The Market Development Fund
The Market Development Fund helps enterprises bring their new products to the market faster and makes it easier for public-sector institutions to purchase innovative solutions.
DKK 135 million is allocated for the Market Development Fund each year from 2013 up to and including 2015.
The aim of the Market Development Fund is to promote growth, employment and export, particularly for small and medium-sized enterprises in areas where Denmark has particular strengths and potential. The Fund has three primary focus areas:
- Market development through co-funding for private enterprises’ innovative solutions
- Market development through innovative public procurement
- Market development through industry partnerships
A midterm evaluation of effects shows that DKK 1 million in funding from the Market Development Fund generates 8.5 jobs in Danish companies. The evaluation estimates that enterprises that have received co-financing from the Fund collectively will increase turnover by DKK 3.5 billion, exports by DKK 2.7 billion and create 2,000-2,300 jobs by 2018.
The Market Development Fund is the result of a reorganization of the Business Innovation Fund. With its commercial focus, the Market Development Fund has a unique position in the Danish innovation system as other subsidy schemes focus on the early developmental phases. The Market Development Fund takes over where R&D and demonstration programmes end in order to assist in the final market adaptation of enterprises’ innovative solutions.