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Effective Business Communications

Question: Compose an exposition on Effective Business Communications. Answer: Presentation Characterizing non-verbal corresponde...

Thursday, October 31, 2019

The Critical Success Factor Report for Oriental Mart Nottingham Coursework

The Critical Success Factor Report for Oriental Mart Nottingham - Coursework Example This growth in business prompted its expansion into traditional retailing by opening its first store in 2008 locating it in the busy city centre. The reason for this move was to provide a convenience store for people at the city and for people who are visiting it on a daily basis. 1.2 `Research Objectives The significance of carrying out this Critical Success Factor Report (CSF) was to establish the factors that contributed to the success of a business. This report is aimed at researching on the factors that made orient mart to be successful in the online retail business sector. This is to be achieved through collecting feedback from customers and asking the management questions relating to the strategies and practices that make the company a success. This is in order to determine what makes the business a success in its area of specialization. The rationale of this study was to gather information regarding the company’s success in the retail sector. 1.3 Methodology In carryin g out the research process, the use of questionnaires was employed to get the required data from customers. This research process involved the printing a total of 200 questionnaires that were distributed to the public. Half of these questionnaires totalling 100 were given to regular customers who were willing to take part in this survey. The other half was distributed among the public consisting mostly of the people passing near the store. This was to ensure that the individuals participating in the study were aware of the store. This was necessary for the research to collect accurate data. The research was done for a period of one week, and the participants came from the different parts of the city. For this research, 165 of the 200 questionnaires were valid, and their feedback was relevant to the exercise. The remaining 35 were discarded since they were invalid. It was important that the customers took part in the exercise since the data will give a reflection of the customersâ₠¬â„¢ thoughts and perceptions in the subject. Out of the 165 questionnaires that were valid, the customers filled only 62. The number was relatively lower compared to the 97 forms questionnaires that were filled by the public. In addition to the data collected, the manager of the store participated in an informal interview to give added information that was useful for the research. This was to get information from the management’s perspective. This provided a balance in the data collected in that it was all inclusive of both the consumers and the convenience store. 2. The Retail Audit The retail audit is carried out to determine the target market and the factors that affect this market in relation to the business. These factors influence how the market responds to the retail business. This is essential since markets are dynamic in that their needs and preferences change over time (Bullen, 1995, p14). . 2.1 The Market The market refers to the section of the population have a d emand for the goods or services of a business. For any business to be flourishing, they require to have the capability to attract and maintain their market. If a business realizes this, it will have a profitable turnover leading to further growth and expansion of the business. Nottingham’s market consists of the city dweller and visitors that come to the city. Their market is broad since a convenience store offers products that are needed by the public in

Tuesday, October 29, 2019

The impact of renewable and nonrenewable energy sources on Our Research Paper

The impact of renewable and nonrenewable energy sources on Our Earth... How does each one help or hinder our future - Research Paper Example However, energy can be classified into two main groups such as renewable as well as non-renewable energy (The National Academics Press, 2012). Renewable energy can be defined as the energy that is mainly created out of the natural sources such as sun, wind, rain, tides and can be reproduced as per the requirements. They are generally available in abundance and can be availed as and when needed. Renewable sources of energy are the cleanest sources of energy. Renewable energy sources are the sources that generally comprise wind power, geothermal energy, ocean energy, fuel wood, tar sands and oil share among others (The National Academics Press, 2012). On the other hand, the non-renewable sources of energy can be defined as the energy that has been prepared from those sources that are most likely to extinct fifty-sixty years from now. Owing to the fact that the non-renewable sources of energy are not environmental friendly, it is most likely to have an impact upon the health of an indiv idual. The main reason behind their name to be regarded as non-renewable is that they cannot be re-created within a short span of time. Non-renewable sources tend to prevail in the form of fossil fuels, oil, natural gas as well as coal (The National Academics Press, 2012). The study intends to identify the impacts of renewable and non-renewable sources of energy upon the earth. ... It can be stated that wind energy has become cost competitive with traditional energies in leading countries. Among all the renewable sources energy, it can be mentioned that the geothermal energy is practically infinite in nature in the long-term and it is also considered to be an abundant resource in the developing countries (The National Academics Press, 2012). Solar energy does not lead to air pollution when it is operated. The primary environmental and safety issues related to solar energy comprise the way they are created, installed and disposed of. There is a need of energy to create and hence install solar components. The fossil fuels used for this purpose can lead to emission of harmful gases thereby polluting the environment. Hence, one of the significant questions is related to the amount of fossil energy input needed for solar system in comparison to the fossil energy consumed by traditional energy systems. This generally alters based upon the technology and climate and t he remaining energy can be effectively utilized to solar systems in applications where they are generally cost effective and hence enhance with the improvement of technology. The materials that are utilized in a few of the solar systems can lead to health and safety issues for a person who comes into contact with them. The production of the photovoltaic cells needs hazardous materials such as arsenic as well as cadmium. Silicon which is a chief substance that is utilized in solar cells can prove to be detrimental to the workers if they inhale it with dust (The National Academics Press, 2012). Geothermal energy tends to produce heat that can be found beneath the surface of the earth. One of the widely developed geothermal energy has been

