danish national system of innovation, 2008 danish national system of innovation i/ the context ii/...

Danish National System of Innovation, 2008

Danish National System of Innovation

I/ The context

II/ The stake-holders

III/ The science and technology public choices


What is the context?


Country specificities

Denmark is located in Northern Europe between the

North Sea and the Baltic. 43 square kilometers Population : 5,5 million Capital : Copenhagen (1,2 m hab) Language : Danish Religion : Protestant


Country specificities

Denmark has never been a major colonial power, but it had small tropical colonies in Africa, Asia and the West Indies. Denmark was the first country in Europe to prohibit slave trading in 1793.

Both agriculture and industry are highly effective. Agriculture and fisheries employ only 3.7%, and industry and construction 23% of the population. The remaining 73% are employed in the service sector, 35% in public and personal services and 38% in private business, including financial activities and the traditional shipping trade.


Cultural features might impact on technological innovation

The form of government is a parliamentary democracy with a royal

head of state. The system of production is capitalist (economic

liberalism) with private ownership of businesses and production. The

state and other public authorities, however, exercise a considerable

regulatory control and provide comprehensive services for the citizens.


R&D expenditures

Each regions is responsible for the development of regional trade and industry, including innovation. Infrastructure, the educational system, business service, research parks and technology incubators will be a shared responsibility on the regional and national level.

Measured by R&D expenditures the capital region has attracted the main share of public and private R&D: altogether about 65% of the national R&D expenditure was concentrated there – adding up public R&D expenditure and business enterprise R&D expenditure – in 2006.

The total governmental R&D expenditures amount to €1.878b in 2007.


Private / Public share for funding

In 2005 Danish industry invested 1.67% of GDP in R&D expenditures. The R&D performed of Danish industry is to a substantial degreefunded by industry itself (86%), but also to a certain extent by foreignindustry. Public sources (national & EU funding) play a minor role in R&Dexpenditure in industry. The business enterprise sector keeps fundingfor R&D almost entirely in the own sector (98.6%). The R&Dexpenditure of the public sector to a very limited degree fund industrialR&D.

The total flow of funding used for R&D activities includes more than theR&D activities of industry and the public sector institutions.


Private / Public share for funding


Advisory and Funding System for Research and Innovation The Danish Council for Research Policy (DCRP), which provides

research policy advice to the Minister of Science, Technology and Innovation, the Danish Parliament and the Danish government.

The Danish Councils for Independent Research (DCIR), which funds research activities based on researchers' own initiatives and provides scientific advice within all research areas.

The Danish Council for Strategic Research (DCSR), which funds politically prioritized as well as thematically defined research activities and provides scientific advice within these defined research areas.

The Danish Research Coordination Committee (DRCC), which ensures coherence between all government research funding, whether allocated to institutions or under the auspices of foundations.

The Danish Agency for Science, Technology and Innovation (DASTI) functions as secretariat to these and other councils. For further information about the Councils, please visit the Danish Agency for Science, Technology and Innovation.


Magnitude of technology imports

In line with the Danish government's globalization strategy and as a joint initiative between the Danish Ministry of Science, Technology and Innovation and the Danish Ministry of Foreign Affairs, an Innovation Center Denmark has been opened in Silicon Valley, California and another one in Shanghai, China. In January 2008, a third Innovation Center Denmark is planned to open in Munich, Germany.

The primary purpose of the Innovation Centers is to strengthen research and innovation performed by Danish research institutions and companies by facilitating their access to foreign networks, knowledge, technology, capital and markets.


Who are the stake-holders?


The main private techno sectors

5 five key sectors:

- Life sciences: 30% of the country patent activity, Medicon Valley which is the major center for biotechnological or pharmaceutical activities in Northern Europe.

- Nanotechnologies: first European mover and investor in this field. Many projects originating in physic and chemistry laboratories of universities and sector research institutions, such as the national research centre for advanced micro technologies at DTU, the Nano-Science Centre, at Copenhagen University, and the Interdisciplinary Nanoscience Centre at the University of Aarhus, coupled with a cluster of companies related primarily to the optical of health area.


Key sectors:

- ICT (particularly wireless and photonics): natural ability to make technology and content blend seamlessly together.

- Sustainable energy (hydrogen and wind energy): world leader in wind energy industry, 40 per cent share of the world market, plays a central role in the development of the wind energy industry. Strong research activities in future technologies such as hydrogen and fuel cell, with leading edge research programs at Risø and the Danish Technical University (DTU)

- Food research (functional and organic food): the world's most-advanced food processing sectors, consumer preferences for healthier and higher-quality food progressively transform the food market

The main private techno sectors


National champion firms

Field Company names

FoodAarhus Oliefabrik A/S, Arla Foods amba, Bryggerigruppen,

Carlsberg a/sBanking Bikuben Girobank AS, Den Danske Bank, Jyske Bank

Chemicals Borealis A/S, Cheminova AS, Novo Nordisk A/S,Electronics Bang & Olufsen Holding a/s,

Energy and water DONG, EV3, Greentech Energy SystemsMedia TDC A/S

Pharmaceutical Chr. Hansen, H. Lundbeck A/S, Leo Pharmaceutical ProductsTransport AP Moller Maersk, DSB, Scandlines,

Telecommunications Mobilix


The degree of concentration

Concentration in Denmark is not so high as most part of companies are small and medium companies. Even if each sector is lead by some major companies, they still allow market shares to numerous of companies.

