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The US is the world's largest IT market. American investments in IT products and services are expected to grow to 717 billion (DK? US$?)  by the end of 2017. IT is under constant, rapid development in the US, with an average growth rate of 5.1% per year. Thus, the US remains the main driving force for technological innovation particularly in locations such as Silicon Valley. The US market has a wide range of technology solutions prompted by a dynamic environment which requires the presence and persistence of technological solutions.

This creates good opportunities for Danish IT start-ups and established companies in the USA thanks to the ever growing demands for innovative solutions particularly when it comes to niche markets.

When Danish IT companies are considering entering the US market, it is important to carefully evaluate the market potential, competitive challenges and be prepared with a robust and proven scalable business model. IT companies have the advantage that they are not subject to the same geographical barriers as other goods and services’ suppliers.

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Framework conditions in the U.S. market

It is relatively easy to do business in the US for Danish IT companies given the common use of the English language. Compared to other countries outside the European Union (EU), Danish companies encounter fewer market entry barriers in the US thanks to the assistance from the Danish embassy and its offices across the continent and other organizations.

The health sector, in particular, presents a high number of opportunities for Danish IT companies, since the US has the world's most expensive health system costs representing 17% of GDP, and its entire health sector is undergoing dramatic changes, offering great opportunities for Danish solutions in a variety of areas from  health IT to cloud computing.  The Patient Protection and Affordable Care Act and dissemination of health insurance to low-income groups offer Danish companies to grow in these domains.

The Transatlantic Trade and Investment Partnership (TTIP), which is under negotiation, is geared to further expand market opportunities for companies from EU countries giving them access to the large US government procurement market.  Furthermore, the expansion of the World Trade Organization (WTO) Agreement and the International Trade Agreement (ITA) will include 201 additional IT product types opening further opportunities for Danish companies to expand their exports into the US.

Focus areas

Because of our highly developed welfare system, Danish companies have valuable suggestions for solutions within healthcare IT and software solutions for the public system use, which administratively can be cost-effective for US companies or the Government.

Danish companies have already managed to break through and establish themselves in the US with technologies such as green IT, smart cities and specialized software for the financial sector.  Danish companies are also well established in industry-specific solutions associated with major US suppliers ERP platforms. Going forward, there is great potential growth in big data and cloud computing.  The proliferation of Internet of ‘Things’ will only increase the demand for Danish IT companies.

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Contact an advisor

Katrine Paaby Joensen            

Consul General & CEO Innovation

Center Denmark 
Silicon Valley 
+1 650 304-3471