Tough competition awaits Danish cleantech companies

Global competition could eventually become a problem for Danish cleantech companies, according to experts.

Danish cleantech companies perform exceptionally well on the international cleantech market. However, in the longer term we might experience tough competition from larger nations who have also discovered the business opportunities inherent in the green market.

A new report from CCC – Copenhagen Cleantech Cluster – describes how Danish cleantech companies are growing. From 2010-2012 the number of cleantech companies in Region Zealand and the Capital Region of Denmark increased from 522 to 710, an increase of almost 50 percent.

“It is not that a huge number of new jobs are being created, but the cleantech industry is helping to retain a lot of jobs because the less sustainable companies are reorganizing themselves to green workplaces,” says Marianna Lubanski, director of Copenhagen Cleantech Cluster. The report also shows that companies are experiencing economic growth in this area.

“Over the last 40 years, we have been investing in green technology because of our many experts who are working continuously to improve it,” explains Marianna Lubanski.

Major competitors on the horizon
In spite of these positive developments, Denmark must be ready for tough competition from foreign countries. Right now, Denmark has the world’s largest cleantech exports relative to GDP, with China in second place. But according to statistics, China is the fastest growing country in the market with the fastest growth in exports. Therefore, China in particular could become a threat to the Danish cleantech industry. Copenhagen Cleantech Cluster is aware of the competition in the global market. But according to Marianna Lubanski, global competition does not necessarily have to be a deterrent.

“We have to remember that Denmark is a small country and that we will never be able to compete with China in absolute terms because China is such a big nation and has such a large domestic market. But we must continue to be strong in areas of innovation,” says the director of CCC. Currently, Copenhagen Cleantech Cluster is working on a project to ensure that SMEs stay in the green market. This can be achieved, for example, by cooperating with larger companies.

This is an excerpt. Read the full article (IN DANISH) here