Strategy for Denmark s Digital Growth Denmark s Digital Growth

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Strategy for Denmark s Digital Growth Denmark s Digital Growth

Transcript Of Strategy for Denmark s Digital Growth Denmark s Digital Growth

Strategy for Denmark’s Digital Growth
Ministry of Industry, Business and Financial Affairs
2018

STRATEGY FOR DENMARK’S DIGITAL GROWTH

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Contents

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Major opportunities – and challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Main strategic initiatives for Denmark’s Digital Growth 1. Digital hub for a stronger growth environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. Digital enhancement of SMEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3. Digital skills for all . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 4. Data as a driver of growth in trade and industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 5. Agile regulation of trade and industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 6. Strengthened cyber security in companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Government follow-up on the strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Appendix: All 38 strategic initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Appendix: Financial overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

With this Strategy for Denmark’s Digital Growth, the Government is setting the direction as to how Denmark can seize the opportunities inherent in digital transformation, while creating jobs and improving growth and prosperity in Denmark.

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Preface

Over the years, Denmark has been adept at seizing new opportunities, transforming our country and improving our lives.
The digital transformation and new business models may be the key to increase productivity and growth and create a basis for our shared future prosperity.
If we can create the right conditions for Danish business to utilise the newest technologies, we have much to gain as a country from the digital transformation – which will benefit not only trade and industry, but also the individual and our society in general.

business models. Still while ensuring that this is balanced against the original purpose of regulation and with an eye for consequences relating to issues such as competition and consumer conditions.
The strategy is also intended to pave the way for data to become a bigger driver of growth – both in regard to companies’ own data and public data, which we will make more available to trade and industry in relevant areas.
Finally, the Government will propose initiatives to help organisations develop better cyber security, ensuring safety for all and trust in our companies’ digital systems and processing of data.

The Government’s vision is for Denmark to be a digital frontrunner, with all Danes gaining from the digitalisation. We must be ambitious, striding confidently into the future to exploit the potential offered by new technology. The Government therefore presents its Strategy for Denmark’s Digital Growth, which contains clear goals and initiatives for the digital transformation of Danish commerce – for the benefit of all Danes.
We are introducing a total of 38 initiatives in which the Government will work with the Danish business sector and other parties to improve the capacity of organisations to use the new digital technologies. The aim is to make organisations more innovative, competitive and capable of developing new business models.
With this strategy, the Government aims to create a strong environment for growth in Denmark, and to support the digital transformation of our many small and medium-sized enterprises.
The strategy also includes initiatives aimed at improving the technological skills of Danes. This is important if we are to exploit the digital potential of the future. Our focus is broad as we focus on primary and lower secondary educa­tion, young people who are currently in education and all Danish people in the labour market – so that more people have an opportunity to contribute to the formation of our future digital society.
The Government also wishes to make regulation of trade and industry more agile and more accommodating of companies’ use of new digital

The Strategy for Denmark’s Digital Growth is based, among other things, on recommendations made in May 2017 by the Government’s Digital Growth Panel, and on work in the Government’s Disruption Council. With the strategy, the government follows up on the Agreement on Business and Entrepreneurial Initiatives.
The Government will track whether the initiatives are being implemented and working as intended on an ongoing basis. A digital summit, where digital development is on the agenda, will be held every year, involving trade and industry, organisations and others.
The Government wants to encourage everyone to actively participate in the work of ensuring the best possible framework for Denmark’s digital transformation – so that we utilise technological progress to create new jobs and improve the prosperity of all Danes.
This version has been updated so it reflects the political agreement from February 26th 2018, Initiatives for Denmark’s Digital Growth.
Minister for Industry, Business and Financial Affairs Brian Mikkelsen

