## Sustaining High-Tech Leadership in a Fragmenting World

_Selected Issues Papers, August 7, 2026_

## Source details

**Canonical URL:** [Sustaining High-Tech Leadership in a Fragmenting World](https://www.imf.org/en/publications/selected-issues-papers/issues/2026/08/07/sustaining-high-tech-leadership-in-a-fragmenting-world-578675)

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## Bibliographic details
- Authors: Nina Budina, Karen Coulibaly, Shinya Kotera, Santiago G Previde, Iglika Vassileva
- Published: August 7, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229055468.018

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### Summary
- The high-tech sector in the Netherlands is an important source of growth, supported by innovation-driven ecosystems, globally competitive firms, and deep integration into global value chains (GVCs).
- Openness exposes the sector—especially high-tech manufacturing—to concentrated value-chain supply and demand shocks.
- Domestic bottlenecks in labor, grid capacity, permitting, and some aspects of scale-up finance weigh on the sector’s growth.
- Sustaining high-tech leadership will require easing domestic bottlenecks, leveraging deeper EU integration to support scaling, and strengthening resilience.

### Key findings
- High-tech sector is a major growth engine due to innovation-driven ecosystems and globally competitive firms.
- Deep integration into global value chains increases exposure to concentrated supply and demand shocks, with high-tech manufacturing particularly vulnerable.
- Domestic constraints identified as binding on growth:
  - Labor shortages and skills bottlenecks.
  - Grid capacity limitations.
  - Permitting delays.
  - Shortcomings in aspects of scale-up finance.

### Policy recommendations
- Ease domestic bottlenecks:
  - Address labor-market and skills constraints to support sector expansion.
  - Upgrade grid capacity and streamline permitting processes to remove infrastructure and regulatory barriers.
  - Improve access to scale-up finance addressing identified shortcomings.
- Leverage deeper EU integration:
  - Use EU-level integration to support firm scaling and market access.
- Strengthen resilience:
  - Reduce vulnerability to concentrated value-chain supply and demand shocks through diversification and other resilience-building measures.

### Subjects and keywords
- Subjects: Economic sectors, Exports, Global value chains, Globalization, International trade, Manufacturing
- Keywords: economic growth, Europe, Exports, Global, Global value chains, high-tech leadership, High-tech sector, IMF country, IMF staff, industrial policy, innovation, issues paper, Manufacturing, supply chain vulnerabilities

*Source: "Sustaining High-Tech Leadership in a Fragmenting World" by Nina Budina, Karen Coulibaly, Shinya Kotera, Santiago G Previde, Iglika Vassileva, August 7, 2026 — https://www.imf.org/en/publications/selected-issues-papers/issues/2026/08/07/sustaining-high-tech-leadership-in-a-fragmenting-world-578675*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/08/07/sustaining-high-tech-leadership-in-a-fragmenting-world-578675_