While Denmark is investing heavily in the EC, other EC countries do not appear to find it similarly attractive to invest in Denmark. Only 25% of total FDI in Denmark come from other EC countries. Other Nordic countries account for close to half of the total FDI in Denmark, with strong increases in their investments over the last year or two. This seems to confirm the idea of Denmark being a gateway or bridge between Scandinavia and the EC. (U.S. Department of State Background Notes, 1997)

There are a total of about 2,000 foreign subsidiaries in Denmark. The largest investor country is Sweden with more than 500 subsidiaries in Denmark, while the U.S. ranks number two with about 250 (total investment worth over $1billion). Other important investor countries are the UK, West Germany, Norway and Finland. The most frequent type of U.S. direct investment in Denmark is in the form of acquisitions. (U.S. Department of State Background Notes, 1997)

Although the software and hardware industry may not be an attractive foreign investment, setting up a non-IT global firm would be quite appealing. Several factors contribute to this conclusion. First, with the widespread use of electronic data interchange, strategic relationships with suppliers and vendors could be established. Also, the competitive pricing of telecommunications, especially in the long-distance market, means that communications with other subsidiaries across borders is encouraged, and may provide the non-IT firm with a strategic advantage. As discussed in the Human Capital section of this paper, the Danish labor force is very well educated and computer savvy, thus making integration of IT within such organizations far less painful with regard to the standard change management issues. Further, an educated labor force does not necessarily imply full or even partial knowledge of the technicalities regarding information systems. Instead, what makes it so appealing to foreign investors is that they are trainable--they have the ability to learn new applications and ways of conducting business. It should also be noted that the Danish market is particularly appealing to businesses that can distribute their products via the Internet. The well-established infrastructure and fibre-optic network makes the environment ripe for doing business in the area of electronic commerce.

Support for this investment view is can be found at The WorldPaper Online, which recognizes "Striders,"--"those nations that are moving purposefully along the information pathway, their citizens absorbing new technologies for personal and professional use with a mixture of caution and conviction."

As shown above, Denmark ranks first in the "Striders" category with regard to the information imperative index (measuring social, information, and computer infrastructures). It should be noted that the United States and Sweden were ranked as "Power Walkers"--countries that were fully in tune with the fast pace and complicated procedures of the information age.

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