Facts

• Denmark and Sweden are recognised world leaders in telecommunications, specialised software development, the Internet and new media. Excellent innovation climate.

• The Oresund Region now has least expensive nation-wide unit rates for broadband communication.

• Sophisticated personal and industrial IT usage.

• The region offers one of the world's foremost IT and telecom infrastructure.

• Denmark and Sweden offers an outstanding test market, due to market size, IT usage and user acceptance for new products and concepts.

• Qualified and competitive workforce with excellent language skills.

• Recognised management skills - well suited for a global high-tech economy.


[Back to top]

Introduction

Few regions can match The Oresund Region in terms of the impact that IT, telecommunications and new media have in personal, corporate and financial life. Denmark and Sweden are thriving IT nations with considerable scope of opportunities for both industrial and financial investors.

The markets of Denmark and Sweden thus constitute ideal test markets for new products aimed at the European market, considering that it is small and statistically well covered and characterised by a highly developed infrastructure. Furthermore Denmark and Sweden along with the rest of the Scandinavian countries, provide a regional market which ranks among the world's leaders in IT spending per capita. Add on top of that the strategically important geographical position towards the Baltic and it becomes evident that the region has something to offer foreign investors.

In recent years, a large number of companies have been started, primarily in IT, medical technology and other high-tech fields. A climate of creativity and entrepreneurship has swept over the region, encouraging innovators and investors with a focus on growth and international expansion.

Companies in the region are very keen on undertaking collaborative ventures with foreign firms. A skilled workforce and experienced research engineers, coupled with attractive regional incentive schemes, make for unique opportunities in The Oresund region.

IT and telecommunications

Denmark and Sweden have demonstrated an internationally outstanding development environment and unique competencies within the fields of IT and Telecommunications. This profile is used to canvass companies throughout the world at one-on-one meetings for the purpose of presenting possibilities for locating development activities or for entering into collaborative development or OEM arrangements with Danish and Swedish companies.

Power Electronics

The electronic industry in the region holds a strong position in power electronics. Although intensely competitive, the companies in the region are very interested in the prospect of undertaking collaborative ventures with foreign firms. Danish and Swedish manufacturers are known for placing a strong emphasis upon quality, simplicity and attention to critical details.

New Media

There is no doubt that the digital media will affect the way of doing business for all companies in the future. Danish and Swedish companies are attractive partners mainly due to their high level of research and development. The region located around the Oresund has a long tradition of developing and implementing user-friendly systems, which is reflected in the advanced IT infrastructure. Denmark's and Sweden’s IT and telecommunication infrastructure is rated among the world's best. In terms of R&D it is customary for private companies and public research institutions to co-operate. In The Oresund Region you can exploit the digital media technologies to the full.

[Back to top]

Excellent infrastructure

Thanks to a network of fibre optic cables and microwave links from the region to Japan via Siberia and through the Eastern European states, the region serves as a hub for international telecommunication.

Infrastructural characteristics

Telecommunications and data infrastructure in Denmark and Sweden is among the world's most advanced, extensive and reliable.

The public telecom networks have been 100% digital for several years, and holds a world-class technical position. This is reflected in a strong and competitive position in a number of important areas: penetration of telecom applications as well as use of PCs and the Internet, are far higher than in other nations; a wide range of advanced value-added services are offered telecom users; and most telecom services are cheaper than in other OECD nations.

Companies, government authorities and the general public have a long history of rapidly accepting and applying the latest, most efficient telecom technologies and IT services. Citizens in the region are advanced, highly-demanding users, who not only invest in the most efficient solutions but support companies that can offer improvements or create entirely new systems. Against this background, the IT infrastructure continues to expand at an accelerating pace.

Focus on regional networks

Investments continue throughout Denmark and Sweden in regional development of telecommunications infrastructure. Most municipalities have invested in their own networks and many have built their own broad band systems (optical fiber) and/or radio link communication systems, and some even sell communication capacity or telecom services. In several counties, broad band networks are linked with other resources in the countries.