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Summary

STRATEGY FOR DENMARK’S DIGITAL GROWTH

Denmark and the rest of the world is facing an increasingly rapid digital transformation of trade, industry and society, which will affect many parts of our society. If we approach this development in the right way, we can utilize the opportunities to create more prosperity, improve wellbeing, conserve for the environment and create good, well-paid workplaces that are less draining. This is an opportunity we must seize.
Therefore the Government’s vision is for Denmark to be a digital frontrunner.
Digital transformation brings with it great opportunities, but also challenges for businesses, the individual and our society as a whole.
Automation of manual labour will result in fewer draining jobs. New digital opportunities for diagnostics will improve treatment of illnesses and individual health. Businesses are able to collect and access large amounts of data, which may lead to new information, the possibility of new business models, and better products and service options for consumers. Digitalisation within companies can result in more efficient production and procedures, which can improve productivity.
Trade and industry can use new digital technologies to create new jobs, winning back jobs lost to other countries, so we can strengthen Denmark as a country of production and innovation. This will strengthen growth throughout Denmark.
Ambitious for the future We must be ambitious and ready to take advantage of the opportunities to ensure that Danish commercial success continues into the future.

With this strategy, the Government is implementing a range of specific initiatives to enable Denmark and Danish businesses to be digital frontrunners in the coming years, to ensure every Danish person has the tools to operate in the digital transformation, and to ensure that trade and industry is in the best possible position to exploit digital opportunities for creating new jobs and new growth companies.
With the Strategy for Denmark’s Digital Growth the Government sets the direction of how Denmark can create the best framework to enable businesses to utilise the opportunities inherent in digital transformation. The Government has also started working on a Public Sector Reform (“Sammen­hængs­ reformen”), which will help the public sector to employ new technological solutions to create better core welfare.
A good starting point – but we are losing ground Denmark is in a good position to become a richer society in the digital transformation. We are one of the most digitised countries in the world. But we are starting to lose ground on other countries, particularly those in Asia. It appears that Danish businesses are not quite as good at utilising the newest digital technologies for new business models and services. This challenge applies particularly to small and medium-sized enterprises.
Challenges as well Digital development also involves challenges that Denmark and Danish businesses must deal with.
Individuals may feel insecure in regard to future job opportunities – for example, if robots and software can do parts of the tasks that are currently managed by people, such as check-out assistants or legal work. This places demands on the education system

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and retraining, and requires us to preserve our flexible labour market. This is one of the major topics covered by the Government’s Disruption Council.
Data about our online behaviour and business secrets are becoming an increasingly large part of day-to-day life. This means that data leaks and cyber attacks can have major consequences for both companies and society as a whole, requiring cyber security and privacy protection to be put in place. Increased commercial use of data also requires a more ethically sound approach to processing information.

A solid foundation The Government has already instigated several initiatives aimed at improving Denmark’s digital growth. The remit of the Disruption Council – Partnership for Denmark’s Future includes discussions of how Denmark can continue to have a robust labour market when many jobs are transformed by digitisation.
The Government has launched a Research and Innovation Policy Strategy which, together with the implementation of the research reserve, is strengthening research in digital technologies.

Objectives for Denmark’s Digital Growth The Government has set three objectives to guide policy in the coming years:

The Government has also launched a Strategy for Growth Through the Sharing Economy, which supports the digital sharing economy, and trials involving driverless cars are now possible.

1. Trade and industry must tap into the potential for growth inherent in digitalisation In conjunction with trade and industry, the Government will work to ensure that Danish businesses are among the best in Europe when it comes to the use of digital technology, and more SMEs should be able to use advanced digital technologies.
2. The best conditions for digital transformation of business In order for trade and industry to tap into the potential for growth inherent in digitalisation, Danish regulation needs to be more agile than it is in other countries in order to provide optimal support for new business models and retain and attract investment in Denmark. This must be done while ensuring that the overall purpose of the law and protective considerations are maintained. It is also important to facilitate effective competition and counteract market abuse. The digital transformation should also be matched by increased awareness of cyber security and data processing in companies.
3. Everyone should be equipped to operate in the digital transformation The Danish people must become the most digitally prepared people within the EU, and have the tools to undergo the digital transformation. This should be accomplished through education and continuing training, so that everyone is ready for the labour market of the future.
The Government’s vision is for Denmark to be a digital frontrunner