Sunday, October 27, 2019

Refugee And Immigrant Children In Canada Social Work Essay

Refugee And Immigrant Children In Canada Social Work Essay Refugee and immigrant children and youth along with their families comprise the majority of Canadian society. Refugees and immigrants are the mosaic face of present day society. We as citizens have witnessed the process newcomers experience in order to receive their Canadian status. As we are aware of the possible complications that can arise both the Rossiter and Rossiter (2009) article along with Fantino and Colak (2001) article shed an interesting light on migration. These articles discuss how youth challenge these barriers to gain identity in the new society, how issues arise between their inner self and society and also how society can contribute to migration complications. The articles also review how society can be seen to have a positive impact to their experience during migration and adaptation. Both articles assume a similar theme when discussing the challenges/troubles these youth and children encounter during their acculturation period. Summary of articles:     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diamonds in the Rough: Bridging gaps in support for at-risk immigrant and refugee youth summarized the troubles both within the individual and society that is creating a gap within the youth. The gap between individual and society is brought to point in this article as creating a behavior in the youth to engage in high-risk criminal behaviors. Rossiter and Rossiter (2009) focus on the risk and protective factors that are perceived by key stakeholders to influence at-risk immigrant youth who eventually become involved in crime, gangs and violence in Edmonton, Canada (Pg. 2).   Rossiter and Rossiter (2009) organize their article on the view of immigrant and refugee youth behavior by discussing immigrants and crime, bringing upon a theoretical background focused on Maslows theory and how Maslows Hierarchy of need provide insight as to how inner fulfillment discourages negative actions/thoughts/behaviors.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rossiter and Rossiter (2009) review a study that was conducted in order to attain a deeper perspective of the migrating youth into Canadian society; they discuss the risk factors both in the community setting and within the individual. These studies first discussed negative factors affecting the youth and positive factors assisting the youth to not fall into criminal behavior. Lastly, both authors discuss a solution that I would like to classify it in order to understand these gap and misinterpretation between a trouble both within and outside the youth.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rossiter and Rossiter (2009) state that youth who migrate to Canada with their family are faced with issues from back home, such as pre-migration violence and trauma were reported to be predisposing risk factors for youth involvement in violent and criminal activity in Canada: many youth from refugee camps have witnessed or experienced violence (e.g. rape, murder, and torture) and suffer from depression, nightmares, flashbacks and or disturbed sleep patterns (Rossiter and Rossiter, 2009, p. 9). A youth arriving in a country that has already developed their own culture and unique mother of tongue can further create a bigger barrier for the youth in terms of acclimating to this new society, their new home.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Social services representative discuss the complications of integration that can cause stress or anxiety-all their symptoms basically prevent them from learning and adapting (As cited by Rossiter and Rossiter, 2009, p.9). These youth experience pressure to fit in when it comes to the school system. They are encountered with peer pressure or alienation (Rossiter and Rossiter, 2009, p.9) as association with antisocial peers, however, can lead to violent altercations and crime (Rossiter and Rossiter, 2009, p.9). Education was one area where it was classified as a positive impact encouraging youth to act in a positive manner (Rossiter and Rossiter, 2009, p.4).   Due to the alienation that youth experience due to the want of fitting in within their peers, criminal justice representative said education was seen as extremely important for immigrant and refugee youth: Not having [education] is whats creating the push in the other direction, and having it is what would save them (As cited by Rossiter and Rossiter, 2009, p. 13). Creating these barriers furthermore sets this youth to drop out and as a school is seen as a recruitment into drug-related crimes (Pg.10). While seeing the complications that the lack of education can cause we can acknowledge the importance of school and education towards the future of the youth.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rossiter and Rossiter (2009) discuss how youth first entering Canada with their families are seen to be lead by the government into subsidized housing (p.11) due to their lack of finances thus, these youth may not have the same economic standing as their peers. This makes the youth feel uncomfortable leading to the youth having to deal with an inner struggle between wants and needs (Rossiter and Rossiter, 2009, p. 9). The authors made it clear that contributing factors such as: family support and stability, socio-economic status, physical and mental health, age of arrival, language proficiency, interpersonal skills social networks, personal resilience, employment opportunities and housing and neighborhood, among others (Rossiter and Rossiter, 2009, p. 4) are seen as a pushing negative factor and also a helpful positive factor for the youth to get out of troubles in the criminal system. The authors prescribe mentorship and s chool activities to assist these youth out of the negative criminal behavior (Rossiter and Rossiter, 2009, p. 13-14). They discuss how teachers are often unaware of the challenges faced by immigrant and refugee students, and the education system itself is ill prepared to meet their complex needs. Isolation and a lack of social support at school and in the wider community mean that immigrant and refugee youth may be left with few options, and antisocial peers involved in drugs, crime and gangs may be perceived as attractive alternatives (Rossiter and Rossiter, 2009, p.16). Family and community support along with Maslows hierarchy of needs should be in place in order to assist these youth.   Families seen to be living in poverty are often unable to meet the physiological and safety needs of their children; at-risk youth who go to school without breakfast or lunch and live in subsidized housing may be especially vulnerable. Youth who lack close relationships to family, school and com munity or who suffer from feelings of inadequacy or failure are easy targets for gangs who promise to fulfill their needs for belonging and self-esteem. (Rossiter and Rossiter, 2009, p.16). The authors review the negative and positive influences that contribute to the idea of where funding should be focused. The authors provide the reader with a qualitative research method to get a better understanding by talking to adults who experienced youth criminal activities due to the barriers put forth. It is also important to note that the authors touched upon the lack of statistical research that is brought forth to the public that shows if immigrant and refugee youth are the only ones big in numbers in the jail system.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Refugee children in Canada: searching for an identity written by Fantino and Colak (2001) provide an overview of migration issues that arise and the troubles that these children are faced with pre and post arrival into Canada. Fantino and Colak (2001) discuss how the children migrating with their families bring with them issues that they face while coming to a new country as a refugee trauma from witnessing violent crimes, language difficulties, family disruption, and adjustment to a different culture-in addition to the challenges that accompany childhood and growing up (p. 587). Fantino and Colak (2001) draw comparison between immigrant children versus a refugee child. They both write how both classes deal with migration and endure the push-and-pull forces of home and school, which often work in opposite directions (p.589). As we are taught to believe that immigrants face less barriers due to their receipt of citizenship F antino and Colak do not fail to portray the similarities of both groups.   Both may encounter societys discrimination and racism, and developing a sense of identity-while trying to bridge generational and cultural gaps (Fantino and Colak 2001, p.589). Perhaps the greatest threat to these children is not the stress of belonging to two cultures but the stress of belonging to none (p.589.) If these children receive a sense of belonging this can open up and increase their self-esteem and further avoid future barriers and inner fights within the child.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   One specific concentration that Fantino and Colak (2001) bring forth is the desire for children in the school setting to be accepted by their peer group, be seen as a dependent and a master by interpreting for their parents (Fantino and Colak, 2001, p.589) these factors can contribute to the sense of belonging discussed earlier. These children are in essence parentified as they face the pressure of interpreting for their parents (p. 589).   This pressure can have a dramatic effect on the child as they are given adult responsibility in settings they are not familiar with. Fantino and Colak (2001) wonder if children really do adapt better to society (p.591). They discuss the trouble of parents with the lack of communication they have with their children (p.590). Fantino and Colak refer to these refugee children as children without history (p. 594). Both authors bring forth ideas of the host country providing a positive act in order to make integration as a positive role for the child and family.   One key factor in determining success is the reception of newcomers by the host society (p.589). Task force on mental healthi issues affecting immigrants and refugees (1998) writes that settlement support services, schools, health and social services and the community at large play a crucial role in assisting and supporting children to adjust and integrate into Canadian society (As cited by Fantino and Colak, 2001, p. 589). Fantino and Colak (2001) believe that in order for successful integration we must not ignore the parents who might also be facing trauma prior to arrival. They state that their challenge is to meaningfully integrate their history with the present and future realities of Canada (Fantino and Colak, 2001, p.595) it is only until we as Canadians work as a team to provide a safe haven for newcomers where we can assist and cater to their needs to provide them with adequate housing and support systems. As Fantino and Colak discuss migration trouble pre and post migration both authors do not fail to give Canadians a role on easy adaptation and this sense of guidance makes the struggle of migration as a societal problem and not solely a problem just with the migrating child with their family     Analytic discussion:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Both readings discuss the resolutions and the causes of what a child and youth experience as they migrate to a new country. The identified theme of the harm of migration to the individual at hand arises concerns and a deep look at why changes should be in place to assist the migrating newcomers. By looking deeply at the barriers/causes placed by society we will gain insight on understanding why. Both articles gather information by using a qualitative research method that asks children and adults who were deviant youth in the past about problems faced by both immigrant and refugee children and youth; both articles looked at the trouble faced within the individual and the trouble put on by society. Both articles answer questions of why and how these issues arise, both articles discuss solutions and the lack of statistics that would help to really understand the criminal system in regards to over population of immigrant and re fugees in the institution. As both articles take on such approaches to understanding migration and the effect it has on children regarding identity and youth portraying criminal behavior I will provide an analytic discussion in regard to the theme of troubles of migration faced by the immigrant and refugee child and youth. By discussing how the comparison of both articles both discussed the lack of identity the youth and child face, both articles discussed support systems, whether it was lacking or being seen as a great contributor for successful migration, education as a primary target for success in the individual and lastly community assistance that the host community must act upon. As all articles discuss the implication pre and post the childs and youths migration I still believe that further questions need to be asked in order to get a more holistic and complete view of migration difficulties and criminal behavior that the child and youth experience.   