denmark presentation march and april 2015 daniel muzyka vers

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conferenceboard.ca

Denmark Economy, Education & Skills and Innovation

Dr. Daniel F. Muzyka President and CEO, The Conference Board of Canada. March 2015

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•  Introduction

•  Denmark by the numbers

•  Education in Denmark

•  Innovation in Denmark

•  Implications

•  Summary

Agenda

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There are three kinds of lies: lies, damned lies and statistics.

Benjamin Disraeli

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•  Introduction




•  Implications

•  Summary

Agenda

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-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

07 08 09 10 11 12 13 14 15f 16f

Denmark’s Real GDP Growth per cent change

Source: IMF.

Denmark is in slow gear like most of the developed world but is doing better than many of its neighbours

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7

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0.0

1.0

2.0

3.0

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Denmark’s Inflation per cent

Source: IMF

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9

3.0

4.0

5.0

6.0

7.0

8.0

07 08 09 10 11 12 13 14 15f 16f

Denmark’s Unemployment Rate per cent

Source: IMF.

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20.0

25.0

30.0

35.0

40.0

45.0

50.0

07 08 09 10 11 12 13 14 15f 16f

Denmark’s Debt gross debt as a share of GDP

Source: IMF.

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-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

07 08 09 10 11 12 13 14 15f 16f

Denmark’s Fiscal Position billions of krone

Source: IMF.

The Krone will continue to be under pressure, particularly if the country takes action for long-term success

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-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

1991

92

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94

95

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98

99

2000

01

02

03

04

05

06

07

08

09

2010

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14f

15f

World Real GDP Growth per cent change

Source: Consensus Economics

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0

2

4

6

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10

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Japan Italy China Norway US UK Germany Sweden

Source: MIT.

Denmark’s Export Markets per cent of total

Denmark needs to continue to diversify its export markets into higher growth areas of the world

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2014 World Economic Forum Global Competitiveness

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Basic Requirements for Competitiveness

Efficiency Enhancers for Competitiveness

Innovation and Business Sophistication Factors for Competitiveness

Denmark (13th)

• Health and primary education (25) • Institutions (16) • Infrastructure (21) • Macroeconomic environment (16)

Denmark (17th)

•  Labour market efficiency (12) •  Financial markets (27) •  Market size (54) •  Goods market efficiency (23) •  Higher Ed. & training (10) •  Technological readiness (6)

Denmark (9th) •  Innovation (11) • Business sophist. (11)

Source: The World Economic Forum, Global Competitiveness Report 2014-2015

DENMARK’s Overall Competitiveness Ranking, 2014: 15th (2013: 14th)

16 Source: The World Economic Forum, Global Competitiveness Report 2014-2015

DENMARK: Most problematic factors for doing business (2014)

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•  Denmark is a successful nation

•  The country has entered a period of slow growth

•  Denmark is better positioned than some

•  Its key resource is its people and what they can do

•  Education, skills and innovation are key assets

Denmark’s Agenda

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•  Introduction




•  Implications

•  Summary

Agenda

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Education & Skills Report Card

•  Overall, Denmark scores a “D” and ranks 13th among 16 peer OECD countries.

•  Education & Skills indicators distinguish between three levels of attainment: K-12, post-secondary education, and adults and work.

•  Results •  Denmark ranks low on students’ skills indicators

(reading, math, and science). •  Scores “B” grades on university attainment and share

of PhD graduates. •  “C” grade performer on share of science, math,

computer science, and engineering graduates. •  Adult skills: relatively high share of adults with high-

level numeracy and problem-solving skills. Ranks poorly on adult literacy skills.

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Student Performance

Category High-Level Inadequate

Reading skills D (16/16) C (13/16)

Mathematics skills D (13/16) C (10/16)

Science skills D (15/16) C (13/16)

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Adult Performance

Category High-Level Inadequate

Literacy skills D (12/15) C (10/15)

Numeracy skills A (7/15) B (7/15)

Problem-solving skills B (7/14) C (8/14)

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• The older generation is doing relatively well

• The next generation appears to have opportunities for improvement

• An increased emphasis on science and math may be one of those opportunities

Denmark Education

Denmark is competitive in education but has some opportunities for improvement

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•  Introduction




•  Implications

•  Summary

Agenda

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Discovery

What is innovation?

Development Application Extension Social and Economic Impact

Ideas Products

Solutions

Business

Value

Technologies

Concepts

Innovation Value Chain

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Innovation Report Card

A’s B’s C’s D’s

1. Switzerland 4. Denmark 8. Ireland 11. Germany

2. Sweden 5. Netherlands 9. Japan 12. Australia

3. US 6. UK 10. France 13. Canada

7. Finland 14. Norway

15. Austria

16. Belgium

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Innovation Report Card •  Overall, Denmark scores a “B” grade and ranks 4th

among 16 peer OECD countries. •  Innovation framework includes indicators that examine

the creation, diffusion, and transformation of ideas. •  Results

•  Well-connected: scores an “A” on connectivity (broadband and fixed wireless).

•  Denmark ranks relatively high on R&D spending (public and business) and ICT investment, but scores “C” on venture capital investment.

•  Also scores “C” grades on patents, trademarks, new firm density, knowledge-based services, and medium- and high-tech manufacturing.

•  Poorest performance is on export market share indicators (electronics, aerospace, pharmaceuticals, and instruments) – scale issue.

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Denmark Innovation Report Card

The A’s

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Sources: The Conference Board of Canada; OECD.

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Denmark Innovation Report Card

The B’s

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Sources: The Conference Board of Canada; National Science Board.

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Denmark Innovation

The C’s

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Sources: The Conference Board of Canada; World Bank.

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•  Investment in innovation is largely there

• Ease of entrepreneurship and supports in place

•  Issues of scale and industry diversity

• Risk capital an issue

• Denmark is positioned relatively well: spirit willing

Denmark Innovation

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•  Introduction




•  Implications

•  Summary

Agenda

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• Desire

•  Initiative

• Training

• Coordination

•  Investment

• Communication

• Rewards

Lessons from innovative eco-systems

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• Focus: growth, renewal and opportunity

• Leadership and culture: promoting, nurturing and protecting

•  Innovation management: sourcing and developing

• Support: knowledge, communications and resources

• Organisational agility: changing and reconfiguring

• Measurement and selection: metrics and evaluation

Lessons from innovative organisations

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•  Introduction




•  Implications

•  Summary

Agenda

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• Denmark needs to maintain speed and maybe “kick it up” a gear

• A shared ambition may be helpful in some areas

• Some further investment in education may be in order

Bottom Line

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• Persistent demand of and support for innovation is required

• Continued corporate focus on innovation and value creation is in order

• Each of you needs to continue your contribution

Bottom Line

Denmark is relatively well positioned for the future but more demands are coming:

complacency is any wealthy country’s worst enemy

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denmark presentation march and april 2015 daniel muzyka vers

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