That a small country like Denmark is home to so many of the world’s leading companies in such a specialised science-based field as healthcare is unique.

Several of the longest-established companies lead the field internationally. Founded between 50 and 75 years ago, they have created remarkable growth and enjoyed stability in ownership and development of management.

The companies have been around for a long time and were all founded by farsighted entrepreneurs, who late in life established foundations to control their companies through vote-heavy A-shares donated to these foundations.

This construction protected the companies from family feuds and influence and at the same time allowed listing of the B-shares on the stock exchange. This model of foundation-controlled companies has worked very well for Denmark and is the reason why the international giants have not bought these companies.
      The stability engendered by this ownership structure allowed their boards and directors to steer them with a long-term perspective – an important factor for research- based companies where blockbuster products can be a long time in the pipeline.

As a counterbalance to this, stock exchange listings and the consequent pressure from shareholders ensures that companies with this special structure strive for optimal financial results.

The foundation concept supports the Danish tradition of a clear-cut division of work between the board and management. The board ensures that long-term goals are set and it appoints management. In turn, management runs the company with very little interference from the board provided that targeted results are met. The chief executive and his management team traditionally stay with the company for a long time. Chief executives are usually promoted from within. Top management is to a large extent driven by the desire to continuously develop the company to higher and higher standards thus ensuring that the company is handed over to the next management generation in excellent shape. It is basically the “old farmer” values of prudent husbandry that still prevail and have spilled over into the attitude of management at all levels.

Three educational institutions have played a major role in the creation and development of Danish health care companies: The Technical University, University of Copenhagen and Copenhagen University Hospital. All three are world class – and have been so since their foundation. The best scientific talent of Denmark was gathered here and important and close personal networks were formed, developed and sustained, which is still the case.

These networks ensure an easy interaction between universities and industry and a free fl ow of information that enables companies to run their innovative projects in a very efficient manner. This is of special importance in the development of new health care products where easy access to reliable clinical testing is of paramount importance.

Furthermore, the Technical University (Polyteknisk Læreanstalt) was during the better part of the twentieth century the most prestigious and sought after educational centre for Denmark’s prime students. It recruited the top five per cent of Danish science students entirely on the basis of merit. An extremely high score was needed for acceptance, adding further to the prestige.

At company level, around half of top management graduated from the Technical University and since acceptance was purely merit based, the graduates came from all levels of society. This unique situation meant that Danish companies never experienced a split between an “upper class” management and “lower class” employees.

The social differences in the companies are small and management has a deep understanding of what it takes to unlock the potential of all the employees in the company and a strong desire to do exactly this. This attitude and effort has created a strong human asset base with a significant social cohesion.

From the outset, the Danish health care companies were globally oriented. They had no choice. To capitalise on progress in science one has to be tuned in internationally and commercially as the domestic market is far too small to support either ambition or the required economies of scale.
      At present, the Danish market accounts for less than two per cent of global sales for Danish health care companies.

Since the Viking era, the Danes have always been outward looking, because due to the size of the country the adventures and the achievements of wealth and fame lay beyond Denmark’s borders. Many centuries later, this persisting adventurous trait drove Danish companies to geographical expansion in new markets. Danes were accepted almost everywhere due to good language skills and a high degree of cross cultural understanding never questioning why habits in other countries differed from the Danish way of life.

The factors that created a strong world-class health care industry still exist today as evidenced by the many biotech start-ups.

It is first and foremost based on a high educational level, outward looking desire, strong ambitions and high ethical standards.

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