OECD Economics Department Working Papers
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Adapting business framework conditions to deal with disruptive technologies in Denmark
Danish firms are close to the technological frontier compared to other OECD countries,
making the introduction of new – potentially disruptive – technologies key to boost
productivity growth. Despite a high level of digitalisation and good framework conditions,
aggregate productivity growth in Denmark has been only average compared to other
advanced OECD countries and lags behind in less knowledge-intensive service industries.
Policy needs to embrace innovative technologies by leaning against attempts to discourage
or exclude them and by tackling unintended or outmoded obstacles in legislation and
regulation. Analysis based on Danish firm-level data suggests that digital adoption through
investment in ICT capital increases firm productivity and contributes to business dynamics
and firm growth. Improving economic incentives for such investment as well as facilitating
adoption of new business models require a shift of taxation away from capital and labour
income. Ensuring supply of the right skills and maintaining effective upskilling will help
workers cope with disruptive changes and ensure that economic growth benefits all.
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