Annual Report 2009 - Danish Technological Institute

Annual Report 2009 - Danish Technological Institute

Page >2Table of ContentsPreface: Knowledge is globalDanish Technological Institute– knowledge that worksDivisions and business areasBuilding Technology348High technology for construction 10Sustainable infrastructure – in more than one sense 11Standardising, testing and certification 13Danish Meat Research Institute14Sustainable production processes 16Efficient and holistic use of technology in the meat industry 18Safe and differentiated meat products 19Energy and Climate20Energy consumption in buildings – a global challenge 22Electric cars – environment-friendly transportation 23Renewable energy 24Natural refrigerants 25Business Development26Service innovation 28New forms of innovation 29Life Science30Green growth – cleaner products and processes 32Health technology with massive potential 33Total solution for the oil industry 34Food technology – healthier food 35Materials and Production36Nanotechnology is growth technology 38Design and functionality – materials 2.0 39The medical and medico-technical sector – energy and biomaterials 41Productivity and Logistics42Productive robots 44Sustainable logistics – a Danish speciality 46Care and quality of life through welfare technology 47Training48Tomorrow’s management 51International inspiration in times of crisis 52MasterClasses with leading IT experts 53International Centre54Developing national quality programmes 56Food safety in third-world countries 57ReviewFinancial statementsIncome statement 70Balance sheet 71Cash flow statement 71Notes 7258Accounting policies 76Statement by the Board of Trustees and Executive Board 78Independent auditors’ report 79Board of Representatives of the Danish Technological Institute 80Board of Trustees 81Executive Board 81Organisation 82Addresses 84

Page >3PrefaceKnowledge is globalAll in all 2009 was a good year forthe Danish Technological Institutedespite the challenges caused bythe economic downturn. Also intimes such as these, the Institutemanages to continue masteringmany of the big challenges facingthe Danish business sector andsociety. Moreover, we continue increasingthe international activitiesundertaken by the Institute. We areselling more knowledge to foreigncountries and establishing moreinternational contacts to leadingpartners and customers in Europeand other parts of the world to attractnew knowledge to Denmark.Today, there are fewer barriers tocorporate internationalisation thanbefore. Companies choose to operatewhere they consider it mostprofitable. Outsourcing of labourintensivetasks to low-pay countrieshas long been a reality, and now theglobal division of labour is changingshape in knowledge-intensive areas.Meeting this challenge requiresgreat awareness of how to positiononeself strategically in the globalvalue chain, either as a facilitator ofthe full value chain or as a specialistin segments of the value chain.Rapidly changing global conditionsform part of the challenge, as doesthe manifestly higher frequency atwhich technology changes. Whereshifts in technology once had timehorizons of about 5-10 years, thehorizon is now 1-3 years. Thismeans processes and productionequipment must be renewed morequickly, and innovative developmentsmust be based on a convergenceof design, research knowledgeand technology.The Danish Technological Instituteutilises all of its strength in technologyand business technology to assistDanish businesses – big or small –with this ever-growing challenge. TheDanish Technological Institute alsocontinually strives to utilise and extendits international network for thepurpose of acquiring knowledge aboutnew technologies, processes andmarket trends, and we will continueto update, develop and transfer ourknowledge about innovation, businessdevelopment and productivity at allstages. In the annual report, we haveoutlined a large number of customertasks and research and developmentprojects in 2009, a testimony to ourways of approaching the opportunitiesthat global changes also offer theDanish business sector.This year, we will focus on the newInstitute organisation consisting ofseven divisions and two businessareas, which will be representingthe Danish Technological Institutein future. Each division and businessarea has been given a chapterin which to describe the challengesthey face and the themes influencingtheir work in 2009.The acquisition of the Danish MeatResearch Institute (DMRI) in Roskildeopens new opportunities in thecoming year. The Danish TechnologicalInstitute acquired a nationallyand internationally leading competencecentre within innovation,development and research in themeat industry, and the acquisitionreinforces the Institute’s positionas Denmark’s biggest supplier oftechnological services to the foodindustry and its suppliers. Moreover,we established the Life Sciencedivision in which we have gatheredInstitute competences in developingand analysing chemistry, microbiologyand foods. The new division isdescribed in more detail on page 30.Together with our investments innew facilities and our dedicated staffmembers, this paves the way for aninteresting and rewarding 2010.Enjoy our Annual Report.Hans KirkChairmanSøren StjernqvistPresidentThe Danish Technological Institute is an independent and non-profit institution approved as a technological service provider by theMinistry of Science, Technology and Innovation. Her Majesty the Queen of Denmark is patroness of the Danish Technological Institute.

SwedenCase 1GhanaCase 27

ChinaCase 19Cases

Cases > Building TechnologyPage >8The construction sector is of keystrategic importance to both Danishand European economies. Europe isa major market for Danish constructionproducts and expertise, and asEurope’s largest industrial employer,the sector provides jobs for morethan 7% of the total labour force.In 2007, more than EUR 1.3 billionwas invested in constructions, whichcorresponds to 11% of Europe’sGNP.Historically, innovation and inventionare foreign concepts for the buildingsector. But globally, the sector has ascale that gives progress, which onthe face of it might seem insignificant,major social effects. For thisreason, massive investments insector development, innovation andconceptualisation are paramount.Development trends– challenges and opportunitiesTypically, the construction sectorsplits into an industrial segment,which produces building materials,components and equipment, and abuilding segment consisting of contractors,builders, architects andconsulting engineers.The industrial segment has globalisedgradually, and today thevast majority of building materialproducers work internationallyin global competition. By naturetraditional and locally based, thebuilding segment of the constructionsector is being forced toenhance its professionalisation andinternationalisation as a means ofcountering increasing competencerequirements and transparency inthe market. Overall, this processwill make the construction sector amore research-based and knowledge-intensivesector, that will, onpar with the rest of the industrialsector, continually assimilate newknowledge and technological solutionsand adapt them to globalisedmarkets.Developments in technologyand researchThe challenges and opportunitiesof the sector give rise to sweepingtechnology development spanningareas from the ongoing optimisationof existing technologies togiant technological leaps in whichknowledge transferred from othersectors and international cooperationwill generate actual paradigmshifts.

Page >10swedenCases > Building TechnologyCase1High technology forconstructionBreathtaking, unique architecture,low heating bills, excellent physicalindoor conditions, simple maintenanceand immense value in use —all included at no extra costs. Theseare features that coming houseowners can look forward to asfuture development waves hit theconstruction sector. Developmentthat is set to give the existing levelof knowledge a new and excitingdimension.The Danish Technological Instituteis striving to make Denmark thecentre of development for innovativebuilding materials andintelligent building components.Such a position would open newmarkets to Danish producers, thusenabling them, with their unique,knowledge-based products, to gaina strong position in global competition.Facade textiles save maintenanceFacade maintenance and cleaningrequire a great deal of work andcan be quite costly. But perhapsfacades should simply be dressed inthe optimum, tailored textiles thatare water and dirt-repellent.In 2009, the Danish TechnologicalInstitute cooperated with the Swedishknowledge centres, the KTHRoyal Institute of Technology, theSchool of Architecture and the BuiltEnvironment, the Swedish Cementand Concrete Research Instituteand the Swedish School of Textilesat the University of Borås, on aresearch project aimed at reducingfacade maintenance through useof textiles with functional capabilities.In addition to facades, theconstruction sector can also usetextiles to reinforce buildings andto perform 3D concrete moulding intextile moulds.Robot production of uniquebuildingsWith its high mouldability, concretewill play the lead role in futuredigitally produced architecture. Asa partner of the extensive Europeanresearch project, TailorCrete, theDanish Technological Institute isdeveloping new industrial methodsto produce concrete constructionsin all-new forms. Other partnersinclude Bekaert, Chalmers Universityof Technology, Czech TechnicalUniversity, DesignToProduction,Dragados Offshore, El Caleyo NuevasTecnologias S.A, ETH Zürich,Gibotech A/S, Grace ConstructionProducts, Paschal-Danmark A/S,Superpool, Unicon A/S and the Universityof Southern Denmark.The project has a budget of EUR8.7 million and has EU cofinancing.The project aims to ensure that -from design to production - supportingconcrete structures can beindustrially produced in appealinggeometric shapes either at buildingsites or as precast elements.

Page >11Bridges, roads, rail facilities andtunnels cost billions to build andmaintain. In future, society will poseeven higher requirements to infrastructure.For this reason, it becomesinteresting to develop solutions thatrender infrastructure facilities lesscostly to construct and easier tomaintain while also prolonging theirlifetimes.sensors able to detect when moistureand hazardous substances that maydamage concrete constructions beginto penetrate. Thus, sensors can minimisethe need for repairs and alsoreduce traffic interruptions.The technology will be used by theDanish Road Directorate and the clientof the Fehmarnbelt fixed link.JapanCase2Sustainableinfrastructure – inmore than one senseThe Danish Technological Institute focuseson new technologies to monitorthe state of constructions like bridges,the purpose being to optimisemaintenance. The development ofconcrete and concrete constructionswith extremely long lifetimes furtherunderpins these efforts, as do newand more productive constructionmethods. All efforts are aimed at protectingsocietal values while also bolsteringDanish consulting engineersand contractors with new knowledgethat can be used globally.Sensors prevent moisture damageThe SensoByg project is a partnershipbetween knowledge centres,installation owners and companies– for example moisture experts fromLund University in Sweden. Theproject builds on sensor technology,its aim being to develop cheap andreliable monitoring systems forbridges and buildings by means ofbuilt-in cordless sensors.The project enables prevention ofcostly repairs on bridges and tunnels,etc., by means of cordlessGreen concrete – an internationalsuccessThe Danish Technological Institutehas created an international success,the Green Concrete project, whichdevelops, demonstrates and providesconsultancy services on environment-friendlyconcrete constructions.The Institute has also developed anddocumented new green concretessuch as self-compacting concrete,which benefits health and safetywhile also reducing CO 2emissions.In the course of 2009, the projectwas expanded to include a structuralsurvey of an existing green concreteconstruction, which documents thatgreen concretes have durability comparableto conventional concretes.In spring 2009, the Danish TechnologicalInstitute was invited to lectureon green concrete at the Universityof Tokyo in Japan. The lecturescomprised examples of how muchCO 2one kilo of concrete emits from‘cradle to grave’. These were the firstlectures in a string of internationalmeetings set in the context of aJapanese research project.Cases > Building Technology

Cases > Building TechnologyPage >12The construction sector is the largest industrial employer inEurope accounting for 7% of the total labour force; however, thissector is currently shrinking in Denmark. The Danish ConstructionAssociation, an industry and employer association, estimates thatby 2011 the construction industry will employ 136,500 workers,salaried employees and masters. This is 44,000, or 25%, downfrom 2007.i

Page >13ItalyCase3Standardisation,testing andcertificationThe value of standardisation is easilyoverlooked in day-to-day business,but well-defined technical requirementsfor all products from toys toconcrete elements are invaluable.This is especially true, if companiesbecome aware of the requirements asearly as possible and have, perhaps,even been able to influence them.The Danish Technological Instituteparticipates in a number of selectedareas in Danish and internationalstandardisation work - not leaston behalf of small companies. Theaim is to gear Danish companies tofuture requirements in good timeand to activate Danish knowledgeinternationally.particularly true for the constructionsector, where standards, testing andcertification interrelate closely withlegislation.Clothing with high sun protectionfactorAs the only facility in Denmark, theDanish Technological Institute hasbeen accredited to test and documenthow effectively textiles protectagainst ultraviolet solar radiation inaccordance with the internationallyrecognised UV 801 standard. Suchdocumentation will give major retailstores and producers of children’sclothing and work clothing an extrasales argument for their marketing.And consumers can obtain importantconsumer information on clothing.The test is based on an internationallyrecognised standard, UV-801,which is constantly being developedand tested in cooperation betweenthe Danish Technological Institute,British BTTG High Performance Materials,Italian CENTRO TESSILE CO-TONIERO E ABBIGLIAMENTO S.p.A.,Spanish AITEX Instituto TecnológicoTextil, Portuguese CITEVE CentroTecnológico das Indústrias Têxtil edo Vestuário de Portugal, AustrianÖTI – Institut für Ökologie, Technikund Innovation GmbH, Swiss TextileTesting Institute TESTEX and GermanHohenstein Institute.for Building, the British CranfieldUniversity, the Finnish Society ofIndoor Air Quality and Climate andthe European Commission’s JointResearch Centre in Italy, the DanishTechnological Institute has startedthe work of defining a commonindoor climate label, envisioned asa voluntary label scheme recognisedthroughout the EU. An indoorclimate label recognised acrossborders will lower testing costs andunderpin the international competitivenessof companies affiliated withthe scheme - not least if they canimmediately translate the Danishclimate label into a European label.The indoor climate label posesrequirements to the product in itsuse phase and covers the productimpact on indoor air quality. Oneaspect focuses on the content ofchemical substances in the product,another on the substances dischargedto the indoor air. An indoorclimate-labelledproduct has passedcomprehensive testing and carriesdocumentation for its discharge ofchemical substance to the air. Ceilingproducts will also be tested todetermine their discharge of fibresand particles.Cases > Building TechnologySimilarly, the process gives the DanishTechnological Institute time toestablish relevant testing facilitiesand certification to the benefit ofthe Danish corporate sector. This isEuropean indoor climate labelwith Danish markJointly with the German FederalEnvironment Agency, the FrenchScientific and Technical Centre

Page >14DANISH MEAT RESEARCH INSTITUTECases > Danish Meat Research InstituteThe Danish meat sector is of greatimportance to society – both as anexport trade with a considerableGDP contribution and in terms ofemployment. Pork is one of Denmark’stop export products, witha value of EUR 4 billion in 2008,equalling 50% of total Danish agriculturalexports. Poultry exportsamounted to about EUR 188 millionin 2008, while beef and vealexports ran into EUR 282 million.Sector employment totals about90,000 full-time employees(2008), with some 35,000 in primaryagriculture and some 21,500at abattoirs and businesses manufacturingmeat products. Finally,the sector generates derived employmentfor around 35,000 peoplein trades such as machinery andtechnology suppliers, supply andservice companies, wholesaling,financing and advisory services, etc.Development trends– challenges and opportunitiesDenmark’s history as a largeexporter of agricultural productsand food, including meat and meatproducts, goes far back. Competitionfrom globalised marketsmakes maintaining competitiveproduction in Denmark a majorchallenge. The abattoir trade isconcerned because the number ofpigs slaughtered in Denmark hasstagnated, even fallen, in recentyears, a trend attributable to risingexports of live pigs for slaughter inGermany.To compensate for the relativelyhigh cost level in Denmark, Danishbusinesses need to concentrate onintelligent and efficient productionas well as quality differentiation. Inorder to maintain stable and profitablefood production, Denmarkmust automate processing andhandling processes at the productionstage as much as possible.Although the abattoir sector hasmade massive automation effortsin recent years, processes stillurgently need further automationand streamlining. New technologyin businesses has to be implementedin combination with the necessarycompetence development ofsupervisors and employees, andthe way work is organised alsorequires adjustment.Moreover, in terms of quality – inthe broadest sense of the word– food must meet the new andrevised requirements and expecta-

Page >15tions of the future market. Demandsfor eating quality, healthand safety will continue growing asnew, big sections of the populationgain purchasing power. Food safetycontinuously meets challenges onnew fronts. Food-borne virus infectionsthus attract great internationalattention in relation to bothdiagnostics and prevention. Moreover,the market calls for ethicallyjustifiable treatment of productionanimals. In the market, thedevelopment of new differentiatedproducts opens doors to differentconsumer segments, and the innovativefood company will know howto create more added value. Globalscarcity of fundamental resourcesand CO 2problems engender a needto develop sustainable productionprocesses.Developments in technologyand researchNew technology and technologicalconvergence create new orimproved solutions in a numberof areas. Particularly informationand communication technology(ICT) combined with modernX-rays technologies and the latestinitiatives in traceability offer greatpotential for developing innovativesystems and solutions that cancontribute to business profitability.Considerable research competencesin vision and grip technologyare being accumulated and will beapplied to developing ultra-flexiblegrip robot systems. By innovativelycombining competences in userpreferences, automation, robottechnology, processing proceduresand industrial implementation, theDanish Technological Institute aimsat finding solutions that will helpsolve the global challenges facingthe food industry.New processing procedures such ashigh pressure and new functionalingredients such as vegetablefibres as well as a greater understandingof protein functionalityand bioactive components form thebasis for establishing a knowledgeplatform for developing newprocessed foods. This platformmust underpin innovative productdevelopment in businesses.Cases > Danish Meat Research Institute

Page >16UkraineCases > Danish Meat Research InstituteCase4Sustainableproduction processesGlobal challenges in the context ofthe environment and resources callfor adaption of production methods.Production must be sustainable, takinginto account not only environmentand resource aspects, but alsoethics and, with respect to animalproduction, consideration for animalwelfare and finances. The purposeis to attain a larger knowledge basefor sustainable Danish food production,which remains competitive inthe international market.The target group comprises foodproducers and the process equipmentindustry as well as suppliers ofraw materials and adjuvants for thefood industry. Activities include efficiencyimprovement in productionprocesses, energy recovery, cleaningoptimisation in terms of energyconsumption and adverse environmentalimpact as well as ethics andanimal welfare in the treatment ofanimals to be slaughtered.Alternatives ensuring animalwelfareAlong with 20 research institutionsin Spain, France, England, Norway,Holland, Romania, the Ukraine,Austria, Italy, Germany and Switzerland,the Danish TechnologicalInstitute participates in the EUproject ALCASDE, which aims to findalternatives to castration of boars.smell and taste differently. If boarsare castrated, a method for sortingout the relevant carcases must befound so consumers can be certainof the quality of the finished productsin the refrigerated counter.The objective of ALCASDE is toexamine and analyse needs that canbe used for developing a suitableand accepted method for sortingout boar carcases at the abattoir.In 2009, the project parties ascertainedwhat areas required furtherwork on primary production, sortingmethods, consumer analyses andfinances.For ethical reasons, the castration ofboars should be avoided. However,meat from non-castrated boars may

Cases > Danish Meat Research InstitutePage >17According to the Danish Agriculture & Food Council, an industryassociation, Denmark had some 5,800 pig farms in 2008. TheDanish pig population totals around 12 million, and pig productionis currently concentrated in fewer and fewer but larger andspecialised farms. The Danish pig population is highest in Jutland,accounting for more than 75% of the total pig population.i

Page >Cases > Danish Meat Research Institute18GermanyCase5Efficient and holisticuse of technology inthe meat industryFor a number of years, the DanishTechnological Institute has beenendeavouring to give coherence toits strategic development, includingdevelopment cooperation with smalland medium-sized sub-suppliers andmachine manufacturers.To improve the efficiency of meatindustry production systems, theDanish Technological Institutefocuses on developing and applyingnew high-technology processes andprocess equipment as well as informationand communication technologyin production – especially inconnection with fresh meat.High-pressure technologyremoves bacteriaFollowing several years of researchand development in high-pressuretechnology, this effective way ofremoving unwanted bacteria fromproducts and ensuring optimumdurability is gaining a foothold in themeat industry in various countries.In concert with the German Institutefor Food Technologies (DIL),the Danish Technological Institutehas expanded the scope of applicationof the technology by examininghow high pressure can be used toadd value to meat products. TheDanish Technological Institute hasdeveloped a method that allows thetechnology to be used as an alternativeto heat treatment, which makesthe meat juicier and more tender,thus improving eating quality.Production automationThe Danish Technological Instituteregularly develops robots that canhelp automate abattoir production.In 2009, for example, the Institutedeveloped a robot capable of cleaningthe neck of the pig and cutting off itsforefeet. The robot was developed incooperation with SFK Systems A/S.The robot removes the large glandson the pig cheeks and cuts off theforefeet between the shank bone andthe forefoot. The robot performs thejob with great precision, and calculationsshow that about EUR 0.13 canbe saved per slaughtered body basedon conditions in Denmark. The newrobot is able to handle 600 carcasesan hour, thus performing the workof three employees. The robot is thefirst of its kind in the world and hasaroused great interest in Denmark,Germany, Sweden and Finland.

