attracting and retaining talent from abroad.

Startup Amsterdam 2019-2022 - Strengthening the startup and scaleup ecosystem by promoting innovative and sustainable entrepreneurship.

0. Executive summary

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2. Focus on emerging technologies, and their consequencesThe application of new technologies such as artificial intelligence and robotisation to make products and services better, more efficient, and/or safer is becoming increasingly important. How can the scaleups and SMEs here make better use of them? At the same time, new technologies arouse uncertainty, for example, on aspects such as privacy and security. How do we deal with new technologies and their consequences? In a forthcoming Ethics Lab, we will investigate those consequences, together with the scaleups and the universities.

3. Access to marketsOne of the biggest challenges for innovative companies in Amsterdam is how they can make their mark in the world market. By connecting ecosystems worldwide with Amsterdam and giving entrepreneurs the opportunity to take part in the networks set up by local government, we can contribute to the growth of scaleups to other markets.

4. Stimulate network connectionsThe right connections and the right information are crucial for promising, innovative companies.Startup Amsterdam’s team will also be the point of contact for fast-growing companies in the coming years, working to continue making connections and to stimulate interaction between parties from the ecosystem. This will establish Amsterdam as the place to be for innovative, top-per-forming businesses.

5. Development of innovation districtsThe purpose of the last pillar is to set up a strategy to link spatial development strategies in the city with the urgent need for space, by rapidly growing startups and scaleups. We focus on the lack of physical space, on clustering, and on bringing together the functions that promote innovation.

Each pillar contains a mix of initiatives and projects set for implementation during the period 2019-2022. There are successful, tried-and-tested concepts and initiatives that are to be further strengthened, but we will also devise some new initiatives where necessary. We will apply the same procedures for implementation as the last four years; working in close collaboration with private parties and various stakeholders, more streamlined teams will be hands-on during the validation and implementation of the initiatives.

 

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Rapid technological developments and far-reaching globalization have a major impact on cities, including Amsterdam. Be it in the form of new business models, changing delivery systems, or changing forms of production, distribution, and consumption, they affect all sectors and disrupt the status quo, for better or for worse. This also results in many changes within the social spectrum. How do we ensure that everyone can continue to participate in a society that is changing faster and faster? How do we deal with the ethical issues of artificial intelligence and robotisation? How do we deal with the potentially aggressive growth strategies of large tech companies? How do we keep the city diverse and in balance to ensure that technology and innovation go hand in hand with art, culture, the creative industry, the manufacturing industry, and other sectors?

Recently in Amsterdam, we see that technological developments and the digitization of society enable young companies to experiment with new services and products without hindrance. Cumbersome, bureaucratic companies often lose out to organizations with a flexible, transparent, and accessible business model. New products and services lead to new companies and job opportunities. These fast-growing companies offer the highest potential for employment growth in our economy, creating jobs faster than traditional companies. According to the OECD, 60% of new employment in the Netherlands comes from young companies, regardless of the economic situation. Startups and scaleups have a direct impact on the city in which they reside. Because startups and scaleups are not only located in the centre of Amsterdam, but also at the city’s edges — such as in the Riekerpolder, around the Free University and Academic Medical Centre, at the Science Park, in the North and around the seaport — one finds numerous concen-trations of employment. The labour market consists not only of university-trained programmers, but also, for example, people who work in distribution centers or in customer service at fast-growing businesses. This means that the opportunities for employment are spread throughout the city.

Over the last four years, the Startup Amsterdam action programme has worked hard to strengthen the ecosystem for these young businesses in the city. A startup ecosystem is formed by startups and a variety of organizations, interacting as a system to jointly create new startups and grow. The organizations can be divided into six different categories: 1) universities, 2) support organizations, such as incubators, accelerators, and co-working spaces, 3) investors, 4) corporations, 5) service providers, and 6) research organizations. Each organization has a focus on a specific part of the ecosystem or assists a startup in a specific phase of its growth. A strong ecosystem provides a breeding ground for innovative companies to be able to grow faster.

I. Introduction

Box 1: The ecosystem’s growth

The initial Startup Amsterdam 2015-2018 action programme was based on five pillars that meet the needs of startups, namely access to: 1) talent, 2) customers, 3) development opportunities (content), 4) capital, and 5) a facilitating environment. More than thirty projects have been set up or supported over the last four years, through intensive collaboration between public and private parties. Coding for Amsterdam, Amsterdam Capital Week, B. Startup School Amsterdam, Corporate Partner Network, Project A, SCALE network, Ready2Scale and Startup in Residence are some examples of these initiatives.

The result is that the Amsterdam startup ecosystem in 2018 has a lot to offer to startups. Startup schools such as BSSA, Growth Tribe and The Talent Institute are training people to work at startups. Numerous accelerators such as Rockstart, Startupbootcamp, Fashion for Good, ACE and Collider attract top talent and entrepreneurial strength. A rich pallet of incubators and co-working spaces such as TQ, WeWork, Spaces, Startup Village, Rent24 and B.Amsterdam have been established. Dutch corporations are directly involved in the ecosystem, acting as a customer for startups and collab-orating with various startup programs. Renowned international events such as the World AI Summit, CES Unveiled and Money 20/20 chose Amsterdam as their European event destination. Tech companies from the Netherlands and abroad prefer Amsterdam as their headquarters, knowing that Amsterdam’s ecosystem makes it relatively easy to foster growth and connection with other startup hubs in Europe. In addition, more and more capital is available, the internet works at ultra-high speed, and Amsterdam is an attractive city for domestic and foreign talent.

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The growth of the ecosystem has resulted in an increase in the number of startups and scaleups. In 2017, approx-imately 60,000 people were employed by more than 1,000 technology companies in Amsterdam, representing 11% of the total Amsterdam labour market. Throughout 2015 to 2017, more than 10,000 jobs were added to these companies. Internationally, this has strengthened Amsterdam’s reputation as a city of innovation and entrepreneurship, consistently leading in the rankings.

More and more fast-growing companies in Amsterdam are emerging from technologically smart and innovative ideas, which can rapidly develop into internationally-operating companies. The most exciting examples include Adyen, Kite Pharma, WeTransfer, Elastic and Squla. The next generation of these types of companies are already on the horizon.

Innovative companies in Amsterdam with growth potential face specific issues and challenges in order to achieve sustainable growth. Through our new action programme, the next four years will be spent on strengthening the ecosystem and making it more appealing to these types of fast-growing companies.

Amsterdam as a European leaderStartup Amsterdam 2019-2022 is a new public-private action programme that over the next four years, will further strengthen Amsterdam’s ecosystem for promising startups and scaleups. The aim is to strengthen the growth of Amsterdam as a startup and scaleup hub, where innovative companies can sustainably grow, by exploiting the potential for Amsterdam to permanently claim its spot as one of the top five European regions for innovation and entrepre-neurship.

