From the second half of the 1990s, innovation activity picked up, and Denmark is now one of the better-performing members of the OECD on many innovation indicators. However, productivity improvements have slowed and the gap in GDP per capita relative to the best performers remains. In 2006, Denmark’s gross domestic expenditure on R&D (GERD) was 2.43% of GDP, above the OECD average of 2.26%. Business performed 67% of R&D (and funded 60% in 2005). Denmark aims to achieve research spending of 3% of GNP in 2010, with one-third financed by government. The interaction between government and industry in science and innovation differs depending on the indicator – cross-funding of R&D is low, but a relatively high 30% of large firms collaborate with higher education institutions. The government has set benchmarks to increase such collaboration.