Brainport Monitor EN

BRAINPORT MONITOR 2020 – SUMMARY – 13TH EDITION

Overall picture

Strong and resilient

Strong and resilient The 13th edition of the Brainport Monitor is a special edition, due to the Covid-19 pandemic. It includes many statistics that reflect on the pre-COVID-19 situation in Brainport Eindhoven. Statistics that show that Brainport Eindhoven holds a strong enough position to be confident about the future. This position and our focus on knowledge and innovation ensure that we as a region have sufficient resilience to emerge stronger from this crisis. The chosen strategy to focus on knowledge and innovation has proven time and again to be the right one. Allowing us to build on the key elements necessary to future-proof the region.

Overall picture Private R&D expenditure in Brainport Eindhoven rose to its highest level ever, € 2.4 bn. This is one fifth of the total private R&D expenditure in the Netherlands (22.8%).

Private R&D expenditure in Brainport Eindhoven amounted to 6.4% of the regional GDP. And public private R&D expenditure in North Brabant amounted to 3.0% of the province’s GDP. Making North Brabant the only province to achieve the national target of 2.5% of GDP set by the government. In addition, the regional economy grew for the seventh consecutive year in 2019, resulting in 1.1% growth for Brainport Eindhoven.

Due to the Covid-19 crisis, this growth turned into a contraction of between 6 to 8% in the second quarter of 2020. The national economy contracted by 9.3%.

In 2019, the number of companies in Brainport Eindhoven increased by 2,600 compared to 2018. More than one third of those companies (35.2%) was part of one of the nine top sectors, with the Creative Industry being the sector with the largest number of companies (12.7%). On a national scale, Brainport Eindhoven mainly stood out because of its large number of High-Tech Systems and Materials (HTSM) companies.

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

9.9% of the companies in the region were part of this top sector, compared to 7.8% nationwide. The region counted 8,775 exporting companies, of which 36.6% was part of one of the nine top sectors. On a national scale, this percentage amounted to 34.5%.

sector (34.2% compared to 2018). Today, almost one third of the vacancies in Brainport Eindhoven is available in the tech and IT sector. Despite Covid-19, the employment market in terms of tech and IT continued to be tight in the first half of 2020.

Those companies were jointly exporting a total amount of goods worth € 30 bn. The region was, with a share of 11.8%, the second largest region regarding the export of goods from the top sectors in the Netherlands. The largest part thereof was accounted for by the HTSM sector. In 2019, that sector exported a total amount of goods worth € 22.9 bn from the region. Being 76.3% of the total amount of goods exported from the region and amounting to 35.3% of the total amount of HTSM goods exported from the Netherlands.

In 2019, 32,085 students studied technology in Brainport Eindhoven. An increase of 2.9% compared to 2018. 9% of all tech students in the Netherlands was studying in Brainport Eindhoven. Of which 28% was attending secondary vocational education, 34% was attending higher vocational education and 38% was attending scientific education. These ratios have considerably changed the past decade. In 2009, 44% of the tech students graduated from secondary vocational education, 23% from higher vocational education and 33% from scientific education.

The labor market continued to be tight in 2019 and 2020, resulting in the fact that in 2019 the region had the lowest unemployment rate since 2003 (3.3%). In 2019, more than 411,000 people in Brainport Eindhoven were employed, which equals a gross employment rate of 72.5% - the highest rate since 2003. We especially saw an increase in the number of persons employed in the age of 15 to 25 (+2.4% percentage points). The proportion of low- (+1.3% percentage points) and medium-skilled persons (+1.2% percentage points) who were employed saw a higher increase than the number of highlyskilled persons employed (+0.4% percentage points). The increase in number of persons employed in the region was also reflected in the number of jobs. In 2019, 10,179 jobs were created in Brainport Eindhoven (+2.4%), resulting in a total number of 436,686 jobs. More than half of the new jobs (5,277 jobs) was created in the HTSM sector. Today, 11.6% of all jobs in the Dutch HTSM sector are located in Brainport Eindhoven.

In addition to the gross employment rate and the number of jobs, the number of vacancies also continued to increase in 2019. Regionally, the number of vacancies increased by 14,051 compared to 2018. Truly remarkable was the large increase of vacancies, and jobs, in the tech and IT

The number of people living and working in Brainport Eindhoven has continued to increase.

