Denmark has the highest proportion of extremely productive companies in the EU: 42% of all Danish businesses feature amongst the top 20% in terms of productivity. According to the European Investment Bank’s (EIB) Investment Report 2017/2018 for Denmark, the country’s companies are outstanding also in another respect – nine out of ten have invested over the last financial year, making them the most investment-active businesses in the EU.
The report is based on the results of the annual EIB Investment Survey (EIBIS), which analyses 428 firms in Denmark and was presented at the “Investment and Investment Finance” conference in Copenhagen today. Following a slow recovery, the Danish – like the European – economy has picked up steam. The recovery is now turning the spotlight on structural investment needs in support of innovation, skills and productivity.
Looking ahead, Danish companies cite the development of new products as their main investment priority. One in eight businesses participating in the survey say they developed products new to the global market last year. Nevertheless, there might be scope to move innovation up a gear, both at the frontier and through technology adoption: only 39% of Danish firms indicate that they consider their machinery and equipment to be state-of-the-art.
“More than ever before, growth and prosperity in Europe depend on refining our skills and expanding our knowledge. They are the main ingredients for new products and services,” said EIB Vice-President Alexander Stubb. “The EU bank stands ready to help Danish innovation leaders push back the frontiers.”
Total investment of the EIB Group – the European Investment Bank and the European Investment Fund – in Denmark over the past six years comes close to EUR 3.5 billion, with the majority focusing on innovation, research activity and digital infrastructure.
Brian Mikkelsen, Danish Minister for Industry, Business and Financial Affairs said: “Access to finance for growth companies is a key priority for the Danish government. Just a few weeks ago, the Danish government secured a majority among parties in parliament for a range of new initiatives that will make Denmark an even better place to raise capital and for doing business. I am very happy that we can also work closely with our European partners in the EIB group to secure funding for Danish companies’ investments, not least our SMEs through the cooperation between the EIB group and the Danish Growth Fund.”
“Banks and mortgage credit institutions are traditionally the main financing sources for Danish enterprises, and they are also the traditional focus area for the Danish Financial Supervisory Authority (FSA). However, there are a number of economic advantages of enterprises gaining broader access to capital. For instance, many enterprises experienced limited financing possibilities during the latest financial crisis. Therefore, together with EIB, we are pleased to bring this important issue up for discussion,” said Director of the Danish FSA Jesper Berg.
Compliments of the European Investment Bank