Who is a refugee or immigrant youth or child when they come to Canada? It is to this thought that we can look at the identity of these young adults and children being challenged when entering a new country such as Canada. We are taught through both articles that when an individual such as a youth and child enter Canada we must realize the issues they have faced at home that might of led them to migrate: trauma from witnessing violent crimes, language difficulties, family disruption, and adjustment to a different culture-in addition to the challenges that accompany childhood and growing up (Fantino and Colak, 2001, p. 587). When one reads such statements I cant help but ask why arent these individuals dealing with the issues back home? Could it be that the government can no longer be trusted? Why migrate? Is Canada being portrayed to other countries as a loving, welcoming country? If so, we must change this. Canada being classified as a harmonious country or not has issues of its own. We are dealing with employment difficulties, high taxes, and are still involved in a war where other cultures are still being seen as a threat. Are we setting up this migrating youth with unrealistic expectations of Canada? Is this our fault as Canadians that we are simply setting up a trap for this migrating victims to have a difficult life in Canada?  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The issues back home which may have pushed their migration to Canada is not the only issue that these age groups experience. They also witness and experience issues in their new land, and this act should simply put the blame on us, on Canadians.  Support system in the school setting is seen to be lacked and to be a great contributor to be the line of helping the youth and child to avoid criminal behavior. The development of positive relationships with caring adults in the school setting, such as ESL or mainstream teachers, counselors and school resources officers, was also considered to be a protective factor. In some schools, member of ethno-cultural communities offer approved courses designed to help students develop identity and intercultural competence (Rossiter and Rossiter, 2009, p. 14).   After school programs where the student can receive assistance in studies or being involved in recreational activities can provide an outlet for the student to develop an identity by taking interest in other activities and also assisting with developing relationship with other students or guides. This not only provides them with a family setting in the school atmosphere but also an family unit when parents struggle to understand the school setting or simply when parents do not have much involvement with their children due to work or emotional difficulties. Dedicated workers such as these are helping youth exit gangs, offering them opportunities for success and keeping others from becoming involved with drugs and crime (Rossiter and Rossiter, 2009, p. 14) As this form of assistance provides the assistance of the host community it shows how we can contribute positively to the outcome of the future of the new generation. As this is so, we must be aware of the access these children a nd youth have to schooling. Funding is needed for better schooling not only for these newcomers but also for youth all around. In Canada the cost to incarcerate a youth for 1 year is approximately $100,000 (Rossiter and Rossiter, 2009, p.3), and sending your child to school has no cost then leaves the question of why spend so much in incarcerating youth involved in criminal activity when such money can go into schooling where programs can arise from? As we should be addressing the crime taken in each community (Rossiter and Rossiter, 2009, p. 3) we know that education can be seen as a way out for these youth to avoid them from falling into a trap of gang involvement and provide these children with a sense of identity and skills this is an investment that will not only help the migrating newcomer individual but where society would also benefit from. Derwing et al. (1999) and Watt and Roessingh (1994,2001) state that studies of school dropout rates of immigrant youth have indicated th at 46-74% of immigrant youth whose native language is not English fail to complete high school (As cited by Rossiter and Rossiter, 2009, p. 4) doesnt society see the need for funding?   Community assistance needs to be put in force in order for these youth and children to experience an easy adaptation to Canadian society. Communities provide a learning experience by comforting the individual and providing an exit from any future criminal activity that might come through the youths and childs life. These could be centralized in a love reception center, with ongoing follow-up and support in school and community setting (Rossiter and Rossiter, 2009, p.17.) Providing these follow-ups with children, youth and their families will give these newcomers being a immigrant or refugee a voice and provide a further perspective of changes and improvements that could be more active.   Social services assistance: including language translation services; help in location permanent housing and accessing English language classes; a community orientation; referrals to health and social services; including professional counseling services; and other services as needed (Fantino and Col ak, 2001, p. 590). Such services can also be seen to benefit the family unit as a whole as it is helping all members of the family to access and be aware of the services provided by the host community, and can also be seen as a contributor in helping family bonds strengthening when migration can be viewed as a challenging phase for the family. Permanent housing should include specifications and be geographically located where criminal behavior is not the face of that community. Peer ambassador programmers that carefully match newcomers with more established immigrants from the same culture can also be very helpful (Fantino and Colak, 2001, p.590) If newcomers encounter other newcomers they will feel a sense of   hope as they will see that their present challenges were possible to be overcome; this will provide the recent newcomer with a sense that they can do it. We can make a change, so why in a country where 11.2% of the total population of 31 million identify themselves as members of a visible minority (Fantino and Colak 2001, p.588) are being faced with such troubles? In a country where employment is seen as hard to get regarding youth employment why are we not addressing this problem? We realize that the Canadian Baby Boomers are affecting work labor in the present society (Foot, 1998, 82) so how can we assist these youth to find a job when the baby boomers are occupying the majority of the labor market? Do we need more jobs specifically targeted to this population? Why are we still letting in refugee and immigrant families when we can barely assist those already in Canada? Why is Canada still setting up a trap for these newcomers? As I agree with the standings and arguments/solutions that both articles make, I do believe that more questions need to be asked, mostly questions regarding Canada and why Canada is still letting this happen. Heller (1995) along with Jiwani (2002) and Roberts (2002) state that ethnic minorities and those with English or French language difficulties, are disproportionately represented in the Canadian criminal justice system (as cited by Rossiter and Rossiter, 2009, p. 2) and Canadas lack of providing statistics related to race and ethnicity can further show that numbers need to be put into place in order to understand migration issues and complication. Without numbers can it be fair to say that Canada is contributing to the problem? Without numbers can Canada take a position and assist solely on word of mouth? Providing this overview can be frustrating to understand how to tackle such an issue of migration, but I do believe that in order for us to understand, numbers that are lacked in the prison system if minorities really do make up the population in the jail system needs to be placed. Rossiter and Rossiter state that such a study might increase discrimination towards these individuals (Rossiter and Rossiter, 2009, p.3) but how can we help a group without knowing statistics? Since Rossiter and Rossiter tackles such a perspective it leaves the question if Fantino and Colak say that the host community must assist these newcomers due to the issues surrounding this population how can we assist youth as a community when we are unaware of youth involvement in criminal behavior for example? Without data, Canadians are left in the dark, and this must change.   We must make a change to recognize these newcomers diplomas (Rossiter and Rossiter, 2009, p.4.) and degrees to set them up for the work field in order for fairness and these barriers to fall down in favor of those newcomers. My approach to the solution of ending criminal behavior is to look at societal resolutions and also understand the change that needs to be placed. I believe that working with the individual and not for the individual will further assist these individuals on a personal identity level and guide them through the services that can help. Both articles bring upon an analytical overview of migration and the effects brought on by the host community and the services lacking these migrating youth and children. As we understand migration to have a negative effect on individuals we also must not rule out the good that migration can do, such as providing a safe haven for these newcomers from escaping from the harsh realities they faced back home. By communities gathering as a welcoming committee in order to provide the newcomers with a welcoming atmosphere the community must do more than accept the realities of just adapting to a mosaic country. We must work together to provide support for the ch ild, youth and their families. We must acknowledge the contributions that each youth and child carries within them and be culturally accepting. It can be instilled that the children are our future, and no matter what country these children and youth come from, all should be given a fair opportunity.   Ã‚  