Page >19The netherlandsCase6Safe and differentiatedmeat productsThe Danish Technological Institutedevelops easily accessible solutionsthat enable food companies to meetconsumer and food service sectordemands for differentiated productswith maximum food safety. The factthat food-borne bacteria are the mostfrequent cause of gastro internalinfections has spurred the Institute tofocus on safety in this area.By developing a tool box for foodcompanies, the Danish TechnologicalInstitute has provided them withnew manufacturing methods thattake into account future demandsfor quality and safety. The tool boxcontains knowledge-based toolssuch as mathematical models,works of reference and processorientedrecommendations.The primary target group of theInstitute is small and medium-sizedenterprises without their own qualityand product development departments,but with ambitions to supplytomorrow’s large segment in thefood service sector.New process technologies boostqualityUnder the EU-financed NovelQ project,the Danish Technological Institute cooperateswith 32 partners coordinated byAgrotechnology & Food Innovations B.V.,which is part of Wageningen University& Research Centre in the Netherlands.The partners develop and test newprocess technologies that can improvethe quality and durability of food.Specifically, the Institute has selectedthree technologies: Cold plasma,pulsating electric fields (PEF) and highpressure at extra high pressures combinedwith heat. The aim is to examinehow the technologies impact on meatproduct quality and remove bacteria.Cold plasma is tested for its ability toremove bacteria from product surfaces,high pressure at extra highpressures combined with heat is toremove spores, and we test whetherPEF can be used to accelerate curingprocesses in meat products. The technologiesare examined in cooperationbetween European universities, whichare working to develop the equipmentand thus assess the industrial perspectivesof the technologies.Prediction of product durabilityThe Danish Technological Institute hasdeveloped various mathematical modelsthat can be used for calculating thedurability of fresh meat and calculatingthe growth of meat product bacteria.In 2009, the results were presentedat the 55th international congress onmeat research and technology at theBella Center in Copenhagen, Denmark,which gathered more than 500participants from 47 countries.The calculation models allow abattoirsand meat-processing businesses easyand quick access to specific knowledgeabout production factors that may affectthe durability and quality of products– merely by entering and possiblychanging the values of the digitalisedcalculation models on the Internet.Cases > Danish Meat Research Institute

Page >20ENERGY AND CLIMATECases > Energy and ClimateThe energy and climate sector is oneof the future key sectors in Denmark.The sector is experiencing massiveprogress with increased political attention,increased consumer focusand significant growth in exports.At EUR 8.6 billion, Danish export ofenergy technology reached a newheight in 2008, soaring by 19% from2007 to 2008, although the financialcrisis affected growth in 2009. Climatesector progress is less pronounced,but the anticipated climate challengesmay spur more growth in the sector.Energy and Climate comprise alltypes of energy and energy technologiesfrom energy production,storage and distribution for use inbuildings, industry and transportation.The area also covers reductionsof anthropogenic climate gasses andclimate change solutions such as systemsfor local handling of rainwaterand improved drainage systems forlarge volumes of rain.Development trends– challenges and opportunitiesThe 2009 energy policy report envisionsa Denmark that becomes independentof fossil energy sources.Gross energy consumption in 2020must be reduced by 4% comparedwith 2006, and 20% of gross energyconsumption in 2011 must comefrom renewable energy.Internationally, Denmark has committeditself to ensuring that renewableenergy will constitute 30% ofnet energy consumption and 10% ofenergy consumption in the transportsector by 2020. Together with theconsiderable structural changes inthe energy sector, Denmark facesmassive challenges when it comesto implementing energy savingsand integrating energy sources andsystems.Denmark already has a unique energysystem with a large proportionof renewable energy, a nationwidenatural gas grid, broadly distributedelectricity and heat production andefficient energy consumption inthe industrial, public and privatesectors. However, renewable energywill be a central element in theenergy system of the future, andfossil sources should be used onlyduring peak periods and for backup.This requires major investmentsin infrastructure and new energystorage technologies, as productionfrom renewable energy sourcesfluctuates considerably.Businesses and consumers want tobe energy and environment consciousbut not at the expense of sta-

Page >21Although this was not the case,Denmark’s and the EU’s energy andclimate policies seem likely to bemaintained.Developments in technology andresearchAs the amount of renewable energyin the Danish energy system increases,the electricity, heat, gasand transport areas will have to beintegrated. New technologies mustbe researched and developed tosolve the system imbalance. Newproducts, systems and managementmodels need to be developed tominimise conversion loss. Researchinto efficient methods to procurenew biomass is also required.In addition, sophisticated solutions toconstructing energy-efficient buildingsin future must be developed.Focus will be on second generablesupplies or comfort. This placesdemands on the solutions developedand implemented, but also makesit possible for Denmark to be at theforefront in the energy area. Denmark’sinternational commitmentto reducing greenhouse gas emissionsby 20% from 2008 to 2012compared to 1990 under the KyotoProtocol and reducing greenhousegas emissions not subject to emissionallowances by 20% by 2020compared with 2005 also necessitatesfurther focus on how to reduceclimate impact. Finally, the need todevelop climate adjustments willincrease considerably, since climatechanges in Denmark are generallyacknowledged as unavoidable, particularlyin the form of higher temperaturesand heavy precipitation.COP15 in Copenhagen was expectedto boost this development further.Cases > Energy and Climatetion energy savings in industry andservice. The transport sector willrequire components for electric andhybrid vehicles, including fuel cellsand batteries. Strong climate gassesneed to be phased out faster. Solutionsfor local handling and usinglarge volumes of rainwater need tobe developed, and climate issuesin the construction industry mustalso be solved. Furthermore, energyand climate technology will haveto be upgraded and supplementarytraining in the technology providedat all levels.

Page >23Great BritainCase8Electric cars– environmentfriendlytransportationFor some time, the Danish TechnologicalInstitute has been focusingon electric cars. Technology studiesand practical measuring assignmentshave boosted competencesin battery testing and consultancy.As a result, testing, development,consultancy are now available, aswell as courses and electrical safetyin electric cars for auto repairshops.Electric cars are an important featureof the Danish energy system.Electricity as fuel is much moreenergy efficient than petrol anddiesel. Electrical transport reducesemissions, noise and the fossil fueldependency of road transportation.Electric cars play an especiallyimportant role in increasing theshare of wind turbine energy in theDanish electricity system while alsoconsiderably reducing CO 2emissions.The Danish Technological Instituteis in charge of the ’Prøv1elbil’project, the first of its kind in Denmark.The project tests 13 cars ofwhich eight electric cars are placedat the disposal of private familiesin the Horsens and Juelsmindeareas of Jutland for three monthsat a time. The coming years areexpected to bring considerable andincreasing interest in electric andhybrid cars, which are exempt fromvehicle registration tax until theend of 2012.Electric cars for COP15The Danish Technological Institutesucceeded in its ambition ofshowcasing electric cars duringCOP15. Car rebuilders in Italy andGreat Britain were assessed, and aCitroën C1 remade into an electriccar in Great Britain was selected.The electric cars were used atCOP15 events and now form part ofvarious tests.As the Road Safety and TransportAgency’s authorised test laboratory,the Danish Technological Institutewas charged with testing andproviding approval documentationfor the Citroën C1 electric car underthe Road Safety and TransportAgency’s new requirements. TheCitroën C1 electric car is the firstelectric car rebuilt from a conventionalcar to receive the approvalof the Road Safety and TransportAgency. The Danish TechnologicalInstitute now offers a full ’approvalpackage’ to companies wanting toremodel a conventional car into anelectric car.Cases > Energy and Climate

Page >26BUSINESS DEVELOPMENTCases > Business DevelopmentBusiness Development focuses onthe possibilities and uses of technologyin private and public companiesand operates in the zonebetween technology, organisationand employees/managers andend users. The basic idea is thatman’s ability to use technologyinnovatively produces competitiveadvantages and creates cohesionin a knowledge-based society.Development trends– challenges and opportunitiesAs a result of greater globalspecialisation and developmentsin information and communicationtechnology, gaining a leadingposition in profitable and nichemarkets depends more and moregreatly on the ability to take newknowledge and turn it into innovation.This engenders a need forcomparative insight into sectordevelopments, market conditionsand how political means are implementedin other countries.A key to success will be the abilityto utilise in-house resources aswell as external relations to spotand develop new knowledge andpotentials and attain a position inthe value chain precisely wherenew opportunities develop. In thisrespect, you need to know how tofuture-proof the labour force in aglobalised world and how best tobuild competences systematicallyin the light of new conditions in theemployment area.A need exists to develop new modelsand analyses for understandingtrends, erosion of industry barriers,possibilities of technologicalconvergence and the optimumdevelopment and use of companies’competences, networks andresources – to read the globalchallenges and apply the relevantinnovation processes to find themost effective solutions. Businessstrategies based on an internationalplatform are especially criticalfor the many small and mediumsizedenterprises working as subsuppliers.Developments in technologyand researchThe innovative use of existing andnew technologies represents anenormous opportunity to creategrowth and welfare. Informationand communication technologycontributes half of Europe’s productivitygrowth, and the continueduse of technology in business

Page >27is essential to a dynamic andcompetitive society.The innovative, efficiencyenhancingand user-oriented useof technology can offer solutions toDanish and global challenges suchas climate change, the burgeoningpensions bill, company competitivepower, new services and the needfor more efficient work processes.To ensure continued growth andinnovation, Denmark must acquireinternational knowledge andimplement the resulting technologysustainably. The acquisition anduse of new technology often makenew demands as regards how todevelop employees’ and managers’competences and organisethe company or the public sector.This calls for new perspectives andideas when it comes to how best toCases > Business Developmentuse technology – also with respectto users, their lives and work.New technology also paves theway for new and improved formsof communication and cooperation– both among citizens themselvesand in their interactionand communication with publicauthorities and companies. TheDanish Technological Institute has,for example, helped identify bestpractice for developing and implementingdigital government forthe European Commission. Digitalgovernment is to help reduce theadministrative burden on smalland medium-sized enterprises andto facilitate citizens’ communicationwith the public sector. Thehost of innovative measures waspresented under the title everydaygovernment.Companies also use the new digitalforms of communication to reachtheir target groups and customersin a broader fashion and thus involvethem in developing productsand service solutions. A team ofconsultants works across divisionsto ensure that the many smalland medium-sized enterprises areaware how e-business solutionscan enhance the efficiency of businessprocedures and sales channels.Moreover, new technologyplays a key role in terms of usingcore competences in dynamic valuechains and networks, just as newtechnology offers new and ofteninteractive possibilities in relationto competence development andlearning as regards work practice.

Page >28BelgiumCases > Business DevelopmentCase11Service innovationService is a key business area. Firstly,the service sector is expanding rapidly,and, secondly, the manufacturingsector is becoming increasingly serviceintensive. But knowledge aboutservice innovation is insufficient – notleast in terms of the big differencesbetween and conditions for serviceinnovation in the various serviceindustries.This being the case, the Danish TechnologicalInstitute aims to stimulateinteraction with international knowledgecommunities and create politicalinitiatives that promote service innovation.The objective is to be ableto translate international knowledgeinto innovation models and developmentmeasures that are practicableand have been adapted to small andmedium-sized Danish enterprises aswell as the public sector. The DanishTechnological Institute also endeavoursto strengthen service innovationthrough new business modelsand systematic methods for organisationaland competence developmentas well as through tools for assessingand measuring their effects.The Danish Technological Instituteis part of an OECD working grouptasked with acquiring more in-depthknowledge on how to further theprocess of ensuring that developmentmeasures lead to service innovation.IT sector competitivenessIn 2009, the Danish TechnologicalInstitute completed an analysis onbehalf of the European Commissionintended to determine the competitivenessof the European IT servicesector. Among other things, theanalysis focused on how differencesin framework conditions can impactcompanies’ competitiveness.Data from the OECD and Eurostatshed light on development trends in anumber of key areas such as private-sector investments in research anddevelopment, the number of newlyestablished companies and growth inthese.On balance, the analysis painted avaried picture of development trendsand the strategies pursued by thecompanies in the sector. Moreover,the Danish Technological Instituteprepared recommendations for possibleinitiatives that the EuropeanCommission, trade organisations andmember states could take to boostthe competitiveness of the EuropeanIT service sector.Training and education oftomorrowThe Danish Technological Instituteanalyses different forms of trainingand education on an ongoing basis.In 2009, for example, the Institutecompleted an analysis of the needfor new educations in sports as anexperience trade.As a follow-up to the Danish GlobalisationCouncil recommendations, acommittee was appointed to futureproofvocational training and education.The committee decided thata body was needed to help identifydevelopment trends across existingindustry structures. This was the thirdconsecutive year that the Institutehandled this task in which analysesbased on statistics, forecast methodsand job function analyses in pioneeringcompanies shed light on developmenttrends.

Page >29USACaseas of the development of welfareservices.Technology and a host of other Dutchcompanies helped inspire the work.12New forms ofinnovationInnovation is essential to development,growth and welfare – notleast in Denmark where we aretypically unable to compete oncosts. The challenge facing companiestherefore lies in creating addedvalue through new positions in thevalue chain and development ofservices beyond the core product.Often, different forms of innovationinteract – e.g. user and employeedriveninnovation, open innovationand complex innovation deliveries,including partnerships, strengthenedpublic and private interaction as wellAgainst this background, the DanishTechnological Institute aims toacquire forms of innovation and processesfrom leading knowledge centresacross the world and to adapt and developthis knowledge so that efficientinnovation and development toolsare available to small and mediumsizedDanish enterprises. The Danishservice sector has been growing inrecent years, and companies in themanufacturing sector have becomemore service-intensive.User knowledge as a platform forinnovationIn the AUTO (Active User TOpology)project, companies, educationalestablishments and research entitiescooperate on models to ensure userinvolvement in innovation. The visionis to create a tool that can pave theway for a dialogue between companies,their active users and companies’specific innovation activities.Thanks to their cooperation with theMIT Sloan School of Management andHarvard Business School, the DanishTechnological Institute and the CopenhagenBusiness School have been ableto obtain project design input fromthe foremost experts in lead user anduser-driven innovation. The practicalimplementation of user-driven innovationwas studied in the Netherlands,where the faculty of Industrial DesignEngineering at the Delft University ofThe AUTO project is funded by theDanish programme for user-driveninnovation.Clusters create growthCluster cooperation between companiesthat specialise in different areascreates growth. The Danish TechnologicalInstitute therefore provides assistancein establishing growth groupsand clusters at regional, nationaland international levels – in this wayhelping to improve corporate developmentand competitiveness as well ashelping companies to understand theimportance of focusing on development,innovation and the acquisitionof international knowledge.The Danish Technological Institutehelped establish a range of clusters,including the new cluster in medicoinnovation in Region Zealand andthe Capital Region of Denmark. Thegreatest cluster development in 2009was the merger of the CenSec (clusterfocusing on the development of astrong defence and security industry)and the Danish space industry cluster.For instance, the cluster attended aworkshop at the Danish TechnologicalInstitute, also attended by representativesfrom the National Aeronauticsand Space Administration (NASA). Twoof the participating companies subsequentlysigned bilateral agreementswith NASA on technology transfer andknowledge acquisition for Denmark.Cases > Business Development

Cases > Life SciencePage >30The Danish Technological Institute’sactivities in life science areaimed at the food and environmentalindustries and the health andwelfare industries. With exportsexceeding EUR 40 billion and morethan 300,000 employees, Denmarkholds a strong position in the area.An area that will remain vital forDanish business in the future. Fora number of years, the DanishTechnological Institute has beenworking with life science in variouscontexts. In 2009, the Instituteintensified its focus, gathering thevarious expert competences in anew life science division. The Institutespearheads top-level researchand development projects, advisoryservices and laboratory analysesin food, environmental technology,health and welfare technology.Development trends– challenges and opportunitiesDenmark can play a central rolein providing technology to solveglobal shortage of basic resourceslike water and biomass for foodand energy purposes. Marketpossibilities exist for new sustainabletechnologies, particularly asregards the sustainable use of bioresourceswhen high-value productsare extracted and when wateris handled and cleaned.The busy and sceptical consumerof tomorrow engenders an acuteneed for innovation and rethinkingin the food industry. Greaterattention will be focused on foodsafety and the sustainability ofproduction processes. At the sametime, a growing number of peoplewill eat their meals outside thehome. These trends create a needfor large-scale development of newproducts based on quality raw materialsthat can be prepared locally.Moreover, the population is ageingand the incidence of life-style induceddiseases rising sharply, bothtrends which create demand fornew and specialised food productsin segments such as older people,children and overweight people.As in the rest of Europe, pressureon the Danish health sector ismounting. Consequently, new technologiesneed to be developed toensure people a better life throughdisease prevention, self-help assistanceand better treatment.Accordingly, obvious growth areasfor Denmark include developing

