One of the key weaknesses of the Danish economy with respect to reaping the benefits of globalisation is the surprisingly slow progress in human capital formation. Among the 25-34 year olds, only 86% have at least upper secondary education, the lowest level among the Nordics. The share of a youth cohort taking tertiary education is fairly high, but with a typical age of 23 when beginning to study and with prolonged study times, there are too few years left during which the fruits of qualifications can be reaped in the labour market. This chapter reviews government initiatives to improve the quality of education and then looks more closely at how to strengthen incentives to acquire and use human capital.