Friday, October 25, 2019

Karl Marx - Capitalist Alienation Essay -- Alienation Capitalist Socie

Karl Marx - Capitalist Alienation THE TERM "alienation" in normal usage refers to a feeling of separateness, of being alone and apart from others. For Marx, alienation was not a feeling or a mental condition, but an economic and social condition of class society--in particular, capitalist society. Alienation, in Marxist terms, refers to the separation of the mass of wage workers from the products of their own labor. Marx first expressed the idea, somewhat poetically, in his 1844 Manuscripts: "The object that labor produces, its product, stands opposed to it as something alien, as a power independent of the producer." Most of us own neither the tools and machinery we work with nor the products that we produce--they belong to the capitalist that hired us. But everything we work on and in at some point comes from human labor. The irony is that everywhere we turn, we are confronted with the work of our own hands and brains, and yet these products of our labor appear as things outside of us, and outside of our control. Work and the products of work dominate us, rather than t... Karl Marx - Capitalist Alienation Essay -- Alienation Capitalist Socie Karl Marx - Capitalist Alienation THE TERM "alienation" in normal usage refers to a feeling of separateness, of being alone and apart from others. For Marx, alienation was not a feeling or a mental condition, but an economic and social condition of class society--in particular, capitalist society. Alienation, in Marxist terms, refers to the separation of the mass of wage workers from the products of their own labor. Marx first expressed the idea, somewhat poetically, in his 1844 Manuscripts: "The object that labor produces, its product, stands opposed to it as something alien, as a power independent of the producer." Most of us own neither the tools and machinery we work with nor the products that we produce--they belong to the capitalist that hired us. But everything we work on and in at some point comes from human labor. The irony is that everywhere we turn, we are confronted with the work of our own hands and brains, and yet these products of our labor appear as things outside of us, and outside of our control. Work and the products of work dominate us, rather than t...

