OECD Territorial Review Copenhagen

The review

The review was presented in Copenhagen on 27th January by OECD economist Olaf Merk, with reactions from the Lord Mayor of the City of Copenhagen, Ritt Bjerregaard and the Chair of the Regional Council of the Capital Region of Denmark, Vibeke Storm Rasmussen. The Review assesses Copenhagen’s policies and governance arrangements and makes recommendations for improvement.


Lord Mayor Ritt Bjerregaard at the press conference on 27 January


Main findings

The OECD concludes that Copenhagen performs well in many respects. It has a diversified metropolitan economy, a thriving labour market and good social indicators. Unemployment is very low, labour participation high and social segregation relatively limited. Copenhagen’s economy, however, has grown slowly over the past decade, by about 2.0% per year. Though its GDP per capita and productivity are higher than the Danish national average, Copenhagen is in the mid range of OECD metropolitan areas and falls behind major European cities such as Stockholm and Dublin.

The OECD's recommendations

According to the OECD, Copenhagen, like all big cities, needs a competitive edge to attract and hold investors and businesses. To sharpen that edge, Copenhagen will have to boosts its economy by enticing foreign skilled workers, students and international firms to move there, better integrating immigrants, and encouraging students to enter the work force earlier.

Another determinant of urban performance is innovation. The innovation capacity of Copenhagen is average compared to other European cities. Cities such as Stockholm and Munich have more patent applications per inhabitant and have higher employment shares in high-tech industries. To improve innovation, OECD advises stronger links between higher education and firms, an incentive-based research funding scheme and entrepreneurship policies aligned to Copenhagen’s needs.

Copenhagen could make itself more attractive by upgrading its transportation infrastructure (including a congestion charge), providing more affordable housing, reducing air pollution and further co-operating with Southern Sweden within the Øresund Region. These elements could be part of a common agenda for Copenhagen, in partnership with the regional and national governments. Considering the economic and knowledge spillovers from Copenhagen to the rest of the country, the OECD Review concludes that a more competitive Copenhagen will contribute to a more competitive Denmark. 

For more information please contact project manager Claus Schøsler cls@okf.kk.dk or visit our homepage  http://www.kk.dk/oecd