In 2018, 273,500 persons is living and working in Brainport Eindhoven. Meaning that almost three quarters (72.7%) of the people living in Brainport Eindhoven is also working in the region. It is also worth noting that the average sales price of owner-occupied residences in Brainport Eindhoven is higher than the average sales price in the province of Brabant and in the Netherlands as a whole. As a result, sales prices in Brainport Eindhoven have increased less rapidly the past decade than the national and regional sales prices. The sales prices in Brainport Eindhoven increased by 10.1% compared to 19.8% in Brabant and 29.3% in the Netherlands.

In addition to this summary, you can find a full report with more than 30 statistics on the Brainport website: www.brainporteindhoven.com/monitor

Overall picture in figures

Brainport Eindhoven Economic growth (2019)

1.1%

Private R&D expenditure (2017)

2.4 BN Share Brainport Eindhoven in the Netherlands Patent applications (2019)

Innovation, technology and entrepreneurship Gross Regional Product HTSM companies Total export value Private R&D expenditure Patent applications Talent Residents Tech students HTSM jobs International students International tech students Living and business climate Passengers Eindhoven Airport

3,757 Export HTSM (2019)

22.9 BN Jobs in HTSM sector (2019) 0%

10%

20%

30%

40%

50%

60%

72,868

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Innovation, technology and entrepreneurship “We see that these kinds of ecosystems, based on innovation and renewal, are an important pillar for future prosperity. An ecosystem that stimulates us to jointly innovate and that allows us to contribute to something extraordinary at a global scale, like we are doing here.�

Dutch Minister of Economic Affairs and Climate Policy Wiebes during his visit to ASML (GroeiCast 3, 2020)

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Innovation MORE THAN 6% OF THE GDP IN BRAINPORT EINDHOVEN IS SPENT ON R&D In 2017, the industry in Brainport Eindhoven spent more than €2.4 bn on research & development (R&D), an increase of €220 million (+10%) compared to 2016. The industry in the region was accountable for more than one fifth of the total private R&D expenditure in the Netherlands (23%). Private R&D expenditure in Brainport Eindhoven amounted to 6.4% of the GDP. That is well over the government’s (national) R&D target set, which stipulates that 2.5% of the GDP should be spent on public and private R&D. In 2019, ASML spent € 1,359 million on R&D, which was the highest R&D expenditure within the Brainport region. ASML is followed by Royal Philips, that spent €733 million on R&D (+4.4% compared to 2018). Five companies from Brainport Eindhoven were ranked in the top 10 companies with the most R&D expenditure: ASML, Philips, NXP (€204 m.), DAF (€165 m.) and VDL (€157 m.).

Top 10 private R&D expenditure (in million euros, per company, 2019) ASML Philips KPN Janssen pharmaceutical DSM NXP Semiconductors DAF VDL Groep Thales Nederland Rijk Zwaan €0

€ 200

€ 400

Four companies from Brainport Eindhoven were ranked in the top 8 of Dutch companies with the most patent applications. In 2019, Philips, Signify, NXP and ASML jointly submitted 2,889 patent applications. Amounting to 77% of the total patent applications submitted in North Brabant and to 42% of the total number of patent applications submitted in the Netherlands.

€ 1,000 € 1,200 € 1,400

Signify

Philips

1542

656

CNH Industrial

NXP

250

DSM

Airbus

343 ASML

340

Unilever

209

351

530 Brainport monitor 2020 - SUMMARY - 13TH EDITION

€ 800

Top 8 companies with the most patent applications in the Netherlands, 2019

BRAINPORT COMPANIES JOINTLY APPLY FOR APPROX. 2,900 PATENTS

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€ 600

Economic growth AFTER SEVEN CONSECUTIVE YEARS OF ECONOMIC GROWTH, THE ECONOMY CONTRACTED IN 2019 DUE TO COVID-19 In 2019, the economy grew for the seventh consecutive year, resulting in a growth of 1.1% for Brainport Eindhoven. The economy also continued to grow in the first quarter of 2020, but only by 0- 1%. On a national scale, the economy contracted by 0.2% in the first quarter of 2020. Due to the Covid-19 crisis, the regional growth turned into a contraction of 6-8% in the second quarter of 2020. On a national scale, the economy contracted by 9.3% in the second quarter.

