Subdued productivity growth continues to be a major challenge. A number of reforms have been launched, but more can be done to boost competition, improve educational outcomes as well as innovation capacity of young firms. Such reforms would reduce prices and favour the less well-off.
- Reduce entry barriers in the economy notably for pharmacies, taxis and public transportation, by easing regulations on the size and placement of new suppliers.
- Strengthen policies to promote innovation in young firms, notably by increasing direct support to R&D.
- Raise the performance of adult learning programmes by increasing the quality of courses and expanding on-the-job training opportunities
- Reintroduce quantitative targets for the effects of reforms on productivity and GDP.
Source: OECD May 2017 Economic Outlook database
Adalet McGowan,M. and S. Jamet (2012), "Sluggish Productivity Growth in Denmark: The Usual Suspects?", OECD Economics Department Working Papers, No. 975, OECD Publishing, Paris.
Productivity Commission (2013a), “Danish Productivity, Where are the Problems?”, April, Copenhagen (in Danish).
Productivity - enhancing institutions
The Ministry of Business and Growth is monitoring and analysing the conditions for economic growth in Denmark with a particular emphasis on productivity. It has recently published a report on Growth and Competitiveness.
The temporary Productivity Commission received a mandate to analyse the reasons for the relatively weak productivity performance, identify the main drivers and barriers for productivity growth, identify the links with competitiveness and make concrete recommendations to strengthen private sector productivity. After the commission published its report its mandate ended in 2014.