The FDI angle:

• Creative industries is a catch-all term for activities like marketing, design, advertising, media and entertainment.
• Foreign direct investment (FDI) by creative companies is largely driven by the presence of talent and clients.
• Why does this matter? Amsterdam's burgeoning creative scene has drawn in foreign businesses when European creative investment is falling.

Amsterdam bucked the downward trend of foreign investments in the creative industries globally last year, as companies aim to tap into its strong talent pool and find an alternative European hub to London since the UK’s decision to leave the EU.

Some 20 creative industries projects were announced in Amsterdam between January and November 2023, up slightly from 18 projects in the whole of 2022 and a record yearly high for the city, according to the latest data from fDi Markets. This was counter to a 40% drop in creative industries FDI projects across Europe, including in major creative hubs like London, Paris, Berlin and Barcelona.

Creative industries is a catch-all term for a broad range of activities such as public relations, marketing, design, fashion, advertising, media and entertainment. Among the foreign creative companies to open a new office in the Dutch capital in 2023 was Superson, a Finnish marketing and communications agency.

Superson CEO Samppa Vilkuna says that Amsterdam’s pool of “hugely talented freelancers” and potential clients were major reasons for setting up the office. More than 200,000 people currently work in the creative industries in Amsterdam, according to the city’s promotional agency Amsterdam & Partners. 

“It feels like after Brexit, Amsterdam has gained a lot of power among the big brands and that has attracted many creatives to follow,” says Mr Vilkuna, adding that the city has a “culture of openness” that has made Superson feel welcome, unlike other European cities the company had assessed for the expansion.

More than 300 international creative companies have a presence in the Dutch capital, including French advertising giant Publicis, the European headquarters of US-based gaming giant Electronic Arts, and fashion houses like Tommy Hilfiger and Patagonia.

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Another new entrant to the Dutch capital during 2023 was Reddit, the US-based content creation platform, which opened a new regional sales hub in the city. 

“Amsterdam sits in the centre of the wider European market, serving as the headquarters for many thriving companies, and therefore host to a strong talent pool,” Reddit wrote in a statement back in April.

It is not just about existing talent in the city but its attractiveness to internationally mobile tech workers in the creative industries.  According to Relocate.me, which helps its users find developer and IT jobs abroad, the Netherlands was voted as the most desirable European country in 2023 for technology worker relocations. This is based on data for more than 100,000 registered users on the platform who voted for countries they want to move to for work.

“The Netherlands offers one of the best work visa practices for highly skilled workers compared with other European countries,” says Andrey Stetsenko, chief relocation officer of Relocate.me. 

The Dutch government offers a 30% exemption on income tax for highly skilled employed workers for the first 20 months after moving to the country. The reimbursement then falls to 20% in the next 20 months and 10% for the remaining 20 months. 

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London remained Europe’s largest destination for FDI in creative industries last year, with 47 projects attracted between January and November. But this follows years of declining project numbers from a peak of 96 projects in 2018, according to fDi Markets.

“Our creative industries still have significant challenges, including spiralling operational costs, Brexit bureaucracy and reductions in funding,” said London’s Mayor Sadiq Khan in a November 2023 statement.