The past ten years, the regional economy grew by an average of 2.4% per year compared to an average national growth of 1.0% per year. During that period, the economy in Amsterdam grew fastest (2.7%). In Utrecht, the economy grew by 1.3% and in Rotterdam by 0.7%. And in The Hague the economy contracted by 0.2% over the past ten years. In 2019, the region of Utrecht accounted for the most economic growth (4.7%). However, this growth was mainly caused by a municipal reorganization.

Economic growth (GRP volume changes) 10% 10% 8% 8% 6% 6% 4% 4%2% 2% 0% Q2 0% -2% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Q1 2020** 2020** 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019* -2% -4%

-6% -4% -8% -6% -10% -8% Brainport Eindhoven

The Netherlands

Economic growth

(the five regions with the largest economy) 5.0%

The overall economy is measured by the gross domestic product (GDP).

The growth (or contraction) of the economy is measured by the change in volume of the gross domestic product over a given period of time.

4.0% 3.0% 2.0% 1.0% 0.0% -1.0% Brainport Eindhoven

Amsterdam region 2019

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Utrecht region

Rotterdam region

2009-2019

The Hague region

Degree of sectoral specialization Degree of sectoral specialization Brainport Eindhoven (gross value added, 2017)

BRAINPORT IS HIGHLY SPECIALIZED IN TERMS OF INDUSTRY Brainport Eindhoven’s degree of specialization perfectly reflects the economic profile of the region. Compared to the Netherlands as a whole, Brainport Eindhoven has a high degree of specialization in terms of industry. A sector, which is relatively sensitive to cyclical trends. As a result, Brainport Eindhoven is also sensitive to cyclical trends. In addition, Brainport Eindhoven also has a high degree of specialization in terms of (specialist) business services. The 202% therefore means that Brainport Eindhoven has twice the regional average level of industrial companies and is therefore heavily relying on the industrial sector.

Industry Specialist business services Rental and other business services Agriculture, forestry and fishing industry Real estate rental and trade Education Trade

The degree of specialization indicates whether a sector in a region has a higher or lower average gross value added compared to another region. The regional share of gross value added of a sector is compared to the national share of gross value added of that same sector. If the regional share of gross value added of a sector equals its national share, the degree of specialization is 1 (100%). In case the regional share is lower than the national share, the degree of specialization is lower than 1 (under-representation) and if the regional share is higher, the degree of specialization is more than 1 (over-representation).

Construction industry Information and communication Health and care sector Other services Culture, sports and recreation Financial services Hospitality industry Public administration and public services Transportation and storage Households Mining industry

0%

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

50%

100%

150%

200%

250%

Number of companies & startups MORE THAN ONE THIRD OF THE COMPANIES IN BRAINPORT EINDHOVEN ARE PART OF A TOP SECTOR In 2019, 73,600 companies were located in Brainport Eindhoven, almost 2,600 more than in 2018. More than 35% thereof, equaling 27,000 companies, were part of one of the nine top sectors. On a national scale, this was 39%. With 9,400 companies, the Creative Industry constituted the largest group in the region (13%) and nationwide (15%). The top sector HTSM showed the largest difference in terms of regional and national companies. Regionally, more than 7,300 companies (10%) were part of this top sector, whereas the national share amounted to a little less than 8%.

Companies top sectors (in proportion to the total number of companies, 2019) Creative Industry HTSM Agri & Food Logistics Life Science & Health Chemical Industry Energy Horticulture Water 0%

ESPECIALLY MORE STARTERS IN CREATIVE, AGRI & FOOD AND LOGISTICS SECTOR In 2019, 8,635 startups were located in Brainport Eindhoven. Of which one third (32%) was part of one of the nine top sectors. On a national scale, this was 31%. In 2019, 1,069 startups in Brainport Eindhoven were part of the Creative Industry, 610 were part of the Agri & Food sector and 526 of the HTSM sector.

