The purpose of industrial co-operation is to ensure that the Danish industry has the competencies and capabilities which are required for the protection of Denmark’s essential security interests.

These security interests are described in the National Defence Industrial Strategy (pdf). The strategy includes descriptions of how in times of crises Denmark must be independently capable of maintaining key systems, equipment and materiel.

Danish companies in the field of defence have to collaborate with foreign suppliers of defence equipment in order for them to be able to maintain and develop the requisite competencies and capabilities. For this reason, the Danish Business Authority can require foreign suppliers of defence equipment to enter into industrial co-operation.

This will apply if the Danish Ministry of Defence, in assessing a specific procurement, deems industrial co-operation to be necessary for the protection of Denmark’s essential security interests and if the Danish Business Authority assess that such an obligation will not distort the competition on the civil markets.

The Danish Business Authority stipulates the terms of the industrial co-operation obligation in a contract entered into between the foreign supplier and the Danish Business Authority.

The industrial co-operation must concern defence equipment within specific strategic technology areas, as stipulated by the Danish Ministry of Defence on the basis of a specific assessment and must be related to the specific procurement or corresponding defence equipment. Industrial co-operation can involve both the procurement of subcontracted work provided by Danish companies and development projects conducted by Danish companies.

The Danish Business Authority verifies that foreign suppliers comply with the ICC, and the Danish Business Authority pre-approves development projects between suppliers and Danish companies before these projects are initiated.