Whereas the focus of Startup Amsterdam 2015-2018 was mainly on creating an optimal breeding ground on which tech/digital startups could grow, the new action programme shifts its approach, aiming at:

a) strengthening the ecosystem for innovative and potentially fast-growing companies;

b) encouraging activity that adds value to the city in new ways;

c) an inclusive ecosystem, centralling on activating more target groups;

d) more regional cooperation.

Box 2: What is a fast-growing company?

There is no clear definition for a scaleup, or “fast-grower”. According to the OECD, it is a company with at least 10 employees and 20% annual growth (in turnover or employment) that it achieved over a period of three years. Based on the experience gained with Startup Amsterdam and conversations with fast-growers, we define a scaleup as having a validated business model, paying customers, and a focus on international growth. Additionally, technology and innovation play an important role in this growth.

A minimum of ten employees indicates that a company is beyond the startup phase. A validated business model and paying customers means that the business has identified the “problem-solution fit” which customers are prepared to pay for. Ambition to grow is essential to scale up, as are innovation and innovative concepts. This does not mean that every scaleup is a high-tech company; it simply means that it is unlikely that a company will scale internationally without having developed an innovative concept, for example, a form of technology like a particular algorithm, piece of hardware, or online platform.

Simply put, fast-growers distinguish themselves from startups because the latter has not yet found a sustainable and scalable business model.

The next section elaborates upon each of the above points.

a) Strengthening the ecosystem for fast growing companiesThe list of startups and scaleups lies far beyond the traditional Internet and information technology sectors, to other areas that are now increasingly dependent on technology for their growth. Technology transforms every sector and industry. Therefore, the focus of Startup Amsterdam 2019-2022 lays on innovative entrepreneurship that plays an important role in contributing to sustainable economic growth and job creation. This applies to startups, scaleups and SMEs.

According to the Dutch Office for Research, Information, and Statistics (under the acronym OIS), there was a total of 1,185 fast-growing businesses in Amsterdam in 2017 (2014-2017 period). Representing 3.5 percent of the total number of companies, they account for 16.4 percent of total employment in the city. In 2013 (2010-2013 period), the share of “fast growers” was only 0.6 percent, numbering 207 in total (OIS, 2018).

II. Ambition and focus

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b) Encouraging activity that adds value to the city in new ways.The projects and initiatives that Startup Amsterdam 2019-2022 will work on will not focus so much on companies with yet another delivery service or a fun app, but on innovative companies that, in addition to a profit objective and the ambition to scale up internationally, also aim to bring a positive change. There is a strong understanding in Europe that these fast growers will play a crucial role in tackling major societal problems, such as climate change, food supply and access to healthcare.We have reached a point where growth of the local ecosystem does not have to mean that the local government wants to encourage as many companies in Amsterdam as possible, but encourages activity that adds value to the city in new ways.

There are more and more fast-growing companies in Amsterdam that use the European way of life as a starting

Number and employment of fast-growing companies 2017 (period 2014-2017)

Source: OIS 2018

Total offices

2.767

5001.024

412764.779

10-25 employees25-50 employees50-100 employees100-500 employees500+ employeesTotal Share of scaleups to total companies/employees (33.845/527.000)

687

120256

105171.1853,5%

No. of scaleups

15.258

10.67812.330

27.93420.469

16,4%86.669

Employees at scaleups

point for building their innovative businesses. They are rooted in the daily experience of Europeans - a way of life that is more urban, more egalitarian and supported by better functioning public services that exist in, for example, the US and China.In Amsterdam, there are already many newcomers that have claimed an important position in their sector in a short span of time - Vandebron renewing the energy sector, Adyen - the banking sector, Kite Pharma researching the cure for cancer, MessageBird encrypting electronic messages , Scyfer becoming a leader in artificial intelligence and Picnic disrupting the supermarket industry. Innovative startups are also on the rise in Amsterdam’s cultural sector and manufacturing industry. See some great examples in the box below.

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Box 3: Examples of rapidly-growing Amsterdam companies that demonstrate positive change

Quicargo, is a logistics company that uses smart algorithms to fill empty trucks driving around Europe (50% of the trucks on the road have no cargo inside), in order to reduce congestion and CO2 emissions. Founded in 2015, it has 24 employees.

Land Life Company, develops technology that could help prevent deforestation worldwide, having patented planting technologies. Founded in 2013, it has 30 employees.

Kiadis Pharma, is a biopharmaceutical company that designs products aimed at patients who urgently need stem cell transplants to treat leukaemia. Founded in 1997, it is growing fast; in two years their staff more than doubled to 70 employees.

Skinvision, developed an innovative app that allows phone users to check their skin for incipient skin cancer. With the 10 million euros in financing they have already raised, they are on a path to scale up even further. Founded in 2011, it has 26 employees.

Zyvver, is a cyber security company that secures companies’ data, including e-mails and large files. They have developed a number of standard solutions that prevent data leaks and are easy for customers to understand and use. Founded in 2015, it has 65 employees.

Castor EDC, created a platform giving researchers worldwide easy access to high-quality and reusable data in the Cloud. This stimulates the quality of medical research and increases the chance of finding cures. Founded in 2011, it has 37 employees.

c) Including more target groups for an inclusive startup and scaleup ecosystemThe nexus between new technologies, employment, and inequality has recently received significant attention. Reasons for this point to the exponential nature of the current world, the explosion of data, and signs of potential negative consequences for employment through widespread use of new technologies. It is essential to recognize those people who feel left behind and allow them to play a role in this changing economy, regardless of their ethnicity, gender, level of education. With the new action programme, we will look specifically at how we can encourage more women and young people with a migrant background to successfully establish their own startups and scaleups.

d) A regional approachThe city’s economy is connected to the regional startup and scaleup ecosystem because a) the region accommodates all kinds of parties that are part of that ecosystem, such as large companies and high schools, but also some innovation clusters and knowledge parks and b) because

many employees of Amsterdam companies live throughout the region. With the new programme, cooperation will be sought more expressly with stakeholders from across the region - whether it concerns municipalities, companies or knowledge institutes. We are also looking for more connections with StartupDelta to jointly position the Netherlands with some other innovative hubs (Eindhoven, Wageningen, Delft, Rotterdam) as the place where sustainable and innovative companies come to fruition.

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Pillar 1. Talent and Diversity

To further strengthen the startup and scaleup ecosystem, we want to have more insight into the factors that determine the growth capacity of innovative companies. The experiences of Startup Amsterdam and discussions with our target groups have shown that companies face a number of challenges while trying to grow:

1. Insufficient talent poolAs the world has rapidly globalized, the challenge for companies to find suitable personnel is so great, that it is one of the biggest obstacles that scaleups face in Amsterdam. A lack of technical and/or entrepreneurial talent has become a limiting factor for the growth of companies across all sectors, from financial services to life sciences.

2. Responding to the opportunities brought about by new technologiesNew technologies offer many opportunities for scaleups. Yet at the same time, they can prompt uncertainty, for example, on aspects such as privacy and security. There is still so much unknown about these technologies, that many companies still do not yet fully use that potential as optimally as they could.

