myrrdin-inc.com/2022/01/04/subsidy-programs-for-digital-technologies

The Dutch government offers various types of support for entrepreneurs, ranging from financial assistance to making life easier. If your idea is in line with the requirements of one of the subsidy programs, you can apply for a grant from the Netherlands Enterprise Agency (RVO).

Subsidies are basically government support of certain industries or businesses that might not be profitable without this support. Subsidies typically are provided to help struggling industries, promote new developments, or promote particular policies or social goods. They can be economically successful but they will be costly to other groups (for example food subsidies help farmers, but increases prices for consumers), they may also fail economically, but achieve objectives in terms of culture and political.

Government-provided subsidies can come in a variety of forms, including grants tax breaks, rebates and direct cash payments to suppliers or customers and price control. They can also be indirect, for instance, road taxes that are paid by all motorists rather than just those who use the roads or railway track access charges that are not only imposed for passenger trains.

Subsidy advocates argue that they can improve the effectiveness of an economy by protecting it from competition from outside or by encouraging local production. They also can help combat the effects of market failures, like externalities and information asymmetries. The opposition claims that these policies can have negative consequences ranging from inequality to corruption, and that they crowd-out more efficient and equitable spending by the government. They also create negative incentives. A company that is receiving a government subsidy may be tempted to make a donation to politicians. This can lead to “regulatory capture” and rent-seeking.