Page >31LIFE SCIENCEnew welfare and health technologyand eliminating barriers to efficientimplementation of technologies.Developments in technologyand researchTechnology development opensup for new diagnostic methods,pharmaceutical development anddisease treatment. Developmentsin biotechnology have made thedevelopment of protein-based pharmaceuticalsmore targeted and allowedthe beneficial effects of foodin respect of e.g. hereditary diseasesto be documented. At thesame time, molecular-biologicalmethods have increased understandingof the microorganisms thatcause infections. In the long run,this may prevent global diseases liketreatment-resistant tuberculosis.New technology in chemistry andbiotechnology has boosted knowledgeabout chemical and biologicaltransformation processes andresulted in new green technology.Green chemistry and biotechnologyform the foundation of futureenvironment-efficient cleaningtechnologies and underpin the sustainableuse of bio-resources whenhigh-value products are extractedfrom residual products and waste.Cases > Life Science

Page >32KoreaCases > Life ScienceCase13Green growth – cleanerproducts and processesSustainable growth in a societyfocusing on climate and the environmentrequires new technology.Denmark has made great stridesin the environmental area and hasa great potential for extending thisstrong position by developing new,green technologies that suit Danishcompanies.As a result, the Danish TechnologicalInstitute is cooperating with bothDanish and foreign universities, institutesand companies to acquire theknowledge base that will enable it todevelop new environmental technologiesand green services for Danishcompanies to market globally.This might include sophisticated oxidationprocesses for water treatment,new encapsulation technologies forreducing environmental and healthhazardoussubstances or a process forextracting high-value products fromwaste, residual products or biomass.Greener and more durable woodprotectionDrawing inspiration from the most recentinternational research in medical’drug-delivery’, the Danish TechnologicalInstitute worked together withDyrup and VELUX on developing amethod to control how the activecompounds of wood protection arereleased.Based on micro-encapsulation, themethod optimises the use of the fungicidesused to reduce the environmentalload and increase the life ofthe wood.Higher biogas yieldAs partner in the Danish Centre forVerification of Climate and EnvironmentalTechnologies (DANETV), theDanish Technological Institute verifiesenvironmental technologies. Experimentsdone in 2009 have shown thatthe companies Green Farm EnergyA/S and Xergi A/S can produce morebiogas with shorter retention timein the reactor when the fertiliser hasbeen pre-treated through pressureboiling and the addition of basebefore entering the biogas plant.Since this type of documentation isrecognised in the USA and Canada,the new verifications are expected togive Danish companies an edge in therapidly growing market for environmentaltechnology.Optimised control of manureseparationIn the project ’Chemical manureseparation, optimised control concept’the Danish Technological Instituteand AL-2 Agro A/S, among others,have identified the properties of minkand pig manure for the purpose ofintegrating the automatic regulationof polymer and iron dosing basedon physical and chemical characterisations.This optimises the use ofchemicals, thus creating a better endproduct.Pig and mink farmers are keenlyinterested in separating raw manureand controlling the distribution ofnutrients such as phosphor and nitrogen.The amount of such nutrientsin manure is often the factor thatlimits the number of livestock perfarm area. Manure separation plantshave been established in Moldova,the USA, Finland, Canada, Korea andDenmark.

Page >33GermanyCase14Health technologywith massive potentialSmaller companies can be innovativeand technologically advanced.This is true for e.g. small Danishbiotech companies in the healthsector, which often focus on diagnosis,regenerative therapy, individualisedtreatment or ‘drug delivery’.The Danish Technological Institutecooperates with the Danishhealth sector, foreign universitiesand companies in the medico andlife science sector to give smallDanish companies access to thelatest knowledge in their own fieldsand, not least, adjacent fields. TheInstitute also focuses on transferringknowledge and technologiesfrom related areas such as food andenvironmental technology.A step forward for stem cellsStem cells for treating a numberof diseases have the potential tobecome the greatest leap everexperienced by the health sector.To strengthen this field in Denmark,the Danish Technology Institute iscooperating on stem cell researchwith the University of Regensburg,Germany.This field has engendered cooperationbetween the Danish TechnologicalInstitute and the medicocompany ORIGIO A/S. The objectiveis to create a basis for innovativegrowth media that allow stemcells to be grown and differentiatedwith a higher degree of certaintyand control – a development thatwill help pave the way for new andefficient types of treatment.Chemistry for two-year-oldsIn 2009, the Danish TechnologicalInstitute helped map and analysethe content of chemical substancesin various products that two-yearoldscome into contact with incourse of a day.The Institute performed the task onbehalf of the Danish EnvironmentalProtection Agency as part of the’65,000 reasons for better chemistry’campaign. The informationcampaign uses this slogan becausein any given year there are 65,000two-year-olds in Denmark, each ofwhich gives good cause to improvethe chemistry in our everyday lives.Interest in mapping and understandingthe chemical substancesto which small children are dailyexposed is keen since many ofthe substances used in everydayproducts are suspected of causinghormonal disturbances and allergy.The Danish Technological Institutehas developed a special competencyin mapping and analysingchemical substances and did workfor, among others, the NorwegianClimate and Pollution Agency.Cases > Life Science

Page >34As its core service to the oil industry,the Danish Technological Institutemaps and monitors microbiologicalgrowth in oil industry water systems.Against this backdrop, the DanishTechnological Institute has created acomprehensive tool box that includeschemical analyses, DNA-based mappingof bacteria growth, monitoringof systems, problem-solving andcourses. These tools developed inthe past years make the Institute theglobal leader in the commercial marketfor molecular-biological analysesin the oil industry.Institute is helping Mærsk Olie ogGas AS test a new Danish ceramicmembrane technology developed byCoMeTas. The studies must clarifywhether the technology facilitatesthe operator in treating water fromthe underground and thus in makingit reusable.Investigation of acidificationIn 2009, the Danish TechnologicalInstitute mapped sulphide-formationin the South Arne Field in the Danishpart of the North Sea for theoperator HESS Danmark ApS.Cases > Life ScienceNorwayCase15Total solution forthe oil industryThe international oil industry needstechnological service to fight againstsulphide-creating bacteria, whichlower the oil price and increasecorrosion in the costly plants andsystems. The Danish TechnologicalInstitute has successfully heldinternational conferences giving theoil industry insight into the competencesand offers the Institute hasin this area – while also enabling theInstitute to accumulate knowledgeabout industry needs.Membranes reduce oil dischargein the futureIn modern oil production, largeamounts of seawater are pumpedinto the underground to extract theoil from the reservoir. Once the waterresurfaces, it needs to be treatedand preferably reused.Routine monitoring revealed nosigns of bacteria growth, but amapping using DNA-based methodsrevealed mild acidification of theoil reservoir despite extremely hightemperatures and sophisticatedwater treatment. Since then, acoherent control strategy has beenintroduced and the Danish TechnologicalInstitute is charged withmonitoring the system in future.The Danish Technological Instituteis a leader in the use of DNA-basedmethods in the oil industry and sellsservices to a number of Danish andNorwegian customers.A project was started in 2009 inwhich the Danish Technological

Page >35GreenlandCase16Food technology –healthier foodThe Danish food industry holds astrong position when it comes tothe export of quality food and foodingredients. To develop this marketposition further, the Danish TechnologicalInstitute has launched atargeted research effort focusedon developing and implementingnew technologies, e.g. new typesof consumer surveys, new analysismethods and sensors for characterisingfood to improve food qualityand safety.Study of probiotic herbalbeveragesBiosa Danmark, together with theDanish Technological Institute, hasconducted a number of studies andanalyses on some of their beverageswith herbs and probiotic microorganisms.A new herbal beverage has beentested by a panel of consumers inrespect of their taste preferencesand will now be marketed. Existingproducts have been analysed forspecific activity not only in relationto the amount of probiotic bacteriabut also in respect of active naturalsubstances from plant material. Theanalyses have documented expectationsconcerning the effect of theproducts.developing deep-fried conveniencefood products with reduced fatcontent.Deep-fried products usually absorblarge quantities of fat since fatreplaces evaporated water duringfrying. The idea of the project is touse hydrocolloid coatings to create abarrier around the products. Underthe project, the Danish TechnologicalInstitute has devised a modelsystem for testing the barrier propertiesof a range of hydrocolloids.Tests have shown that fat absorptioncan be reduced by more than40 %. The project has brought foodproducers a big step closer to lowfatdeep-fried products.Cases > Life ScienceLess fat in deep-fried productsThe Danish Technological Instituteis working with Danish Danisco,KMC, Flensted A/S, Daloon A/S andGreenland Royal Greenland A/S on

Page >36Cases > Materials and ProductionMaterials and Production is across-functional area that supportsseveral sectors and addresses keysocial challenges. The area coversnew materials, processes andefficient types of production, butalso keeps a clear focus on contributingto develop and maintainknowledge-based, high-technologyproduction, to develop the nextgeneration of high-value productsand to contribute groundbreakinginnovation throughout the valuechain from idea to product.Development trends– challenges and opportunitiesOur societal challenges are evident:maintaining competitivenessin high-technology production anddeveloping sustainable materialsand processes able to underpinsocietal demand for optimum utilisationof resources. These challengesrequire that new productionsystems, better integrated solutionconcepts and new composite materialsbe developed and, not least,that the potential inherent in thebrand-new enabling technologies,such as nanotechnology, be fullyexploited.Denmark shares these challengeswith the entire European manufacturingindustry in a time of turbulentfinancial conditions. In March2009, the EU launched its EuropeanEconomic Recovery Plan, oneinitiative being ‘Factories of theFuture’. The initiative is to supportsmall and large companies in takingadvantage of new knowledgebasedtechnologies, with a viewto renewing their technology baseand increasing their competitiveness.Denmark’s abilities to meet thesechallenges are estimated to beexcellent. Denmark has a strongposition in material development.It has a well-educated labourforce, is known for its world-classentrepreneurship, and its industryis already in the midst of shiftingto a higher degree of knowledgebasedand automated production.In close cooperation with nationaland international knowledge insti-

Page >37MATERIALS AND PRODUCTIONtutions, the Danish TechnologicalInstitute has, in recent years, builtup competences and equipmentinfrastructure that will naturallyenable it to respond proactively tochallenges.Developments in technologyand researchRecent years have yielded majoradvances in material research inthe field of synthesising new materialsand improving existing ones,advances achieved by combiningvarious material types. Researchis focused on optimising materialcapabilities through a fundamentalunderstanding of the atomic andmolecular building blocks. The researchalso combines conventionalmaterial technology with nanotechnology,a combination that createsa latent potential for developingall-new product generations.’Surface engineering’ representsan area in material research withsteeply increasing importance,not least because of the substantialcommercial potential foreseenfor the area. Surface engineeringcentres on altering surface propertiesthrough physical texturingand/or chemical modification ofthe surface. The idea is to add newfunctional properties to a givenproduct, e.g. to make it corrosionresistant,hard-wearing, dirt-repellentor to add vibrant colours.’Bionics’ is another new, excitingarea directly inspired by nature.Bionics deals with mimickingnature’s product development anddeveloping synthesis technologiesto produce surfaces with propertiesthat imitate nature’s own products.Both areas are key developmentplatforms in material development.Cases > Materials and Production

Page >38USACases > Materials and ProductionCase17Nanotechnology isgrowth technologyInternational reports indicate that nanotechnologyis a growth technologywith vast commercial potentials, andit is also a cross-sectoral technology.Nanotechnology paves the way for aparadigm shift towards an increasingdegree of knowledge-based,high-tech production of high-valueproducts. Cordless sensors, micro fuelcells, polymer-based printed electronicsand components for hearing aidsand head phones are examples ofproducts being developed.Improved safety with nanosensorsThe Danish Technological Institute isinvolved in an international partnershipwith the University of Texas,the Carinthian Tech Research inAustria, the University of SouthernDenmark, Technical University ofDenmark/DTU Danchip, universitiesin Austria, France, Germany andRussia and the Danish companiesNIL Technology ApS and PolyteknikAS. The partnership aims to developnanoprocesses for cordless sensorproduction, SAW sensors (SurfaceAcoustic Wave sensors).SAW sensors are tiny sensors usedto measure various conditions withoutcabling or batteries and able tocommunicate measurement resultsvia a mobile phone or similar media.Cordless SAWHOT sensors are beingdeveloped for, e.g., the airplaneindustry where sensors are used tomeasure temperatures in airplaneengines. SAWHOT sensors canmeasure temperatures up to1,000 °C. The sensors used in theairplane industry today require cables,and the aim is to develop cordlesssensors that can be attached asstickers that transmit measurementresults to a receiver.The long-term objective is to massproduce SAW sensors that haveinnumerable applications at advantageousprices.Durable, climate-friendlymaterialsIn 2009, the Danish TechnologicalInstitute entered into an EUfinancedresearch partnership withUniversity of Hamburg in Germanyand Centre de Mise en Forme desMatériaux (CEMEF) in France. Thepartnership works with theoreticalmodels for calculating compositematerial properties at nano level.The aim is to reduce airplane andvehicle CO 2emissions by developingsustainable composite materials thatreduce the weight of transportationmeans and thus their fuel consumption.To achieve the desired propertiesfor nano-composite materials,nano particles must work togetherwith polymers. This function isachieved by modifying particles in away that makes nano particles andpolymer material highly compatible.The compatibility distributesnano particles evenly in the polymerand gives composite materials therequired toughness.

Page >39SpainCase18Design and functionality– materials 2.0Societies in general and industrialcompanies in particular continuallydemand materials with new properties.The interdisciplinary applicationof nanotechnology, biotechnology,chemistry, physics and applied materialscience have yielded detailed understandingof how micro and nanostructuresof materials impact theirmacroscopic properties, thus openingup for new material breakthroughs.New materials will pave the wayfor revolutionary, new products andreplace existing technologies.Developing intelligent surfacefunctionalitiesThe Danish Technological Institutecooperates in a Eurostars consortiumwith Danish Polyteknik A/S,TETRA - Gesellshaft für Sensorik,Robotik und Automation mbH inGermany, Spanish Brugarolas S.A.and Falex Tribology in Belgium.The project focuses on performinggroundbreaking research anddevelopment in equipment anddeposit processes for production oflow-friction coatings to be used invacuum conditions. Such conditionsarise in connection with space traveland airplane traffic and in advancedprocess instruments. The newcoating type, Diamond Like Carbon(DLC), is a coating that needs anexceptionally low friction to workoptimally in vacuums.The Eurostars project consortiumarises out of the EUREKA network.The Danish Technological Instituteis Denmark’s representative in theEuropean EUREKA umbrella ENIWEP(European Network for IndustrialWear Prevention), its aim being toestablish common research and innovationprojects between companies,universities and other knowledgeinstitutions across EU borders.Bioethanol in future dieselenginesIn 2009, the Danish TechnologicalInstitute joined Haldor Topsøe A/S toestablish a project aimed at transformingbioethanol into diethyl etherfor use in diesel engines. Diethylether can be combusted in a dieselengine in the same way as diesel oil.If diesel oil is replaced with diethylether from bioethanol, the costly dehydrationprocess of the bioethanolproduction becomes superfluous, asdiesel engines can run on aqueousbioethanol. The use of bioethanol asether in a diesel cycle also ensuresbetter fuel energy utilisation comparedto petrol engines.The project also has major environmentaladvantages, as diethyl ethercombustion is a very clean process,producing almost no particles duringcombustion, unlike diesel oil.Sweden, Brazil and parts of the USAare obvious markets for the technology,as these countries have alreadyestablished an ethanol infrastructure.The Danish Energy Agencysupports the project.Cases > Materials and Production

Cases > Materials and ProductionPage >40According to industry association Medicoindustrien more than 200companies were classed as pharmaceutical companies in 2008;however, in all about 1,000 companies in Denmark were workingin the industry to a greater or lesser extent. The 20 biggestcompanies account for 75% of the total turnover and more than90% of the domestic production is exported.i

Page >41ChinaCase19The medical and medicotechnicalsector –energy and biomaterialsCurrently, a great deal of researchgoes into determining how biomaterialscan be used in variousareas and how biodegradablematerials can be used in newcontexts. The Danish TechnologicalInstitute is exploring the possibilitiesof producing biopolymersfrom alternative sources. Researchfocuses on how by-products likewhey can be transformed intobiopolymers to be used in biodegradablepackaging. In additionto their use in biodegradable packaging,biopolymers can also beused to regenerate body tissue.Materials used for medical equipmentmust meet high requirements.Authorities also posespecial requirements to producersand equipment before grantingauthorisation to market medicotechnicalproducts.The Danish Technological Institutesupplies the latest knowledge onthe chemical, toxic and biologicalproperties of materials to producersin connection with productdevelopment or authorisation ofmedico-technical products. Further,the Institute can contributemeasurement-technical competencesthat can ensure the qualityof the often tiny components usedin the medical and medico-technicalsector.Regeneration of bone tissueOne focus area of regenerativemedicine is research into osteoporosis.Having several years’ experiencein the area, the Instituteis at the vanguard of developmentand has positioned itself at thecentre of European research. TheDanish Technological Institute isinvolved in a partnership with theEuropean Space Agency, a partnershipthat researches into bonetissue regeneration.Osteoporosis means porous bonesand is a bone disease that severelyreduces both strength and volumeof bone tissue. The disease isparticularly evident in astronautsthat remain in space for longperiods of time. Once the body isremoved from the Earth’s gravity,bone mass breaks down, and thebody directs its energy to otherareas. Osteoporosis is considered asystemic disease, in which outsideinfluences make otherwise healthypeople ill.Danish Technological Instituteaccompanies Novo Nordisk toChinaIn 2009, the Danish TechnologicalInstitute worked together withNovo Nordisk to quality-assurethe new NovoPen ® 4 by setting upmeasuring programmes for the pencomponents. NovoPen ® 4 is thenext generation of the Novo NordiskNovoPen ® 3, the world’s mostpopular insulin pen. More than twomillion diabetics use the pen everyday for their insulin injections.Novo Nordisk has established a20,000-square-metre facility inChina, one feature being a newmounting facility for insulin pens.The Danish Technological Instituteis tasked with training the Chinesestaff to use 3D coordinate measuringequipment and to read workingdrawings. The actual training andprogramme compilation take placeat Novo Nordisk’ own 3D coordinatemeasuring equipment mountedat the Danish Technological Institute.The training also comprisesCT scans to ensure optimum probestrategy for components.Cases > Materials and Production

Page >42PRODUCTIVITY AND LOGISTICSCases > Productivity and LogisticsThe manufacturing industry playsa key role in the Danish economy.Manufacturing accounts for morethan half of Denmark’s export ofgoods, for which reason Danishsociety needs activities in this areato be maintained. Globalisationposes a challenge to Danish companies,but also presents a rangeof opportunities if the industry is atthe cutting edge of development.Maintaining competitive productionin Denmark is essential to society.The level of costs is generally lowerin other countries. This increasesthe necessity of manufacturingDanish goods and products in anefficient and intelligent manner.Danish production systems musthave a high degree of productivity,flexibility and quality and a minimumhealth and safety burden andclimate impact. This also appliesto the trade and service sectors.Moreover, the ability to bridge thegap to the manufacturing industrycan play a decisive role for the futuredevelopment of this industry.Development trends– challenges and opportunitiesDanish companies have realisedthat productivity is directly linkedto competitiveness and thus ofstrategic importance. Price competitionis no longer a local ornational matter. Efforts are nowconcentrated on developing newmethods that enhance companyand staff competences – not onincreasing the pace. Figures fromthe Confederation of Danish Industryreveal that companies haverecorded relatively moderate productivitygrowth in the most recentfinancial year, and that gives riseto concern.Significant and continual efforts toresearch new productivity systemsand methods, new manufacturingtechnology and intelligent goodstransport will enable Denmark tomeet the requirements for futureproduction systems on an ongoingbasis. Areas such as organisation,management, risk assessment,logistics and their integration intoproduction systems are among thewide range of options to be putinto use.