3. Access to international marketsFor promising companies, scaling up internationally is essential in order to grow. Amsterdam companies that are scaling up instinctively turn to possibilities abroad, because the Dutch market is not large enough. But optimal global growth does often require additional competencies that the current enterprise cannot provide.

4. Accessing networksWhen we talk about the ‘ecosystem’, the term refers to the fact that startups and scaleups do not function — and certainly do not thrive — in a vacuum. They grow best when

A) Female entrepreneurship

Female entrepreneurs are largely underrepresented in the Amsterdam startup and scaleup ecosystem. Moreover, they have less access to financing. The lack of diversity in the ecosystem creates a culture that disadvantages women when it comes to developing their own companies. Recent research has shown that of the founders who received an investment from Dutch venture capitalists (VCs), 94.7% are men and only 5.3% are women. The Netherlands and Amsterdam are therefore missing out on huge potential.

More diversity in the ecosystem is important for various stakeholders, according to studies by McKinsey, BCG, and other sources. Primarily, this is because diverse companies create better products and services. In addition, more diversity increases the financial independence of women. This, along with diverse startup teams working on products and services, will ensure a more inclusive society.

With the new action programme, we want to actively bring about the changes that support and stimulate female entrepreneurship.

they are surrounded by a rich network of different public and private organizations, from which they can gather resources and knowledge. Networks and systems play a major role, through both formal and informal connections.

5. Sufficient room to growCommercial space is still one of the biggest bottlenecks for the growth of startups and scaleups. Although the number of square meters of co-working places has increased enormously in Amsterdam recently, it is still difficult for fast-growing companies to find physical workspace for expansion.

Similar to the Startup Amsterdam program from 2015-2018, the new program will be an action-oriented program. Central to this program are five crucial pillars, which are required for the further development of Amsterdam’s local startup and scaleup ecosystem. These five pillars correspond with the above-mentioned conditions for growth and are closely related to each other. Over the following four years, together with the (public and private) stakeholders, we will implement and develop various projects and initiatives under each of these pillars.

It is essential for Amsterdam’s entire ecosystem to work collaboratively in order to strengthen the local environment and to ensure that a larger number of companies will make the transition from startup to scaleup. The local government plays an integral role in ensuring this. Becoming a ‘Scaleup City’ is a responsibility for us all. Together we will facilitate the environment for (potentially) fast-growing companies by investing in the five pillars; outlined further below:

III. An action programme promoting an effective ecosystem for scaleups

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B) Tech talent shortage

Fast-growing innovative companies in Amsterdam have a large yet unfulfilled need for staff who possess the digital skills that contribute to further growth. Among the 52 fast-growing companies which received external investment of more than one million euros in 2017, there were 330 vacancies, 45% of which were tech jobs, according to Dealroom.co. That includes programmers, developers, growth hackers and data analysts. Failure to fill these vacancies on time could put a brake on the companies’ development.

Various public, public-private and private initiatives have been created to mobilize the enormous potential of practically- and theoretically-trained students, from primary to higher education, to find work among fast-growing tech companies. While this yields many candidates, this is not enough. The number of tech vacancies open in the Amsterdam metropolitan region steadily increases, as more large corporations such as banks and consultancy firms become increasingly digital and therefore look for more tech personnel. In close cooperation with public and private stakeholders, Startup Amsterdam will assess how to accelerate the training and hiring process, outlined in the three points below. The intention is not to reinvent the wheel, but to look carefully at the various ongoing initiatives to see where cooperation can improve, where initiatives can be scaled up or function more sustainably, in order to link those initiatives with the business community — especially the fast-growing companies.

1) AwarenessIn particular, women and young people with a migrant background do not readily opt for a future working in these types of companies because, for example, they rarely follow tech-related courses. Of all students who started a technical study path in university in 2017, only 25% were women, 23% of which at the “higher-pro-fessional education level” (HBO) and 16% at the “middle-level applied education” (MBO) level (source: DUO). These percentages have hardly risen in recent years and are lower than the European average. Inspiring and motivating young people helps them make informed choices about choosing subjects that shape their future career paths — important as early as primary school, but especially during secondary education. That is why it is crucial that schools devote more attention to learning digital skills and developing entrepreneurial skills.

2) Training and refresher coursesHouse of Skills, Action Plan W&T, House of Digital are examples of good initiatives aimed at training profes-sionals at the MBO level for a range of tech-based skills. In addition, various higher education institutions and some private institutions (such as coding academies) devote attention to training tech students. We will support a number of initiatives to ensure that promising, innovative fast-growing companies can quickly find well-trained personnel, through collaboration with groups like the Amsterdam Economic Board and The Commission for Work, Income, and Education. In addition to reaching multiple target groups, the aim is to strengthen the structural process for learning digital skills, making it a more sustainable part of (future-oriented) education. The existing public and private initiatives will undergo a thorough analysis toward this end.

We will also use the new programme to look at how we can better link fast-growing companies with current and forthcoming education initiatives. We will emphatically work to connect fast-growing companies and educational institutions.

3) Attract and retain talentEven with enhanced local training in the school system, the tech personnel shortage problem will not be solved immediately, so we will continue to focus on attracting and retaining outside tech talent. Amsterdam is one of the leaders of a “City Deal” called Warm Welcome Talent, which aims to increase and sustain the Netherlands’ appeal in the eyes of ambitious entrepreneurial and tech talent from abroad. This is done in collaboration with other actors in the startup and scaleup ecosystem and implemented through the Startup Amsterdam programme. The goal is not only to bring the talent we need, but also to retain the talent that came here to study, post-graduation.

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Pillar 1. Talent and Diversity

1a) Stimulate female entrepreneurship

1b) More tech talent among fast-growers: awareness

DESCRIPTION

1-Motivate women to start their own business or work for a fast-growing company

3- Activate women and youth with a migrant background to become a) acquainted with the tech world, or b) to follow a tech course

2-Raise awareness among VCs about their role in increasing diversity

-Investigate the reasons why women are underrep-resented in the ecosystem-Campaign / information / job markets and support events aimed at the target groups-Offer career orientation-Create a physical co-working and incubation place for female entrepreneurs, in cooperation with private parties

-Campaign / information / job markets and support events aimed at the target groups-Use role models in the classroom or through events, which appeal to the target group- Set up on career orientations

-Starting point: interview male VCs-HRM support, awareness of why an inclusive recruitment model is advantageous.

Educational institutions

Department of Education, Work Participation and Income; Amsterdam Economic Board; Primary and Secondary Education; Universities; High Schools and MBO level education.

METHOD STAKEHOLDERS

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4-Connect fast-growing companies to the various educational initiatives.