Years ahead in deregulation

The telecommunications market in Sweden was fully deregulated in 1993, long before the rest of Europe took initial steps toward a free market. As the first in the world the Danish government has developed a concrete plan of action to meet the challenges of the information technology society. One of the important goals was to create the world's best and least expensive telecommunications. All of the initiatives under this headline have been carried out. They included the full deregulation of the telecommunications infrastructure on July 1, 1996 - one and a half years ahead of schedule. The Oresund Region now has the least expensive nation-wide unit rates for broadband communication.

[Back to top]

How did Swedes and Danes become the world's most advanced IT users? A part of the answer is that the governments of Denmark and Sweden have given priority to investments in IT and telecom, and in the fact that continuous efforts have been made to increase levels of competence and the use of IT. Government agencies leads the way by setting high standards of accessibility to public information and the active use of IT. Companies in the countries are some of the most global in the world, with far-flung networks of subsidiaries established very early compared to firms in other nations. The industrial base, emerging high-tech companies and the sophisticated IT usage are other factors which contribute to the positive outlook.

World's most advanced IT users

Denmark and Sweden are fast becoming world leaders in computers per household. The vision of a computer in every home will probably first be realised in these countries.

Several private and state research foundations in the countries are strengthening high-tech competence in industry and in universities and technical institutes. Major efforts are being made to develop possibilities for post high school education via Internet and telecom. This would also be expanded to long distance and international research projects, and distribution of research results and technological developments.

The widespread use of the Internet in Denmark and Sweden is clearly more advanced than in the rest of Europe. About 40 percent of the citizens in the region have access to, and use, the World Wide Web. Internet usage is in the third "development wave": no longer are only universities and companies active Internet users, but a fast growing share of households are also linked to the web.

Online banking has attained surprisingly fast acceptance by customers, and today all large banks are active in this field.

During the past two years, online stock trading has increased sharply in Sweden and Denmark. The growth is especially outstanding compared with the rest of Europe. Most brokerage firms offer advanced online trading and information services to a rapidly increasing number of customers.

Leading-edge industrial IT investments

Companies are often highly decentralized, which means that decisions on IT investments are made by the users, or very near to users. This provides maximum appreciation of systems and potential for expansion. An increasing percentage of work is accomplished directly through computer systems.

Just about every company is investing in expanding IT systems to increase productivity. More flexible working arrangements, including tele-commuting, can be implemented as quickly as desired thanks to the region’s well-developed telecom infrastructure.

A well co-ordinated major effort to promote electronic business communication, generally known as e-commerce, is underway. The widespread application of Internet retailing makes such a program possible. Almost half of all larger companies have already started, or are starting, to offer Internet trading and service. Although the financial sector is most advanced in this, the retail clothing and mail order sectors have become very active.

Banking and the financial transfer systems are not the only institutions that are expanding in offering services via home computers and telephone. Tax authorities and other government agencies have online systems that enable Swedes and Danes to use their home PCs to file tax declarations, submit various applications and obtain information.

IT priority in education

The IT infrastructure throughout the educational sector is very stable and well-developed, featuring high capacity and quality. Universities and technical institutes cooperate in a national networks of the most advanced design. High schools and middle schools rate high in international comparisons in availability of latest IT support and the Internet. To support the efforts in schools, authorities invest in continuing development of IT teaching techniques, organization and administration.

Education is decentralized in the countries, and school administrators and teachers have considerable freedom to introduce IT in schools at very early levels, making it a natural, stable part of the curriculum. This is aimed to provide students with a clear, practical view of IT and is one contributing reason behind the generally high use of IT in a wide range of applications.

[Back to top]

Many new media companies have been founded in the region since mid 90’ties. Today, this expanding industry is restructuring through mergers and acquisitions, in response to clients’ requirements for second and third generation Internet solutions.

Today’s customers have mature, sophisticated ambitions on how to utilize Internet’s seemingly boundless opportunities. Projects range from providing basic business information on the web to interactive systems for trading or marketing of products and services.

Business critical solutions

In most cases, applications are for specific businesses, involving customers’ existing finance and logistics systems. The Internet is becoming a vital integrated part of companies’ regular business operations.