Page >43The long-term growth in the logisticsand goods transport tradeas well as increased mobility is afundamental sign of health for economicgrowth. The main challengefor many years to come will be toensure supply chains that operatemore sustainably and make energyconsumption, the environment, trafficflow and safety central values.Developments in technologyand researchEighty-five per cent of all industrialhandling is manual, and the Danishbusiness structure is characterisedby many small companies andsmall series. This being the case,Danish research in robot technologyand automation focuses onflexible robot cells that allow thesame robot to handle a varietyof work processes. The Danishresearch community spans a widefield of research specialties, andthe challenge is to have all thesetechnologies work in coordinatedinteraction.Only minimal research in managementtools for handling strategicrisks has been conducted, the consequencebeing that Danish companiesare very poorly equipped torespond to unforeseen situations.Hence, new knowledge in this areawould allow companies to respondmore rapidly and expediently infuture.In the context of logistics, researchconcentrates on technology andbusiness developments. Integration,intelligence in supply chains,safety and mobility are researchthemes for optimising and streamliningsolutions and systems andfor finding answers to how societycan perform the task with aminimum of resources and withoutheavy restrictions that impedegrowth. Intelligence is anotherkey research theme that supportsintegration, safety, efficiencyimprovement in and optimisationof production and supply chainsin a way that enables full automationand the use of information andcommunication technology at allstages.Cases > Productivity and Logistics

Page >44SwitzerlandCases > Productivity and LogisticsCase20Productive robotsBasic knowledge about robot technologydevelops in R&D projectsthat are often completed in cooperationwith leading foreign knowledgecentres and companies withcompetences that can be adaptedto Danish conditions.The Danish Technological Institutefocuses on robot solutions for themanufacturing industry, healthand welfare, green robots andintelligent buildings. The goal issolutions and principles useful inrealising robot technology potentialsacross industries and sectors– a platform for the widespreadDanish use of robots to lift productivityand quality.Flexible robotic hand to takeover strenuous tasksThe cooperation with GermanSCHUNK forms part of the DanishTechnological Institute’s endeavoursto develop a unique robotichand which should be almost asflexible as a real human hand.The robotic hand has been namedthe Hybrid Gripper, because it canbe used for many unvarying taskscausing physical deterioration –thus strengthening Danish companies’competitive edge againstcountries with lower payroll costs.Consequently, the Hybrid Gripperwould have to have the properhygiene to obtain approval for foodhandling.The activities are taking place ina project involving many differentareas of development. Forinstance, new mechanical systems,units and management technologiesneed to be developed. Theproject receives support from theDanish National Advanced TechnologyFoundation.Cleaning robots to keep PVcells in top shapePV cells need to be clean to makeoptimum use of sunrays and generatethe maximum carbon-neutralpower possible. In 2009, projectcooperation took off betweenproject originator Marco Reichelof Manu Systems AG, the DanishTechnological Institute, theRegensburg University of AppliedSciences of Germany and SwissBern University of Applied Scienceson cleaning robots to keep futurelarge-scale PV cell plants free fromdust and dirt. The robot not onlyimproves cleaning efficiency butalso benefits the environment; ituses very little water to clean.

Cases > Productivity and LogisticsPage >45In Denmark alone, 2008 saw investments worth approx. EUR 134million in complete robot-based production facilities. This shouldinclude investments in the production facilities operating withoutrobots. The numbers show that 507 industrial robots wereinstalled in automatic production facilities in Denmark in 2008against 489 the year before.i

Page >46UsaCases > Productivity and LogisticsCase21Sustainable logistics –a Danish specialityDenmark has a declared objective tobe a global leader when it comes tologistics and transport. For this reason,the Danish Technological Instituteworks together with a range ofinternational knowledge centres onsustainable transport and logisticsconcepts that are economically andenvironmentally optimum.To strengthen sustainability,distribution must occur in a morecoherent, optimised and efficientmanner across transport and supplychains than is currently the case.It is a question of integration, supplychain intelligence, safety andmobility.The Danish Technological Instituteaims at developing such solutions andanswering how society can performthe task with a minimum of resourcesand without heavy restrictions thatimpede growth.Extended RFID test centreThe Danish Technological Institutehas an international, research basedRFID (Radio Frequency Identification)centre that can ensure and documentthe readability of RFID-labelled units.This means products and packagingprovided with a small radio chip thatserves as a “wireless barcode” andidentifies the product. On the basisof its cooperation with institutionslike the University of Arkansas, theDanish Technological Institute hasextended the test centre to comprisethe testing and demonstration ofsolutions that benefit consumers insupermarkets and shops.This means that consumers can scanthe wireless barcode with their mobilephone or PDA to find informationabout the individual product, cashin any coupons and buy groceriesby scanning them on their mobilephones. This allows a brand-new typeof marketing that enters special bargainsas information in the barcode.Moreover, people with allergies canscan all articles for allergens.I-GTS - Intelligent GoodsTransport SystemsThe innovation consortium I-GTSfocuses on exploiting the technologyavailable in lorries, road systems,GPS and company systems to developintelligent freight transport systemsand optimise service and transport.The innovation consortium I-GTS consistsof various transport companies;Comlog A/S, the Danish TransportFederation, Scania Danmark A/S, Cityof Copenhagen, Danish Technical University/DTUTransport and the DanishTechnological Institute.An analysis made in 2009 showsthat the optimisation of service andtransport could be far better. Forinstance, the existing IT systems ofmost companies are unable to planand organise transport, meaning thatplanning is done manually in 72% ofthe companies. The analysis is thefoundation for developing new IT andCT solutions that can integrate mobiledevices, public aerial networks, GPSsensors, traffic signals, vehicle computers,etc. and thereby increase efficiencyand lower the environmentalloads involved in carrying goods.The project is inspired by experiencegained at a visit to Hong Kong Science& Technology Parks. Hong Kongis currently one of the world’s largesttrade and finance centres, from whichmuch of Chinese exports to the USAand Europe are controlled. This givesthem special expertise in logistics.

Page >47JapanCase22Care and quality oflife through welfaretechnologyA large number of Danish healthcare professionals will retire in justa few years. The health care systemfaces a monumental challenge and isalready under pressure from Danes’natural desire for even better careand quick access to the newest andbest types of diagnostics and treatment.This demographic developmentalso implies that the number ofpersons requiring care will grow.Welfare technology is thereforean important area for the DanishTechnological Institute, whichis cooperating with both Danishand foreign universities and stronginternational industry partners. Theaim is to establish competences andknowledge to assist Danish companiesin developing innovative welfaretechnology to relieve care staff andreinforce the health care system – aninitiative that also holds considerableand global market potential.Meet our welfare robotsIn June 2009, the Danish TechnologicalInstitute opened the firstInnovatarium for Robot and WelfareTechnology in Odense. The goal is togive Danish companies and institutionsa taste of the newest robottechnology. Frequent guests includepublic institutions interested in welfaretechnology. The guests primarilycome to meet Japanese Paro, FrenchNao and German Robotino.Baby seal Paro is a welfare robot thatcan see, hear and feel – and reactsto touch and speech. Paro is alreadyin use in various nursing centresbecause it has a positive impact onthe physical and mental health ofhumans. Nao can dance and is anentertainment robot that can amuseand socialise with people. Robotinepossesses the basic skills toanalyse how people walk, so it canread where someone is heading andwhether the person is looking forinformation.Eating robot increases qualityof lifeTogether with the Odense Municipality,the Danish TechnologicalInstitute is conducting specificexperiments with the Japaneserobot MySpoon, which helps physicallydisable persons to eat withoutassistance from care staff. The robotallows users to participate in mealswithout assistance and generally toeat whenever they want. A functionthat can help maintain the users’dignity and thus improve their qualityof life.Other exciting examples of welfaretechnology are robot baths androbot toilets which may also relievecare staff and improve the users’quality of life. The welfare technologiesare acquired with the help ofJapanese partners, e.g. the NationalInstitute of Advanced IndustrialScience and Technology, NipponWelfare Instrument Corporation,CYPERDYNE Inc. and the Universityof Tsukuba.Cases > Productivity and Logistics

Page >48Cases > Trainingpled with accelerated technologicaldevelopment, globalisation makesa well-educated and flexible labourforce a must for Denmark’s competitiveness,growth and welfare.Access to education and training,competence development andlifelong learning are crucial contributionsin the process of boostingDanish companies’ development andimproving individuals’ competences.Developments in technology andresearchTechnological development is acceleratingat an ever-increasingpace. Previously, technology shiftswere said to occur in 5-10-yearcycles. Today, the lifetimes of someAs the global economy growsincreasingly knowledge intensive,education and training are seenas the key to success. A 2007 reportto the European Commissionplaces Denmark among the OECDcountries spending most publicfunds on education and training,i.e. 7.4%. This fact is seen as onereason why international reportsrank Denmark among the mostcompetitive countries.Development trends– challenges and opportunitiesGlobalisation generates a more openand accessible world, offering newpossibilities for greater welfare andcreation of better jobs. But coutechnologiesare less than two years- various mobile technologies, forinstance. New technologies comeinto use even before the existingones have become obsolete. Thefaster pace means that suppliers oftraining must be at the forefront ofdevelopment in step with employees’need for upgrading – not onlywhen new technologies are put intooperation but also before technologydevelopment has completed, sothat training must be based on betaversions.With technological developmentcomes greater complexity, a fact thatcalls for specialised knowledge andfor which training is a key factor.

Page >49TRAININGGenerally, the economic situationdetermines the conditions settingthe predominant trends in trainingand lifelong learning. Therefore,demand for training services ishighly cyclical. In times of economicexpansion characterised by developmentand growth, companies’ mainchallenges lie in attracting qualifiedlabour while retaining and developingkey employees. In such timescompanies characteristically investmany resources in various trainingactivities aimed at supporting thecompanies’ growth shifting their focus to minimisingcosts, competitiveness deterioratesand unemployment figures grow.This development changes theinterdependency between companiesand employees. Companiescome under external pressure, andthe survivors are companies thatmaster the balance between trimmingtheir staffs and seizing newdevelopment and innovation opportunities.In this context, trainingand competence development maysupport business development andbecome crucial for future success.companies, in other words on theiremployability. Coupled with personaldevelopment, knowledge andtraining are key factors - i.e. beingupdated on knew knowledge andtechnology, able to embrace developmentand willing to change.Cases > TrainingIn periods of recession, other factorscome into play. Companies oftenadapt to changed market conditionsEmployees are highly focused onremaining attractive both at theircurrent workplaces and to other

Cases > TrainingPage >50According to the annual ‘Education at a Glance report 2009’ fromthe OECD, Denmark – with the exception of Iceland – is theOECD country spending the most public funds on education comparedto GDP. In Denmark, public funding of the education sectoraccounts for 6.7% of GDP. Iceland spends an amount correspondingto 7.2% of GDP on education, while Denmark comes in aheadof Sweden (6.2%), Finland (5.7%) and Norway (5.4%).i

Page >51swedenCase23Tomorrow’smanagementThe Danish Technological Institutedisseminates international knowledgeto the Danish corporate sectorin a variety of ways. One wayconsists of articles written specificallyfor the Danish TechnologicalInstitute by influential internationaldignitaries, all seen as leadingexperts in their fields. The articlesare disseminated through theDanish Technological Institute’se-newsletter “LederUpdate”, amagazine for managers by managersaimed at providing a panoramicview of management.In 2009, LederUpdate offered inspirationfrom Jonas Ridderstråle,professor at the Stockholm Schoolof Economics and co-writer of thebestsellers ’Funky Business’ and‘Karaoke Capitalism’ and ’FunkyBusiness Forever’, and from PaulEvans, professor of organisationalbehaviour, human resources andorganisational development atINSEAD.Crisis? What crisis?Under the heading “Crisis? Whatcrisis?”, Jonas Ridderstråle describedhow in today’s deregulatedand internationalised corporateworld we experiment in more areasand at more locations than everbefore – geographically, in financialservices, through IT solutions, inthe biotech industry, etc. Experimentsare risky. Some may andwill fail. But that does not meanthat we should cease trying - notmoving is the surest way of fallingbehind.This is why Jonas Ridderstråle askswhether in a period of change,managers can merely function asmanagers or whether they shouldtake responsibility for leadingchange processes? The answer isevident. The only way to gain affluencerequires the leader to focusattention, energy and efforts onbecoming a trailblazer.From busy to targeted managementThe pivotal aspect of Paul Evans’contribution to LederUpdate was“Return-on-time-invested”. Hispoint is that managers need toconsider how they spend their timeduring a typical work week in thelight of what is important versusnot important and what is urgentversus not urgent.Paul Evans urges managers to stepback and compare how they spendtheir time to how they shouldspend their time. Just consider anaverage difference of 15% in anaverage work week of 60 hours.That would leave a manager theoption of improving his/her returnon-time-investedby 9 hours – andchanging from a busy manager toa dedicated manager.Cases > Training

Page >52UsaCases > TrainingCase24International inspirationin times of crisisThe Danish Technological Instituteregularly organises exclusive seminarswith internationally renownedexperts able to introduce participantsto the latest knowledge inkey areas.Volatility as a managementcondition“The New Age of Innovation” wasthe title of a seminar with oneof the most influential experts instrategy – the distinguished C.K.Prahalad, professor at Universityof Michigan. Professor Prahalad setthe stage by focusing on the elementsdeciding the agenda: Volatilityas the management conditionof our time as witnessed by volatilityin financial markets, in raw materialsand in consumer behaviour,coupled with a heightened focus onclimate, fear of terrorism, pandemicsand government influence.To be a manager navigating in asea of unpredictability requiresrevolutionary thinking and areformulation of business goals.The current focus is on holding onto available funds, reducing theimpact of fluctuations and alleviatingportfolio risks. Companies needto be in the market, adaptableand close to their customers atthe lowest possible costs. And therisk should be minimised by ’cocreating’with other companies viaglobal networks of supply, logisticsand communication.Growth in turbulent markets“Face the challenges of 2009 andlead the way to top profitablesales” – this was the message fromone of the world’s marketing masters,Malcolm McDonald, professorat Cranfield University School ofManagement.Professor McDonald advises majorinternational companies such asIBM, Shell, Tetra Pak, Xerox andTesco in areas like key accountmanagement, strategic marketing,marketing planning, market segmentation,international marketingand marketing accountability.At the seminar, the participantsgained an understanding of howmajor international companiesdevelop long-term, profitablecustomer relations and ensuretheir own growth in turbulent andchangeable markets in economicrecession, thus increasing companyprofits.Professor McDonald provoked theparticipants by questioning theirexisting customer strategies, andstarted them thinking whethertheir individual customer activitieswere strategically durable – werethey concentrating on the rightcustomers? Who are really thekey customers? Do they spendtoo much energy on winning newcustomers?

