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.

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Presentation transcript:

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

Athens July 4th 06_Dalum2 Economic Growth in Denmark and the EU, Beskrivende dansk økonomi © HandelsVidenskab

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

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

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

Athens July 4th 06_Dalum6 The Government Budget in Denmark DØR F2005, s. 76 (

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.

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.

Athens July 4th 06_Dalum9

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

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?