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Territorial Review Copenhagen - Region Hovedstaden

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71<br />

the countries that attract the most high-skilled immigrants, such as the<br />

United States, United Kingdom, Canada, Ireland, Mexico, Luxembourg,<br />

Switzerland and Australia. As mentioned above, Denmark has a large<br />

disparity in the unemployment rates of immigrants relative to the nativeborn<br />

population (twice as high). The relatively limited importance of<br />

<strong>Copenhagen</strong> as a hub for highly skilled workers is illustrated by its ranking<br />

by the number of international offices of the leading 15 global executive<br />

search firms. In 2005, <strong>Copenhagen</strong> was ranked 11 th among European cities;<br />

and similar-sized northern European cities such as Amsterdam and<br />

Stockholm ranked higher (Faulconbridge and Hall, 2008).<br />

Studies suggest that high taxation and a relatively closed business<br />

culture may be deterrents to highly skilled foreigners. A recent study<br />

concludes that taxation plays an important role in determining where Danish<br />

migrants go and where migrants to Denmark come from (Nielson, 2007).<br />

Another factor that helps attract highly skilled labour is the possibility of<br />

career advancement. Since <strong>Copenhagen</strong> has a relatively small number of<br />

large internationally oriented companies, fewer career possibilities exist for<br />

internationally oriented foreign workers. Moreover, the corporate world in<br />

Denmark has been observed to exhibit ―small world characteristics‖: a<br />

network of directors of firms closely connected through board affiliation<br />

(Sinani et al., 2008). A study of highly skilled foreign labour found that a<br />

third of the foreign workers in the survey considered that Danes were not<br />

particularly open or accommodating towards them, both in the private and<br />

professional contexts (Oxford Research, 2007).<br />

While there are so far no indications of a brain drain, recent trends give<br />

reason for concern. According to recent studies, the outflow of highly<br />

skilled Danes is balanced by a comparable influx of highly skilled foreigners<br />

(Socialforskningsinstituttet, 2007), and 70% of highly skilled Danes who<br />

leave the country come back within five years (Globalization Committee,<br />

2006). However, the number of Danish temporary workers in the United<br />

States is approaching the total amount of work permits that Denmark gives<br />

out annually. 23 There are indications that more Danish students going abroad<br />

stay abroad, and migration of Danish PhDs is increasing (Villesen, 2008).<br />

Recurring survey results show that approximately 10% of PhDs leave the<br />

country to work abroad within 18 months of earning their degree. PhDs in<br />

natural sciences head the list, with a mobility rate of around 18%. It appears<br />

that PhDs employed abroad return to Denmark after a number of years; on<br />

average only 50% return after five years abroad (OECD, 2005).<br />

Numbers for <strong>Copenhagen</strong> seem to indicate a small net inflow of<br />

foreigners, although it is not clear whether this presents a brain gain. Over<br />

2000-07, 12 570 foreigners per year on average came directly to the city of<br />

<strong>Copenhagen</strong> (and Frederiksberg); in the same period, around 11 775 people

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