1. Athens July 4th 06_Dalum1 Conference on the Greek Industry Towards a Knowledge Based Economy Athens July 4-5, 2006 The Danish Economy: (1)Strong Macroeconomic Performance & Flexicurity (2) Is the Industrial Structure Sustainable for the Future Welfare Society? Bent Dalum IKE/DRUID and CTIF Head of Department of Business Studies Aalborg University, Denmark

2. Athens July 4th 06_Dalum2 Economic Growth in Denmark and the EU, 1961-2004. Beskrivende dansk økonomi © HandelsVidenskab

3. Athens July 4th 06_Dalum3 Unemployment in Denmark 1948-2004 [BDØ (05) Figure 1.8] Beskrivende dansk økonomi © HandelsVidenskab

4. Athens July 4th 06_Dalum4 Current Account i Danmark, 1948-2004 (% of GDP) Beskrivende dansk økonomi © HandelsVidenskab

5. Athens July 4th 06_Dalum5 Government Budget and Debt in DK 1970-2004. (% of GDP) Beskrivende dansk økonomi © HandelsVidenskab

6. Athens July 4th 06_Dalum6 The Government Budget in Denmark DØR F2005, s. 76 (www.dors.dk)

7. Athens July 4th 06_Dalum7 Flexicurity Denmark is probably the country in Western Europe where it is most easy to sack an employee. The ’trick’ is high level of unemployment benefits and a rather flexible workforce.

8. Athens July 4th 06_Dalum8 Low-Tech Export Specialisation Denmark is dominated by the low-tech industries in manufacturing exports. But that is – to a smaller extent - also an important feature for Sweden, Finland and the Netherlands (and Greece). In terms of multinationals: big diffences between Denmark versus Sweden, Finland and the Netherlands.

9. Athens July 4th 06_Dalum9

10. 10 Innovative Performance European Innovation Scoreboard: –Sweden –Schwitzerland –Finland –Denmark –...... –Germany –France –UK

11. Athens July 4th 06_Dalum11 Solution of the Danish ’Paradox’? Knowledge based learning pervasise in the ’low- tech’ industries. But the industrial structure represent a constant ’uphill battle’. The Flexicurity model. Macroeconomic discipline. However, the long term demographic challenges are not sufficiently taken into account, yet?