For development projects, the Danish Business Authority can pre-approve multipliers for the transfer of technology, software, etc., for funding of development projects, advisory services, and/or making facilities available.
What are multipliers?
When a foreign supplier buys an off-the-shelf defence product or service from a Danish company, the Danish Business Authority (DBA) can grant approval to confirm that the supplier’s industrial co-operation obligation is reduced by the amount invoiced. This is called a multiplier of 1.
If the foreign supplier contributes to a development project in a Danish company, the Danish Business Authority can grant pre-approval to confirm that the supplier’s industrial co-operation obligation is reduced by a multiplier greater than 1. This can be done if the specific contribution is more valuable to the Danish company than selling off-the-shelf defence products or services to the supplier.
Example: A supplier pays DKK 100,000 to cover the development costs of a Danish company developing a new product that the Danish company produces and sells afterwards. This is deemed more valuable to the Danish company than selling products from their existing portfolio to the supplier for DKK 100,000. In this case, the Danish Business Authority can approve a multiplier of 5, i.e. reduce the foreign supplier’s obligation by DKK 500,000.
Which multipliers can be pre-approved by the Danish Business Authority?
Transfer of technology, software, etc.
The foreign supplier transfers technology which can be used by the Danish company for the development project and which can be at the company’s disposal afterwards
Transfer of funding
The foreign supplier pays the Danish company’s costs of the development project
Advisory service, technical assistance, etc.
The foreign supplier places its own experts or external consultants at the disposal of the Danish company
Making facilities available
The foreign supplier places its facilities at the disposal of the Danish company, e.g. proving grounds for testing prototypes or an exhibition booth at a trade fair
The foreign supplier buys or brokers the sale of products or services from the Danish company