Danish productivity has grown only weakly over the past two decades, both historically and in relation to other countries, despite sound policies and institutions. At the same time, the country has lost export market shares. Denmark needs to continue its efforts to reap the benefits of globalisation, which would contribute to invigorating productivity growth. Fostering competition by removing regulatory barriers and improving public procurement would help. In addition, innovation policy needs to become more efficient and more in line with the growing importance of the service sector and knowledge-based capital. Small and medium-sized enterprises could be better integrated into global markets by improving their access to finance and developing the entrepreneurship culture.