Equaling a share of respectively 12%, 7% and 7% of the total number of regional startups. On a national scale, the top 3 is similar: Creative Industry (12%), Agri & Food (7%) and HTSM (6%). Compared to the Netherlands, Brainport Eindhoven has more startups in the Agri & Food and HTSM sector.

2%

4%

6%

Brainport Eindhoven

8%

10%

12%

14%

16%

The Netherlands

Starters per top sector (in proportion to the total number of starters, 2019) Creative Industry Agri & Food HTSM Logistics Water Horticulture Life Science & Health Energy Chemical Industry 0%

2%

4%

6%

Brainport Eindhoven

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

8%

10%

12%

The Netherlands

14%

16%

18%

International trade BRAINPORT EINDHOVEN HAD HIGHER SHARE OF EXPORTING COMPANIES In 2019, 8,775 exporting companies were located in Brainport Eindhoven, an increase of 5.7% compared to 2018. 6% of the exporting companies in the Netherlands is located in Brainport Eindhoven. The region is accountable for 12% of the total number of exporting companies. This is more than the national average (9%).

Exporting companies (in proportion to the total number of companies) 14% 12% 10% 8%

HTSM SECTOR RESPONSIBLE FOR HIGHEST SHARE OF EXPORT FROM BRAINPORT In 2019, the top sectors in Brainport Eindhoven were exporting a total amount of goods worth €30. On a national scale, the total amount of goods exported amounted to €255 bn. With a share of 12%, the Eindhoven region is, after Rotterdam, exporting the highest number of goods from top sectors. Of those top sectors in Brainport Eindhoven, HTSM was responsible for the highest share of export, exporting a total amount of goods worth €22,9 bn in 2019. This is 76.3% of the total amount of goods exported from the region and is 35.3% of the total amount of HTSM goods exported from the Netherlands.

6% 4% 2% 0% 2009

2010

2011

2012

2013

2014

Brainport Eindhoven

2015

2016

2017

2018

2019

The Netherlands

Total export per top sector in Brainport Eindhoven (in million euros, 2019) € 25,000

€ 22,931

€ 20,000 € 15,000 € 10,000 € 5,000

€ 2,722

€ 507

€ 477

€ 443

€ 47

Energy

Chemical Industry

Creative Industry

€0 HTSM

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Agri & Food Logistics

Talent: Constitutes the fuel for our technological motor “We don’t have to protect jobs. We have to protect people.”

Yuval Noah Harari op World Economic Forum Annual Meeting, Davos 2020

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Labor force GROSS EMPLOYMENT RATE INCREASED IN BRAINPORT EINDHOVEN In 2019, the number of persons employed in Brainport Eindhoven amounted to 411,000 persons and the number of unemployed amounted to 14,000. This is a gross employment rate of 73%, given that the working-age population in Brainport Eindhoven amounted to 586,000 persons. Constituting the highest increase in 10 years. Especially the number of employed persons in the age of 15 to 25 years has increased (+2.4% percentage points). The gross employment rate of low-skilled (+1.3% percentage points) and medium-skilled persons (+1.2% percentage points) has increased more than the gross employment rate of highly-skilled persons (+0.4% percentage points).

The unemployment rate decreased for the fifth consecutive year. However, the sharp decline that started in 2015 is levelling out. In 2019, the number of unemployed persons in the region decreased by 1,000 compared to 2018, resulting in an unemployment rate of 3.3%. On a national scale, the unemployment rate was 3.4%. Of the 14,000 unemployed persons in the region, 5,000 were low skilled (5.5% of the low-skilled labor force), 6,000 were medium skilled (3.1% of the mediumskilled labor force) and 3,000 were highly skilled (2.2% of the highly-skilled labor force). The unemployment rates of the low-skilled (5.8%) and medium-skilled (3.3%) persons in the region were lower compared to the national unemployment rates.

The unemployment rate regarding the highly-skilled persons in the region was equal to the unemployment rate of the highly-skilled in the Netherlands as a whole (2.2%).

