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Denmark historically has been one of the great shipping and shipbuilding nations. Today, the country hosts a relatively large number of mar- ket-leading shipowners within specic market segments; these include companies such as A. P. Moller- Maersk, DS Norden, the Lauritzen Group, and TORM. Before the 1980s, Denmark also was one of the leading nations within shipbuilding. But the high cost of labor within both shipping and the society meant that Danish newbuilding shipyards were not able to compete in the long run. Because shipbuilding is more labor-intensive than operating a ship, the closing of Danish shipyards had a signicant impact on society?both in terms of economics and in terms of the publics understanding of the Danish maritime industry. In short, public opin- ion was that the Danish maritime industry was slowly but surely going out of business. is, as events have shown, is far from being the actual state of aairs. Since the early 1980s, the Danish maritime industry has focused on shipping, services, consultancy, and equipment, thus exploiting high educational levels and talent to think in terms of ecient and innovative techni- cal maritime solutions. is has led to a number of large companies placing their technical innovation in Denmark, with the worlds leading engine manufacturer, MAN Diesel & Turbo, as the prime example. Generally speaking, the companies within the Danish maritime sector are good at knowledge sharing and networking, for example through the network for maritime export companies, Danish Marine Group. is network consists of more than 150 companies. Focus on ship performance Few people will have missed that the last couple of years have presented dicult market conditions in general, and for shipping in particular. erefore, the focus for ship- owners has naturally been on earnings. But, in order to make money, you have to spend money, and spend it wisely. In this regard, shipowners are increasingly look- ing at ship performance in order to cut unnecessary operational costs. is implies technical thinking and innovation, and even though shipowners are known for being a bit conservative, Danish shipowners recognize the need to participate in projects and test new technical solu- tions in order to sail more eciently. Ecient ship operation equals less fuel consump- tion. is means that the environment in general will gain BY CHRISTIAN SCHACK Danish Evolution Transitioning from shipbuilding to technical innovation The hull of the cargo ship Edith Maersk , built by the Odense Steel Shipyard in Denmark in 2007, is coated with silicone paint, which reduces water resistance and fuel consumption. Photo courtesy A.P. Moller-Maersk. January 2013 www.sname.org/sname/mt ( mt notes )