The Netherlands is losing its attraction as a hot spot for tech companies, including home-grown ones, the Parool reported on Friday.

Many big and medium-sized tech companies are already operating outside the Netherlands where they can profit from more advantageous tax deals, tech analyst Thomas Mensink of Golden Egg Check (GEC) told the paper.

The government is not stimulating tech, Mensink said and start-ups in particular are struggling to find Dutch tech investors because of high interest rates. Their share in tech investment has fallen from 61% to just 15%, he said.

Robert Vis, founder of message service Bird is the most recent to turns his back on the country, blaming “over-regulation and a bad climate for tech companies.”

“It’s a rat race to countries with a better climate,” professor of strategy and innovation Henk Volberda said. “The Netherlands is a knowledge-based economy. The economy depends on start-ups and big tech companies to remain competitive,” he said.

“The government accord mention the word “innovation” about 80 times while at the same time announcing cutbacks too universities, the Growth Fund and organisations such as Techleap. How that innovation is going to happen is anyone’s guess,” he said.

Remuneration is another hurdle, Volberada said. “The Netherlands tightened the rules for bonuses and options following the credit crisis because of excesses in the banking world. But it’s putting the Netherlands behind countries with more tax friendly bonus rules,” he said.

Earlier this month sector association Techleap said in its latest report growth in the Dutch tech sector has stalled, and there is an “alarming decline” in the number of startups