The Agreement on Business and Entrepreneurial Initiatives prepares Danish companies for the future in regard to investment thanks to an improved culture of owning shares and investing in non-listed companies and better access to risk capital for small and medium-sized enterprises.
There are also initiatives in regard to a good digital infrastructure, including a modernised telepolitical agreement and work on the Public Sector Reform (“Sammenhængsreformen”).
Together these initiatives will help to ensure that Denmark has a solid foundation for the digital transformation, with a good digital infrastructure, a good general framework and the most digital public sector.
Six new ways to strengthen digital growth With this strategy, the Government is taking the next steps to make Denmark a future digital frontrunner. The strategy is based, among other things, on recommendations made in May 2017 by the Digital Growth Panel, and on discussions in the Disruption Council.
The Government will implement a broad strategy within six main strategic focus areas:
1. Digital hub for stronger digital growth 2. Digital enhancement of SMEs 3. Digital skills for all 4. Data as a driver of growth in trade and industry 5. Agile regulation of trade and industry 6. Strengthened cyber security in companies
These six focus areas support each other in order to achieve the strategic objectives.

Vision Denmark as a digital frontrunner

Objectives

Trade and industry must

Everyone should be

tap into the potential for

­equipped to succeed in the

growth inherent in digitisation

The best conditions digital transformation for digital transformation

of business

Main strategic focus areas

1

5

Digital hub for stronger
digital growth
3

Agile regulation of trade and industry

Digital skills

for all

2

6

Digital enhancement

Strengthened cyber

of SMEs

4

security in companies

Data as a driver of growth in trade and industry

The strategy’s main ­initiatives

 Digital Hub Denmark
Big Data, artificial intelligence and the Internet of Things are evolving rapidly, and an ambitious initiative is required if Danish businesses are to keep up, and if Denmark is to attract companies wishing to utilise the opportunities.
The Government wants the digital growth environment in Denmark to be among the best in Europe. A partnership will therefore be established between the public and private sectors – Digital Hub Denmark – which will instigate activities to support business access to specialist expertise and opportunities for cooperation on the development of new business models. At the same time, the Government will strengthen research in digital technologies, including Big Data, artificial intelligence and the Internet of Things, attract international conferences and knowledge of new technology, and market Denmark as a digital pioneer in order to attract investment.
 SME:Digital  
With a collective scheme under the heading SME:Digital, the Government will assist in the digital enhancement of small and medium-sized enterprises and support Danish e-commerce.
SME:Digital will focus on business needs by offering:
• Private consultancy and assistance in development of digital transformation business cases.
• Better potential for e-commerce and e-exports via an e-commerce centre.
• Improving the skills of business leaders. • Digital design consultancy.

  The Technology Pact
The Government will set up a Technology Pact in cooperation with trade and industry, educational institutions and others to provide initiatives aimed at strengthening the technical and digital skills of Danish people. It will meet a growing need in trade and industry, and will provide a basis for resolving significant social challenges in the future. With the establishment of The Technology Pact, the Government’s objective is to get more people interested in technical and digital skills at all levels of education, get more to educate themselves within it, and get more people employed where these skills are under high demand. The Technology Pact is a platform where initiatives can be instigated, developed and expanded to inspire and motivate more people to work in technology, IT and science, and apply these skills to innovation and business development.
  Test program to improve technological understanding in primary and lower secondary education
A four-year pilot scheme will gather information about the best way to strengthen technological understanding in each students and make technological understanding a mandatory subject in primary and lower secondary education, as well as equipping schools for the initiative by developing the skills of teachers. Preparation will include contributions from an advisory expert writing group, and the scheme will be discussed in more detail with both the cross-party educational committee and parties from education. 4,050 schools are expected to participate in the pilot scheme.
 Data as a driver of growth – free access to DMI data
The Government will work to enable Danish companies to be among the best at utilising the potential of data-driven business devel-

