Results from a new survey from Ipsos show that 30% of Nordic businesses are concerned about their ability to remain competitive in terms of innovation and technological advancements. Of the businesses surveyed, 40% reported having a neutral stance whereas only 29% were not concerned by the issue.

According to Allan Von Mehren, Chief Analyst at Danske Bank and the bank’s expert on the Chinese economy, there is good reason to be concerned and to be serious about intensifying work on innovation. For Nordic businesses, one major competitor is China, where Allan has observed a shift away from low prices towards an increased focus on innovation:

“China is no longer just about low production costs. The Chinese have done a remarkable job when it comes to innovation, with their success with electric cars being just one example. We see them pushing hard on the innovation agenda with new products coming out very fast. And the time when products from China were cheap and low quality is long gone. Now, we see innovative products of high quality,” explains Allan Von Mehren.

Stronger together
For small nations such as those of the Nordic region, lack of innovation is a major threat to their competitiveness. And according to Carsten Egeriis, CEO of Danske Bank, we need to move together if we are to stay competitive while also maintaining focus on combating climate change.

“The big challenges that we see globally are also challenges for the Nordic countries. Because we’re so small and are open economies in the Nordic countries, it’s even more important that we understand those dynamics. When you look at managing a business today, the concept of going it alone without working together with partners is increasingly in the past,” says Carsten Egeriis.

The focus on partnerships is not merely aimed at broadening the horizon to enable new ideas and possibilities to emerge, but it is also because working in partnerships is a way to accelerate the pace of innovation.

Speed is key
One company that is very much aware of this is the Norwegian company  Kongsberg. And for the company’s CEO, Geir Håøy, innovation in the Nordic countries is a particular area of concern.

“The most pressing issues I see with global innovation today is maybe the speed – at least within our areas, where we’ve been used to having a longer perspective on the innovation track. We definitely see that we need to speed up innovation. If we fail to do that, I think, obviously, we’ll be less competitive,” says Geir Håøy.

At Danske Bank, work has already begun on the transition towards more partnerships. Not only with partners that assist Danske Bank with solutions in the more traditional banking space, such as insurance and real estate solutions, but also with businesses that focus on technology that helps Danske Bank handle a variety of IT-related requirements.

“We work with partnerships in many, many different areas of the bank. A good example is technology. The pace of change in technology is going faster than ever. Trying to figure out what technology solutions or software solutions to invest in is extremely difficult; trying to ensure that you have the right talent and resources to deliver the customer solutions on the technology side is extremely challenging,” explains Carsten Egeriis.

 

This sentiment is echoed by Geir Håøy, who also focuses on the advantages that the Nordic countries have and on ensuring that businesses build upon these:

“It's important for us as a company and as a country to decide where we have our advantages and to build on that. And then we will need partners. We will need other stakeholders to join us on the stage – and if we can manage to do that, and continue to work on that, I think we have a fairly good chance to be competitive out in the bigger world,” says Geir Håøy.

But in the end, the Nordic countries’ competitive edge is not just about what they create but also about how they lead. By fostering a culture of collaboration and innovation, Nordic businesses can continue to thrive in the global market.

“Staying competitive within the Nordic region and globally is about more than just moving fast. It’s about asking better questions, understanding the risks and opportunities of the broader system, and making decisions that are both bold and informed,” says Carsten Egeriis.