Gross employment rate (in million euros, per company, 2019) 110% 108% 106% 104% 102% 100% 98% 96% 94%

2009

2010

2011

2012

2013

2014

Brainport Eindhoven

Unemployment rate (2019)

2015

2016

2017

2018

The Netherlands

Unemployment rate (Brainport Eindhoven, 2019)

3.3% 3.3%

2.2% 2.2%

Brainport Brainport Eindhoven Eindhoven

Highly-skilled Highly-skilled persons persons

3.4% 3.4%

3.1% 3.1%

The Netherlands The Netherlands

Medium-skilled Medium-skilled persons persons

5.5% 5.5% 11 |

Brainport monitor 2020 - SUMMARY - 13TH EDITION

2019

Low-skilled Low-skilled persons persons

Jobs THE TOP SECTOR HTSM IS RESPONSIBLE FOR HALF OF THE TOTAL EMPLOYMENT GROWTH IN BRAINPORT EINDHOVEN In 2019, the number of jobs in Brainport Eindhoven increased by 10,179, resulting in a total of 436,686 jobs. More than half of those 10,179 additional jobs (being 5,277 jobs) was created in the top sector HTSM. The number of jobs in the top sector HTSM grew by almost 8% compared to 2018, resulting in 72,868 HTSM jobs in Brainport Eindhoven. On a national scale, the number of jobs in the HTSM sector increased by almost 4%. In 2019, 12% of all jobs in the HTSM sector in the Netherlands were located in Brainport Eindhoven.

EMPLOYMENT GROWTH IN CREATIVE INDUSTRY SOME WHAT LEVELLING OUT, BUT CONTINUES TO INCREASE

Jobs HTSM (2009 = 100) 150% 140% 130% 120% 110% 100% 90% 2009 2010 2011

2012

2013

2014

2015

Brainport Eindhoven

In 2019, the number of jobs in the Creative Industry in Brainport Eindhoven increased by 301. An increase of almost 3%, resulting in a total of 12,043 jobs. The number of jobs in the Creative Industry in the Netherlands increased by 5% to 300,439 jobs.

In 2019, 4% of all jobs in the top sector Creative Industry in the Netherlands was located in Brainport Eindhoven.

2016 2017

2018 2019

The Netherlands

Jobs Creative Industry (2009 = 100) 150% 140% 130% 120% 110% 100% 90% 2009 2010 2011

2012

2013

2014

Brainport Eindhoven

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

2015

2016 2017 The Netherlands

2018 2019

Vacancies

Available vacancies (2013=100)

ALMOST 30% OF VACANCIES AVAILABLE IN THE TECH AND IT SECTOR In 2019, the number of vacancies available in Brainport Eindhoven increased by more than 14,000 compared to 2018. An increase of 26%, which is much higher than the national increase of 6%. In 2019, a total of more than 68,000 vacancies in the region were posted online. Especially the number of tech and IT vacancies in the region increased rapidly. In 2019, more than 20,000 vacancies were available in the tech and IT sector, equaling 30% of all vacancies in Brainport Eindhoven. Compared to 23% in 2013. Those ratios are different on a national scale. In 2013, 24% of the vacancies in the Netherlands was available in the tech and IT sector, compared to 20% in 2019.

400% 350% 300% 250% 200% 150% 100% 2013

2014

2015

2016

The Netherlands

Share tech and IT vacancies of total number of vacancies (2009 = 100) Brainport Eindhoven

The Netherlands

2017

2018

2019

Brainport Eindhoven

Available tech and IT vacancies (2013=100) 400% 350%

20%

30%

300% 250%

70%

200%

80%

150% 100%

Tech en IT

Other

2013

2014

2015

The Netherlands

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

2016

2017

2018

2019

Brainport Eindhoven

Tech education CLEAR SHIFT IN EDUCATIONAL LEVEL TECH STUDENTS OVER PAST DECADE In 2019, 32,085 students studied technology in Brainport Eindhoven. This is an increase of 2.9% compared to 2018. 9% of all tech student in the Netherlands studied in Brainport Eindhoven. And of all tech students in the region, 28% were attending intermediate vocational education, 34% were attending higher vocational education and 38% were attending scientific education. These ratios have considerably changed the past decade. In 2009, 44% of the tech students were attending intermediate vocational education, 23% were attending higher vocational education and 33% were attending scientific education.

