Growth with Innovation in Danish companies (Vækst med Innovation)

Abstract:

A strengthening of Danish productivity is crucial for securing growth in the Danish society. Congruently, innovation is a crucial driving force for augmenting the productivity of companies. The share of Danish companies engaged in innovation, however, has been more or less constant at around 50 percent. This can be interpreted as untapped potential for growth in Denmark, if this share can increase. The share of companies with innovation is lower in Denmark than in other countries such as Sweden, the Netherlands, Germany, and France. Furthermore, the intensity of research and development (R&D) in the business community has decreased between 2013 and 2014, and now constitutes the lowest level since 2009.This gives rise to three important questions:1. Why do some companies innovate, whilst other do not?2. Why do some companies invest substantially in innovation, whilst others only allocate scarce resources?3. How to increase the extent of innovation among Danish companies?These questions are important, especially when it is clear that there is a significant difference in the intensity of innovation among companies, even within narrowly defined industries or company sizes.