Page >53An aspect of learning consists ofhands-on experience instead ofmerely hearing about it. Hands-onexperience is ensured via the DanishTechnological Institute MasterClasses,in which participants can take onthe latest technologies.CanadaCase25MasterClasses withleading IT expertsFuture .NetIT expert, Michele Bustamante, chiefarchitect of IDesign Inc. and vicepresident of Microsoft, gave a MasterClassin which the participantswere taken on an intensive guidedtour in the .Net universe – fromdevelopment of the latest versionsto upcoming releases and on to thenext step. Participants gained anunderstanding of the intentions andgoals forming the basis of futureversions. This presentation enablescompanies to make qualified decisionswhen selecting technologiestoday that will make implementationof new technologies more flexibletomorrow.Dino Esposito, IT expert in architecture,gave an intensive five-dayMasterClass in which participantsachieved an in-depth understandingof .Net design and were giventhe blueprint for creating optimumdesigns and implementing layeredapplications. Dino Esposito sharedhis experience of working withmajor multinational companies. Theclass focused on topics like appropriatedevelopment principles, bestpractices and pitfalls.Cases > Training

Page >54INTERNATIONAL CENTreCases > International CentreThe Danish Technological Institutehas a wide range of divisions andcentres that acquire internationalknowledge and implement it inDanish society. The InternationalCentre does the reverse, acting asa coordinating commercial entityto ensure that knowledge gatheredand created at the Danish TechnologicalInstitute is channelled to theinternational market. The Centre’sprimary task is to extract resourcesand knowledge across the organisation,thus allowing the DanishTechnological Institute to take partin inter-disciplinary tasks in the internationalmarket for consultancyservices.The International Centre ensuresthat the Danish TechnologicalInstitute has a place as partner inboth neighbouring EU countriesand key third-world countries. Overthe past 10 years, the Institutehas been implementing projectsin more than 25 countries with amix of in-house consultants andexternal experts from both Danishand international partners. Workinvolved with almost all large contractsis undertaken in consortiumsor partnerships with key Danishand European consulting businessesand institutions in the semi-publicsector. Through these partnerships,we provide the Danish consultingindustry and others in the internationalmarket with services andtechnical platforms that only anapproved technological serviceinstitute can supply.The tasks performed by the InternationalCentre are practically alldonor-funded projects submittedfor international tender. The EU isthe primary donor and runs largescaledevelopment programmesin numerous neighbouring andthird-world countries. Danida isanother important partner in theprogrammes on environmentalimprovement in industry and industrialdevelopment.The international futureThe Danish Technological Instituteoften offers assistance to Danishcompanies’ production overseas. Inthis context, the International Centreprovides knowledge about conditionsin the individual countries andconsiderable experience in addressinginternational contracts, partnershipsand working conditions.The donor-funded activities undertakenby the Danish Technological

Page >55Institute are an important elementin its international strategy. First,the Institute has achieved a significantstatus in many countries suchas India, Egypt and South Africa,which might become importanttrading partners for Denmark in future.Second, through its work withlocal industry and authorities, theDanish Technological Institute hasaccumulated valuable knowledgeabout the trends forming in themajor third-world countries.Cases > International Centre

Page >56Developing and implementing nationalquality programmes – also knownas MSTQ – entails matters such asaccreditation, metrology, standardisation,market surveillance and consumerprotection. The EU in particular isinterested in helping its neighbouringcountries develop their own systemsfor checking and approving goods, theaim being to increase cross-bordertrading. The Danish TechnologicalInstitute has played, or is playing, anactive role in Turkey, Jordan, Syria,Egypt, Serbia, Montenegro and Russiain the so-called MSTQ area.Cases > International CentreMontenegroCaseNational quality plan in MontenegroIn 2009, the Danish TechnologicalInstitute, in close cooperation with theDanish Accreditation and MetrologyFund, the Danish Standards and DanishFundamental Metrology Ltd., prepareda plan for further work on the nationalquality plan in Montenegro. The plan followsup and expands the work for whichthe International Centre was responsiblein 2005-2007, when Montenegro wasa member of the Serbian union.26Developing nationalquality programmesFollowing Montenegro’s secession fromthe union, a need arose to build upnational capacity in terms of knowledgeabout European legislation, technicalregulations and product safety.In addition, a need arose to establishown institutions such as an accreditationbody and a metrology laboratory.This being the case, the task involvedtraining and education, organisationaldevelopment and proposals for nationalpolicies on quality.

Page >57GhanaCase27Food safety in thirdworldcountriesThe need for international advisoryservices related to foods hassoared in recent years. Both Danidaand the EU have programmessupporting developments towardsbetter foods – from the point ofview of production as well as consumers.The Danish Technological Institutecommands a strong position inboth the Danish and internationalmarkets, and we expect this fieldto develop in the course of thecoming years. For instance, theDanish Technological Institutehas joined forces with the Egyptiangovernment in a multi-yearcooperation programme regardingthe Egypt Food Technology Centrein Cairo. Furthermore, the DanishTechnological Institute hascompleted a large-scale project onfood development and certificationin India and some smaller projectsin Uganda and Tanzania.Help for the fishing industry inGhanaThe Danish Technological Instituteis participating in a large-scale EUframework contract targeted at 60countries in Africa, the West Indiesand the Pacific region. The projectis managed from Brussels in Belgiumand concerns a vast numberof missions to the fishing industryin the various countries. The objectiveis to strengthen food safetyin the countries’ fish produce productionfor export purposes.To date, the Danish TechnologicalInstitute has, for instance, describedfuture support projectsaimed at food production in Ghanaand a range of new food safetyand Hazard Analysis and CriticalControl Point (HACCP) projectshave been designed. HACCP is asystematic approach to qualitymanagement. The work includedan analysis of the need to trainexporting food producers in EUhygiene rules, the HACCP system,own controls and manuals. Moreover,the Danish Technological Institutecontributed a needs analysisrelating to investments andadaptations in the fishing industry.Cases > International Centre

USACase 24ItalyCase 3

Review 2009

Review > 2009Page >60Review 2009All in all 2009 was a good year for theDanish Technological Institute despitethe challenges caused by the economicdownturn. Our strategic focus onresearch and development activitiescontinued to make a positive contributionas revenue from these activitiesrose to 32.2% of total revenue in2009. In 2008, Institute R&D revenueaccounted for 26.3% of total revenue.The year 2009 was characterisedby two large-scale acquisitions andorganisational changes.In January 2009, the Danish TechnologicalInstitute took over 27 key staffmembers as well as the accelerator,magnet and power supply activitiesfrom Danfysik A/S in Jyllinge. Thereby,the Institute secured a number ofhigh-tech jobs in Denmark. DanfysikA/S holds unique key competences inhigh-energy nuclear physics and developmentof modified surfaces for industry.Expectations are that DanfysikA/S – thanks to renewed focus on itsoriginal core business – will producefair results. Long term, Danfysik A/Sand the Institute are also expectedto produce trailblazing results on thebasis of commercialisation of researchand development results – especiallyin high-technology materials.Institute divisions and centres werereorganised with effect from February2009, the reason being a wishto strengthen cooperation across theorganisation allowing obvious synergiesto pave the way for quickly realisablegains to the benefit of the Danishbusiness sector.A new division by the name of LifeScience was created. The division putsspecialist core competences into playto offer Danish customers and internationalpartners even better possibilitiesof generating growth in the area.In October, the Danish TechnologicalInstitute took over the Danish MeatResearch Institute (DMRI) from theDanish Bacon & Meat Council. DMRIis now organised as a division of theDanish Technological Institute.In this way, the Danish TechnologicalInstitute acquired a nationally andinternationally leading competencecentre within the areas of meat industryinnovation, development andresearch. The objective of the newdivision is to create an even strongerresearch, consultancy and innovationinstitute which addresses all ofthe food industry. This will ensure abroader technical and commercialbasis for developing and utilising thecompetences that have been developedover a number of years.With the takeover, the Danish TechnologicalInstitute expands its positionas Denmark’s biggest supplier of technologicalservices to the food industryand its suppliers in analysis, consultancyand research and development.The strategy for the period 2007-2009 served two overall objectives:growth and internationalisation. Bothobjectives underpin the governmentglobalisation strategy and the strategyintention of fostering the competitivenessof the Danish business sector.Throughout the strategy period, theDanish Technological Institute boostedinteraction with small and medium-sized enterprises, and the Institutecontributed even further than beforeto improving the framework for companiesfor research, development andinnovation in a global context.Also, the Danish Technological Institutespent time in 2009 lookingahead and laying down the strategyfor the period 2010-2012 – a strategyconcentrating on innovation, competencedevelopment and internationalcooperation.Furthermore, Institute investmentsin laboratories and equipment werestepped up. Investments included thepurchase of a Thermos LTQ OrbitrapVelos mass spectrometer, the establishmentof a motor laboratory and ananotechnology experiment station.Investments in building projects,laboratories and equipment more thandoubled on 2008. Total investmentsin 2009 amounted to EUR 9.7 million,including the acquisition of DMRI’sbuildings in Roskilde and of DanfysikA/S.Financial reviewThe Danish Technological Instituterecorded profit of EUR 2.2 million for2009 (2008: EUR 3.0 million), whichwas below budget. Total consolidatedrevenue was EUR 113.0 million, a riseof 9.7% compared to 2008.The Danish Technological Institute’srevenue is generated through commercialactivities and research anddevelopment activities, includingperformance contract activities.Commercial revenue was EUR 76.7million, which was EUR 0.8 million up on2008, corresponding to a rise of 0.9%.

Review > 2009Page >61“Look ahead, ahead! Take the coming time to discover how it paves the ways to development,and then place yourselves there where you discern the need for the Institute’s help. Expect not toreach new land from worn, cobbled roads. The road often runs down unknown paths and shortcuts.”Gunnar Gregersen, Founder of the Danish Technological InstitutePresident, 1906-1950

Page >62Consolidated revenue and net profit, in the period 2006-2009Consolidated net profit4. net revenue115.0110.0105.0100. inmio. eur0.50.02006 2007 2008 200975.070.0Net. profit inmio. eurThe net profit for 2006 was affected by extraordinary centenary costs of EUR 1.5 million.Review > 2009Research and development revenue aswell as performance contract revenueaccounted for EUR 36.3 million, or32.2% of total revenue, correspondingto a rise of 5.9 percentage points comparedto 2008.In 2009, the Institute’s self-financeddevelopment activities ran into EUR6.6 million, up EUR 1.1 million comparedto the year-earlier period. Weare of the opinion that the knowledgedevelopment resulting from the researchand development activities is ofconsiderable importance to the Danishbusiness sector. The new knowledgemeans that the Institute also in futurewill be able to provide technologicalservices of the highest quality.Equity rose by EUR 2.3 million andstood at EUR 45.8 million at 31 December2009. The balance sheet totalwent up by EUR 14.7 million to EUR90.0 million. Cash flow from operatingactivities amounted to EUR 8.4 millioncompared to EUR 5.1 million in 2008.Cash flow from investing activitiestotalled EUR 9.7 million.Financial resources remain strong andworked out at EUR 16.0 million atend-2009.Post-balance sheet eventsNo material events have occurredafter the balance sheet date that willaffect the financial statements.SubsidiariesThe year 2009 was not so good a yearfor the two subsidiaries in Sweden.Technological Institute AB Swedenended up recording a loss of EUR0.4 million. However, measures wereinitiated in 2009 to adjust the coststructure to the new market conditionsprevailing during the crisis currentlyexperienced by the Swedish trainingand education market.Swedcert AB broke even in 2009 comparedto recording profit of EUR 0.04million in 2008.Dancert A/S was established in 2008to enhance Institute certificationactivities. Dancert A/S recorded fairoperations in 2009, posting profit ofEUR 0.1 million.The Polish subsidiary, FIRMA 2000 Sp.z.o.o., recorded a loss of EUR 0.1 millionin 2009. However, the order bookfor 2010 causes us to be optimisticabout 2010.Danfysik A/S, the new Danish subsidiary,generated revenue of EUR 5.7million and profit of EUR 0.0 millionin 2009. To Danfysik A/S, 2009 wasa year of restructuring. Efforts weremade to restore relations with formercustomers, and the efforts bore fruit.Technological Innovation A/S experiencedmajor upheaval in 2008 asits licence as an approved innovationenvironment was not renewed.Consequently, the company changedits status from an approved innovationenvironment to a dormant company.

Page >63The main asset of the company is a50% interest in Syddansk TeknologiskInnovation A/S and a numberof small shareholdings and loansto entrepreneurial businesses. Thestaff were transferred to SyddanskTeknologisk Innovation A/S duringthe year. This also applies tothe ownership interests previouslyunder management by TechnologicalInnovation A/S on behalf of theMinistry of Science, Technology andInnovation.In 2009, Syddansk Teknologisk InnovationA/S developed according toplan and, like the other innovationenvironments, succeeded in obtainingincreased funding for the nextthree years.Special risksThe Danish Technological Institute’sprime operating risk is linked to themanagement of ongoing researchand development projects andlonger-term commercial projects.The risk has been paid due considerationin the financial statements.The Institute’s solvency and financialresources render the Institutesensitive only to a limited extent tochanges in the level of interest rates.No material currency risk or materialrisks relating to individual customersor partners exist.Outlook for 2010The budget of the Danish TechnologicalInstitute for 2010 very muchreflects the acquisitions of DMRI andDanfysik A/S. The new activities areset to contribute revenue of just underEUR 27 million in 2010, thus raisingtotal Institute revenue to morethan EUR 134 million and giving theInstitute a staff corresponding to 997man-years.Own production from research anddevelopment is expected to besignificantly bigger in 2010 than in2009. We have budgeted for an ownproduction of about EUR 46 million,compared to realised own productionof EUR 33 million in 2009. Just overEUR 8 million of the expected rise isattributable to the acquisition of DMRI.The goal for 2010 is to maintain thecommercial revenue despite thespecial challenges arising due to theeconomic downturn.The situations of FIRMA 2000 Sp.zo.o. and Danfysik A/S developedpositively at the end of the period underreview. At this point, FIRMA 2000Sp. zo.o. already has an order bookcorresponding to the budget for 2010,and Danfysik A/S has an order bookamounting to 50% of the revenuebudgeted for. As regards Technologi-cal Institute AB, we expect the marketfor courses to have bottomed out. Asmentioned, costs were trimmed, andwe forecast a modest profit for 2010.For the group as a whole, profits areset to rise compared to 2009.CustomersCustomers buying the Institute’scommercial services are Danish businesscustomers, organisations, publiccustomers and international customers.In 2009, the Institute providedsolutions to a total of 14,778 customers,11,039 of whom were Danish customers.81% of the Danish businesscustomers come from the service sector,while 19% come from manufacturingindustry. In this context, too,the Institute works closely with smalland medium-sized enterprises inparticular. Enterprises with fewer than50 employees accounted for 58% ofthe customers.The Institute had 932 public customersin 2009. Public customers andorganisations procure services such asconsultancy and training in the sameway as private companies. In addition,the Institute serves public customersvia various operator projects.International activitiesThe Institute had 3,739 internationalReview > 2009

Page >64FINANCIAL HIGHLIGHTSEUR million 2009 2008 2007 2006 2005Key financial figuresRevenue 113.0 102.9 100.7 97.6 95.9Net profit for the year 2.2 3.0 3.2 1.8 3.6Balance sheet total 90.0 75.3 70.7 70.0 72.0Equity 45.8 43.5 41.0 37.7 35.9Cash flow from operating activities 8.4 5.1 8.4 1.0 7.8Cash flow from investing activities 9.7 5.4 4.4 3.7 4.1Of which for investment in property, plant and equipment 5.0 4.8 4.1 3.3 4.1Total cash flows -1.3 -0.3 4.0 -2.7 3.8Financial ratios (%)Operating profit margin 1.9 2.9 3.2 1.8 3.7Equity interest (solvency) 50.8 57.9 57.8 53.8 49.9Self-financed development 5.9 5.3 4.5 3.9 4.4Average number of full-time employees 904 854 795 831 835Definitions and terms appear from the accounting policies.BREAKDOWN OF REVENUE100% = 113 mio. EUR (102,9)*0% 100%Danish business customers34% (40%)Organisations and publiccustomers 16% (15%)International customers18% (19%)Research and developmentactivities 21% (15%)Review > 2009Performance contractactivities 11% (11%)*The figures in parentheses refer to 2008.

Page >65customers, including subsidiary customersin Sweden and Poland. Overall,the Institute’s international revenuestands at EUR 22 million.Project evaluationTo the Danish Technological Institute,the work of transforming new knowledgeinto daily practice in companiesconstitutes a central element in itsnon-profit activities, and it is importantto learn how satisfied the customersare with the projects undertakenby the Institute. So in recent years,customers have been asked to evaluatethe Institute’s work in the light of anumber of parameters such as qualityand time of delivery, and 97.4% ofcustomers said in 2009 that they weresatisfied or very satisfied. A new initiativein 2009 was the introduction ofsimilar evaluation of all research anddevelopment projects for which theInstitute was responsible.New innovation consortiaThe Danish Technological Institutestrengthened its position withinresearch and development again in2009. During the period under review,the Institute assumed the role ofproject manager of eight innovationconsortia granted by the Ministry ofScience, Technology and Innovation.These are: “Prostheses: Reduction ofinfections and pain”, “Energy materials– development of materials andcomponents for future environmentfriendlytechnologies”, “IdeAL Surfaces”,“Sustainable concrete structureswith steel fibres”, “Risk managementin extended enterprises”, “Multicaps”,“Renewable energy technology” and“Nanovation”. Moreover, the Institutejoined the “NaKlm”, “CIA-CT” and “Nanomorph”projects as partners.Performance contract activitiesIn late 2009, the Danish TechnologicalInstitute concluded the negotia-Review > 2009tions for the performance contractfor 2010-2012 with the Ministry ofScience, Technology and Innovation.These activities are set to be of greatimportance to the future competitivenessof the Danish business sector ina large number of technologies.EU projectsThe Institute is an active participantin the EU’s Seventh FrameworkProgramme. In 2009, the Institutesubmitted 15 project applications, ofwhich five new projects were committed.This means that the Danish TechnologicalInstitute hit rate was 33% in2009, which was above the averageEU hit rate of 16% in 2009.New facilitiesThe Danish Technological Instituteintends to be a pioneer on behalf ofcompanies as regards technology andinnovation. This being the case, theInstitute continued its massive investmentin facilities in 2009, making theInstitute a leader in a range of technologicalfields. The investments ensurethat the Institute – also in future– is well prepared to meet companyneeds for world-class laboratories andother facilities.The establishment of a new motorlaboratory takes the Danish TechnologicalInstitute to the forefrontamong European laboratories withmotor fuel testing and emissionsmeasuring as their line of business.The new motor laboratory is underconstruction and will be inauguratedin the spring of 2010. The laboratorycontains a state-of-the-art motor testbench with equipment for determiningthe fuel consumption and measuringthe pollution of a motor. TheInstitute can now perform measurementsin compliance with the strictestEuropean and American standards inthe field.The Danish Technological Instituteexpanded its protein analysis facilitieswith one of the most advancedinstruments existing for that purpose– a Thermos LTQ Orbitrap Velos massspectrometer. The instrument is basedon highly advanced physical principlesand is able to characterise proteinsand their roles in, for instance,diseases and their treatments. TheDanish Technological Institute hasover a number of years accumulatedsubstantial competences in proteinchemistry and protein-chemical analyses,also known as mass spectrometry-basedproteomics. Introduced inthe spring of 2009, the instrument ispreferred by leading researchers in thefield and thus takes the Danish TechnologicalInstitute to the same levelas the best in the world. First, theequipment is to be used in projectsfocusing on developing new and betterpharmaceuticals – but is intended forbroadly-based use in the food industryand health sector in the long term.The Institute also invested in aFunctional Coating Laboratory, whichwas put into use in April 2009. In thelaboratory, it is possible to give a liquidfunctional coating to metals, glass andpolymeric blanks using a spray gun, apaint roller or a brush, and the liquidreagents then harden into glass-ceramicsurfaces. By means of this technology,the Institute helps companiesdevelop surfaces possessing variousunique properties such as non-stick,anti-ice, anti-graffiti, corrosion-resistantor scratch-proof properties.Prompted by growing market demandfor flexibility and shorter times ofdelivery and a sharp rise in activitiesrelated to function and materials testing,the Danish Technological Instituteset up a metal shop for production oftest tools and processing of customerblanks prior to mechanical testing.