This means that Internet service companies face new and more specialised demands. They must offer the highest competence, be able to handle complex developments and be large enough to successfully complete major assignments. Second and third generation Internet investments involve far larger amounts than earlier, and far greater resources must be devoted to each project.

These new demands have accelerated the maturity process in the sector, and considerable restructuring has been spurred. There has been a wave of company acquisitions and mergers among web agencies, advertising agencies and traditional IT consultants. The sector has become clearly divided into large and small companies.

[Back to top]

The mobile telephone network is an extremely important part of the region’s telecom infrastructure. The three digital GSM networks that cover entire Scandinavia helped make the region the world-leader in use of mobile phones. The three digital mobile networks are undergoing fast expansion to 1,800 MHz, which will provide significant capacity to the infrastructure.

In general, foreign firms play an important role in the region’s mobile communications industry. A number of companies are owned by foreign investors: Apart from Maxon, Hagenuk Telecom Danmark A/S is part of a German group and recently also Dancall Telecom A/S (now Bosch Telecom Danmark A/S) was acquired by Robert Bosch GmbH. In March 1997 Bosch Telecom Danmark A/S was the first company in the world to introduce a GSM phone that can be used for both the GSM 900 system and PCS 1900. Bosch Telecom Danmark A/S recently developed another unique terminal - a dual band phone for both GSM 900 and DCS 1800. Storno - the third largest producer of closed radio equipment in the world - and AP Radio were acquired respectively by General Electric and Phillips, and some of their activities are now with Nokia in the region where 250 people are employed in a development section. Nokia will expand its R&D center with app. 400 new employees during the next year. Also, Motorola has substantial development activities in Denmark and, in January 1997, Ericsson started adding 235 people to its three companies in Denmark - almost all will be engineers.

The region also holds a leading world position in household access to multi-channel TV. Cable networks are now being upgraded to handle telephony, Internet and interactive multimedia services. Most households will be able to receive digital TV by 2000.

[Back to top]

The Baltic Sea Region is one of the most dynamic IT areas in the world. The unique diversity of the region offers huge market potential. The Oresund Region holds the key position as the springboard for foreign companies establishing a presence in this region.

The Baltic Sea Region is made up of ten countries and a number of metropolitan areas. With openings to the west into Norway and the east into Russia, the region en compasses Denmark, Sweden, Norway, Finland, northern Germany, Poland, Estonia, Latvia, Lithuania and the western Russian area surrounding St Petersburg and Kaliningrad.

The region's diversity – in terms of economic standards, industrial structure, cost levels, technological progress, labor access, skills and wages – creates dynamic business opportunities. With a population of some 100 million, the Baltic Sea Region is one of very few areas in the world that offer expanding consumer markets plus attractive production capabilities.

Fast- growing IT markets

Contrasting conditions exist side by side within a relatively small geographic area. Scandinavia and northern Germany are one of the most advanced regions in the world, with a highly developed IT and telecommunications market. Demanding and sophisticated consumers facilitate development and testing of new products.

Compared with Scandinavia and Germany, the current position of Poland, Russia, and the Baltic states differs considerably. After 70 years of communist rule their infrastructure is not only largely out of date but also very limited. However, political changes in these former eastern-bloc countries have created new conditions for rapid development. With an annual growth rate of 15 to 20 percent, Poland, Russia and the Baltic states represent some of the world's fastest growing IT and telecom markets.

Infrastructural advantages

Business activities are also facilitated by The Oresund Region’s infrastructural advantages. From the region, one can reach the entire Baltic Sea Region within 1–2 hours by air and up to 24 hours by sea. Fiber optic cables between the region and Estonia and the region and Lithuania guarantee secure and reliable telecommunications.

Many companies, both in and outside the region, are discovering how to utilise and combine the variety of comparative advantages. Industrial operations in the region that require capital and high technological know-how can be complemented with more labour-intensive operations in Eastern Baltic countries, which offer lower production costs.

Locating in The Oresund Region means establishing a presence in two of the most sophisticated IT countries in the world – in the heart of the Baltic Sea Region, Europe's most expansive market and low-cost production region. Few other areas provide this unique combination.

[Back to top]