-Network of Startup Amsterdam is used to improve the involvement of employers (CEOs and senior managers) in connection with schools-Use the role models that appeal to the target group in the classroom or through events

Universities, Colleges

1c) More tech talent among fast growers: training and refresher courses

5-Strive for future-oriented education, centering on digital skills

-Map out which courses and initiatives are aimed at training tech jobs-Investigate whether there can be closer cooperation between the various stakeholders-Continue Coding for Amsterdam (digital skills programme in primary and secondary education), and embed them sustainably, for example by offering tech education through a catalogue or the Science & Technology Action Plan-Further investigate how new tech academies can be established or supported-Make technology and entrepreneurial training accessible and affordable for a broader group

Department of Education, Economic Board, Primary and Advanced Schools, MBO level education, MRA.

6-Focus on (further) development of Public Private Partnerships (PPPs)

-Raise desirability of PPP structures in collaboration with scaleups-Facilitate new PPPs (if there is a demand from the market)-Focus on collaboration in the further development of House of Digital

MBO level education, colleges and business

1d) More tech talent among fast-growers: attracting and retaining

7-International branding made to order: Amsterdam and the Netherlands as a hub for global fast-growers. Joint marketing of city and fast-growers

-Create strategy with stakeholders, determine the focus -Which target groups? Which countries? We also cooperate with universities for this. Match with NL branding.-Stand out at tech talent fairs and events abroad-Joint global recruitment for and with Amsterdam growth companies (by continuing and moving to the next phase of project.amsterdam)

amsterdam inbusiness (aib), StartupDelta, RVO, Minbuza, Amsterdam Marketing, Knowledge institutes, MRA

8-Retain existing talent from abroad in Amsterdam

-Continue the joint strategy of Amsterdam and the knowledge institutions aimed at retaining international students-Link students to fast-growers

Knowledge institutions

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9-Guidance: setting up a ‘one-stop-shop’ for foreign and enterprising talent

10-Ease regulations for foreign talent (from outside the EU) that will work for a scaleup

11-Attract and/or support tech talent events

-Good information on the website and webinars for foreign talent. Striving for “no wrong doors”, ie linking institutions that talent has to use, from posting network to IN Amsterdam-Setting up account management at IN Amsterdam aimed at international talent

-In conversation with responsible ministries about, among other things, the adaptation of national regulations as described in the City Deal Warm Welcome Talent. Work on this together with StartupDelta.

-Make an inventory of which interesting events for specific target groups exist or are missing-Draw up the acquisition strategy

IN Amsterdam, aib, Amsterdam Marketing, KvK, StartupDelta

IN Amsterdam, aib, StartupDelta

Amsterdam Conventions, Economic Board, MRA

Pillar 2. Focus on emerging technologies, and their potential consequences

We are witnessing a global technological revolution, also known as the fourth industrial revolution. Artificial intelligence (AI), machine learning, the Internet of Things (IoT), 3D printing, energy storage, and blockchain are all technologies that can shape the economy in the near future. It is becoming increasingly important to apply these new technologies to make products and services better, more efficient, and/or safer. In some cases, AI, machine learning, facial recognition and 3D printing are already proving highly visible. Others are developing at a less rapid pace, awaiting more tangible applications, such as blockchain.

Among startups located at certain clusters in Amsterdam, ecosystems develop around these technologies, for example around AI and Data Science at the Science Park, around VR/AR at the repurposed Navy Yard, and around blockchain throughout the entire city. AI and blockchain are young fields; therefore, talent is still limited. A strong ecosystem attracts specialist talent and ensures that university-trained talent does not go abroad. The ecosystems around new technologies transcend the individual sectors in the city, and the new programme will further stimulate this crossover collaboration. Through Startup Amsterdam, the municipality can play a leading role in connecting startups and scaleups with relevant players, such as universities, large companies, research institutions, and accelerators — especially in the field of AI.

In order to stay at the forefront internationally, Amsterdam companies, knowledge institutions, and the Municipality of Amsterdam must understand the trend of artificial intelligence and blockchain and offer support where necessary. It is important that growing companies have easy access to these technologies and use them, for example, by creating a community around such technology. Scaleups, fast-growing small and medium-sized companies, research institutes, and corporates all must make this a priority.

The government can set on its agenda a broad public debate among these communities about the opportunities and threats behind the technology. Although these technologies offer exceptional opportunities, they present a number of challenges. The long list includes the impact on employment (in the field of artificial intelligence), controversy surrounding privacy and freedom of speech, cybersecurity, identifying which potential restrictions should be placed on genetic technologies, increasing economic and social inequalities between the parties, and data sovereignty.

The government is the pre-eminent forum for placing ethical issues surrounding new technologies on the agenda and doing further research into specific issues. What are the consequences of these often disruptive technologies on the city’s residents and shopkeepers, for example? There is a need for a clearer ethical framework and normative standards to help organizations develop these powerful tools.

Artificial intelligence as an exampleThe municipality recently subsidised a portion of the Innovation Center for AI (ICAI) at Amsterdam Science Park. In return, at least 20% of the facilities at the ICAI have been set aside for innovative SMEs and startups. Amsterdam’s government views an exchange like this as an important stimulus for cooperation between universities, research institutions, and the business community. ICAI also houses so-called AI Labs, where mainly large companies collaborate specifically with academic researchers. Linking fast-growing companies with researchers and companies generates mutual benefits: the fast-growing company gains access to technology that can make its product or service better, and the researcher receives input from talented entrepreneurs to improve upon the technology.

Bringing forth AI expertise from both the research and business communities into one central location in the city also offers opportunities for the government. For example, it can set up a public AI Lab to allow researchers, companies, and the government to jointly investigate how they can solve problems that involve working with new technology from an audience point of view. The ethical and safety aspects of AI, the governance of AI, or data ownership are such public issues.

Pioneering ecosystems based around new technologies require a careful look at how and where government efforts are needed. Where exactly are the opportunities and the barriers to the growth of ecosystems built around a specific technology? Regardless of whatever they may be, we can apply a number of initiatives:

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Pillar 2. Emerging Technologies

2a) Identifiable impact

12-Study the opportunities and potential consequences of these technologies, and their influence on the city and residents

-Establish the Research Center Governance & Ethics Lab: AI for democracy and society. A place of research in which ethical and policy issues are examined and translated according to choice of directions and answers- Increase awareness for citizens by telling the story of certain technologies and sometimes negating the myth- Employing a neutral contact person for people, companies and SMEs with questions about (the use of) new technologies

CTO/CSO office, Universities

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13-A municipality that makes more use of new technologies

-Establish a municipal AI lab, in which artificial intelligence and blockchain are applied to the Amsterdam municipality’s challenges and services, with the aim of obtaining smart solutions for urban issues. New technologies have the potential to make the lives of Amsterdammers better and more efficient across various aspects. Examples: predictions about poverty and social security, traffic pressure forecasts, crowd management, cyber security, reports about safety and better services with a smart assistant, etc.Experts and tools are available in the lab for the benefit of municipal departments and issues.

