Life Science Industry’s Economic Footprint in Denmark
On February 21, the Ministry of Industry, Business & Financial Affairs presented an analysis on the Danish Life Science industry’s economic footprint in Denmark. Overall, the report concludes that the Danish life science industry has a considerable position of strength with a large economic footprint.
The report’s key conclusions are:
The life science industry’s value add is growing significantly
In 2016, the economic value add in the Danish life science industry was DKK 92 bn., which is an 88% increase from 2008. This is a significant economic contribution (in comparison, the overall industry growth is 17%). If you include the derivative value add generated through subcontractors to the life science companies as well as the revenue from the subsidiaries abroad, the total value add generated is DKK 211 bn. in 2016.
Life Science exports have doubled since 2008
In 2017, life Science companies in Denmark exported for DKK 108 bn. – a 100% growth since 2008 (in comparison, the overall export grew with 14%). This means that the life science industry is responsible for 16% of all export in 2017.
The life science industry employs 83,000 people
The number of people employed in the Danish life science industry was 47,000 in 2016 (from 7000 people in 2008). 19,000 are skilled or unskilled workers and almost 14,000 has a Master’s Degree or a PhD. More than 12,800 people are employed by foreign-owned life science companies.
The productivity level is twice as high in the life science industry compared to the overall industry
An employee in the life science industry generates DKK 1.7 million in value add annually, which is twice the average of the overall economy. The productivity growth for the life science industry per employee has been 31% (2008-2016). The average for the overall industry is 11%.
Danish subsidiaries abroad generates more than DKK 15 bn. in annual revenue for Denmark
The life science industry generates more than DKK 15 bn. annually in net investment income through subsidiaries, which is equal to 23% of the total Danish net investment outcome. Foreign life science companies’ direct investments in Denmark was DKK 31 bn. (2017), which is a 31% increase since 2008.
The tax revenue for the life science industry has increased with 74% since 2008
The overall tax revenue from the Danish life science industry was DKK 21,4 bn. in 2016, which is an increase of 74% since 2008. This includes corporate tax and personal tax.
The life science industry is responsible for a third of all private R&D conducted in Denmark
The Danish life science industry invested more than DKK 15.5 bn. in R&D (2016), which equals around a third of the all private research. Investments in R&D have increased with 60% since 2008.
Read the full report here (in Danish).
(source: the Ministry of Industry, Business and Financial Affairs)
About the Analysis
The analysis is conducted by Damvad Analytics. The purpose of the analysis is to qualify, supplement and update the industry’s key economic figures as presented in the government’s life science growth plan (March 2018). The key figures are estimated based on numbers from 2008 to 2016. Where possible, 2017 numbers are included.