ONE THIRD OF THE GIRLS AND HALF OF THE BOYS CHOSE SCIENCE AND TECHNOLOGY AT SECONDARY SCHOOL In 2019, 39% of the 8,232 girls following secondary education in Brainport Eindhoven chose science and technology. Of those 3,201 girls, 58% were attending preparatory scientific education (in Dutch vwo), 35% were attending higher general secondary education (in Dutch havo) and 7% were attending intermediate preparatory vocational education (in Dutch vmbo). With respect to boys, 50% chose science and technology. 39% of the 3,983 boys were attending preparatory scientific education, 29% were attending higher general secondary education and 32% were attending intermediate preparatory vocational education.

Tech students (number of tech students in Brainport Eindhoven, per educational level) 12,000 10,000

Girls

8,000

Boys

7%

6,000

2,000

32%

39%

4,000

35% 57%

0 2009

2010

2011

2012

2013

2014

Intermediate education Intermediatevocational vocational education Scientific education Scientific education

2015

29%

2016

2017

2018

Higher vocational education Higher vocational education

Tech pupils (In proportion to the total number of girls/boys following science and technology, 2019) Girls

Boys

7% 32%

39% 35% 57% 29%

Intermediate vocational education Scientific education

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

2019

Higher vocational education

International students International students (North Brabant, 2019)

NUMBER OF INTERNATIONAL STUDENTS DOUBLED IN 10 YEARS’ TIME 14,000

In 2019, the province of North Brabant counted 11,779 international students.

An increase of more than 11% compared to 2018. 9,218 of these students were doing a bachelor and 2,561 were doing a masters.

12,000 10,000 8,000

In 2019, the province of North Brabant counted 3,667 international tech students. Equaling 24% of all international tech students in the Netherlands.

The majority of international students came from Germany, just like in previous years. In 2019, 3,321 German students were studying in North Brabant, of which 405 students were studying technology. As in 2018, the largest group of international tech students studying in North Brabant was coming from Bulgaria in 2019. 538 of these Bulgarian students were studying technology, equaling 45% of the total number of Bulgarian students. In the top 8 countries of origin, the highest number of tech students came from India, 75% (331 students). The number of tech students from China (49%) and Romania (49%) was also quite high.

6,000 4,000 2,000 0 2009

2010

2011

2012

2013 Bachelor

2014

2015

2016

2017

2018

2019

Master

Top 8 countries of origin (North Brabant, 2019)

Germany

3,321 students 12% tech students

Germany

3,321 students 12% tech students

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Bulgaria

1,188 students 45% tech students

Romania

675 students 49% tech students

Italy

504 students 28% tech students

India

440 students 75% tech students

Bulgaria

1,188 students 45% tech students

China

432 students 49% tech students

Romania

675 students 49% tech students

Belgium

411 students 11% tech students

Italy

504 students 28% tech students

France

365 students 9% tech students

India

440 studen 75% tech stud

Living and business climate “Brainport holds a strong position in the ‘new economy’, which is based on knowledge, geographical location (agglomeration) and sustainability. With its excellent business climate and network position, it also highlights the importance of people and regions. However, this does present some new challenges.”

Otto Raspe, Head Rabo Research Netherlands Regions and Themes, 2020

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Incoming commuters DECREASE IN NUMBER OF COMMUTERS FROM LIMBURG In 2018, 64% of all employees in Brainport Eindhoven was also living in Brainport Eindhoven. Compared to 2017, the number of commuters from Limburg has decreased. Of the 33 municipalities in Limburg, 16 municipalities had less people commuting to Brainport Eindhoven compared to 2017. In 8 municipalities the number of commuters remained the same and the number of commuters increased in 9 municipalities. Many of the incoming commuters are coming from Tilburg (9,300).

Meierijstad (6,800), Den Bosch (6,100) and Weert (5,400). 58% of all Dutch municipalities have residents that are working in Brainport Eindhoven.

Incoming commuters (ratio employees in Brainport Eindhoven per residential area)

15.

1%

Living and working in Brainport Eindhoven Living outside of Brainport Eindhoven in Southeast Netherlands

20.6% 64.