Example of banking sector:


Firm innovation according to their size

Product innovation intensity by group size

Evidence from innovation surveys in Denmark shows clearly that small firms tend to be relatively more innovative than large firms if calculated as the number of products per employee.


Proportion of firms undertaking innovation by sector


Patent activity in Denmark Denmark's global patent activity is growing far faster than in the rest

of the EU, and more patents are being generated in relation to money invested in R&D than in other EU lands.


Danish companies tripled the number of patents generated annually over the last 12 years

Patent activity was particularly strong in the knowledge-intensive areas such as the medico and electronics industries

It has the effect that Danish companies are quicker than most to adjust to global competition demands

Patent activity in Denmark


Main institutional actors

Universities and government labs: Copenhagen Business School, Aalborg University, Technical

University of Denmark The Foundation for Danish Science Riso National Laboratory

The Government Research Institutions The Danish Institute for Studies in Research and Research Policy Statens Serum Institute National Environmental Danish National Institute of Social Research

Financial Institutions: The Danish Investment Fund Dansk Bank


Relations between public and private technological sectors

The Danish innovation relies mainly on small and medium company and it is crucial that they get access to knowledge from knowledge institutions. However, interactions between business sector and the knowledge institutions, such as universities, public sector research institutions and technological service institutes, are less developed in Denmark than in many other national systems of innovation

8 incubators throughout the country which help start-up

Main place of technology and innovation exchange between private and public sector: universities


Strengths and weaknesses of the Danish Innovation System

Danish National System of Innovation, 2008Danish National System of Innovation, 2008

What are the science & technology public choices?


Structure of the Ministry:

Government’s vision for Denmark: To be among the most attractive countries to live and work in.

Ministry of Science, Technology & Innovation (2001)


We aim to make Denmark a leading entrepreneurial and knowledge-based society offering educations that rank among the best in the world, and to create the best possible opportunities for citizens and businesses to realize the vision about Denmark as a network society.

Helge Sander, Minister for Science, Technology & Innovation since 2001


Public policy

4 key objectives of MSTI:Denmark is…

to become a leading knowledge society to become a leading entrepreneurial society to have a world-class educational system to become the most competitive society in the world


The Globalisation Strategy (2006) 350 concrete initiatives aimed at:

- enhancing Denmark’s competitiveness- creating world class educations, strong and innovative research- increasing entrepreneurship- promoting adaptation and renewal in all parts of the Danish society


Research policy priorities

10 Innovation Accelerating Research Platforms: Water as a strategic resource of the future; Health care investments focusing on biological defence mechanisms; User-driven innovation and business development in the knowledge economy; Biological manufacturing – useful products from renewable resources; Global design-oriented manufacturing platforms; Systematized sustainable energy; From nanoscience to nano products; Health and safe food; High tech instrument development


Areas of great priority:Food + Health + Renewable Energy + Use of Nano, Bio & Information Technologies


8 Program Commissions in 2008 Health, Food and Welfare Sustainable Energy and Environment Strategic Growth Technologies Creativity and Innovation Individuals, Health and Society Education and Competence Building Non-ionizing Radiation Transport and Infrastructure

Publication of Forsk2015 in May 2008 Study that defines the 21 domains the most relevant on which strategic

research has to focus on.


Programs


How does Danemark stimulate research? HR Policy

Industrial PhD program (2005): 25% increase in allocations for research training - €1 677/month - Help in building personal networks of knowledge between companies and Danish or

foreign universities / research institutions

Knowledge Pilot Initiative (2005): €19 440 subsidy to companies with less than 100 employees when engaging a highly

educated employee for the first time to work on a specified project over a six-to-twelve month period

Campaign encouraging engineering studies Started in May 2007; will end by the end of 2008 Collaboration between the Ministry of Science, Technology & Innovation the Danish

Industry and the Danish Society of Engineers Focus on the motivation of 13-19-year-olds



How does Danemark stimulate research?

Fiscal incentives policy 50% depreciation of the taxable income for certain research

projects co-financed by enterprises and public research institutions until 2007.

Special tax provision applies to experts and researchers from abroad (both Danish and foreign citizens) in order to attract highly skilled employees.


Triple goal: Reinforcement of the cooperation between public & private sector

Enhancement of research activities in the private sector

Encouragement of engineering studies


Supra-national body: EUThe EU Framework Program

Allocations given by EU to Denmark: €89.95m in 2003 (2% of Gross domestic Expenditure in R&D) €73.78m in 2006

Repartition of the funding in 2006: 22% to the private sector (EU average = 26%) 78% to the public one

Denmark participates in other European programs like: EUREKA COST



Public financing Increasing focus on research policy

Public investment in R&D: 0,89% of GDP in 2008 +22% vs 2005 1% target will be achieved in 2010 (EU policy)

Repartition of public expenditures in R&D


Health initiatives to counter outside influences, including research in anti-doping

7%


Thank you for your attention!


danish national system of innovation, 2008 danish national system of innovation i/ the context ii/...

Documents

danish industry

national rd expenditure

national level

system of production

educational system

public rd expenditure

private rd

fundingdanish national