Business
Business Profile
Copenhagen’s role as a traditional north European transport and trade hub has been strengthened by the economic rise of the Baltic States of Estonia, Lithuania and Latvia, as well as by the democratisation of Eastern Europe. The completion of the fixed road link across the Øresund to Sweden has further cemented Copenhagen’s strength in the region.
Greater Copenhagen is home to 29% of companies registered in Denmark and these companies account for 45% of total domestic sales and 48% of national exports. The city also attracts 60% of all direct foreign investment in Denmark, 80% of which is in the service sector. In 1998, GDP per capita in Copenhagen was €35,000, as compared to a national GDP per capita of €29,5000. Unemployment in the city, at a rate of 5.7%, is only slightly higher than the national average of 5.1%, although the Copenhagen region as a whole boasts a considerably slim rate of just 3.9%.
Denmark’s strong economy is characterised by a balanced state budget, low interest rates, low inflation and a stable currency. The generous state welfare system results in high taxes but also provides an excellent climate for education and research. The 980,000-strong workforce in the Greater Copenhagen region tends to be well educated, computer literate and multi-lingual. The IMD/World Economic Forum consistently votes the Danes as best workforce in Europe. A recent PriceWaterhouse Coopers study concluded that the city is the most favourable place in Northern Europe to establish an e-business centre, owing to favourable labour and property costs.
Copenhagen’s business strengths lie particularly in energy, design, information technology, biotechnological and medical research, telecommunications, environmental technology and tourism. A recent medico-health sector development is the cross-border initiative with Skane Regional Federation Council, to promote foreign investment in pharmaceutical, biotechnology and medical technical industries. The project is centred on the so-called Medicon Valley, which brings together a high concentration of academic institutions, industry and investment organisations. International companies based here include Pharmacia & Upjohn, Astra Draco and Gambro. Medicon Valley is a company in the Øresund region, which is the new up-and-coming business district (website: www.orestad.dk).
Denmark leads the world in terms of environmental awareness, with a high proportion of GDP devoted to environmental protection. The first European ministry of the environment was established here in 1975 and the EU Environment Agency is still here today. The Union of International Associations lists Copenhagen as the eighth most popular congress venue in the world.
Business Etiquette
Business hours are Monday to Friday 0800-1700 and punctuality for appointments is essential. The dress code is relatively formal – a tie for men and suits for both men and women. Business contacts should shake hands on arrival and departure with business cards exchanged after introduction. Most Danes, particularly those in the international business community, speak excellent English and often speak German and French too.
Business visitors are well looked after, with the provision of lunch, taxis and accommodation, as necessary, and often provided with a day programme, too. Nearly all meetings are non-smoking venues but it is not inappropriate for moderate alcohol consumption over a business lunch or dinner.
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