A priority for the Danish government is to strengthen entrepreneurship in the sector strongholds and emerging industries identified by the Danish Board of Business Development and the Ministry of Higher Education and Science. While research and technology development is generally world class in these areas, stronger mechanisms are needed to increase their commercialisation, including through start-ups and scale-ups.

The Danish Board of Business Development (DBBD) has identified 11 sector strongholds within Denmark, which have been selected on the basis of their sizeable economic footprint, international competitiveness, leading companies and excellent knowledge base. The DBBD and the Ministry of Higher Education and Science have each identified a further two emerging industries, which have been singled out due to their high growth potential. This report examines the entrepreneurial ecosystems of three of the strongholds – advanced production, energy technology and food and bio resources. It focuses on the role played by start-ups and scale-ups in these sector strongholds, the barriers they face and the policy measures that can increase their contribution to stronghold development. Many of the policy recommendations offered for the three case study sector strongholds are also relevant for start-up and scale-up support in other sector strongholds and emerging industries in Denmark.

In its Business Promotion in Denmark 2020-2023 strategy, the Danish Board of Business Development (DBBD) identified 11 sector strongholds, characterised by their international competitiveness, best in class companies and knowledge environments, and large contribution to the Danish economy. The 11 sector strongholds are:

This chapter begins by setting out the typical barriers faced internationally by start-ups and scale-ups that policy can help to overcome. This is followed by a review of the policies in place in Denmark to support start-ups and scale-ups and a subsequent analysis of how Denmark compares to its peers in terms of the prevalence and impact of start-ups and scale-ups. Finally, there is an analysis of the characteristics and economic contributions of start-ups and scale-ups in Denmark’s 15 sector strongholds and emerging industries.

Out of the 15 sector strongholds and emerging industries, the advanced production sector has the largest economic footprint. It is notable for its high level of exporting, with nearly half of firms exporting in 2019. Its central strategic position in the Danish economy is also reflected in the Danish Growth Fund’s funding priorities. However, evidence from the stakeholder interviews conducted for this report suggests that there are a number of challenges facing start-ups and scale-ups that need to be addressed. This chapter develops policy recommendations for Denmark’s advanced production sector. This is informed by an analysis of the key opportunities and barriers for start-ups and scale-ups in the sector, followed by an examination of specific policy initiatives in Austria, Sweden and Canada.

There is higher share of start-ups in all businesses in Denmark’s energy technology stronghold than the all-economy average and the advanced production and food and bio resources strongholds. The average revenue of energy technology start-ups is more than four times’ higher than the economy-wide average. Energy technology also has a relatively high share of scale-ups. The revenue share of scale-ups is higher in energy technology than any other stronghold or emerging industry. There is a basic infrastructure in place to support for start-ups and scale-ups in the sector. However, stakeholders in Denmark identified a number of gaps in policy support. This chapter presents key policy recommendations to support start-ups and scale-ups in Denmark’s energy technology sector. It includes an assessment of the opportunities and barriers currently faced by start-ups and scale-ups in the sector, as well as an examination of inspiring practice policy initiatives for start-ups and scale-ups in energy technology from Norway, the United States and the United Kingdom.

The food and bio resources sector stronghold in Denmark is characterised by growing opportunities for start-ups and scale-ups, in line with the advancement of the green transition agenda and an increasing consumer appetite for new kinds of food. Despite these sources of opportunity, there are also a number of barriers. This chapter presents policy recommendations that could strengthen start-up and scale-up activity in food and bio resources. It assesses barriers and policy gaps for start-ups and scale-ups in the sector and presents inspiring practice policy initiatives for start-ups and scale-ups in food and bio resources in the Netherlands, Ireland and Finland, including key takeaways that can be applied to the Danish context.

The analyses in this report shed light on the key challenges that start-ups and scale-ups face in three sector strongholds in Denmark and the lessons that can be drawn from programmes designed to stimulate start-ups and scale-ups in these sectors in other countries.

The interviews with stakeholders in the sector strongholds have provided numerous insights into the current approaches and perspectives towards supporting start-ups and scale-ups in the three case study sector strongholds for this report. Meanwhile, the nine international inspiring policy practice case studies have provided points of reference for Denmark. In this section, the template proposed by (Giest, 2021[1])is used to develop a summary of the collaborative and absorptive capacity in the advanced production, energy technology and food and bio resources cluster organisations, thus providing an assessment of their performance on these dimensions.