opment. It will do this by facilitating access to in-demand and useful public data, for example, free meteorological data from DMI, to provide a catalyst for growth in trade and industry. The Government will also help businesses to apply their own data in new products, services and business models.
  Regulation that facilitates new business models
Denmark can attract and retain businesses with more agile regulation that permits businesses to experiment with new business models new business models. Specifically, the Government will:
• Establish principles for agile regulation of trade and industry that supports new business models and digital growth. Among other things, the Government will look closely at real estate, financial regulation and consumer-related legislation.
• Establish one point of entry to the public sector for businesses with new digital business models and perform check-ups on neighbouring countries to ensure that commercial regulation is up-to-date.
• Improve opportunities to trial new business models in areas such as mobility, construction, financial services, the consumer field and health.
• Ensure competition and prevent market abuse via digital platforms.
  Strengthened cyber security in companies
The Government will work on strengthening cyber security and data processing in Danish businesses. It will therefore improve cyber and information security in small and medium-sized enterprises by facilitating access to knowledge and developing concrete tools to support the work of businesses on cyber and information security. The Government will also make it easier to report cyber security incidents by setting up a shared digital access point for reporting cyber security incidents.

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STRATEGY FOR DENMARK’S DIGITAL GROWTH

With Strategy for Denmark’s Digital Growth from February 2018 the Government, Danish People’s Party and Danish Social-Liberal Party have agreed on 38 specific initiatives. As part of the November 2017 Agreement on Business and Entrepreneurial Initiatives, a pool of DKK 75 million has been allocated in 2018, followed by DKK 125 million each year until 2025, and DKK 75 million in perpetuity for the implementation of the the strategy’s initiatives. The pool is intended as a “seed capital” which will help to set up a range of initiatives.
The strategy will strengthen the potential of companies to adopt the new digital technologies and develop new business models, support the digital transformation of small and medium-sized enterprises, improve the conditions for the individual and strengthen Denmark’s potential to remain one of the richest countries in the world.

The strategic initiatives will also have major longterm impacts. Among other things, the initiatives will lay the foundations for a brand new subject or subject topic of technological understanding in primary and lower secondary education, which will enable all children to acquire digital skills at an early age, thus equipping them for the future.
The new principles for agile regulation of trade and industry will support a legislative practice that better facilitates new business models – by providing better opportunities for tests, for example. It will pave the way for businesses to experiment their way into the future, as is possible today in driverless transport and FinTech.
Denmark will also be the first country in the world to use blockchain technology for registration of ships. This can create a basis for effective use of

The significance of the ­strategy to Denmark’s digital growth
The Government’s strategy equips the individual Dane with better tools
• Better digital skills for children at an early age by testing a new subject in primary and lower secondary education.
• More relevant training and skills for the individual in tomorrow’s labour market, so that more people have good, well-paid jobs, including via the Technology Pact.
• More fair competition and stronger digital consumers in Denmark with a proposed digitalisation-ready competition bill and supervisory enforcement.
The Government’s strategy provides a better basis for a digital society
• Increased use of digital technology and development of new business models will strengthen the competitiveness of companies and create more growth and progress in Denmark.
• Increased use of digital technology will help to provide a basis for future generations to participate in and design our future digital society.

The Government’s strategy provides a better basis for developing new business models and products
• Better access to the skills that are necessary in order to exploit the commercial potential of new technologies with a partnership on Digital Hub Denmark.
• Better opportunities to test new products and business models with a proposed agile regulation on trade and industry
• Better and more secure options for data-driven business development via clear guidance on data use and increased use of the DMI’s weather and climate data.
The Government’s strategy provides a better basis for the digital transformation of small and medium-sized enterprises
• Many small and medium-sized enterprises can get help with taking the next steps on e-commerce, data analysis, new business models and digital solutions via the SME:Digital scheme.
• Reduce the administrative burdens on the organisations by an amount equating to billions, for example by faster clarification of business models, less reporting to authorities and a digital tax folder for companies.
• Specific, on-the-ground guidance for small and medium-sized enterprises regarding IT security, and easier reporting of cyber security incidents with proposals for strengthening cyber security within companies.
GovernmentGrowthIndustryDenmarkTrade