CTO Office, Economic Board

2b) Create communities

14-Stimulate entrepreneurship around new technologies

-Creating awareness around new technologies: what can companies (startups, SMEs) do with it?-Stimulate crossovers between sectors by organizing meetings, hackathons etc. The Ethics Lab would be the perfect place for this

CTO/CSO office, Universities, Economic Board

15-Connect scientific and non-sci-entific parties (fast-growers)

-The municipality of Amsterdam has made a significant contribution to the UvA’s initiative to set up the Innovation Center for Artificial Intelligence (ICAI)-Matchmaking between fast-growers and corporates and between fast-growers and national funds

CTO/CSO office, Universities, Economic Board

17-Place more attention on education for AI and data analysis

-Determine the strategy with knowledge institutions at the table

Universities

16-Brand Amsterdam as an AI and blockchain hub

-Draw up a strategy for branding-Support, co-create and possibly acquire relevant events. Amsterdam Blockchain Week is an example of such an event

CTO/CSO office, Universities, Amsterdam Marketing

DESCRIPTION METHOD STAKEHOLDERS

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Pillar 3. Access to marketsOne of the biggest challenges for innovative companies in Amsterdam is how they can grow to reach international markets. Although they have global ambitions, it is often necessary to expand strategically, usually from city to city. A local ecosystem that is internationally well connected gives scaleups better opportunities for growth (faster, in more international markets). By connecting global ecosystems with Amsterdam and giving entrepreneurs the opportunity to join municipal networks, we can contribute to the growth of scaleups in other markets.

Conversely, for years Amsterdam has been popular as a place of business for fast-growing international companies. amsterdam inbusiness helps these companies find their footing. The question is whether we want to distinguish which scaleups the municipality chooses to facilitate or not, and if we might not need to make acquisitions in a more targeted way to close gaps in the ecosystem.

Additionally, we can support and start initiatives that contribute to increasing CEOs and founders’ knowledge on internationalization.

Amsterdam Trade and InnovateAmsterdam Trade and Innovate will be responsible for a part of this pillar’s implementation, namely by assisting with internationalization. Designated for this purpose are so-called Trade Developers. These take the lead in activities within the cluster of companies with which they are aligned (Smart Cities, Tech, Health and Life Sciences, and Creative Industry) and organize domestic and international activities to support promising companies in their internationalization. The Trade Developers always organize these activities together with other parties (co-creation). They are closely connected to the companies within the clusters. Within this role, they investigate what companies need, and together with these companies they develop activities aimed at internationalization. An important part of the job will consist of organizing programmes around the international trade missions made by the Mayor and Aldermen of Amsterdam. The plan for Trade and Innovate is included in Appendix 2.

Startup City Alliance Europe (SCALE)SCALE is a network of 20 European cities that collaborate to grow their local ecosystems as well as work on a European ecosystem for fast-growing companies by sharing their networks (“Peers”) and learnings (“Experiences, insights and best practices”). SCALE cities (such as Berlin, Stockholm, Barcelona, Helsinki, and Paris) are represented by their public ecosystem builders, who work on strengthening their local startup ecosystems.

The goal of SCALE is to help startups grow quickly and scale globally and to ensure that cities offer them a strong ecosystem. Amsterdam is the founder of the SCALE network and will be its chair for the next two years.

Below is an overview of the projects and initiatives associated with this pillar:

19-Build entrepreneurial networks and connect entrepreneurs to existing international networks

-Trade Developers build networks and set up programmes in which entrepreneurs enter markets and work on business cases together-Link fast growers to (inter-)national networks, e.g. Smart City, SCALE, M-ODE, etc.-Connect scaleup founders to each other by setting up Founder Networks, possibly with Scaleup Mentorship Programmes targeted at supporting international expansion

Amsterdam Trade and Innovate/ aib, MRA municipalities

Pillar 3. Access to markets

3a) Help with internationalization

18-Organize international activities for companies that want to grow internationally

20-Connect similar city networks

-Let scaleups accompany the municipality’s trade and innovation missions and B&W foreign trips, and organize scaleup bootcamps (a short, intensive introductory programme in a foreign city) that are well-curated and focused on a specific topic-Support large companies that bring (potential) scaleups from their network on trade missions. Also initiate this type of trip ourselves.-Attend several big fairs/conferences annually (such as CES, SxSW, Smart City Expo World Congress) and thereby offer scaleups the opportunity to present themselves to a large audience

-The further development and rollout of the European SCALE network-Use the SCALE network to share knowledge and best practices regarding the local government’s role in the ecosystem-Set up and launch co-projects with SCALE cities aimed at connecting networks which fast growers can benefit from, such as a soft landing programme

Amsterdam Trade and Innovate / aib, MRA municipalities, RVO, StartupDelta, Ministry BZ and EZ

City governments from other SCALE cities

3b) Link international networks

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DESCRIPTION METHOD STAKEHOLDERS

Pillar 4. Stimulate network connectionsThe right connections and the right information are crucial for promising, innovative companies. It is in the interest of the city to support growing companies in scaling up their business. As a public party, the Municipality of Amsterdam wants to offer services that are not (yet) provided by the private sector. Several of these kinds of initiatives have been launched by Startup Amsterdam in recent years, which can continue in the new programme.

a) To provide information that is relevant, correct and impartial, and not commercial. For instance, the Startup Amsterdam portal, Event Calendar, Startup Map, social media channels, newsletter, printed means of communication (such as contributions to AMS magazine, books and flyers). In addition, we continue to host foreign delegations, give presentations during events and offer masterclasses at universities. Through a renewed branding strategy, we will keep positioning Amsterdam internationally as the hub for innovative, sustainable scaleups.

b) To connect with each other. This can be done in numerous ways. For example, through the startup and scaleup liaison (municipal point of contact for parties), which aims to connect parties from the ecosystem with each other (solicited or unsolicited), and Amsterdam’s role in the national initiative, StartupDelta.

c) To ensure sufficient quality content. Innovative entrepreneurs seek activities and events that give them (international) access to new insights and new networks. A rich startup and scaleup ecosystem offers top-notch events with the best speakers and easy access to experts and potential partners. Amsterdam should offer high-quality international programming around subjects that stimulate entrepreneurship and increase the knowledge and skills of entrepreneurs.

