Denmark gets its first technology-focused government

Technology is a common thread running through the government platform, where topics such as digital sovereignty and artificial intelligence are given a central role in the government’s forthcoming work.

It is essential that technology plays a far more prominent role if Denmark is to enter the future with confidence, says Laura Klitgaard, President of IDA.

“Technology is a common thread throughout the government’s programme, and that deserves recognition. It is both new and necessary if we are to succeed in making Danish society more prosperous, healthier, safer and more secure,” she says.

The strength of the government platform lies in how broadly technology is integrated across it. In several areas, the new government is focusing on key issues for IDA, including health technology, artificial intelligence, green energy, STEM skills, employment, defence and research.

Strong impact on healthcare and life sciences

The new government proposes to develop and implement a range of new technologies across society, with particular emphasis on healthcare and elderly care. This forms part of a continued strong focus on implementing the healthcare reform and ensuring better quality of treatment for individuals.

These new technologies range from a digital health assistant to support citizens with digital health checks to solutions that can improve care for people with chronic diseases. IDA welcomes the intention to develop these solutions through innovative collaboration between healthcare providers and private companies, and commends the government for its plans to expand technological solutions that can make everyday life easier for people living with chronic conditions.

“The government – like IDA – recognises the significant potential of health technology to address labour shortages and the growing need for both prevention and treatment of people living with chronic conditions. Our studies show that Danes are willing to share their data for healthcare purposes, provided it is properly protected. At the same time, there is a wealth of promising new technologies that can improve patient pathways and support healthcare professionals in making better decisions. All of this will help address the challenges facing healthcare and elderly care in the years ahead,” says Laura Klitgaard.

The government also proposes a new strategic initiative for welfare technology in elderly care, including the wider adoption of mature technologies and improving technological understanding among employees.

IDA welcomes this, but points out the need for a comprehensive national strategy for the implementation of both health and welfare technology across the entire healthcare system.

“When developing new technology, involving citizens, employees and engineers is essential to ensure solutions are usable and widely accepted. It is positive that technological understanding is included in the strategic focus on elderly care, but a coordinated national plan for health and welfare technology is still needed. Otherwise, we risk losing too much of the potential,” says Laura Klitgaard.

Artificial intelligence high on the agenda

A search for “AI” and “artificial intelligence” in the new government platform returns 51 results, compared to none in the 2022 platform.

Artificial intelligence has clearly gained political attention and is referenced across multiple areas of policy.

Among other initiatives, the government plans to develop a national strategy for the use of AI in education, strengthen digital sovereignty and take a leading role in regulating addictive design practices used by major tech companies on social media.

It is important to quickly harness the potential of this new technology while also taking necessary precautions to protect children, citizens and democracy. Achieving this balance is crucial, says Laura Klitgaard:

“Artificial intelligence must be put to use in society and enable us to do more than we can today. At the same time, we must be mindful of how it affects the Danish labour market and ensure that everyone benefits from the many new solutions emerging. This requires the right skills, which begins in schools. I am therefore very pleased that the government aims to strengthen technological literacy in schools and establish better frameworks for the use of AI across the education system.”

A labour market fit for the times

An important element of the government platform is a new welfare agreement intended to create stability around the future retirement age, support more flexible retirement, reduce stress and improve the balance between work and family life. This is a positive initiative that requires thorough work, says Malene Matthison-Hansen, Chair of the Council of Employees at IDA.

“Working life is evolving, as are the needs of our members, who increasingly demand flexibility throughout their careers. It is therefore positive that the government is inviting social partners to discuss these matters in greater depth and in a broader context. IDA looks forward to contributing to and following this work,” she says.

IDA also welcomes the government’s ambition to enable more flexible retirement and reduce barriers between pension and continued employment.

It is particularly positive that the government proposes allowing pension savings schemes to be paused. This will make it easier for people to return to the labour market for a period without significant tax consequences, which will be important for members nearing the end of their careers.

If companies are to be able to retain their experienced and skilled staff for longer, we need to talk much more about flexible retirement and not just about the state pension age. We would therefore urge the government to look into the possibility of people taking partial retirement whilst at the same time starting to receive partial payments from their own pension savings.

Skills to meet today’s major challenges

The government also recognises that the right skills are essential if Denmark is to remain well positioned and ensure the best conditions for businesses now and in the future.

“The government’s ambitions for stronger defence, improved cybersecurity, more ambitious climate targets and increased competitiveness all point to a significant need for skills in technology, IT and the natural sciences. It is therefore very important that the government plans to create an additional 2,000 study places, primarily within science, technology, engineering and mathematics (STEM),” says Laura Klitgaard.

According to an IDA forecast, Denmark will face a shortage of 20,400 engineers, IT specialists and science graduates by 2040. At the same time, EU analyses show that more engineers are needed than are currently being trained.

It is therefore important that we strengthen our education programmes and train more people in technical and scientific subjects, with a particular focus on the skills required by the government’s many technology initiatives.

Building skills is also about research and development. It is therefore encouraging that the government intends to invest at least 1 per cent of GDP in public research. On the other hand, it is a challenge that businesses are facing reduced opportunities to claim tax relief on research and development expenditure.  

At IDA, we agree that the research tax credit scheme could be improved – particularly for smaller businesses, which often find the rules unclear. But precisely because fewer of these smaller businesses invest in research and development, the government should have improved the scheme rather than weakening it.

Defence and research cooperation

Europe must become stronger and more self-reliant in a time marked by war and geopolitical tensions.

IDA therefore welcomes the government’s plans to continue its defence industrial strategy and establish closer cooperation between the Armed Forces and the Danish research and innovation system.

“In the current geopolitical reality, engineers are in many ways as important as soldiers. This new reality calls for technological independence and stronger strategic alliances in the Nordic region and across Europe,” says Laura Klitgaard.

Unsurprisingly, the Danish government is sticking to its target of spending 5 per cent of GDP on defence and civil preparedness. To ensure the greatest possible societal return on these investments and to strengthen cooperation between the defence sector, research and industry, IDA believes that at least 2 per cent of the Danish defence budget should be allocated to research and development, rising to 5 per cent by 2035. This will help ensure that Denmark stands stronger in turbulent times.
  
“Without more research and development in the defence budget, we are making ourselves unnecessarily dependent on others at a time when Denmark and Europe need to chart their own course,” she says.

More electricity and green energy

The government proposes a significant expansion of the electricity grid towards 2035 and an urgent plan for energy infrastructure, prioritising access based on societal value.

“The electricity grid is particularly critical. In a carbon-neutral society, far more will run on electricity. It is therefore very positive that Energinet will be able to expand more proactively and prioritise access based on societal considerations in the short term,” says Laura Klitgaard.

At the same time, the government plans to harness Denmark’s vast offshore wind resources in the North Sea through new tenders, contributing to European energy security.

“It is necessary for Denmark to strengthen its climate targets at a time when other countries are hesitating. Now we must demonstrate real action behind the commitments, and IDA looks forward to contributing,” says Laura Klitgaard.