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Articles

The Danish fabricated metal industry: A competitive medium-low-tech industry in a highwage country

Pages 65-80 | Published online: 10 Apr 2013
 

Abstract

Geografisk Tidsskrift—Danish Journal of Geography 110(1):65–80, 2010

This paper aims to contribute to the knowledge on innovation processes in low- and medium-low-tech industries. Today, industries characterised as high-tech are perceived to be central to economic development, as the research intensity shields them from competition from low-wage countries. This is less the case for low-tech industries, but their economic importance continues to be large, however. It is thus interesting to analyse how they manage to remain competitive.

The analysis focuses on a case study of the fabricated metal industry by identifying the innovation strategies followed by firms located in a part of Jutland, where this industry has experienced growth. It is found that the ability to create tailor-made solutions is central to the competitiveness of these medium-low-tech firms. Knowledge is thus highly important, yet in different ways than for high-tech industries. This illustrates the importance of industrial policies that take these differences into account.

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