The Amsterdam Startup programming team will also be the point of contact in coming years for fast-growing companies, and will continue to make connections and stimulate interaction between parties. Possible initiatives are:

4a) Communication and branding

21-Provide relevant information for growing entrepreneurs

-Relaunch the website/portal and continue providing up-to-date relevant information-Develop and implement a new branding strategy

KvK, IN Amsterdam, Amsterdam Marketing, RVO, MRA

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Pillar 4. Network connections

4b) Connect stakeholders from the ecosystem

22-Connect promising startups and fast growers with parties that can be beneficial

-Assign the point of contact at EZ to provide follow-up for this group; a startup and scaleup liaison who will be closely attentive to their needs-Collaborate with the Corporate Partner Network of the Economic Board-Link fast growers with knowledge institutions, e.g. by active involvement on behalf of the municipality in running projects such as IXA Next (with UvA and VU), Ready to Scale and ScaleUpNation-Connect investors to startups by co-organizing Amsterdam Capital Week

Amsterdam Economic Board, aib, Amsterdam Trade and Innovate, universities, graduate schools

23-Connect ecosystems on a national level

-Active contribution to StartupDelta will continue until the end of 2019

StartupDelta, MRA municipalities

DESCRIPTION METHOD STAKEHOLDERS

4c) Attract and support events

24-Attract and support relevant events that strengthen the ecosystem

-Draft an event strategy-Link organizers of events that are relevant to the ecosystem with potential partners/sponsors

aib, Amsterdam Conventions, Amsterdam Economic Board

Pillar 5. Development of innovation districts

The final pillar aims to set up a strategy to:

a) Connect regional development in Amsterdam with the urgent spatial needs that the fast growth of startups and scaleups entail. In particular, there is a high demand from companies which grow rapidly in a very short period (for instance, because the company just received a financial boost from investors) in terms of employees.

b) Stimulate collaboration by clustering activities in an intelligent manner. Research (e.g. Van Agtmael and Bakker, 2016) shows that an innovation process can be set in motion by bringing together knowledge institutions, multinationals, and startups and scaleups. More value can be achieved if products and services are created through a method based on open collaboration, exchanging information and multidisciplinary initiatives.

c) Develop new sites for incubation and contemporary working environments that address the economic demands of today and the future. Startups and innovative companies look for mixed urban environments in which to settle. These are very dependent on the interaction between innovative ideas and the presence of diverse talent for further growth and development. Such needs demand very different work environments than the monofunctional office buildings of the past. To develop the knowledge parks of the future as described in the Coalition Agreement 2018, Amsterdam is working on the development of urban innovation districts through regional development and transformation. See: Space for the Economy of Tomorrow (2017, par: 4.2)

In “Koers 2025,” Amsterdam’s urban growth strategy, and in the economic elaboration thereof, “Space for the Economy of Tomorrow,” the city has designated a number of areas that can potentially accommodate rapid growth, but also where the clustering of businesses and the academic realm can happen.

- West Innovation Park/Riekerpolder/ Schinkelkwartier,- Amsterdam Sciencepark, - Marineterrein , - AMC-Amstel III, - VU-Kenniskwartier/Zuidas.

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woonwijken met innovatie-functie

innovation districts

Additionally, the arrival of the European Medicines Agency (EMA) will create great opportunities for the strengthening and growth of the Life Sciences and Health cluster in Amsterdam. Regional development is planned for the coming years, or has already begun, in all of these areas.

The task of regional development is to connect (potential) innovative areas with “anchor companies”: leading (knowledge) institutions such as companies, scaleups, incubators and accelerators. By exploring and developing opportunities in regional development together with these anchors, the realization of potential investment and business opportunities can be accelerated, and the potential of economic clusters - optimally utilized and strengthened. A unified strategy plays an essential role in attracting, retaining and cultivating talent; but also in improving the network of innovators.

Thanks to EMA’s arrival and the rapid pace of regional development around AMC-Amstel III, it seems the need for integrated innovative regional developments is high and this year is opportune to shape this further. In the initial phases of regional development, it is also important for other areas to benefit from the network, insight and ambition of innovative companies and knowledge institutions.

In addition, with the development of the Schinkelkwartier area, the Riekerpolder holds opportunities to include existing anchors, such as B.Amsterdam and the Van Leeuwenhoek, in the plans for regional development and to further develop the area’s programming out of their innovative needs.

Depending on the possibilities for regional development offered by the MarineTerrein area in the coming years, the developing innovative ecosystem and knowledge institutions such as the Amsterdam Institute for Advanced Metropolitan Solutions can collectively give real substance to the societal topics that the Marine-Terrein addresses in its programming.

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5a) Spatial needs pillars

5b) Regional development of innovation hotspots

25-Map out the spatial needs of fast-growing companies in Amsterdam

26-Give existing anchors a more central role in regional development of innovation districts

-Research in collaboration with UvA/HvA

-E.g. using a “co-creation approach,” an approach to develop the vision through discussions with stakeholders- Jointly draft economic programming with anchors for future regional development

Universities

Regional development projects: Schinkelkwartier, Amstel III, MarineTerrein

27-Seek opportunities on a regional level for additional synergy and clustering

-Create a joint audit for the development of a future innovative ecosystem-Research on a national level (in collaboration with StartupDelta) whether closer collaboration can be achieved among several innovation districts (such as Delft, Eindhoven, The Hague).

Regional development projects: Schinkelkwartier, Amstel III, Marineterrein,StartupDelta

Pillar 5. Innovation districts

DESCRIPTION METHOD STAKEHOLDERS

V. Procedures and roles

With the culmination of Startup Amsterdam 2015-2018, the role of the local government in strengthening the ecosystem has been renewed. Not by using top-down initiatives, and thereby possibly disrupting the market, but by taking entrepreneurs’ needs as the starting point. How the ecosystem functions has been closely monitored over the past four years. Where needed, connections have been made and initiatives launched or supported. The healthy functioning of an ecosystem depends on a government that listens well and identifies threats – one that is close to the entrepreneurs – and looks at what can be done to improve the situation. We have listened attentively to the stakeholders and, where needed, helped the growth of running initiatives or started new initiatives. This approach is currently being studied and copied by many other hubs in Europe.

Yet, we still have some way to go. Building a strong startup and scaleup ecosystem takes years. According to the American entrepreneur Brad Feld, author of the highly praised book Startup Communities, it takes at least 20 years. With this, the government’s role remains warranted. Based on the experiences gained through Startup Amsterdam, various roles for the local government have been identified in the startup and scaleup ecosystem:

1. Connector: the neutral fostering and mediating of interaction between different people, actors and clusters of the ecosystem.2. Ecosystem builder: if the ecosystem is missing something, the city can help its building as a partner in action-driven projects.3. Communicator: creating awareness and positioning Amsterdam as an innovation hub and entrepreneurial city – placing the entrepreneur at the centre.4. Service provider: (free of charge) services for the ecosystem’s benefit, no private services, not disruptive to the market.5. Data gatherer, researcher: data is needed in order to have a good view (and grasp) of the ecosystem. Gather relevant data, conduct research.6. Advocate: by talking to policymakers on a national and European level and representing the importance of fast growers.

These government roles will guide the design and implementation of the projects and initiatives of the new programme. The commitment will differ per role in terms of content, staffing and financial resources. For instance, the role of connector implies that this primarily requires providing personnel, while in the role of ecosystem builder, it will be necessary in some cases to set up or support a project with financial resources.