3%

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Living outside Southeast Netherlands

Number of jobs - per residential area, 2016 5000

1000 0

Average sales price existing owner-occupied residences (2009 = 100)

Living 140%

120% 110% 100% 90% 80% 70% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Brainport Eindhoven

RENTAL PRICES IN BRAINPORT EINDHOVEN DECREASED IN FIRST HALF OF 2020

North Brabant

Brainport monitor 2020 - SUMMARY - 13TH EDITION

Q1/2 Q1/2

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Q3/4 Q3/4

2015 2016 2017 2015 2016 2017 North Brabant North Brabant

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€ 17.95 € 17.95 € 16.95 € 16.95 € 15.95 € 15.95 € 14.95 € 14.95 € 13.95 € 13.95 € 12.95 € 12.95 € 11.95 € 11.95 € 10.95 € 10.95 € 9.95 € 9.95 € 8.95 € 8.95

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Eindhoven, Helmond and Veldhoven Eindhoven, Helmond and Veldhoven

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the Netherlands

Average rental prices (per square meter per month)

Q1/2 Q1/2

In the first half of 2020, rental prices in Eindhoven, Helmond and Veldhoven decreased by an average of 3% compared to the last six months of 2019. This is the first decrease since Q3/4 of 2014. In North Brabant, Breda has the highest average rental price per square meter per month (€14.81). Followed by Eindhoven (€14.44), Den Bosch (€14.29), Tilburg (€13.24), Veldhoven (€13.15) and Helmond (€9.91). On a national scale, the average rental price was €16.73. In North Brabant, the average rental price per square meter per month is a little lower, namely €13.23.

Q3/4 Q3/4

The average sales price of existing owner-occupied residences in Brainport Eindhoven was €333,498. As a result, the sales price of residences in Brainport Eindhoven was on average more expensive than elsewhere in North Brabant (€310,254) and the Netherlands (€307,978). The past decade, sales prices in Brainport Eindhoven have increased less rapidly than in the rest of the country.

For example, sales prices in Brainport Eindhoven increased by 10%. On a national scale, sales prices increased by 29% and in Brabant as a whole, sales prices of existing owner-occupied residences increased by almost 20% in the past ten years.

130%

Q3/4 Q3/4

AVERAGE SALES PRICE OWNER-OCCUPIED RESIDENCES IN SOUTHEASTH BRABANT INCREASED LESS RAPIDLY THAN NATIONAL AND PROVINCIAL SALES PRICE

2018 2019 2020 2018 2019 2020 the Netherlands the Netherlands

Special: Corona “Many people will recognize the feeling that we have been in a rollercoaster these past weeks. A rollercoaster that seems to drive ever faster, because the measures taken here and elsewhere are unprecedented for a country in peacetime.�

Dutch Prime Minister Mark Rutte during TV speech, 16 March 2020

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Labor market IN THE FIRST HALF OF 2020, THE LABOR MARKET REMAINED TIGHT IN SOUTH EAST BRABANT The indicator for tension on the labor market equals the number of open vacancies divided by the number of persons that receive unemployment benefits and who have been unemployed for less than six months. The indictor is used to estimate the demand for and the readily available supply of employees. The outcome of the tension indicator can be any number between 0 and infinite. The higher the number, the higher the tension on the labor market that employers have to deal with. When the outcome is 0, the labor market is very loose. There are no available vacancies, but there is short-term unemployment. The labor market is very tight if the number of available vacancies is high compared to the number of short-term unemployed.

Development tension indicator labor market (Total of all professions – 4th quarter 2019)

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

Development tension indicator labor market (total of all professions – 1st quarter of 2020)

Development tension indicator labor market (Total of all professions – 2nd quarter 2020)

Economic growth IN A NUMBER OF REGIONS, THE ECONOMY CONTINUED TO GROW IN THE 1ST QUARTER OF 2020, BUT DUE TO THE COVID-19 CRISIS, THE ECONOMY CONTRACTED IN ALL REGIONS DURING THE 2ND QUARTER.

Economic growth (1st quarter 2020)

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

The municipality of Haarlemmermeer was hit the most severely, because it largely depends on the aviation sector and the associated services. The cities of Amsterdam, IJmond and Haarlem and the regions South Limburg and Central North Brabant were also hit by the economic crisis.