Thursday, October 24, 2019

Existentialism: American Beauty Essay

American Beauty is a movie that sets in suburban America. The story is about Lester, whom is a middle-aged writer working in a magazine company. He was having a midlife crisis where he felt lonely and numbed by continuous unchanging routine of his everyday life. In the movie, his wife portrayed as a successful real estate agent, but she was also going through her own midlife crisis in both her career and personal life. Lester’s daughter, Jane Bumham had alienated her parents and was going through puberty. They have a new neighbor who is a U. S. Marine Corps Colonel Frank Fitts, and he has a son, Ricky Fitts, who is a drug dealer. Lester was going to get fired from his company that he had worked for fourteen year. Lester managed to cut a deal by threatening the manager to give him a year’s worth of salary or else he would distribute the gossip news, which would sabotage the company. One day, he and his wife went to see their daughter’s cheerleading dance and during the performance Lester saw Jane’s friend Angela Hayes. He then starts having fantasies of her. On the other hand, his wife was also having an affair with a successful colleague. Disregarding his wife’s life, Lester started to make changes in his life after hearing Angela complimented him and suggested that if he worked out, she would like him even more. Therefore, he started working out after being fired from his job, and got a new job at a fast food restaurant. During work, he found that his wife was having an affair and he asked her for a divorce. On the other hand, the marine corporal, Frank, has trust issues with his son, since Ricky had a history of using drugs (smoking weed). One day, Frank starts to get suspicious about Ricky’s actions. Then when Lester called Ricky to get more marijuana, Frank saw them getting together in a room. He thought that they were sexually involved. In reality, they were just smoking weed. When Ricky went home, Frank abused him and mistakenly believed that he was homosexual, which caused him to kick Ricky out of the house. So Ricky decided to ask Jane to runaway with him to New York. At the same time, when Lester and Angela was getting intimate with each other, she suddenly confessed that she was a virgin. Lester realized that he shouldn’t be taking advantage of her and Angela started crying, so he comforted her. After the incident, both of them bonded and shared their problems. On the last scene of the movie, it showed Lester holding an old picture of his family reminiscing the past then Frank suddenly showed up with a gun and shot him. The movie, American Beauty, portrayed many existential themes from philosophers like Franz Kafka, Friedrich Nietzsche, and Jean-Paul Sartre. In the beginning of the movie, Lester indicates he lived like a dead man. He goes through the same routine everyday, which is similar to Franz Kafka’s character Gregor Samsa in the short story â€Å"Metamorphosis†. Before Gregor’s transformation into a metamorphosis, he was a salesman for a long period of time where he felt that had lost his character, goals and even estranged himself from his family. Lester and Gregor have committed themselves to the society, which caused them to be alienated by their families. In the beginning of the movie, Lester’s daughter critiqued her father as a â€Å"loser† and his wife also looked down on him. Gregor had similar situations, he was also alienated because his job required him to travel, and therefore, he couldn’t spend time with his family. According to Kafka, one has to go through alienation because that awakens us to blossom into a new life. He believes that an individual have to balance themselves between individuality and society. Even though Gregor’s transformation gave him a new life, it was too late for him to live for himself. On the other hand, Lester was lucky enough to experience the change when he heard Angela’s suggestion to get fit. This tip encouraged Lester to adjust his dull and melancholy life. He starts working out and live for himself, instead of living up to other people’s standards. Kafka’s view of existentialism is that an individual has the responsibility to find balance between leisure and work. Lester’s character has some similarities as Kafka’s life. Kafka was employed at an insurance company, where he had experienced the suffering from working in the dull cubical office. He used writing as a way to escape from the tedious life he had, and it was the only method that could explore his creativeness. Even though Kafka was not an existentialist, his writing depicted many existential themes and shared similar thoughts with other philosopher like Friedrich Nietzsche. Friedrich Nietzsche is a philosopher in the late 18th century. He has a great impact towards existentialism. His existential theme is about individuality and constructing identity. Through his book called Gay Science, Nietzsche indicated that there were more liberation and freedom after religious wars and persecution ended. He believed that people were getting detached with religion. Even though the movie â€Å"American Beauty† did not have any religious related themes, it still portrayed the theme of liberation. It was freedom that saved Lester from being drowned by his miserable life, especially when he was being disregarded by his wife and alienated from his daughter. In addition, in the end of the movie, Ricky Fitts, the neighbor’s son was released from his father because of a misunderstanding. He was trapped under his abusive father’s rules and control. When Ricky was living under his father, he was like the â€Å"last man† in Nietzsche’s short story: Thus Spoke Zarathustra. The â€Å"last man† lacks passion and has no drive: â€Å" †¦ they do not like to hear the world ‘contempt’ applied to them. Let me then address their pride. Let me speak of them of what is the most contemptible; but that is the last man† (Soloman, 73). Lester also has similar characteristics of the â€Å"last man†. Before his transformation, he even confessed that he was living a life of a â€Å"dead man†. Nietzsche saw the â€Å"last man† among the middle class and he was afraid that they would be suffocated by the dreadful office space. This greatly relates to Lester’s working environment and the suburban area where he lived. Everyday felt like yesterday, nothing changes. There is no creativity or passion in Lester’s life and Nietzsche believed that people should be pushed and encouraged to break the cycle. Lester’s transformation speaks of Nietzsche’s existentialist theme: â€Å"we philosophers and ‘free spirits’ fell, when we hear the news that ‘the old god is dead. ’ As if a new dawn shone on us†¦Ã¢â‚¬  (68). The â€Å"new dawn† that Nietzsche mentions in his book have similar portrayal in the movie, which is Lester’s transformation of his new life. From a miserable and coward person, Lester changed into a new courageous and free spirited individual. He was able to confront his wife and make his own decisions without being afraid of her looking down on him: â€Å"It’s a great thing when you realize you still have the ability to surprise yourself. Makes you wonder what else you can do that you’ve forgotten about† (American Beauty). Overall, Nietzsche’s theme reveals that people have the ability to make their own decision and put their destiny into their own hands just like what Lester did with his life. Similar to Kafka and Nietzsche, Jean-Paul Sartre also emphasized the importance of individuality. He believes that â€Å"existence comes before essence,† people creates their own destiny and it is not God that controls our fate (206). He also explained that human nature did not emerge because God created us. Sartre did not believe in God; therefore, he believed human created the existence of human nature, like how Lester altered his life. Sartre also indicated that individuals should take responsibility towards their actions. Lester broke away from the society and left his past life to construct a new character without other people to disapprove his decisions. However, he also threw away all the responsibility as a father and husband. Lester quit his job and got a lower salary job, which left his wife in charge of the mortgage. Even before the transformation, the relationship between Lester and his daughter drifted apart causing them to ignore each other. He failed to take a responsibility as a father and nurture his child instead he tried to flirt with his child’s friend. From Sartre’s book Existentialism is a Humanism, he wrote: â€Å"Our responsibility is thus much greater than we had supposed, for it concerns mankind as a whole† (208). He believed that an individual’s action could have a huge impact on others, just like how the neighbor, Colonel Frank Fitts killed Lester at the end of the movie. Frank has to live carry that guilt forever. It was his decision to kill and therefore it would be his responsibility to accept the blame. However the movie did not indicate what consequences Frank will be facing, or what kind of responsibility he will get after the murder. The director leaves the decision to the audience to decide what his fate is going to be. Lester did mess up his family and take no responsibility during his physical and mental transformation. In the end of the movie, when Angela, his daughter’s friend, told him that she was a virgin, he realized that he could not take advantage of her. This message reminded him that she was just a teenager that needed attention. He took a parental responsibility by comforting her and explored her frustrations, which applied to Sartre’s theme of taking responsibility while making alternations in life. Through out the movie, American Beauty, it has exposed many existential themes that connected to multiple philosophers including Franz Kafka, Friedrich Nietzsche, and Jean-Paul Sartre. All of them emphasized the importance of individuality, passion and creativity, which was depicted in the movie, especially on the main character, Lester. He altered his life and cured his mid-life crisis. It was through existentialism where he was released from the trap of society and the controlled environment. In the end of the movie, every character found an answer towards the purpose of life. Even though Lester’s life ended getting shot in the head, he was actually happier than he was before and managed to live the life he wanted. Reference Solomon, Robert C. Existentialism. 2nd. New York, NY: Oxford University Press, 2005. Print.

