Denmark

WER met with Hans Skov Christensen, head of the Confederation of Danish Industries, in Copenhagen last year shortly after the Danish general elections that brought in a new government. The Confederation is financed and run by its member companies, who comprise the entire spectrum of industrial companies in Denmark's manufacturing and service sectors. These companies range from small enterprises with a few employees to large corporations made up of more than 10,000 people. The average companys size, however, is small - only 2 percent have more than 500 employees, and 75 percent have less than 50 - reflecting the diversified and decentralized base of Danish industry.

How has the recent election outcome influenced the Danish business climate?

The Danish business community welcomes the new government. Danish business has for the past few years seen increases in taxes and other costs due to new legislation. This is now expected to stop. At the same time, the new government is expected to secure lower growth in the public sector and to be more willing to decrease taxation on labor.
The Confederation of Danish Industries (Dansk Industri) building in Copenhagen houses the country's most important business group.

In your opinion, what elements make Denmark such a strong export nation?

The Danish home market is very small, so for most part firms have to rely on exports to run a competitive business. If you want to survive in Denmark you have to export. This is explains why the export share of Danish firms is so high. On the other hand this does not account for the rather strong industrial base in Denmark. Here I think flexibility is the key.

Denmark, compared to other countries, has a relatively flexible labor market. The rules that regulate the Danish labor market are mostly due to negotiations between employers and the unions. Denmark has very little governmental intervention on labor market rules. Among other things, this means that hiring and firing rules are very liberal, and this gives firms room for flexibility.

How would you describe Danish industry today? Which sectors are the most important?

The average size of Danish firms is relatively small compared to other countries. This means, Denmark has many small and medium-sized and extremely specialized firms in nearly all subsectors of industry. So there are no really dominant industries, although the pharmaceutical and food processing sector is also more important here then in most other countries.

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