Page >Review > 200966The shop opened in February and hasbeen fully operational since October2009. At present, the shop is operatedby two full-time staff membersand serves the entire Institute withrespect to design and production ofmetal components and tools involvingcomplicated geometry.The Danish Technological Institute isone of the first in Denmark to haveinvested in 3D MetroTomografi®, andthe test equipment was ready for usein August 2009. Metrotomography isthe result of combining the technologiesof 3D measuring and CT scanning.It is now possible to performgeometric measuring of details thatare difficult to access or are hidden –by applying a non-destructive method.A single scan gathers informationabout geometry and volume as well asmeasurements and tolerances.Thanks to the Danish TechnologicalInstitute, the Danish business sectorgained access to unique world-classproduction facilities on 26 June 2009when a new nanotechnology experimentstation opened at the TechnicalUniversity of Denmark (DTU) inLyngby, north of Copenhagen. Theinvestment in the experiment stationtotals EUR 13 million, and thestation was established on the basisof strategic cooperation between theDanish Technological Institute andDTU Danchip to utilise the facilities.The experiment station will be staffedby five consultants from the DanishTechnological Institute, who will beadvising companies on the countlessuses of nanotechnology.In June 2009, the Danish TechnologicalInstitute opened Denmark’s firstInnovatorium for Robot and WelfareTechnology in Odense. The purpose isto offer Danish businesses and institutionsan innovative meeting place forresearchers, experts from approvedtechnological service institutes (GTSexperts) and high technology companiesinterested in industrial robots andwelfare technology where they cantest and learn about new technologiesand are inspired to use them. Furtherinformation about the Innovatorium isavailable in case no. 22.We entered into a cooperation agreementin 2009 under which ANDRITZFEED & BIOFUEL erects a new grindingand pelleting plant with a capacityof 1.5 tons an hour, and under whichthe Danish Technological Institute willbe charged with operating the plant.The new unit will give a clear indicationof the grinding and pelletingproperties of new, unknown biomassesand provide information about manyprocess parameters via data logging.In this way, the unit is also suitable forresearch and development activities.Moreover, the capacity of the unit willpave the way for wage production oflarge quantities of biomass.Finally, the Institute completed theresearch and development laboratoryknown as EnergyFlexHouse – a uniqueplatform for innovation and developmentof tomorrow’s energy-efficienttechnology for new and existingbuildings. The first test family movedinto the new energy-friendly housein October 2009. Further informationabout EnergyFlexHouse is available incase no. 7.Consultancy services and trainingConsultancy services for private andpublic companies account for 27% oftotal Institute revenue. Consultancyservices are rendered on the basisof the knowledge developed fromresearch and development activitiesand through long-term cooperationwith a large share of the businesssector. Hence, these tasks compriseall the Institute’s technical fields andrepresent the width and diversity ofits work.Training accounts for 18.4% of totalconsolidated revenue. In 2009, a totalof 31,210 people attended Institutecourses, seminars and conferences.The Institute witnessed an increasein the number of course participants,but revenue did not show a correspondingrise as course participantsprimarily register for cheaper coursesthan before.

Page >67BREAKDOWN OF INSTITUTE COMMERCIAL REVENUE100% = 76,7 mio. EUR (75,9)*0% 100%Consultancy and development35% (38%)Certification and testing28% (26%)Training and education26% (32%)Other services 11% (4%)*The figures in parentheses refer to 2008.ACADEMICALLY QUALIFIED STAFF100% = 849 academicallyqualified staff members (724)*0% 100%Doctors 1% (1%)PhD 10% (9%)Graduate engineers34% (34%)Other academic staff27% (26%)Other technical staff28% (30%)*The figures in parentheses refer to 2008.Operator projectsThe Institute has been managingthe Public Service Scheme forInventors on behalf of the Ministryof Science, Technology and Innovationfor many years. In 2009, theOrganisation and employeesThe Danish Technological Institutetook over 120 employees from DMRIin 2009, taking the total number ofemployees to 920 at end-year.The strategic goals for HR andorganisational development for theperiod 2010-2012 comprise continuedenhancement of technicaland personal development for theindividual employee, and the Insti-Review > 2009Institute won the project for theThe Danish Technological Institute istute will continue to aim at ensuringperiod until 2012. Furthermore, theaware that staff qualifications needinternational focus on HR develop-scheme was introduced in a newto match an international market.ment.format in 2009 in which focus wasThis is reflected in HR development,much more on seeing the mostfor instance, as the Institute in 2009Corporate social responsibilitypromising inventions all the wayregistered 10% of managers forThe Danish Technological Institutethrough. The scheme is therefore nointernational supplementary training.has described what it understandslonger measured by the number ofIn addition, the Institute completed aby corporate social responsibilityinquiries, but, for instance, by themanagement and business-orientedand the policies and guidelines thisnumber of commercialisation pro-talent development programme for 30entails. Management has decidedcesses and licence agreements westaff members, many of the modulesto publish its statutory report onsee in the end.being taught by select internationallycorporate social responsibility on itsrecognised at

BelgiumCase 11

JapanCase 22Extract of theFinancial StatementsThe complete financial statements canbe ordered from the Danish TechnologicalInstitute.

Page >70Income statementEUR million note 2009 2008 2007Commercial activities 76.7 75.9 77.9R&D activities 24.0 15.4 11.9Performance contracts 12.3 11.6 10.9Revenue 113.0 102.9 100.7Project costs, excluding salaries 21.4 21.7 23.4Other external expenses 21.0 20.2 17.3Staff costs 1 64.7 55.9 53.2Depreciation, amortisation and impairment losses 2 3.5 2.7 3.9Total costs and expenses 110.6 100.5 97.8OPERATING PROFIT 2.4 2.4 2.9Income from associates after tax (0.3) 0.0 0.0Financial income 0.8 1.1 0.9Financial expenses 0.6 0.6 0.4Financial income and expenses, net (0.1) 0.5 0.5PROFIT BEFORE TAX 2.3 2.9 3.4Tax on profit for the year 3 0.1 0.0 0.2NET PROFIT FOR THE YEAR BEFORE MINORITY INTERESTS 2.2 2.9 3.2Profit of subsidiaries attributable to minority interests 0.0 0.1 0.0NET PROFIT FOR THE YEAR 2.2 3.0 3.2A proposal has been made to transfer net profit to equity.Group segmentinformation,EUR millionRevenue Commercial r&D Performance totalactivities activities contracts (R&D) revenue2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007Building Technology 12.5 12.9 12.3 1.9 1.3 1.1 1.7 1.9 1.9 16.1 16.1 15.3Energy and Climate 10.3 10.0 9.7 5.9 4.5 3.4 3.0 2.8 2.0 19.2 17.3 15.1Business Development 7.3 7.1 7.2 1.2 0.8 0.6 1.8 1.2 1.1 10.3 9.1 8.9Materials and Production 7.9 7.6 6.5 5.4 4.0 3.3 2.3 2.3 2.4 15.6 13.9 12.2Productivity and Logistics 6.6 7.0 7.0 2.9 1.5 0.7 1.5 1.1 1.2 11.0 9.6 8.9International Centre 1.1 3.6 6.9 0.0 0.0 0.0 0.0 0.0 0.0 1.1 3.6 6.9Danish Meat Research Institute 1.0 0.0 0.0 2.7 0.0 0.0 0.0 0.0 0.0 3.7 0.0 0.0Training 9.4 11.0 11.5 0.0 0.0 0.0 0.0 0.0 0.0 9.4 11.0 11.5Life Science 5.6 6.7 6.4 4.0 3.3 2.8 2.0 2.3 2.3 11.6 12.3 11.5Total, Institute 61.7 65.9 67.5 24.0 15.4 11.9 12.3 11.6 10.9 98.0 92.9 90.3Subsidiaries* 15.0 10.0 10.4 0.0 0.0 0.0 0.0 0.0 0.0 15.0 10.0 10.4Total, Group 76.7 75.9 77.9 24.0 15.4 11.9 12.3 11.6 10.9 113.0 102.9 100.7Financial statements > Income statementRevenue -geographically* Primarily training activities at Technological Institute AB in Sweden, production of particle accelerator equipment at Danfysik A/S,certification activities at Swedcert AB and Dancert A/S and consulting and training activities at FIRMA 2000 Sp. z.o.o.Group 2009 2008 2007Denmark 90.7 82.7 78.2International 22.3 20.2 22.5Total 113.0 102.9 100.7Danish Technological Institute / CVR-no.: 56 97 61 16Danish AssociatesSubsidiariesDanishInternationalDancert A/STeknologisk Institut AB Sverige100,0%100,0%CVR-no.: 29 51 20 94Reg. No.: 556456-9894Danfysik A/S100,0%CVR-no.: 31 93 48 26Swedcert AB, Sweden100,0%Reg. No.: 556616-7325PhotoSolar A/S34,1%CVR-no.: 27 49 22 074,9%Technological Innovation A/S100,0%CVR-no.: 20 66 56 45Firma 2000 Sp. z o.o., Poland68,0%Reg. No.: KRS 0000023041Syddansk Teknologisk Innovation A/S50,0%CVR-no.: 20 85 82 06

Page >71Balance sheetASSETS, EUR million note 2009 2008 2007Goodwill 0.3 0.1 0.1Development projects 0.0 0.0 0.0Patents 0.6 0.0 0.0Total intangible assets 4 0.9 0.1 0.1Land and buildings 37.6 32.5 32.5Fixtures and operating equipment 9.7 8.3 6.0Total property, plant and equipment 5 47.3 40.8 38.5Investments in associates 6 1.1 0.5 0.1Receivables from associates 0.2 0.0 0.0Other investments 6 0.5 1.0 1.2Total investments 1.8 1.5 1.3TOTAL NON-CURRENT ASSETS 50.0 42.4 39.9Inventories 7 1.0 0.0 0.0Total inventories 1.0 0.0 0.0Trade receivables 14.6 13.5 11.3Contract work in progress 8 8.0 1.5 1.2Deferred tax asset 3 0.2 0.1 0.1Other receivables 0.2 0.4 0.6Prepayments 0.2 0.3 0.3Total receivables 23.2 15.8 13.5Cash 9 15.8 17.1 17.3TOTAL CURRENT ASSETS 40.0 32.9 30.8TOTAL ASSETS 90.0 75.3 70.7EQUITY AND LIABILITIES, EUR million note 2009 2008 2007Cash flow statementTOTAL EQUITY 10 + 16 45.8 43.5 41.0Minority interests 0.1 0.1 0.1Deferred tax 3 0.2 0.0 0.0Guarantees 0.1 0.0 0.0Total provisions 0.3 0.0 0.0Mortgage debt 6.3 6.3 6.3Total long-term liabilities other than provisions 11 6.3 6.3 6.3Trade payables 5.0 4.5 2.3Contract work in progress 8 10.0 4.6 5.7Corporation tax payable 0.2 0.0 0.0Other payables 12 22.3 15.5 14.4Deferred income 0.0 0.8 0.9Total current liabilities other than provisions 37.5 25.4 23.3TOTAL LIABILITIES OTHER THAN PROVISIONS 43.8 31.7 29.6TOTAL EQUITY AND LIABILITIES 90.0 75.3 70.7Auditors’ remuneration, note 13, Charges, guarantee commitments and rental and lease commitments, note 14Contingent liabilities, etc., note 15,Derivative financial instruments, note 16, Related parties, note 17EUR million 2009 2008 2007Operating profit 2.4 2.4 2.9Adjustment for non-cash items 4.3 0.1 0.3Depreciation, amortisation and impairment losses 3.5 2.7 3.9Cash flow from operating activities before change in working capital 10.2 5.2 7.1Change in work in progress and prepayments (0.6) (2.3) (2.7)Change in inventories 0.6 0.0 0.0Change in trade payables and other short-term debt (0.8) 3.7 0.2Change in receivables (1.0) (2.0) 3.3Cash flow from operating activities before items under financial income and expenses, net 8.4 4.6 7.9Financial deposits and withdrawals, net 0.1 0.5 0.5Corporation tax paid (0.1) 0.0 0.0Cash flow from operating activities 8.4 5.1 8.4Investment in intangible activities 0.0 0.0 0.0Investment in company acquisitions and disposals (4.3) 0.0 0.0Investment in property, plant and equipment (5.0) (4.8) (4.1)Investment in fixed asset investments (0.4) (0.6) (0.3)Cash flow from investing activities (9.7) (5.4) (4.4)Cash flow for the year (1.3) (0.3) 4.0Cash and cash equivalents, 1 January 17.1 17.4 13.3CASH AND CASH EQUIVALENTS, 31 DECEMBER 15.8 17.1 17.3Financial statements > Balance sheet / Cash flow statementThe cash flow statement cannot be deducted from the other components in the consolidated financial statements.Figures without parentheses = increase in liquidityFigures in parentheses = (reduction in liquidity)

Page >72Notes1.Note eUR million 2009 2008 2007Staff costsWages and salaries, etc. 63.2 54.5 51.8Pension contributions and other social expenses 1.5 1.4 1.4Total staff costs 64.7 55.9 53.2Fees to Executive Board and Board of Trustees amounting to EUR 0.4 million (2008: EUR 0.4 million)The number of Group employees averaged 904 against 854 in 2008.2.Depreciation, amortisation and impairment lossesDepreciation and amortisation 3.5 2.7 2.7Impairment losses - loans 0.0 0.0 1.2Loss/gain on sale (negative amount = gain) 0.0 0.0 0.0Total depreciation, amortisation and impairment losses 3.5 2.7 3.93.TaxTax on profit for the yearCurrent tax 0.2 0.0 0.2Adjustment of deferred tax (0.1) 0.0 0.0Total tax on profit for the year 0.1 0.0 0.2Deferred tax assetDeferred tax asset, 1 January 0.2 0.1 0.1Adjustment during the year 0.0 0.0 0.0Deferred tax asset, 31 December 0.2 0.1 0.1The deferred tax asset can be specified as follows:Investments 0.0 0.0 0.0Tax loss 0.2 0.1 0.3Valuation reserve 0.0 0.0 (0.2)Deferred tax asset, 31 December 0.2 0.1 0.1Deferred taxDeferred tax, 1 January 0.0 0.0 0.0Acquisition of subsidiary 0.2 0.0 0.0Adjustment during the year 0.0 0.0 0.0Deferred tax, 31 December 0.2 0.0 0.0Deferred tax can be specified as follows:Intangible assets 0.0 0.0 0.0Property, plant and equipment 0.0 0.0 0.0Current assets 0.2 0.0 0.0Deferred tax, 31 December 0.2 0.0 0.0Financial statements > Notes4.Intangible assetsGoodwillCost, 1 January 1.9 1.7 1.7Additions 0.0 0.2 0.0Additions relating to acquisitions 0.2 0.0 0.0Disposals 0.0 0.0 0.0Cost, 31 December 2.1 1.9 1.7Amortisation, 1 January 1.8 1.6 1.0Amortisation 0.0 0.2 0.6Amortisation relating to disposals during the year 0.0 0.0 0.0Amortisation, 31 December 1.8 1.8 1.6Carrying amount, 31 December 0.3 0.1 0.1Development projectsCost, 1 January 0.0 0.0 0.0Additions 0.0 0.0 0.0Disposals 0.0 0.0 0.0Cost, 31 December 0.0 0.0 0.0Amortisation, 1 January 0.0 0.0 0.0Amortisation 0.0 0.0 0.0Amortisation relating to disposals during the year 0.0 0.0 0.0Amortisation, 31 December 0.0 0.0 0.0Carrying amount, 31 December 0.0 0.0 0.0PatentsCost, 1 January 0.0 0.0 0.0Additions 0.6 0.0 0.0Disposals 0.0 0.0 0.0Cost, 31 December 0.6 0.0 0.0Amortisation, 1 January 0.0 0.0 0.0Amortisation 0.0 0.0 0.0Amortisation relating to disposals during the year 0.0 0.0 0.0Amortisation, 31 December 0.0 0.0 0.0Carrying amount, 31 December 0.6 0.0 0.0Total carrying amount of intangible assets, 31 December 0.9 0.1 0.1

Page >73Notes5.Note eUR million 2009 2008 2007Property, plant and equipmentLand and buildingsCost, 1 January 50.5 50.0 49.7Additions 1.7 0.5 0.3Additions relating to acquisitions 4.1 0.0 0.0Disposals 0.0 0.0 0.0Cost, 31 December 56.3 50.5 50.0Depreciation and impairment losses, 1 January 18.0 17.5 17.0Additions 0.0 0.0 0.0Depreciation 0.7 0.5 0.5Depreciation relating to disposals during the year 0.0 0.0 0.0Depreciation and impairment losses, 31 December 18.7 18.0 17.5Carrying amount, 31 December 37.6 32.5 32.5Public cash value, 31 December 108.7 93.8 93.7Fixtures and operating equipmentCost, 1 January 29.3 25.3 21.5Translation adjustment 0.0 (0.1) 0.0Additions 3.3 4.5 3.8Additions relating to acquisitions 0.7 0.0 0.0Project-financed (0.1) (0.1) 0.0Additions, own development projects 0.1 0.0 0.0Additions (1.8) (0.3) 0.0Cost, 31 December 31.5 29.3 25.3Depreciation and impairment losses, 1 January 21.0 19.3 16.5Translation adjustment 0.0 (0.1) 0.0Additions relating to acquisitions 0.0 0.0 0.0Depreciation 2.5 2.1 1.6Impairment losses 0.0 0.0 1.2Depreciation and impairment losses relating to disposals during the year (1.7) (0.3) 0.0Depreciation and impairment losses, 31 December 21.8 21.0 19.3Carrying amount, 31 December 9.7 8.3 6.0Of which value of assets leased under finance leases 0.0 0.0 0.06.InvestmentsInvestment in and value adjustment of securities and fixed asset investments can be specified as follows:AssociatesBalance, 1 January 0.5 0.1 0.1Additions during the year 1.1 0.4 0.0Disposals during the year 0.0 0.0 0.0Balance, 31 December 1.6 0.5 0.1Value adjustment, 1 January 0.0 0.0 0.0Translation adjustment, 1 January (0.2) 0.0 0.0Share of profit or loss after tax for the year (0.3) 0.0 0.0Value adjustment relating to disposals 0.0 0.0 0.0Impairment losses 0.0 0.0 0.0Value adjustment, 31 December (0.5) 0.0 0.0Carrying amount, 31 December 1.1 0.5 0.1Other investmentsBalance, 1 January 1.0 1.0 0.8Additions during the year 0.1 0.0 0.4Disposals during the year (0.2) 0.0 (0.2)Balance, 31 December 0.9 1.0 1.0Value adjustment, 1 January (0.3) 0.2 0.1Translation adjustment, 1 January 0.1 0.0 0.0Share of profit or loss after tax for the year (0.2) 0.0 0.0Impairment losses 0.0 (0.2) 0.1Value adjustment, 31 December (0.4) 0.0 0.2Carrying amount, 31 December 0.5 1.0 1.2Financial statements > Notes7.InventoriesRaw materials and consumables 1.5 0.0 0.0Work in progress 0.2 0.0 0.0Manufactured goods and goods for resale 0.0 0.0 0.0Prepayment, inventories (0.7) 0.0 0.0Inventories, 31 December 1.0 0.0 0.0Of which the carrying amount of inventories 0.2 0.0 0.0recognised at net realisation value is