Wednesday, October 23, 2019

Wind Power Cluster in Denmark

Microeconomics of Competitiveness Final Report The Danish Wind Energy Cluster Warsaw School of Economics – 13th January 2010 1. IntroductionPage 2 PART I: DENMARK 2. Country BackgroundPage 2 3. Performance of the Danish EconomyPage 3 2. 1 Trade 2. 2 Budget and Fiscal Policy 2. 3 Gross Domestic Product and Productivity Growth 4. Cluster composition in DenmarkPage 5 3. 1 History of Cluster Policy in Denmark 3. 2 Today’s Context 5. The Business Environment in Denmark – National DiamondPage 8 5. 1 Factor Conditions 5. 2 Demand Conditions 5. Related and Supporting Industries 5. 4 Context for Firm Strategy, Structure and Rivalry 5. 5 Government – the Influence of Macroeconomic Policies 5. 6 Institutions for Collaboration PART II: THE DANISH WIND ENERGY CLUSTER 6. Historical Development of the ClusterPage 13 6. 1 Wind Energy in Denmark before the 1970s 6. 2 The Danish Wind Energy Cluster in the 1970s – The First Hesitant Beginnings 6. 3 The Danish Wind Ene rgy Cluster in the 1980s 6. 4 The Energy Policy of the Danish Government since the 1980s/1990s 6. 5 The Cluster of Modern Wind Turbines since 1990 7. Description of the Wind Energy ClusterPage 20 7. 1 Vestas: World’s no. 1 Turbine Manufacturer 8. Wind Energy Cluster – Cluster DiamondPage 22 8. 1 Factor Conditions 8. 2 Demand Conditions 8. 3 Context for Firm Strategy, Structure and Rivalry 8. 4 Related and Supporting Industries 9. Strategic Issues Facing Denmark and the Wind Energy ClusterPage 28 10. Policy recommendations for the appropriate constituenciesPage 30 11. ConclusionPage 31 Bibliography Required Disclosures 1. Introduction This paper gives an insight into the Danish economy and business environment. Furthermore, it describes the cluster composition in Denmark and how the policies towards clusters have changed in recent years. The core of the paper is the comprehensive analysis of the wind energy cluster in Denmark where the cluster is analysed with the use of Porter’s diamond model. Lastly, identification of strategic issues facing Denmark and the wind energy cluster will be presented and policy recommendations given. PART I: DENMARK 2. Country Background Denmark is located in Northern Europe between the Baltic Sea and the North Sea and has Copenhagen as its capital. Its population consists of approx. 5. 5 million inhabitants whereof 9. 1% is immigrants and their descendants. The official language is Danish, but the level of English proficiency is very high. The Danish constitution was codified in 1848 and today the country is governed by a parliament consisting of 179 members. The election period is four years but the prime minister can call an election at any time. Furthermore, Denmark has a constitutional monarchy with Queen Margrethe II as the head. The Queen is apolitical and only functions a representative for Denmark. Denmark joined the EU in 1973 and has always seen it as a good place for economic cooperation, but Danes have been more reluctant towards the political integration resulting in Denmark staying out of the Euro. Denmark is known for its Scandinavian welfare model, which ensures a high level of re-distribution through taxes. The model includes among other things the â€Å"flexicurity† system, which will be elaborated later (Ministry of Foreign Affairs of Denmark). 3. Performance of the Danish Economy Danish economy can surely be described as a modern one, oriented primarily at services. In terms of its resources, the economy depends to the greatest extent on human capital, which translates into a more labor-related approach towards business. With over 5. 5 million citizens, Denmark maintains a record low level of unemployment, roughly 2. 1%. All those indicators contribute to a pretty high standard of living. For this reason Denmark was ranked 16th globally in the Human Development Index, which reflects several aspects, such as live expectancy, knowledge and education standards measured by literacy rate and standard of living. . 1 Trade Denmark has a high social support for free trade. Over 76% of the population perceives globalisation as a positive phenomenon (Time). Danish basic trading partners are the countries from European Union (70%), followed by the United States. Denmark’s high involvement in global trade is reflected in the ranking of trade per capita, placing the country on the 9th place globally, with the result of $17. 5 thousand of trade per cap ita (World Fact Book). Danish major export markets are illustrated in the table below. Table 1: Danish major export markets in 2008 (Million DKK) |Germany |Sweden |UK |US |Norway |Netherlands |France |Italy |Finland |Spain | |103. 4 |85. 2 |48. 5 |35. 2 |32. 3 |26. 0 |26. 0 |18. 0 |15. 7 |15. 0 | Source: Danish Exporters As far as exported goods are concerned, the principal products are food, industrial instruments and machinery. Furthermore, Denmark exports chemical products, furniture and pharmaceuticals. In terms of imports, raw materials and semi-manufacturers, as well as consumer goods prevail. 3. 2 Budget and Fiscal Policy Over several previous years Denmark has been recording budgetary surpluses. However, at the same time the country is facing a debt at the level of 43 billion DKK. Because of extremely low unemployment rate, the government has to be very cautious in increasing their spending, as it may translate into dramatic overheating of the whole Danish economy (due to salaries’ increases). Under such conditions, the debt is expected to fall by 2015. Budgetary expenditures are financed primarily through high tax burdens. Denmark is by many described and perceived as a welfare state, which ensures many various social aids for its citizens. One of the most famous elements of the welfare safety net is tax-funded healthcare and unemployment insurance. In addition to this, Denmark has a well developed pension system, embracing all citizens from the age 65. In order to finance expenditures, the fiscal system assumes almost a 50% tax rate, which is by far the highest one in the world (OECD Tax Database). 3. 3 Gross Domestic Product and Productivity Growth Denmark has a high level of GDP PPP per capita, which places the country on the 16th place globally. Moreover, according to IMF data, the country holds a strong 5th position in the world in terms of its nominal GDP per capita (World Economic Outlook Database). The difference can be easily explained by a relatively high level of prices in comparison with other benchmarking countries. Denmark has been facing a gradual GDP growth for several years, which was disturbed by the global economic crisis. The crisis caused mainly an increase in the unemployment rate and drop of private consumption. In addition to this, Denmark suffered under a significant decrease in exports, which naturally translated into problems with trade balance. Although it is clear that such conditions affected GDP growth, economists claim that Denmark has already embarked upon the recovery path. Table 2: Summary of Danish GDP per capita PPP in USD Year |2002 |2003 |2004 |2005 |2006 |2007 |2008 |2009 | |GDP ($) |29637 |30305 |31766 |33528 |35672 |37163 |37304 |36725 | |% change |1. 73 % |2. 26 % |4. 82 % |5. 55 % |6. 39 % |4. 18 % |0. 38 % |-1. 55 % | Sources: Index Mundi report on Danish Economy (2009) In spite of sound economic growth in the preceding years, the country is perceived to have a strong underlying problem with its future development. It is projected that Denmark will have fourth-lowest productivity growth among OECD countries in the following years (Index Mundi, 2009). As well as this, heavy governmental transfer payments create an unhealthy situation for other parts of the economy. Therefore, they might also translate into an impediment in future growth. 4. Cluster Composition in Denmark Denmark is by far one of the most interesting countries from the perspective of clusters. It was among the first ones to introduce certain clustering policies and since that time it has been quickly developing in terms of the final composition. The country – due to its success – was also included in Porter’s Ten-Nation study about the connection between international competitiveness and the existence and strength of clusters (Yettin, et al, 1992). 4. 1 History of Cluster Policy in Denmark The history begins in the early 1990s, when the Danish government decided to implement first steps aimed at development of the cluster concept. The analysis, which was carried out at the beginning of the process, indicated several areas for further cluster development. These were: food products, IT, bio-health and construction. They were firstly defined as so-called Mega Clusters and then narrowed down in the late 1990s. At that time ‘real’ clusters were defined, e. g. industrial design, aluminium processing or biotech. Despite these efforts, the government was still choosing to proceed with an industrial policy, rather than a cluster-oriented one. The situation changed in the 2000s with the introduction of regional initiatives. That assumed strategic decisions being undertaken on the regional level, rather than on the central one. Thus, Denmark nowadays lacks a vivid clustering policy on the national level. However, at the same time there are numerous regional initiatives that contribute to the process. All in all, the shift from governmental planning to the decentralized system proved to be worth the effort, as it significantly supported the development of a sound clustering structure in the country. 