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Danish innovation policy
Søren Jensen,
Senior Adviser
Danish Agency for Science,
Technology and Innovation
Agenda
• Danish innovation policy strategy and
objectives
• Challenges for the Danish innovation
policy
• Three important Danish innovation tools
• INNOVATIONDENMARK Action Plan
2007-2010
Ministry of Science, Technology
and Innovation

Created in November 2001 (new government)

Probably one of the first countries to establish a
STI-ministry with the responsibility for research,
universities, academic educations, technology
policy, innovation policy and R&D schemes

Objective: To promote the interaction and
strengthen collaboration between industry and
the centres of research and education
Danish Ministry for Science, Technology
and Innovation
Minister
Secretariat for Minister
Permanent Secretary
Administrative
Centre
National IT and
Telecom Agency
Policy Centre
Danish Agency for
Science, Technology
and Innovation
Danish Council
for Technology
and Innovation
Danish University and
Property Agency
Strenghtening collaboration
Research institutions
Business
Policy - initiatives
R&D - Innovation
• ”R&D is a question on
how to transform
money into ideas and
knowledge”
• ”Innovation is a
question on how to
transform ideas and
knowledge into
money”
• Education policy
• Research policy
• Research policy
• Technology policy
• Innovation policy
Innovation in Danish enterprises
(2004)
60
50
40
30
Innovation
20
10
0
Product
Proces
Org.
Sale
Danish investments in R&D
R&D as pct. of GDP 2002 , 2003 in selected countries
5,0%
4,9%
4,5%
3,9%
4,0%
3,5%
3,5%
Public
= 0,77 % of GDP
Private
= 1,83 % of GDP
1,8 billion US $
3,1% 3,1%
3,0%
2,6% 2,6% 2,6%
2,5%
2,5%
2,3%
2,2% 2,2%
1,9% 1,9% 1,9%
2,0%
OECD-average
1,7%
EU25-average
1,5%
1,1% 1,1% 1,0%
0,9%
1,0%
0,5%
Portugal
Spain
Italy
Ireland
Norway
Canada
UK
Netherlands
Austria
France
Belgium
Germany
USA
Denmark
South Korea
Iceland
Japan
Finland
Sweden
Israel
0,0%
Source: OECD MSTI2004-2
Danish Government’s
globalisation strategy
• An ambitious strategy to gear Denmark for the future
published in April 2006
• Building on the Barcelona objective (>3% of GDP for
R&D in 2010)
• Contains 350 specific initiatives relating to education and
training as well as research, innovation and
entrepreneurship
Government innovation objectives
• Denmark must continue to be among the
countries in the world where private companies
conduct the most research and development
(at least 2 per cent of GDP in 2010).
• Denmark must be among the best countries at
transforming new knowledge generated by
research and educational institutions into new
technology, processes, goods and services.
• Danish companies must be among the most
innovative
Important challenges and
tools
• Dissemination of knowledge and
technology
– Approved technological service institutes
(GTS) ~ 34 million Euro per year
– Knowledge networks and centres ~ 8 million
Euro per year
• Co-operation between enterprises and
research institutions
– Innovation consortia and ICT interaction
projects ~ 20 million Euro per year
Important challenges and
tools
• Commercialisation of research
– Innovation incubators ~ 16 million Euro
per year
– Proof-of-concept funding ~ 2 million
Euro per year
• Highly-educated employees
– Industrial PhDs ~ 11 million Euro per
year
– Innovation pilots ~ 4 million Euro per
year
Approved Technological Service
Institutes (GTS)
• Network of 7 private, non-profit research
and knowledge institutions building up
strategic R&D competences in various
technological areas
• Assisting enterprises – and in particular
SME’s – in their innovation process by
supporting the dissemination and transfer
of knowledge into value and innovation
• Making sure the technological services are
ready, when the market demands them
Approved Technological
Service Institutes (GTS)
• Performance contracts with DASTI allocated on a
3-year basis in open competition between the
existing GTS-institutes
• Governmental funds are used to strengthen
competences, develop new technological services
and for dissemination of knowledge
• Must not be used for activities duplicating
existing commercial services
• Performance contracts amounts to approximately
34 million Euro per year (~ 11 per cent of total
turnover)
Innovation incubators
• 7 innovation incubators chosen through public
tender to promote the commercialization of new
innovative ideas and research
• Using public funds (16 mEuro) to screen, invest
in and coach knowledge-intensive start-up
companies
• Closing ”the Valley of Death” through riskbearing early-stage investments, close cooperation with knowledge institutions and
venture capitalists
• Promising companies can receive Government
loans and investments of 200.000 Euro and (if
very promising) additionally 330.000 Euro
• Private funding is a requirement
• 50+ new companies established per year
Innovation consortia
• Public-private cooperation-projects to
develop/mature new technology or knowledge
• Preparing the basis for innovation in Danish
enterprises and for new technological services in
a 5-10 year perspective
• Governmental funding only to knowledge
institutions and GTS-institutes
• Enterprises must contribute with at least 50% of
the total budget
• Typical consortium: 2 universities, 1 GTSinstitute, 5 enterprises
• Projects last 2-4 years
• Budget: 3-5 million Euros
INNOVATIONDENMARK
2007-2010
• The Danish national action plan for promotion of
innovation and dissemination of knowledge
• Two primary objectives in INNOVATIONDENMARK
– Stimulate knowledge dissemination and
colaboration between universities and private
enterprises
– To improve the innovation performance of Danish
private enterprises
Main targets by year 2010
• 45 per cent of small enterprises are
innovative enterprises
• 75 per cent of all large private enterprises
are innovative enterprises
• 12 per cent of small enterprises employ
staff with an academic background
• 70 per cent of large private enterprises
employ staff with an academic background
• 33 per cent of large private enterprises
colaborate with universities
INNOVATIONDENMARK
2007-2010
• Total budget: 400 M euros
• 70 new initiatives
• Monitoring performance and impact of
the Danish innovation system
• Focus on small and medium-sized
enterprises
• Deveoped in close dialogue between
DASTI and universities, business
associations and trade unions
Selected initiatives from
INNOVATIONDENMARK
• Gazelle Growth programme
• New players and technology areas in the GTSsystem to broaden the technological service and
strengthen competition for governmental funds
• Center for eBusiness Innovation
• Assisting enterprises in establishing relations to
knowledge institutions (Matchmaker, Regional
Innovation Agents)
• Innovation vouchers