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Article : Look At Denmark

Denmark's unique geographical position in relation to the Baltic States and the other up- and coming EU members is sparking increased interest from foreign investors and overseas companies looking for a European base. Denmark stands at the north European crossroads joining the Anglo-Saxon world with the Baltic, and the European continent with the Nordic countries, providing strategic access to a market that will soon gain an extra 105 million consumers.

 

Hub Denmark
Look at Denmark, and you are looking at the perfectly placed Northern European gateway to a greatly expanded Internal Market. In recent years Denmark has made massive investments in the development and maintenance of its infrastructure, resulting in an impressive road and rail network, ten seaports with free port and trade zone facilities, and six international airports.

Situated just 7 kilometers from Central Copenhagen, Kastrup Airport is the most cost efficient airport in Northern Europe, with a 1-2-3 cargo handling strategy and a round-the-clock customs service geared to accelerating business and trade. Its efficiency is illustrated by the high number of shipments (92%) customs cleared en route. Kastrup also operates as the International hub for SAS and the Nordic/Eastern hub for DHL.

Denmark is made for mobility, with an excellent multi-modal transport and distribution system, and daily truck connections to more than 900 European cities. A recent benchmark study by Andersen Business Location Services in Brussels identified Denmark's geographically central "Triangle Region" as the ideal location for a Northern European distribution hub, in a comparison that included competing centres in Sweden and Poland. Among the Triangle Region's key competitive features were its optimal operating environment for distribution, abundance of low-cost land, high quality infrastructure and flexible human resources.

 

Quality Denmark
Look at Denmark and you are looking at an easily accessible, high quality environment for setting up and doing business. Denmark has one of the strongest economies in Europe. The budget is balanced, the currency is stable and inflation rates are low. International organisations consistently rate Denmark among the most competitive nations, and their surveys often show that it is the Danes themselves who make the difference. Parameters such as the efficiency of the workforce and the flexibility of the labour market make Denmark one of the most attractive locations for optimising productivity. 

Denmark has a characteristically well-educated population with a high proportion of university graduates, thus providing an excellent labour pool with a wide range of skills. In Denmark considerable emphasis is placed on having career-long access to further education, one of the reasons why Danish businesses can maintain their competitiveness at a high level.

Living in a small yet highly trade-conscious country, Danes have always acknowledged the importance of learning foreign languages. English, German, and French are taught in primary school, and English is the working language of many international companies located in Denmark. Among the younger generations especially, it is common to be skilled in several European languages.

 

Cost effective Denmark
Look at Denmark and you are looking at an investment climate geared to delivering value for money. Costs of doing business such as wages and real estate are highly competitive compared to the rest of Europe. Office rental rates are on average about four times cheaper than in London, and data and telecoms rates are also comparatively low.

Although Denmark does have relatively high levels of income tax, it is important for investors to appreciate that this is counterbalanced by a low, and in a European context, attractive rate of corporate tax at just 30%. Because welfare is financed from the public purse, employer's social security contributions are among Europe's lowest, a mere 1.23%.

Denmark offers a number of important tax incentives to foreign businesses which compare well with other European countries. These include particularly favourable tax rules for expatriates, for whom the income tax rate is only 25% (scientists, management and researchers) during the first 3 years of their stay.

 

Digital Denmark
Look at Denmark and you are looking at a country which has firmly embraced the concept of a knowledge-based and networked New Economy. Industry and community are co-operating closely in the process of rapid transformation towards the creation of a full-scale "Digital Denmark". The country is among Europe's leaders in internet penetration and familiarity, as well as ranking No.1 in the world for PC ownership per capita. Throughout Denmark, municipalities are increasingly investing in their own fibre optic networks, resulting in a substantial growth of broadband capacity across the entire country.

Denmark's strength in the IT industry is based on the Danes' ability to make technology and content blend seamlessly together. Combined with a talent for staying ahead with cutting edge technologies, this enables Danish communities and businesses to successfully navigate the networked New Economy.

In today's world Denmark stands out as one of the most advanced centres for telecommunication activities, with an internationally recognised, leading edge wireless cluster centred in and around the university city of Aalborg in northern Jutland. Denmark's world class reputation for software development, particularly in Bluetooth technology and e-learning applications, has been secured through extensive co-operation between the wireless industry, telecommunication operators and universities – and a very deregulated and dynamic telecommunication marketplace. This makes Denmark an ideal location for capitalising on the vast future opportunities in wireless communication.

 

Enterprising Denmark
Look at Denmark and you are looking at the first country to build a bridge over water to another European land. The completion in 2000 of the road-rail fixed link between Copenhagen and southern Sweden created the Øresund region, a cross-border enterprise zone of 3.5 million people with the 8th largest GDP per region in Europe. As a recognised centre of development and research, the region has proved its natural position as the gateway to not only the Scandinavian and European markets, but in sectors such as biotechnology, food excellence and IT/telecoms research, to the global market.

In life sciences especially, the creation of the Øresund region has consolidated Denmark's already leading reputation. Spanning both sides of the Øresund fixed link, one of the strongest life science clusters in Europe has been established, now commonly known as "Medicon Valley". It represents a unique growth environment which, besides having 60% of the Scandinavian pharmaceutical industry, is rapidly attracting growing number of biotech companies including world leaders such as Genmab and Biogen.

Further examples of Denmark's leading edge competencies in life sciences can be seen in the development of bioinformatics, nanotechnology, biologicals production and proteomics. In the latter case especially, a world renowned research and development cluster has formed around the university city of Odense on Funen. With a long tradition of R&D leadership, a fine reputation for clinical trials and an ideal biologicals production environment, Denmark is well placed for business operations in a biotechnological age.

 

Invest in Denmark
Look at Denmark and you are looking at a country that welcomes FDI. Denmark has a widely recognised business-friendly environment where foreign and domestic companies are treated with equal fairness. Denmark holds a powerful position in the new global knowledge economy. It offers strong business environments, in distribution, IT and telecommunications, food and life sciences. And it offers the perfect position from which to capitalise on the major market opportunities that EU enlargement will bring.


About the Company
Invest in Denmark is part of the Danish Ministry of Foreign Affairs. Their job is to help foreign companies decide for growth and profit based on locating in Denmark. Through active, focused marketing efforts in North America, Asia and Europe, they give potential investors a detailed insight into the business opportunities that Denmark offers.

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Published: Wednesday, February 5, 2003

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