4. 2 Today’s Context Clusters in Denmark emerge exclusively on the regional level. The country is divided into 5 administrative regions and 98 municipalities. Local authorities are the trigger for respective cluster policies. Their ideas can be implemented independently or be supported by special agencies, namely the National Agency For Enterprise and Construction, The Danish Forest and Nature Agency, the Danish Agency for Science Technology and Innovation and the Danish Council for Technology and Innovation (Cluster Observatory). Apart from that, the policies involve also third parties in the emergence process, which are companies, research- and educational institutions and distributors of technological knowledge. Their cooperation is expected to result in a long-lasting relationship, as well as knowledge creation. As far as certain clusters are concerned, the 17 regional growth environments were established in 2001. Depending on the geographical location of the region, the main clusters were assigned to specific places. They are illustrated in the table and figure on the next page. Table 3: Summary of Main Danish Clusters |Growth environments commenced in 2001 |Growth environments commenced in 2002 | |Furniture & Wood |Fishing | Wind energy |Foods | |Technology & IT |Sub-suppliers | |Biotechnology |Stainless steel | |Manufacturing |Offshore | |Horticulture |Transportation | |- |Aluminium | |- |Robot technology | |- |Event economy | |- |Finance | |- |Seed-growing | Source: Nordic Innovation Figure 1: Denmark Exports Portfolio by Cluster [pic] As far as challenges ahead are concerned, Denmark still has certain areas for improvement. First of all, the country has to put a strong emphasis on knowledge creation and development of competence environments. As most initiatives are planned and carried out on the regional level, such environments could serve as knowledge centers enabling cooperation of various players and clusters as a whole. Thus, it creates a huge responsibility for respective authorities to move a step ahead towards building a sound network and cooperation on the higher level. 5. The Business Environment in Denmark – National Diamond Analysis By using Porter’s â€Å"Diamond Model† as a framework the competitive strengths and weaknesses of the Danish business environment will be analysed. First it is nalysed how Denmark is performing on the four factors: Factor conditions, demand conditions, related & supporting industries and context for firm strategy, structure and rivalry. Then it will be analysed how the Danish government influences the different factors through macroeconomic policies and institutions. Lastly, it will be described how institutions support collaboration between the business environment, universities and the public sector. 5. 1 Factor Conditions Denmark is ranked no. 6 on infrastructure in the IMD World Competitiveness Yearbook. Especially the basic and technological infrastructure is high whereas the scientific infrastructure in Denmark only reaches a place as no. 15. With regards to education Denmark is ranked as no. 1. University and management education meet the needs of a competitive economy and the business community. Moreover, training of employees is a priority for companies which ensure that labour become more specialised and stay up to date on innovation and developments within their area. Even though, it looks like there is no finger to put on education in Denmark there are several future challenges. In the future Denmark must raise the contribution of human capital to productivity growth (OECD, 2009). With regards to the labour market there has been a slowdown in labour productivity and a strong growth in wages, which makes Danish labour relatively more expensive. The growth in wages has been reinforced by effective exchange rate appreciation. While the demand for labour is weak during the crisis there is still a need to raise labour supply in the future. A need that the Danes probably cannot fulfil and it may therefore be necessary to attract foreign highly-skilled labour. The current crisis has made it harder to lend money and the credit conditions in Denmark are tight at the moment (OECD, 2009). 5. 2 Demand Conditions An example of how the character of the home demand has helped build competitive advantage is the environmental awareness of Danish consumers. This has led Denmark to be competitive within for example water pollution control equipment, but also many other products related to the environment (Dess, et al. , 2004). The Danish consumers tend to be relatively demanding and quality-conscious. Furthermore, they like to boycott products if they somehow get bad news about the products (Agri-food Trade Service). This can pressure companies to meet high standards and prod them to innovate and upgrade (Porter, 2008). The challenges for demand conditions at the moment are the diminished household wealth and the rising employment, which decreases the Danes’ purchasing power. It is hard to say whether the demand conditions in Denmark create a good environment for businesses. It will be highly dependent on the specific business area. 5. 3 Related and Supporting Industries As mentioned, cluster focus on a regional level has increased and several local initiatives have been established (Nordic Innovation, Cluster Observatory). The continuous focus means that cluster development have good conditions and this could also be an indicator for a high level of related and supporting industries. Though, it is hard to give a general picture about related and supporting industries in Denmark. The fact that Denmark geographically is a small country could lead to the thought that the small scale market is not big enough to get suppliers to locate in Denmark. 5. 4 Context for Firm Strategy, Structure and Rivalry One of the main advantages for companies located in Denmark is the co-operative labour-employer relations and the so-called â€Å"flexicurity model†. When rights and forms of governance are developed on the Danish labour market both trade unions and employers’ associations are important players. Trade union density is about 74% and the density of employers’ associations is about 52%. The trade unions and the employers’ association agree that the â€Å"flexicurity† model is an advantage for the Danish labour market and the business environment. â€Å"Flexicurity† refers to the flexible Danish labour market and the high level of social security. The policy was first introduced in Demark in the 1990s as a response to high unemployment rate. First steps of implementation were undertaken in 1994 and concerned in-depth reforms of labor market, aimed primarily at reduction of structural unemployment, as well as introduction of solid welfare schemes. Companies can easier adjust to up and down turns in the economy because of easy hiring and firing as well as work time and wage flexibility. Trade unions accept this flexibility because its members are protected by the state, which provides them with high unemployment benefits and access to health services, education, etc. (Jensen, 2008). Owing to the â€Å"flexicurity† model, Danish economy cherishes now a low level of unemployment, as well as low social exclusion rates. However, the policy requires a trade-off of high fiscal burdens for citizens. Economic slack, weak exports and reduced investment in R&D means that local rivalry could be on a standstill (OECD, 2009). 5. 5 Government – the Influence of Macroeconomic Policies Government through its policies must ensure an environment where businesses can gain competitive advantage. In order to ensure a functioning capital market during the crisis the government has given guarantees to banks and its customers as well as capital injections. This has improved the capital market and given better access to capital for businesses. Because of the slow growth the Danish government has launched a â€Å"Growth Forum†, which will address the issue of productivity growth and how it can be improved. Another policy which helps creating good factor conditions for the Danish business environment is the strong labour market policies, which offer activation and training for unemployed as well as supplementary training for employees. In this way unemployed stay in touch with the labour market and it is ensured that their skills are up-to-date when businesses need them. Furthermore, labour market policies try to support international recruitment and to keep people on the job market longer before they retire to boost labour supply, which will be in high demand after the crisis. Fiscal policy has boosted disposable income and demand by a major tax reform, which means tax cuts for households. Moreover, the government has released the funds from a special compulsory pension saving programme, which give households further liquidity (OECD, 2009). Furthermore, the interest rate is now the lowest ever at 1. 