Over the past four years, Startup Amsterdam has gained much experience working closely with private actors from the startup ecosystem. The majority of the projects have

been established through a public-private partnership – almost always with the notion that, in time, the municipality will take a step back. This has been successful, and we want to apply the same procedure in the new programme.

Each project has a specific collaboration model; in principle, the following three steps are followed:

1. Determine which of the six municipal roles fit (see above);2. Determine goals, organize a budget, validate speculative ideas, and adjust them contingently with (potential) stakeholders at the table;3. If the approach has the right effect, upscale (production and autonomous growth).

Some of these projects are large, expensive, and will require a longer period for implementation. The speculative ideas will be validated per project and adjusted as needed. Startups and scaleups let the numbers speak. They begin small, with an experiment or test. Next, they adapt their approach and test again, and often do this several times. They only proceed to upscaling when it is certain that a relevant approach has an effect. This can mean that an initiative may not succeed. We have applied this way of thinking and working over the past four years, and we will continue to do the same in the coming period.

The ecosystem for fast growers is a coherent whole in which all the puzzle pieces must correspond. For this reason, we choose to work in parallel and at the same time get started with projects and initiatives. It is not necessarily important to be fast in this respect, but instead to be congruent, precise and effective. We will test the approach, budgets and effects of the selected initiatives, and afterwards implement a well-developed plan for acceleration.

Reporting and DataTo measure the effects of the projects and initiatives, we use data as much as possible. Recently, the municipal research department OIS and data provider Dealroom.co have already made a start through more effectively mapping the startups and fast growers, including SMEs. We will continue to concentrate on this aspect in the new programme. We want to closely monitor the numbers and employment opportunities, among other things. In addition, we will better chart the effects and results of each individual project.

We will keep the city council informed with an annual progress report about programme developments. We will offer a picture of what the current situation is per project and initiative, what the effects are thus far, and what the resources have been spent on.

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VI. Organization and budgeted costs

Startup Amsterdam 2015-2018 officially concludes at the end of 2018. Upon receiving approval from the council, we endeavour to launch the new programme on 1 February 2019. Each of the new programme’s five pillars has a small and pragmatic team that will validate and implement measures together with various stakeholders. Each pillar will also have a practised (serial) entrepreneur with experience in the growth of companies and a large network – a so-called “Scaleup Entrepreneur in Residence” – on the team part-time. A specific collaboration model with relevant stakeholders exists for each measure. Flexible, multi-stake-holders, problem solving, business model driven, cross-sectoral and transparent.

The costs for the Startup Amsterdam 2019-2022 action programme will be covered by the resources for economic structure and labour market reinforcement.

The budget is outlined below. We have calculated a budget per pillar. The actual costs may be different. A valuation will be determined during the start phase of the projects and initiatives, in order to account for the costs as investments (and the return on investment).

2019

100.000 100.000 80.000 80.000 360.00050.000 40.000 20.000 10.000 120.00080.000 80.000 50.000 40.000 250.00090.000 80.000 50.000 50.000 270.000

p.m.150.000

p.m.100.000

p.m.80.000

p.m.70.000

p.m.400.000

320.000 320.000 320.000 320.000 1.280.000100.000 100.000 80.000 80.000 360.000

150.000 150.000 100.000 100.000 500.000130.000 100.000 80.000 80.000 390.000100.000 100.000 100.000 100.000 400.000

40.000 20.000 20.000 20.000 100.00075.000 75.000 75.000 75.000 300.00050.000 50.000 50.000 50.000 200.000

1.435.000 1.315.000 1.105.000 1.075.000 4.930.000

20212020 2022 Total

Pillar 1. Talent and Diversity

2a. Chart consequences

4a. Communication and branding

1a. Female entrepreneurship

2b. Create communities

4b. Connect stakeholders from the ecosystem

1b. Awareness

Pillar 3. Access to markets

5b. Regional development of innovation hotspots

1c. Retraining and refresher courses

3a. Trade: help with internationalization

4c. Attract and/or support events

Unforeseen costs

1d. Attract and retain

3b. Link international networks

Pillar 5. Development of innovation districts

TOTAL

Pillar 2. Emerging technologies

Pillar 4. Network connections

5a. Spatial needs pillars

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Appendix 1:

Amsterdam in a selection of recent rankings

The WEF Global Competitiveness ReportThe World Economic Forum’s Global Competitiveness Report ranks countries based on the Global Competi-tiveness Index. The Netherlands ranked fourth out of the 137 countries included in the study.>> See WEF Global Competitiveness Report 2017–2018 Global Startup Ecosystem RankingNot only did the Startup Genome report name Amsterdam as a top 20 startup ecosystem, but the Dutch capital was also a top 10 ecosystem for local connectednesshttps://www.iamsterdam.com/en/business/news-and-insights/news/2018/amster-dam-solidifies-its-position-as-a-leading-startup-ecosystemReport: https://startupgenome.com/reports/2018/GSER-2018-v1.1.pdf Tech Cities Global RankingsIn the most recent edition of the Tech Cities Global Rankings, an annual survey compiled by global real estate services provider Savills, Amsterdam came in at fifth place out of 22 global cities.>> See Savills Tech Cities Global Rankings 2017 World Smart City AwardsAmsterdam won the World Smart City Award for the circular economy. The World Smart City Awards reward innovative projects, ideas and initiatives that stimulate sustainable urban development. In particular, this prize went to Amsterdam’s Circular Innovation Programme, a platform that accelerates the transition to a circular economy.>> See World Smart City Awards 2017 Hubspot’s ranking of European Cities:Amsterdam is the best city to work in tech in Europehttps://www.hubspot.com/european-tech-scene/cities?name=amsterdam

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Appendix 2:

Amsterdam Trade & Innovate: the strengthening of sustainable, innovative entrepreneurship in the Amsterdam Area through the advancement of internationalization in business.

“Amsterdam Trade connects entrepreneurs and innovations from the Amsterdam metropolitan region interna-tionally. We establish contacts between delegations from various countries and sectors with entrepreneurs from Amsterdam and the surrounding region. We also organize trade missions abroad, particularly to Asia, North America and Europe, and focus on the Creative, Agrifood, Smart City and e-Health sectors. In doing so, we open doors for entrepreneurs from the Amsterdam region and we accelerate the process of international collaboration.”Amsterdam Trade website

Why do we do what we do?The economy of the Amsterdam Area is in a period of upturn. It is expected that economic growth in 2018 and 2019 will be 3.7 and 3.2 percent, respectively. Global trade is experiencing moderate growth and is under pressure from rising protectionism and burgeoning trade wars. The effects of these trade disputes and Brexit will determine the outlook for 2019.

Trade For a small, open economy like that of the Amsterdam Area, international trade is of great importance for sustainable economic well-being. The advantages of international trade lie in higher productivity (through better utilization of comparative advantages), an increase in competition that drives prices down, and more opportunities to exploit economies of scale. An economy that is internationally connected is more diverse and more resilient in periods of economic downturn.

