Industrial Foundations - Powering Science and Innovation in Denmark
What Are Industrial Foundations?
A Unique Dual-Purpose Model
Industrial foundations are legal entities that combine business ownership with a philanthropic mission. Unlike traditional corporations focused solely on maximising shareholder value, industrial foundations operate with a dual mandate:
- To manage companies profitably
- To allocate surplus income to charitable and societal goals, particularly in science and innovation
This distinctive structure allows them to support long-term projects and research initiatives that require years, or even decades, to yield results.
The first industrial foundation in Denmark was established in 1876, when J.C. Jacobsen founded the Carlsberg Foundation to ensure the sustainability of his brewery and to fund scientific research. Jacobsen’s visionary approach has since inspired the creation of numerous other foundations.
Today, nearly 1,000 foundation-controlled companies exist in Denmark, including some of the country’s most prominent corporations. While these companies represent a small fraction of Denmark’s 300,000 active businesses (kilde), their economic and employment impact is immense. Collectively, businesses with significant ownership stakes held by industrial foundations represent 50% of the C20 index, which includes Denmark's largest publicly traded companies.
Industrial foundations have become cornerstones of the Danish economy, driving growth, creating jobs, and investing in the innovation that keeps Denmark at the forefront of global progress.
Key Industrial Foundations
Denmark’s largest industrial foundations own and operate globally recognised companies, generating substantial resources to fund their philanthropic missions.
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Novo Nordisk Foundation
The Novo Nordisk Foundation, through Novo Holdings, controls Novo Nordisk, a global leader in diabetes care, and Novonesis, a biosolutions giant formed from the merger of Novozymes and Chr. Hansen. In 2022, the foundation distributed DKK 7.464 billion, primarily to health and life sciences research. -
LEGO Foundation
Known worldwide for its iconic toy brand, LEGO, this foundation supports creativity and education, allocating DKK 3.181 billion in 2022 to initiatives aimed at empowering children. -
A.P. Møller Foundation
A significant shareholder in A.P. Møller-Mærsk, a global shipping and logistics leader, the foundation distributed DKK 1.437 billion in 2022, focusing on maritime, cultural, and educational projects. -
Carlsberg Foundation
Owning a controlling stake in the Carlsberg Group, one of the world’s largest brewers, the foundation distributed DKK 832 million in 2022, largely to scientific research and arts initiatives. -
Lundbeck Foundation
The Lundbeck Foundation controls H. Lundbeck, a pharmaceutical company specialising in brain diseases, and distributed DKK 550 million in 2022, prioritising brain research and health sciences.
A Significant Economic and Innovation Force
Driving Research and Development
In 2023, Danish industrial foundations allocated DKK 18.1 billion to charitable purposes, with more than half directed toward scientific research and innovation. Their funding has been instrumental in positioning Denmark as a global leader in:
- Biotechnology: Supporting breakthroughs in health and life sciences.
- Renewable Energy: Driving sustainable solutions for a greener future.
- Digital Innovation: Advancing cutting-edge technologies and applications.
Long-Term Investments in Innovation
Unlike traditional investors, industrial foundations are uniquely positioned to take a long-term view. They fund technologies and R&D projects that may not generate immediate financial returns but have the potential to create lasting societal and economic impact. This patient capital approach fosters innovation in fields that require significant time and resources.