Denmark scores high in competitive performance

A report on global competitiveness awards third place to Denmark

Denmark comes in third out of 131 countries when it comes to competitiveness. These are the findings of the annual report: The Global Competitiveness Report, by the World Economic Forum (WEF). Denmark was also placed third last year, only surpassed by the USA and Switzerland.

Several reasons for success

Copenhagen Business School, Denmark’s largest research institute, as a partner institute with the WEF took part in the survey of 11,000 business executives that, together with generally available information, constitute the basis for the report.

CBS Professor, Ole Risager, who researches international financial markets, cites a number of reasons for Denmark's high placement.

-Denmark scores high because it has a strong education system, a well-functioning public sector, a flexible labour market, low inflation and a state budget surplus, very minimal corruption, and an independent court of law. These are all factors that rate high in the evaluation, he explains.

Room for improvement

The report, however, also shows that Denmark can do better. The quality of scientific education is not the best, just as the collaboration between the business community and universities could improve considerably. Respondents also believe that our high tax rate is leading us in the wrong direction.

Furthermore, Denmark only comes in tenth when it comes to innovation, which perhaps paints a picture of us being more a nation of grocers than scientists, says Ole Risager.

About the report

Since 1979, the report has been published annually and, this year, covers 131 countries. The objective of WEF is to point out specific factors and conditions in society that are crucial for competitive performance, and politicians worldwide should aim for these when they guide economic policies and make institutional reforms.

Ranking is based on 12 factors, which all play a decisive role in the competitiveness of a nation and its ability to improve the standard of living. These are infrastructure, the health and education system, labour market flexibility, innovation, and more.

The results show that many industrialised countries have improved in creating growth and progress. To a moderate degree this applies to the Euro-zone and Japan, and to a high degree China, India, and Russia. The report does, however, warn that risk factors, for example, high oil prices and an unstable American housing market, can put a stop to this growth.