DFIRbrief 55: The New Cluster Programme: 2025-2028

Following the Danish Board of Business Development’s (DEB) reappointment of 11 clusters for 2025-2028 with a total budget of DKK 662 million, the Danish Council for Research and Innovation Policy (DFIR) invited stakeholders to a discussion on the role, challenges and opportunities of the clusters within Denmark’s innovation system.

DFIRbrief 55: The New Cluster Programme: 2025-2028

Following DEB’s reappointment of 11 cluster organisations for the period 2025–2028, DFIR invited stakeholders to a discussion on the role, challenges and opportunities of knowledge and business clusters in the Danish innovation system.

At the event, there was broad agreement that Danish cluster organisations should above all provide a framework for networks that connect SMEs, large companies, funding bodies and knowledge institutions. This requires continuous and reciprocal dialogue across the actors in the innovation ecosystem to strengthen mutual awareness and support smooth cooperation grounded in strong personal relationships.

SMEs account for 99% of private companies and generate two-thirds of total turnover in Denmark. They play a significant role in growth, productivity development and competitiveness. However, the share of Danish private R&D investment coming from SMEs has been declining. This weakens Denmark’s future competitiveness, as R&D-active SMEs tend to be more risk-willing and more often engage in disruptive research and innovation than larger, more established firms.

In spring 2025, the Danish Board of Business Development allocated a total of DKK 662 million to 11 cluster organisations. The funding aims to promote and accelerate SMEs’ own innovation and collaboration on innovation. The new programme introduces several changes compared to previous cluster programmes, including a stronger focus on clusters’ ability to attract private financing, prioritisation of deeper collaboration over broad networking activities, a smaller number of clusters with the discontinuation of emerging organisations, and consolidated administration and funding under the Danish Board of Business Development.

In this brief, DFIR highlights selected observations, including the general need to strengthen collaboration with knowledge institutions – which are essential to the value proposition of the cluster instrument – and the need to support continuous and reciprocal dialogue to enhance mutual understanding and ensure smooth cooperation based on strong personal relationships.

Read more about the project Innovative SMEs - Rich and Resilient Societies Have smart Businesses