Business investment in R&D in Denmark stagnating

Sweden and Finland have similar issues as Germany shows the way

Christian Wenande

Sep 17, 2015

Despite clear signs that Denmark has stepped out of the quagmire of the financial crisis, there is little to indicate that Danish companies are stepping up their research and development (R&D) investment.

A new report from the research and innovation authority Styrelsen for Forskning og Innovation showed that the Danish business sector is expected to invest the equivalent of 2 percent of the national Gross Domestic Product (GDP) into R&D. The figure has remained the same since 2007, the year the financial crisis began in earnest.

“R&D is a very important factor for the business sector developing new products and services and for Denmark to continue being a competitive society brimful with growth and high employment,” said the education and research minister, Esben Lunde Larsen.

“The report unveils why the companies are reserved when it comes to investing in R&D, and I want to have a dialogue with the sector so I can find out what I can do to encourage more investment.”

READ MORE: Danish Research: Diabetes more common among the unemployed

German role models
Despite the apparent investment stagnation regarding its own research, Denmark has remained in the top six or seven OECD nations for a number of years.

But while Danish business investment into R&D has remained static, similar investment in fellow EU nations such as Germany and Austria is on the rise.

Meanwhile, Sweden and Finland are experiencing the same problem as Denmark.

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