The contraction of the economy in these cities and regions was mainly caused by the hospitality and healthcare sector. Other sectors that had a

Economic growth (2nd quarter 2020)

substantial impact on the economic contraction in these regions were the travel agencies (Amsterdam and Haarlem), the cultural sector (Amsterdam), the industry (South Limburg and IJmond) and the temporary employment sector (Central North Brabant). In Brainport Eindhoven, the economy continued to grow between 0-1% in Q1 2020. In Q2 2020, the region saw a contraction of 6-8%.

NOW 1.0 scheme 6444 COMPANIES IN THE REGION MAKE USE OF NOW 1.0 SCHEME Since the NOW scheme was implemented on April 6, 139.399 companies in the Netherlands received a total amount of €7.9 billion. 4.3% of this amount (€343,081,307) was given to 6,444 companies in Brainport Eindhoven. The largest part of this amount was requested by companies in the municipalities of Eindhoven (45%), Helmond (14%) and Son en Breugel (6%).

The number of allocations strongly varies per region. This is mainly due to the fact that the headquarters of companies in the Netherlands are geographically clustered. The Amsterdam region received €1,753 million and companies in the Utrecht region and Rotterdam region received €643.5 and €485.6 million respectively.

The total amount advanced per employed person was highest in the Amsterdam region (€2,366), followed by Utrecht (€891) and Brainport Eindhoven (€835).

1000 > euro 800 - 1000 euro 600 - 800 euro 400 - 600 euro < 400 euro 22 |

Brainport monitor 2020 - SUMMARY - 13TH EDITION

Mobility LOCKDOWN (AND CARNIVAL) CLEARLY VISIBLE IN COMMUTER TRAFFIC In addition to a contraction of the economy, the Covid-19 pandemic and the associated measures also caused some changes in mobility.

Number of passengers (Eindhoven Airport) 700,000 600,000

This year, carnival took place during the final weekend of week 8 and the first few days of week 9. In week 9, travel fell by 22% compared to week 8. In week 10, special measures were taken in North Brabant to prevent the virus from spreading. And in week 11, the Dutch government called upon all citizens to work from home.

When the lockdown was at its ‘highest point’ in week 13, commuter traffic in North Brabant fell by 43%. In week 25, travel restrictions for many European countries were eased and in week 27, all camp sites and holiday parks were allowed open again.

500,000 400,000 300,000 200,000 100,000 0

January

February

March

IN JUNE 2020, LESS THAN ONE TENTH OF NUMBER OF AIRLINE PASSENGERS TRAVELED FROM EINDHOVEN In June 2020, 46,774 passengers traveled via Eindhoven Airport. A decrease of 93% compared to June 2019, amounting to 610,874 less passengers. In April, the number of passengers was lowest, namely 7,732. This is only 1% of the number of passengers that traveled via Eindhoven Airport in April 2019.

The number of flights decreased in April 2020 to 148. This is only 4% of the number of flights compared to April 2019. In June, the number of flights slightly increased to 565.

Still a decrease of 85% compared to June 2019.

2019

April

May

June

2020

Commuter traffic

tech IT vacancies (2013=100) (fromAvailable 15 February untiland 5 July 2020 – week = 100) 110%

400%

100%

350%

90%

300%

80%

250%

70% 60%

200% 150%

50%

100% 2013

2014

2015

Nederland The Netherlands

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Brainport monitor 2020 - SUMMARY - 13TH EDITION

2016

2017

2018

2019

Noord-Brabant Brainport Eindhoven

Colophon Editor Brainport Development NV Sources Arbeidsmarktinzicht.nl, CBS, European Patent Office, Google Mobiliteitsrapporten, KvK, LISA, Nuffic, Pararius.nl, Techniekpact, Technisch Weekblad, UWV Disclaimer In compiling this publication, we have used various sources and information provided by many different organizations. Brainport Development NV cannot warrant the adequacy and accuracy of the data, information or opinions presented in this publication, nor can it warrant the suitability thereof for any purpose, situation or application. Brainport Development NV shall therefore not be held liable for any damage, loss or other consequences arising from the use of the data, information or opinions presented in this publication.

Brainport Development NV Achtseweg Zuid 159H Postbus 2181 5600 CD Eindhoven 040 751 24 24 info@brainporteindhoven.nl www.brainporteindhoven.nl/monitor

No rights can be derived from the contents of this publication. Š Brainport Development NV, 2020