Competitive low-tech manufacturing and challenges for regional policy in the European context—lessons from the Danish experience

Teis Hansen and Lars Winther

Cambridge Journal of Regions, Economy and Society, 2014, vol. 7, issue 3, 449-470

Abstract: Today, low-tech firms in high-wage countries are focusing on increasing investments in highly skilled labour and advanced machinery, incremental innovation and high value-added niches. Danish policy, however, gives little attention to the new specificities of low-tech manufacturing, and the understanding of innovation in national and regional strategies is dominated by a science-based perspective. There is a strong policy focus on human capital and research and development in manufacturing. Human capital is vital to manufacturing in general, but the latter is of less importance for low-tech firms. Conversely, user–producer interactions and machinery investments, which are critical to low-tech competitiveness, are disregarded by policies.

Date: 2014
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