Transfer of technology
When Danish enterprises invest in developing countries, they help transfer technology that enhance competitiveness and staff qualifications.
One of the most significant effects of foreign direct investment (FDI) is that the foreign investor normally introduces new technology either in an existing or in a new company. Examples of this are Carlsberg taking over and modernising a brewery or FLSmidth constructing a modern cement factory in a developing country.
Older technology may also be transferred in the form of second-hand equipment, for example from the foreign enterprise. Compared with the existing technology in the developing countries, second-hand equipment from a Danish enterprise may well be an advance.
Danish companies bring along new technology
Close to 75 per cent of the new peojects contracted in 2014 are expected to implement world class technology, and just above 25 per cent are expected to implement average wll-known technology.
So, IFU's investments generally lead to a transfer of new technology to developing countries which may contribute to increasing productivity and upgrading the employees' qualifications.