Page >74Notes8.Note eUR million 2009 2008 2007Contract work in progressContract work in progress 48.8 39.4 37.4Invoicing on account and prepayments (50.8) (42.5) (41.9)Work in progress, net (2.0) (3.1) (4.5)recognised as follows:Contract work in progress 8.0 1.5 1.2Contract work in progress (liabilities) (10.0) (4.6) (5.7)Work in progress, net (2.0) (3.1) (4.5)Work in progress is determined at selling price9.CashFree funds 11.6 17.1 17.3Tied-up funds 4.2 0.0 0.0Total cash 15.8 17.1 17.3Tied-up funds comprise custody account deposits and EU prepayments10.EquityEquity, 1 January 43.5 41.0 37.7Translation adjustment of financial instruments 0.1 (0.3) 0.0Translation adjustment of subsidiary 0.1 (0.2) 0.1Net profit for the year 2.1 3.0 3.2Equity, 31 December 45.8 43.5 41.011.Long-term liabilities other than provisionsDue in five years or moreMortgage debt 6.3 6.3 6.3Total long-term liabilities other than provisions 6.3 6.3 6.312.Other payablesHoliday pay obligation 9.9 7.4 6.8Other liabilities 5.9 4.6 4.5Tax payable 2.1 0.0 0.0VAT payable 0.8 0.6 0.7Other items payable 3.4 2.7 2.2Miscellaneous deposits 0.2 0.2 0.2Total other payables 22.3 15.5 14.413.Auditors’ remunerationTotal remuneration 0.2 0.2 0.1Of which services relating to statement work amount to 0.1 0.1 0.1Financial statements > Notes14.ChargesAs security for bank debt (mortgages registered to the mortgagorand indemnification letter on Institute properties), nom. 0,0 0,0 0,0Guarantee commitmentsAs security for on account payments received(primarily EU projects) 5.4 1.8 3.6Rental and lease commitmentsRental commitmentsCommitment, next five years 0.7 1.4 1.7Commitment, coming year 0.7 0.8 0.8Operating leasesCommitment, next five years 0.1 0.2 0.8Commitment, coming year 0.1 0.1 0.3Finance leasesCommitment, next five years (incl. interest) 0.0 0.0 0.0Commitment, coming year 0.0 0.0 0.015.Contingent liabilities, etc.The Group is party to a few disputes, the outcome of which is not expected to influence the financial position.The Group participates in projects that under certain circumstances may lead to a commitment to repay the grants received.The Group has issued a statement on financial support to subsidiaries for the purpose of ensuring ongoing business for the next 12months.

Financial statements > NotesPage >75Notes16.NoteDerivative financial instrumentsAs part of its hedging of individual foreign currency contracts, the Group uses forward exchange contracts. The signed contracts canbe specified as follows:EUR million Period Contract value Profit and/or loss recognised in equity2009 2008 2007 2009 2008 2007Group total 0-6 months 5.3 0.7 1.8 (0.1) 0.2 -Forward exchange contracts have been signed for CAD, CHF, GBP, JPY, SEK and USD.17.Related partiesThe Group’s related parties, with material influence, comprise members of the Board of Trustees and Executive Board as well as subsidiariesand associates. The Group has no transactions with related parties apart from usual trade with subsidiaries and associates.Transactions are on an arm’s length basis.

Page >76ACCOUNTING POLICIESFinancial statements > Accounting policiesGENERALThe Annual Report of the Danish TechnologicalInstitute for 2009 is presented in conformity withthe provisions of the Danish Financial StatementsAct governing class C companies (large) and theadjustments resulting from the Danish TechnologicalInstitute being an independent institution andan approved technological service institute.The accounting policies applied are consistentwith those applied last year.Recognition and measurement in generalAssets are recognised in the balance sheet when itis probable that future economic benefits will flowto the company and the value of the asset can bereliably measured.Liabilities are recognised in the balance sheetwhen it is probable that future economic benefitswill flow from the company and the value of theliability can be reliably measured.At the time of initial recognition, assets and liabilitiesare measured at cost. Subsequent to initialrecognition, assets and liabilities are measuredas described for each individual accounting itembelow.For recognition and measurement purposes,due consideration is given to gains, losses andrisks arising before the Annual Report is preparedand proving and disproving matters arising on orbefore the balance sheet date.Income is recognised in the income statementas earned, including value adjustments of financialassets and liabilities measured at fair valueor amortised cost. Moreover, expenses incurredto generate earnings for the year are recognised,including depreciation, amortisation, impairmentlosses and provisions as well as reversalsresulting from changed accounting estimates ofamounts that used to be recognised in the incomestatement.Consolidated financialstatementsThe consolidated financial statements comprisethe Parent Company, the Danish TechnologicalInstitute, and subsidiaries in which the DanishTechnological Institute directly or indirectly holdsmore than 50% of the voting rights or, in anyother way, exercises control. Undertakings inwhich the Group holds between 20% and 50% ofthe voting rights and exercises a significant, yetno controlling, interest are considered associatedundertakings, see group chart.Intercompany income and expenses,shareholdings, balances and dividends as wellas realised and unrealised gains and losses ontransactions between consolidated companies areeliminated on consolidation.Investments in subsidiaries are eliminated atthe proportionate share of the subsidiaries’ fairvalue of net assets and liabilities at the date ofacquisition.Newly acquired or newly established companiesare recognised in the consolidated financialstatements from the date of acquisition orestablishment. Divested or liquidated companiesare recognised in the consolidated income statementup to the date of divestment or liquidation.Comparative figures are not restated for newlyacquired, divested or liquidated companies.In the event of company acquisitions, theacquisition accounting method is used, accordingto which the identifiable assets and liabilities ofthe newly acquired companies are measured atfair value at the date of acquisition. Provisions arerecognised to cover the cost of decided and publishedplans to restructure the acquired companyin connection with the acquisition. Deferred tax isrecognised of the reassessments made.Positive differences (goodwill) between the costand fair value of acquired identifiable assets andliabilities are recognised as intangible assets andamortised systematically in the income statementon the basis of the estimated useful life of theasset not exceeding twenty years.Negative differences (negative goodwill),reflecting an expected unfavourable developmentof the companies in question, are recognised inthe balance sheet on an accruals basis and recognisedin the income statement in parallel withthe realisation of the unfavourable development.An amount of negative goodwill not related to anexpected unfavourable development is recognisedin the balance sheet, equalling the fair value ofnon-monetary assets, which is subsequently recognisedin the income statement over the averagelife of such non-monetary assets.Goodwill and negative goodwill from acquiredcompanies are adjustable until the end of the yearfollowing the acquisition.Any profit or loss on the divestment ofsubsidiaries and associates is determined as thedifference between the selling or liquidation priceand the net asset value at the date of divestment,including unamortised goodwill, as well as theexpected cost of divestment or liquidation.Minority interestsThe items of subsidiaries are fully recognised inthe consolidated financial statements. Minorityinterests’ proportionate share of the profits orlosses and equity of subsidiaries are determinedon an annual basis and recognised as separateitems in the income statement and balance sheet.Foreign currency translationAt the time of initial recognition, transactionsin foreign currencies are translated using theexchange rates prevailing at the date of transaction.Exchange differences arising between theexchange rates prevailing at the date of transactionand the date of payment are recognised in theincome statement as items under financial incomeand expenses, net.Receivables, payables and other monetaryitems in foreign currencies are translated usingthe exchange rates prevailing at the balancesheet date. The difference between the exchangerate prevailing at the balance sheet date and theexchange rate prevailing at the date when theamount receivable or payable originated or wasrecognised in the latest annual report is recognisedin the income statement under financial incomeand expenses.Translation adjustments of intercompany balanceswith independent foreign subsidiaries thatare considered a part of the total investment inthe subsidiary are recognised directly in equity.Exchange gains and losses on loans and derivativefinancial instruments used for hedging foreignsubsidiaries are also recognised directly in equity.The income statement of foreign subsidiariesis translated using an average exchange rate, andbalance sheet items are translated using the exchangerates prevailing at the balance sheet date.Exchange differences arising from the translationof the equity of foreign subsidiaries at the beginningof the year at the exchange rates prevailing atthe balance sheet date and from the translation ofthe income statements based on average exchangerates at the exchange rates prevailing at the balancesheet date are recognised directly in equity.Derivative financial instrumentsDerivative financial instruments are initiallyrecognised in the balance sheet at cost andsubsequently measured at fair value. Positive andnegative fair values of derivative financial instrumentsare included in other receivables and otherpayables, respectively.Changes in the fair value of derivative financialinstruments classified as and qualifying forrecognition as an instrument used for hedgingthe fair value of a recognised asset or liability arerecognised in the income statement together withchanges in the fair value of the hedged asset orliability.Changes in the fair value of derivative financialinstruments classified as and qualifying forrecognition as an instrument used for hedgingfuture assets and liabilities are recognised in otherreceivables or other payables and in equity. If thefuture transaction results in the recognition of assetsor liabilities, amounts previously recognisedin equity are transferred to the cost of the assetor liability. If the future transaction results inincome or costs, amounts recognised in equity aretransferred to the income statement for the periodduring which the hedged item affects the incomestatement.In regard to derivative financial instrumentsnot qualifying for hedge accounting treatment,changes in fair value are recognised in the incomestatement when they occur.Income statementRevenueThe method of revenue recognition is the completedcontract method according to which incomeis recognised in the income statement as invoiced.The revenue of the Danish TechnologicalInstitute falls into three categories: Commercialactivities, research and development activitiesand performance contract activities. Commercialactivities include projects undertaken on behalf ofprivate and public customers with the customerbeing the owner of the rights to the results of theproject. Research and development activities areundertaken on behalf of Danish and foreign licensors.The results of these projects will becomepublicly available through the licensors. Performancecontract activities comprise a number ofprojects undertaken on behalf of the Danish Councilfor Technology and Innovation, the generalobjective being to allow small and medium-sizedenterprises to benefit from new knowledge andnew technologies in a smooth and efficient manner.Major and longer-term contract work inprogress is recognised under the percentage ofcompletion method, meaning that the profit onany services sold is recognised in the incomestatement as the work is performed.Project costsProject costs comprise costs incurred during theyear, excluding salaries, which are directly attributableto the individual projects.Research and developmentResearch and development costs and agreed developmentcosts of completing project agreementsentered into, completed without remuneration,are recognised in the income statement underproject costs and staff costs, depending on theirnature.Other external expensesOther external expenses comprise expenses ofdistribution, sale, advertising, administration,premises, bad debts, operating leases, etc.Income from investments in subsidiaries andassociatesThe proportionate share of profit/loss after taxof the individual subsidiaries is recognised in theincome statement of the Parent Company afterfull elimination of intercompany gains/losses.The proportionate share of the profit/lossafter tax of associates is recognised in the incomestatement of both the Parent Company and theGroup after elimination of the proportionate shareof intercompany gains/losses.Financial income and expensesFinancial income and expenses comprise interest,exchange gains and losses on securities, liabilitiesand transactions in foreign currencies as wellas reimbursements under the on-account taxscheme, etc.Tax on profit for the yearBeing an approved technological service institute,the Danish Technological Institute is exempt fromliability to pay tax.Danish subsidiaries liable to pay tax are subjectto the Danish rules on compulsory joint taxation.Subsidiaries are included in the joint taxationscheme as from the time when they are includedin the consolidated financial statements until thetime when they are no longer consolidated.Current Danish corporation tax is allocatedthrough payment of tax contributions betweenthe jointly taxed companies in proportion to theirtaxable incomes. In this connection, companiessuffering a tax loss receive tax contributions fromcompanies having been able to use these lossesto reduce their own tax profits.Tax for the year, which comprises current taxand changes in deferred tax, is recognised in theincome statement with the part attributable toprofit for the year and directly in equity with thepart attributable to equity items.

Page >77Balance sheetIntangible assetsGoodwillGoodwill is amortised over the estimated usefullife, which is determined on the basis of management’sexperience within the individual businessareas. Goodwill is amortised on a straight-line basisover a period of five years. The carrying amount ofgoodwill is continuously assessed and written downto recoverable amount in the income statementprovided that the carrying amount exceeds theexpected future net income from the company oractivity to which the goodwill relates.Development costsDevelopment costs comprise costs, wages andsalaries and amortisation that are directly andindirectly attributable to the Institute’s developmentprojects.Development projects that are clearly definedand identifiable, and where the capacity utilisationrate, sufficient resources and a potential futuremarket or development prospects for the companycan be established, and where the intention is toproduce, market or use the project, are recognisedas intangible fixed assets if the cost can be determinedreliably and there is adequate certainty thatfuture earnings will cover selling costs and administrativeexpenses, etc., as well as developmentcosts. Other development costs are recognised inthe income statement as incurred.Development costs recognised in the balancesheet are measured at cost less accumulatedamortisation and impairment losses.On completion of development work, developmentcosts are amortised on a straight-line basisover the estimated useful life of the asset. Theamortisation period is normally five years.Patents and licencesPatents and licences are measured at cost lessaccumulated amortisation. Patents are amortisedon a straight-line basis over the remaining patentperiod, and licences are amortised over the contractperiod, not exceeding five years. Any profitor loss on the disposal of patents and licences isdetermined as the difference between selling costsand the carrying amount at the date of disposal.Profit or loss is recognised in the income statementunder depreciation, amortisation and impairmentlosses.Property, plant and equipmentLand and buildings, plant and machinery as well asother fixtures and fittings, tools and equipment aremeasured at cost less accumulated depreciationand impairment losses. Land is not depreciated.Cost comprises the acquisition cost and costsdirectly attributable to the acquisition up to thedate when the asset is available for use.Property, plant and equipment are depreciatedon a straight-line basis over their estimated usefullives as follows:BuildingsMachinery, equipment, etc.Computer equipment50 years5 years3 yearsProperty, plant and equipment are writtendown to the lower of recoverable amount or carryingamount. Impairment tests are conducted annuallyin respect of each individual asset or groupof assets. Depreciation is recognised in the incomestatement under depreciation, amortisation andimpairment losses.Any profit or loss on the disposal of property,plant and equipment is determined as the differencebetween the selling price less selling costsand the carrying amount at the date of disposal.Profit or loss is recognised in the income statementunder depreciation, amortisation and impairmentlosses.LeasesLeases for non-current assets in respect of whichthe Institute has all significant risks and benefitsrelated to ownership (finance leases) are measuredat the time of initial recognition in the balancesheet at the lower of fair value and net presentvalue of future lease payments. For the calculationof net present value, the internal rate of interestspecified in a particular lease, or the Institute’salternative lending rate, is used as a discountrate. Assets under finance leases are subsequentlytreated like the Institute’s other non-current assets.Any capitalised remaining lease commitmentis recognised in the balance sheet as a liability,and the interest portion of the lease payment isrecognised in the income statement over the termof the lease.All other leases are operating leases. Paymentsunder operating and other leases are recognised inthe income statement over the term of the lease.The Institute’s total liability under operating leasesis recorded under contingent liabilities, etc.Investments in subsidiaries and associatesInvestments in subsidiaries and associates aremeasured according to the equity method.Investments in subsidiaries and associatesare measured at the proportionate share of theequity value of the subsidiaries and associates,determined according to the Institute’s accountingpolicies plus or less any unrealised intercompanyprofits or losses and plus or less the remainingvalue of positive or negative goodwill.Investments in subsidiaries and associates witha negative equity value are measured at EUR 0.00and any receivable from these associates is writtendown to the extent the receivable is deemedirrevocable. To the extent that the Parent Companyhas a legal or constructive obligation to cover anegative balance, which exceeds the receivable,the remainder is recognised under provisions.Net revaluation of investments in subsidiariesand associates is taken to the reserve for netrevaluation according to the equity method underequity to the extent that the carrying amountexceeds cost.Impairment of assetsThe carrying amount of both intangible assets andproperty, plant and equipment is tested on an annualbasis for indications of impairment in additionto what is expressed through amortisation anddepreciation.In case of indication of impairment, an impairmenttest is carried out for each individual assetand group of assets, respectively. Assets arewritten down to the lower of recoverable amountor carrying amount. The highest value of net sellingprice and value in use is used as recoverableamount. The value in use is determined as the netpresent value of expected net income from the useof the asset or group of assets.InventoriesInventories are measured at cost in accordancewith the FIFO method. Where net realisable valueis lower than cost, inventories are written down tothis lower value.Goods for resale and raw materials and consumablesare measured at cost, comprising costwith the addition of delivery costs.The net realisable value of inventories iscalculated as selling price less completion costsand costs involved in executing the sale and isdetermined with due regard to marketability, obsolescenceand movements in expected selling price.ReceivablesReceivables are measured at amortised cost.Following individual assessment, receivables arewritten down for uncollectibles.Contract work in progressContract work in progress regarding major andlonger-term projects is measured at the sellingprice of the work performed. The selling price ismeasured on the basis of the degree of completionat the balance sheet date and total expectedincome from the individual contract for work inprogress.If the selling price of a contract cannot bedetermined reliably, it is measured at the lower ofcosts incurred or net realisable value.The individual contract for work in progress isrecognised in the balance sheet under receivablesor payables. Net assets are made up of the sumof construction contracts where the selling price ofthe work performed exceeds invoicing on account.PrepaymentsPrepayments comprise costs incurred relating tosubsequent financial years.Corporation tax and deferred taxCurrent tax payable and receivable is recognisedin the balance sheet as tax computed on taxableincome for the year, adjusted for tax on taxableincomes for prior years and for taxes paid on account.Deferred taxes are measured according to thebalance sheet liability method on all temporarydifferences between the carrying amount and taxbase of assets and liabilities.Deferred tax assets, including the tax base oftax loss carryforwards, are recognised in the balancesheet at their estimated realisable value.ProvisionsProvisions comprise expected expenses forcompleting development projects. Provisions arerecognised when the Institute has a legal or constructiveobligation as a result of past events andthe discharge of such obligation is likely to involvean outflow of the Institute’s financial resources.Liabilities other than provisionsPayables to mortgage credit institutions and banksare recognised at the date of borrowing at theproceeds received net of transaction costs paid.In subsequent periods, financial liabilities aremeasured at amortised cost, corresponding to thecapitalised value using the effective interest rate.Accordingly, the difference between the proceedsand the nominal value is recognised in the incomestatement over the term of the loan.Other payables are measured at net realisablevalue.Deferred incomeDeferred income comprises received paymentsrelating to income in subsequent years.Cash flow statementThe cash flow statement shows the Institute’s cashflows for the year distributed on operating, investingand financing activities, changes in cash andcash equivalents for the year as well as the Group’scash and cash equivalents at the beginning andend of the financial year.The cash flow effect of business acquisitionsand divestments is shown separately under cashflows from investing activities. Cash flows fromacquired companies are recognised in the cash flowstatement from the date of acquisition, and cashflows from divested companies are recognised upto the date of divestment.Cash flow from operating activitiesCash flows from operating activities are determinedas the Institute’s share of profit adjusted for noncashoperating items, changes in working capitaland corporation tax paid.Cash flow from investing activitiesCash flows from investing activities comprise paymentsin connection with the acquisition and saleof companies and activities and the acquisition andsale of intangible assets, property, plant and equipmentand investments.Cash flow from financing activitiesCash flows from financing activities comprisechanges in the size or composition of the Institute’scapital and related costs as well as borrowingtransactions and repayment of interest-bearingdebt.Cash and cash equivalentsCash and cash equivalents comprise cash as wellas short-term securities with a term of less thanthree months that are readily convertible intocash and subject to insignificant risks of changesin value.Segment informationRevenue information is provided about primaryGroup segments. The segment information isbased on the Group’s accounting policies, risksand internal financial management. The primarysegments comprise the Group’s various activities(divisions and subsidiaries).Financial statements > Accounting policies

