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

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.