InnovateInternationalization is also essential for bringing innovation further. The Amsterdam Area is home to many innovative companies which develop new solutions for societal challenges. We need these companies and innovations to keep the region healthy, sustainable and liveable. The board recognizes the role of innovative companies in making the city more sustainable: the coalition agreement indicates that it should be used specifically for these entrepreneurs. Bringing innovative concepts further cannot be done exclusively at the local level. Companies that are active in marketing new concepts must compete and exchange knowledge at an international level in order to maintain and strengthen their position.

Box1: A look back at Amsterdam Trade 2015 - 2017

2014: First trade missions from Amsterdam to Vietnam and Beijing for SME entrepreneurs.2015: Amsterdam Trade starts to shape their international outgoing activities. We start with an offer-oriented approach by organizing matchmaking events linked to already planned trips of the City of Amsterdam. It turned out that finding and linking the right companies to business opportunities abroad is not an easy task.2016: Switch to a more demand-oriented approach. This resulted in a number of successful events at home and abroad.2017: introduction of a new Trade Development process. We therefore mainly follow the demand from SMEs.

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How we do what we do: Trade Development

The development of Amsterdam Trade over the last four years has afforded us two important roles: Driver: we make initiatives to internationally activate networks of companies.Connector: we ensure that companies have a good connection with various international activities by cooperating with other regional, national and international networks, programmes and projects. For this, we have appointed Trade Developers. Our Trade Developers (TDs) take the lead in activities within the cluster of companies they are associated with. They organize activities in the Netherlands and abroad to support companies in their internationalization. The TDs always organize these activities together with other parties (co-creation). They are closely involved with the clusters and are positioned among the companies. With this role they investigate what companies need, and together with these companies they develop activities aimed at internationalization. Sectors where we deploy our TDs are linked to societal tasks in the MRA. They touch upon themes that strengthen sustainability and innovation, and create jobs in the Amsterdam Area. The sectors must also conform with the economic structure and have a suitable degree of organization, so that the activities are realized through co-creation with the companies. This comprises four sectors thus far:

• Smart Cities• e-Health• Agrifood• Creative Industry

We work flexibly with regard to the topics: we can respond to opportunities that fall within the preconditions but outside the above topics. In this way, we are able to target a specific area: Southern Germany. Circular economy is also an overarching theme in which many entrepreneurs from our network are active (circular construction, fashion and food production). We have made an agreement with the Amsterdam programmes Startup Amsterdam and Amsterdam Impact that, from AT, we will augment or support the internationalization section. We will also seek contact with the activity that emerges from the Energy Transition programme of the city and region.

What do we do?

In recent years, the following activities have proven to be successful and provide added value for companies: - Building networks and setting up programmes in which groups of entrepreneurs enter markets and work on business cases together. Our active network currently consists of more than 500 companies. - Organizing international activities: trade and innovation missions; meetings/workshops in the Netherlands. More than 180 companies from the MRA took part in our activities in 2018. - Linking companies to their desired international and national networks; e.g. expansion of Amsterdam Smart City; Founders network for Smart City companies; and supporting M-ODE (network for young fashion designers). - Creating insight in supply and demand through research. In 2018, we investigated the health sector and made contact with 20 health companies that want to operate internationally.

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Box 2: Amsterdam as a forerunner for Electric Vehicles (EV)

Worldwide, Amsterdam is a leader in the field of electric transport. To improve the air quality in the city, ambitious programs have been set up to promote electric transport. Amsterdam has a strong ecosystem of innovative EV companies that offer solutions for worldwide demand (eg EV-Box, EV-Consult, New Motion, Fastned etc). In order to improve the air quality in the city, it is important that these companies establish connections with foreign parties in order to take their innovations to a higher level.

Alderman Dijksma went as keynote speaker to the Electric Vehicle Symposium in Japan in 2018 to put Amsterdam on the map as an EV city. The symposium provides opportunities to connect companies with foreign markets and innovations. Amsterdam Trade has linked a company mission to the visit, with a booth at the fair, company visits and matchmaking activities. Through the participation of innovative companies, Amsterdam could profile itself better; the presence of the alderman gave companies better access to important partners.

Regional and national embeddingThe activities we develop do not compete with other governments or private initiatives. Rather, we complement each other seamlessly. Companies that operate in relevant sectors and have international ambitions are welcome to join our activities. Conversely, companies we work closely with can also participate in the activities of other organizations and thereby achieve their international ambitions. That is why we cooperate on three levels:

Amsterdam Area: contentAmsterdam Trade has collaborated on content in recent years with many different parties in the Amsterdam Area. Among these are Amsterdam Marketing, which supports us in developing a marketing strategy; Startup Amsterdam, a natural partner when it comes to organizing boot camps for companies that start abroad; CTO office and the Amsterdam Economic Board, which work with many companies in the Amsterdam Area that are engaged in developing solutions for urban issues; and International Relations, which organizes travel for directors, for which we implement the trade components. Finally, we sought contact with C-creators and AYOP to investigate whether companies that are affiliated with this organization can participate in our network.

Amsterdam Area: governanceOver the past three years, Amsterdam Trade has been a collaboration between the Amsterdam inbusiness municipalities and the municipality of Zaanstad. For the municipality of Zaanstad, we offer support to the Trade Developer who specifically focuses on the Agrifood sector. Zaanstad is home to a specific cluster in the Agrifood field. Additionally, we work closely with the Utrecht region in relation to Germany. Together with Utrecht, we have appointed a Trade Developer in Germany.

NationwideWe are one of the leaders of the nationwide collaboration known as Trade & Innovate NL. Within this network, we cooperate with regional organizations: Utrecht Region, Innovation Quarter, Rotterdam Partners, Oost NV, Brainport and the BOM and RVO. We are in the lead within T & I NL when it comes to collaboration on Smart Cities, and have taken the initiative to develop a new marketing communication strategy.

AT after 2018: Amsterdam Trade & Innovate

Since both the trade of goods and services and the strengthening of the innovative capacity of companies are our most important goals, from now on we will use the name Amsterdam Trade & Innovate. The approach we have developed is ideal for dealing with societal issues and the programmes which address them. Through EZ Amsterdam we provide a core team in which the programme manager and support is organized, and work together with other programmes and organizations to support the Trade Developers.

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In addition to its core members, the team consists of the following Trade Developers: 3 x TD Smart Cities: Tech and LSH1 x TD Creative: fashion and digital design½ x TD for Germany, which together with Utrecht represents us in Southern Germany, where a major challenge is to better map our region.1 x TD via the region: this TD is engaged with activating regional companies internationally. We are flexible with regard to the utilization of TDs. If new topics arise in which internationalization plays an important role, we can then decide to deploy the TDs in turn. We can also collaborate with Trade Developers from clusters of companies or other organizations. This cooperation can take different forms, from fully embedded in the AT team, to a more casual collaboration. Examples are the C-creators organization in Haarlemmermeer, AYOP and the Energy Transition programme in Amsterdam.

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