Page >78Statement by the Board of Trusteesand Executive BoardFinancial statements > Statement by the Board of Trustees and Executive BoardThe Board of Trustees and the ExecutiveBoard have today consideredand approved the Annual Report ofthe Danish Technological Institutefor 2009.The Annual Report is presented inconformity with the Danish FinancialStatements Act and the adjustmentsresulting from the Danish TechnologicalInstitute being an independtheent institution and an approvedtechnological service institute.In our opinion, the consolidatedfinancial statements and the Institute’sfinancial statements give atrue and fair view of the Group’s andthe Institute’s assets, liabilities andfinancial position at 31 December2009 as well as the results of theGroup’s and the Institute’s operationsand the Group’s cash flows forfinancial year ended 31 Decem-ber 2009.We also believe that the management’sreview provides a fair andaccurate report on developmentsin the operations and finances, netprofit for the year of the Group andthe Institute and of the financial positionof the Group and the Institute.Taastrup, 12 February 2010Executive BoardSøren StjernqvistPresidentBoard of TrusteesHans Kirk, Chairman Clas Nylandsted Andersen, Deputy Chairman Jan HelboNiels-Erik Lundvig Gunde Odgaard Jens Nørgaard OddershedeJørgen Elikofer Lars Aagaard Carsten Christiansen

Page >79Independent auditors’ reportTo the Danish Technological InstituteResponsibility of the auditors andthe Parent Company’s financial state-and users of financial statementsbasis of opinionments.We have audited the consolidatedOur responsibility is to express an opinionfinancial statements and the Parenton the consolidated financial statementsIn our opinion, the audit evidence ob-Company’s financial statements ofand the Parent Company’s financial state-tained provides a reasonable and suitablethe Danish Technological Institute forments based on our audit. We conductedbasis for our opinion.the financial year ended 31 Decemberour audit in accordance with Danish2009 on pages 70-77. The consolidatedauditing standards and generally acceptedOur audit has not resulted in any qualifica-financial statements and the Parentauditing practices; cf. the audit instruc-tion.Company’s financial statements of thetions of Guidelines for Approved Techno-Danish Technological Institute com-logical Service in Denmark 2005. TheseOpinionprise the accounting policies, incomestandards require that we comply withIn our opinion, the consolidated financialstatement, balance sheet, cash flowethical standards and plan and performstatements and the Parent Company’sstatement and notes. The consolidatedour audit to obtain reasonable assurancefinancial statements give a true and fairfinancial statements and the Parentthat the consolidated financial statementsview of the Group’s and the Danish Tech-Company’s financial statements areand the Parent Company’s financial state-nological Institute’s assets, liabilities andprepared in compliance with the Danishments are free of material position at 31 December 2009Financial Statements Act.and of the results of the Group’s and theIn connection with our audit, we haveread the management’s review, preparedin compliance with the DanishFinancial Statements Act, and issued astatement in this regard.Responsibility of management forthe Annual ReportManagement is responsible for preparingand presenting consolidated financialstatements and Parent Companyfinancial statements which give a trueand fair view in conformity with theprovisions of the Danish Financial StatementsAct. This responsibility includesestablishing, implementing and maintaininginternal controls of relevanceAn audit comprises procedures to obtainaudit evidence of the amounts and disclosuresstated in the consolidated financialstatements and the Parent Company’sfinancial statements. The procedureschosen depend on the auditors’ assessment,including an assessment ofthe risk of material misstatement in theconsolidated financial statements and theParent Company’s financial statements,regardless of whether such misstatementis the result of fraud or error. In the riskassessment, the auditors consider internalcontrols of relevance to the Institute’spreparation and presentation of consolidatedfinancial statements and ParentCompany’s financial statements whichgive a true and fair view for the purposeDanish Technological Institute’s operationsand cash flows for the financial year ended31 December 2009 in conformity with theDanish Financial Statements Act.Statement on the management’sreviewPursuant to the Danish Financial StatementsAct, we have read the management’sreview. We have not performedany other procedures in addition to theaudit of the consolidated financial statementsand the Parent Company’s financialstatements. On this basis, it is our opinionthat the information given in the management’sreview is consistent with theconsolidated financial statements and theParent Company’s financial statements.Financial statements > Independent auditors’ reportto the preparation and presentation ofof establishing audit procedures that areconsolidated financial statements andappropriate under the circumstances, butCopenhagen, 12 February 2010Parent Company’s financial statementsnot for the purpose of expressing an opi-which give a true and fair view andnion on the effectiveness of the Institute’sKPMGare free of material misstatement,internal controls. An audit also includesStatsautoriseret Revisionspartnerselskabregardless of whether such misstate-assessing whether the accounting policiesment is the result of fraud or error, andapplied by management are appropriate,Finn L. Meyerchoosing and applying appropriate ac-assessing whether the accounting estima-State-authorised Public Accountantcounting policies and making accountingtes made by management are reasonableestimates which are reasonable underand assessing the overall presentation ofCarsten Strunkthe circumstances.the consolidated financial statements andState-authorised Public Accountant

Page >80Board of Representatives of theDanish Technological InstituteManagement > Board of Representatives of the Danish Technological InstituteExecutive AdvisorHans Kirk (Chairman)Danfoss A/SAppointed by the Confederation ofDanish IndustryCEOClas Nylandsted AndersenNielsen & Nielsen Holding A/SElected by the Board of RepresentativesManagerPer Bøch AndersenCargo Service A/SAppointed by the Danish Chamber ofCommerceDirectorSvend AskærDanish Association of Managers andExecutivesAppointed by the Danish Associationof Managers and ExecutivesManaging DirectorAne BuchDanish Federation of Small andMedium-Sized EnterprisesAppointed by the Danish Federationof Small and Medium-Sized EnterprisesManaging DirectorErling DuusEegholm A/SAppointed by the Confederation ofDanish IndustryConsultantJørgen ElikoferElected by the Board of RepresentativesManaging DirectorUlrik GammelgaardKJ Industries A/SAppointed by the Confederation ofDanish IndustryDeputy Director GeneralLars B. GoldschmidtConfederation of Danish IndustryAppointed by the Confederation ofDanish EmployersConfederal SecretaryEjner K. HolstDanish Confederation of Trade UnionsAppointed by the Economic Council ofthe Labour Movement and the DanishConfederation of Trade UnionsChairmanThorkild E. JensenDanish Metal Workers’ UnionAppointed by the Economic Council ofthe Labour Movement and the DanishConfederation of Trade UnionsChief AdviserMorten Andersen LinnetDanish Agriculture & Food CouncilDep. of Food and ResearchAppointed by the Danish Agriculture& Food CouncilHealth, Safety and EnvironmentConsultantJesper Lund-Larsen3F (United Federation of DanishWorkers)Appointed by the Economic Council ofthe Labour Movement and the DanishConfederation of Trade UnionsManaging DirectorNiels-Erik LundvigQ-Transportmateriel A/SAppointed by the Danish Federationof Small and Medium-Sized EnterprisesRegional Council MemberVagn MajlandThe Capital Region of DenmarkAppointed by Danish RegionsDirectorInge MærkedahlDanish Agency for Science, Technologyand InnovationAppointed by the Ministry of Science,Technology and InnovationGeneral ManagerFlemming Ejde NielsenEjde Nielsens Værktøjsfabrik A/SAppointed by the Danish Federationof Small and Medium-Sized EnterprisesHead of SecretariatGunde OdgaardFederation of Building, Constructionand Wood-Workers’ UnionsAppointed by the Economic Council ofthe Labour Movement and the DanishConfederation of Trade UnionsCouncillorHans OlsenMunicipality of LejreAppointed by Local GovernmentDenmarkManaging DirectorLauritz RasmussenTaasinge Træ A/SAppointed by the Confederation ofDanish EmployersManaging DirectorLasse Skovby RasmussonDanish Academy of Technical SciencesAppointed by the Danish Academy ofTechnical SciencesConsultantPia Mulvad RekstenDanish Confederation of Trade UnionsAppointed by the Economic Council ofthe Labour Movement and the DanishConfederation of Trade UnionsBranch ChairmanSimon TøgernUnion of Commercial and ClericalEmployees in Denmark, IT, Media &IndustryMetropolitan BranchAppointed by the Economic Council ofthe Labour Movement and the DanishConfederation of Trade UnionsChairmanJørgen VorsholtConfederation of Danish EmployersAppointed by the Confederation ofDanish EmployersEmployee representativesSecretarySusanne GundlachIT ServicesBsc (Eng.)Jørn GuldbergAppointed by the Society of DanishEngineersManaging DirectorNiels Jørgen HansenTekniq: Danish Mechanical andElectrical Contractors’ AssociationAppointed by the Confederation ofDanish EmployersDirectorMichael H. NielsenDanish Construction AssociationAppointed by the Confederation ofDanish EmployersVice-ChancellorJens Nørgaard OddershedeUniversity of Southern DenmarkAppointed by the Danish Academy ofTechnical SciencesLaboratory TechnicianEva Bak JacobsenLaboratory for MicrobiologyElectricianNiels Peter LindebladBuilding ServicesConsultantBenny NeisterPlastics Technology

Page >81Board of trusteesExecutive AdvisorHans Kirk (Chairman)Danfoss A/SManaging DirectorNiels-Erik LundvigQ-Transportmateriel A/SDeputy DirectorLars AagaardDanish Energy AssociationCEOClas Nylandsted Andersen(Deputy Chairman)Nielsen & Nielsen Holding A/SConsultantJørgen ElikoferVice-ChancellorJens Nørgaard OddershedeUniversity of Southern DenmarkHead of SecretariatGunde OdgaardFederation of Building, Constructionand Wood-workers’ UnionsSales ConsultantCarsten ChristiansenEmployee RepresentativeSenior ConsultantJan HelboEmployee RepresentativeExecutive boardPresidentSøren StjernqvistDirectorLars DrejerDirectorBo FrølundDirectorLars GermannDirectorLars HinrichsenDirectorBjørn Lykke JensenDirectorSanne Juul NielsenGroup CFOJørgen Kunter PedersenCompany SecretaryAndras SplidtDirectorLeif Kirk ThøgersenDirectorDavid TveitDirectorJane WickmannManagement > Board of trustees / Executive board

Page >82OrganisationBoard of RepresentativesBoard of trusteesDanish Technological InstitutePresident Søren StjernqvistBuildingtechnologyDanish MeatResearch InstituteEnergy andclimateBusinessDevelopmentLife ScienceDirectorBjørn Lykke JensenDirectorLars HinrichsenDirectorLeif Kirk ThøgersenDirectorJane WickmannDirectorBo FrølundConcreteCentre ManagerMette GlavindBuilding ProcessesCentre ManagerHenriette Hall-AndersenIndoor Climate andHumidityCentre ManagerBjørn Lykke JensenMasonry and BuildingComponentsCentre ManagerPeter BachmannVestergaardNew IndustrialisationCentre ManagerAnders ThomsenSwimming Pool TechnologyCentre ManagerOle BistedHygiene and ConservationCentre ManagerRie SørensenMeasuring Systems andData IntegrationCentre ManagerPeter WagnerProcessing QualityCentre ManagerSusanne StøierSlaughtering TechnologyCentre ManagerJens Ulrich NielsenEnergy Efficiencyand VentilationCentre ManagerOle RavnFEM-SecretariatCentre ManagerTanja WeisInstallation and CalibrationCentre ManagerKaj L. BryderRefrigeration and HeatPump TechnologyCentre ManagerClaus Schøn PoulsenPipe CentreCentre ManagerUlrik HindsbergerRenewable Energy andTransportCentre ManagerSten FrandsenPolicy and BusinessDevelopmentCentre ManagerHanne ShapiroHuman ResourcesDevelopmentCentre ManagerNomi E. SkovgaardCreativity and GrowthCentre ManagerLouise Hvid JensenTechnology PartnershipCentre ManagerHenrik Givskov LarsonDTI Oil & GasActing Centre ManagerBo FrølundFisheries andEnvironmentalTechnologyCentre ManagerLars JøkerFood TechnologyCentre ManagerAnne Maria HansenChemistry andMicrobiologyCentre ManagerMikael PoulsenLaboratory forMicrobiologyActing Centre ManagerPaul Lyck HansenTimber and TextilesCentre ManagerJørgen Baadsgaard-Jensen

Page >83SubsidiariesSwedcert ABManaging Director Bertil WolgastTeknologisk Institut AB SverigeManaging Director Sanne JuulFIRMA 2000 Sp. z o. o.Managing Director Marcin OpasDancert A/SManaging Director Gitte OlsenDanfysik A/SManaging Director Bjarne Roger NielsenTeknologisk Innovation A/SManaging Director Jørgen Kunter PedersenDanish AssociatesPhotosolar A/SSyddansk TeknologiskInnovation A/SMaterials andProductionProductivityand logisticsTrainingInternationalCentreSTAff FunctionsDirectorDavid TveitMaterials TestingCentre ManagerMikkel AgerbækMicrotechnology andSurface AnalysisCentre ManagerLeif HøjsletChristensenMetrology and QualityCentre ManagerNiels Thestrup JensenPlastics TechnologyCentre ManagerAnne-Lise Høg LejreProduct DevelopmentCentre ManagerClaus Erichsen KudskDirectorLars GermannAutomobile TechnologyCentre ManagerKristian EldamPackaging and TransportCentre ManagerJens-Chr. SørensenProductionCentre ManagerMerete NørbyRobot TechnologyCentre ManagerClaus RisagerDirectorSanne JuulIT TrainingConferencesManagementDirectorLars DrejerSecretariat ofExecutive BoardHead of Secretariat, LawyerAndras SplidtFinance and AccountsManager, Group CFOJørgen Kunter PedersenPersonnel andDevelopmentPersonnel ManagerAnnemarie SøgaardIT ServicesIT ManagerPeter HjortshøjBuilding ServicesService Manager, LawyerAndras SplidtTribologyCentre ManagerLars Pleth Nielsen

TaastrupGregersensvejDK-2630 TaastrupTel: +45 72 20 20 00Fax: +45 72 20 20 19info@dti.dkwww.teknologisk.dkand www.dti.dkCVR-no: 5697 6116ÅrhusTeknologiparkenKongsvang Allé 29DK-8000 Århus CTel: +45 72 20 20 00Fax: +45 72 20 10 19info@dti.dkRoskildeMaglegårdsvej 2DK-4000 RoskildeTel: +45 72 20 20 00Fax: +45 72 20 27 44info@dti.dkKoldingHolbergsvej 10DK-6000 KoldingTel: +45 72 20 19 00Fax: +45 72 20 19 19info@dti.dkOdenseForskerparken FynForskerparken 10DK-5230 Odense MTel: +45 72 20 20 00Fax: +45 72 20 39 70info@dti.dkThe cooperation between the Danish Technological Institute and the business sectorrests on confidentiality and professional secrecy. The companies mentioned have allauthorised publication.Read more at / www.dti.dkTeknologisk Institut AB SverigeVallgatan 14411 16 GöteborgSwedenTel: +46 (0) 31 350 55 00Fax: +46 (0) 31 350 55 10info@teknologiskinstitut.sewww.teknologiskinstitut.seSWEDCERT ABCampus Gräsvik 1371 75 KarlskronaSwedenTel: +46 (0) 455 305600Fax: +46 (0) 455 10436office@swedcert.sewww.swedcert.seFIRMA 2000 Sp. z o.o.ul. Marconich 9 lok. 1902-954 WarsawPolandTel: +48 22 642 58 72Fax: +48 22 642 58 73mail@firma2000.plwww.firma2000.plHirtshalsNordsøcentretPostboks 104DK-9850 HirtshalsTel: +45 72 20 39 30Fax: +45 72 20 39 44info@dti.dkSønder StenderupGammel Ålbovej 1DK-6092 Sønder StenderupTel: +45 75 57 10 10Fax: +45 75 57 10 29info@dti.dkDancert A/SGregersensvejDK-2630 TaastrupTel: +45 72 20 20 00Fax: +45 72 20 20 19info@dancert.dkDanfysik A/SMøllehaven 16DK-4040 JyllingeTel: +45 72 20 24 00Fax: +45 72 20 24 10sales@danfysik.dkDesign:

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