15 %, which are good news for the households with a mortgage loan (Guardian, 2010). In 2006, the Danish government introduced a globalisation strategy for Denmark, which established a lot of new initiatives within education, research and development, entrepreneurship and an innovate society. One of the aims of the strategy is to make Denmark more ready and open for global business (Globalisering, 2006). Furthermore, in 2009 the Danish government has launched several measures to encourage a â€Å"green growth† recovery from the financial crisis. The initiatives include among others â€Å"green transport†, improved environmental performance of the agricultural sector and a home repair and renovation incentive to save energy (OECD, 2009). These strategies, policies and initiatives create a better environment for companies to compete in. Figure 2 pic]Source: Team analysis 5. 6 Institutions for Collaboration There are several institutions supporting and working together with Danish businesses. Universities like the IT University of Denmark, Technical Univer sity of Denmark and Copenhagen Business School work actively with companies, trades and industries (ITU, DTU, CBS). Furthermore, the Confederation of Danish Industries as a representative for many industries also has close ties to different business schools and universities (DI). â€Å"Invest in Denmark†, a part of the Danish Ministry for Foreign Affairs, helps foreign companies to locate in Denmark and create joint ventures with Danish companies (Investindk). Moreover, several knowledge centers like â€Å"Innovation Center Copenhagen†, â€Å"Mind Lab† and â€Å"Innovation Lab† work together with companies to innovate and upgrade technology and business in Denmark (Innovation Lab). PART II: THE DANISH WIND ENERGY CLUSTER 6. Historical Development of the Cluster 6. 1 Wind Energy in Denmark before the 1970s Due to the Denmark’s large coastline, the climate is characterised by consistent and relatively strong winds. The absence of other natural sources than wind influenced Denmark to take a pioneer’s role in starting an effort to implement wind technology as basis for electrification and to experiment with it (Vestergaard et. al, 2004). The first windmill in Denmark was mentioned 1259 in Flong. The modern wind energy utilization has a tradition that covers more than 100 years of research in meteorology and wind turbine manufacturing. In 1891 Poul La Cour, a Danish professor in natural science at the Askov Folk High School, and a team of scientist built the first wind turbine funded by the Danish government. La Cour was drawing on the results of two contemporary Danish engineers and scientists. H. C. Vogt and J. Irminger participated together with the American P. S. Langley in formulating modern theory on aerodynamics and lift drag with the purpose to experiment with wind power to product electricity (Vestergaard, et al. , 2004). In 1918 a fourth of all Danish rural stations (120) used wind turbines to generate power. After the World War I the Danish interest in wind Energy waned, because of the sufficient supply of fossil fuel. The machines were rapidly outdated – in 1920 only 75 turbines were left (Andersen, 1999). By the 1930s Denmark was ahead of many other countries in the wind turbine industry and turbines became traditional in the Danish countryside. La Cour gave courses at the Askov Folk High School so that it became possible to study wind energy for Danish „wind electriciansâ€Å". Soon La Cour and one of his students became the most prominent manufacturers in Denmark. However at that time there was still no real international competition. One of the students in wind energy was Johannes Juul who attended La Cour? s courses in 1904 and later worked as chief engineer for a power company, SEAS. Juul started an R&D programme in wind energy utilization. This R&D effort formed the basis for his design of a modern electricity wind turbine built in 1957, which is today well known as the 200kW Gedser machine. The Gedser machine was installed in 1959 and was in operation until 1967 (DWIA, 2008). 6. 2 The Danish Wind Energy Cluster in the 1970s – The First Hesitant Beginning In the 1970 there was an awakening green movement in the Western countries. This was encouraged by the first and second oil crisis in 1973 and 1979. Denmark which was enormously dependent on imported oil pursued an active policy of energy savings, increasing self sufficiency, and diversification of energy sources until the mid 1980s. Since then, energy policy has increasingly promoted the use of renewable energy to ensure environmentally sustainable economic development (Krohn, 2002). This increasing political focus on environmental protection and sustainable development provided the framework for the development of the Danish wind energy sector. The practical and technical development in the 1970s was first carried out by few entrepreneurs, tradesmen and people with high ideals about renewable energy. Christian Riisager was a carpenter from west Jutland. In the mid 1970s, he was one of the first who successfully designed a turbine to be marketed and connected to the grid. The turbine was a 15kW turbine which generated more electricity than the household could consume, the excess electricity went into the grid. The Riisager turbine was the basis for modern wind turbines with high towers and three blades. Riisager produced more than 70 turbines and later he established the firm Wind-Matic (DWIA, 2008). Karl Erik Jorgensen also started to make wind turbines in the mid 70s. In 1978, he teamed up with Henrik Stiesdal, a young student and worked on a three-blade turbine. In 1978 they developed a 30 kW turbine with an enhanced safety system. Vestas, which manufactured agricultural machines at that time, bought the turbine on a license and started in-house production and development of wind turbines (DWIA, 2008). While these innovative designs of small machines appeared politicians began to take interest in the new development. Partly because of the energy supply crisis, partly as a reaction to the popular opposition to nuclear power in Denmark. An incentives programme in the form of capital grants for installation of wind turbines (30% of installation costs) was established in the end of the 1970s and was dropped in 1989. In 1977 the Risoe National Laboratory which was originally established to research in nuclear power formed its entrance to wind turbine R&D. A measurement programme co-funded by the US department of energy was carried out by the Risoe National Laboratory (Andersen, 1999). Risoe also draw on a tradition on boundary layer meteorology and wind climate studies. The Technical University of Denmark continued the studies of aerodynamics and wind tunnel experiments, so that their research on wind climate, model laws, terrain roughness, and shelter effects formed the scientific platform for Risoe? s work on the Danish and European Wind Atlas which was initiated in the late 1970s. Risoe National Laboratory also occupied the approval job for different types of wind turbines (Andersen, 1999). In order to ensure that the government supported turbines also had a certain quality and safety, legislation on type approval for wind turbines was established. Today more than 100 scientists and engineers are working for the institution which has an important department in wind energy with considerable interactions with the wind energy community worldwide. Risoe? s work on turbine safety has been important in ensuring the reliability of modern wind turbines (Krohn, 2002). On May 4th 1978 the Association of Wind Turbine Owners was formed, and the first Wind turbine guild or cooperative was established in 1980. 6. 3 The Wind Energy Cluster in the 1980s The Gedser wind turbine itself was built and financed by the power company SEAS. In the early 1980s Danish power companies took early interest in wind energy and in large wind turbines and built two experimental machines, one pitch regulated and one stall regulated, of 630 kW each. But the cost of energy from the large turbines was so high that series manufacturing was not even envisaged (Krohn, 2002). Riisager's and other manufacturer’s success motivated some manufacturers of agricultural machinery to enter in the growing turbine manufacturing sector which provided promising commercial possibilities. Among these companies were Vestas, Nordtank, Bonus (now Siemens Wind Power), Nordex, and later Micon (Krohn, 2002). The Danish Wind Industry Association, a non profit association, whose purpose is to promote wind energy at home and abroad, was founded in 1981. Manufacturers soon became members of the association so today there are more than 220 members across Denmark. The condition of receiving the 30% construction subsidy from the government was that the turbine had been approved by the new test station for small turbines set up by the Risoe National Laboratory. The Role of Risoe National Laboratory so changed from being that of a controlling entity to a more technology-mediating unit. In 1982 the test station issued the first combined load paradigm, which established that all wind turbine components had to be dimensioned for twice the load compared to the traditional norm. The result of this policy was that the Danish wind turbines gained the reputation for being reliable and robust (DWIA, 2008). The Wind Energy Department of Risoe National Laboratory became worldwide known for its expertise with tight connections to the Technical University of Denmark and also increasingly connections with Aalborg University (electricity aspects). Gains of productivity thanks to the European Wind Atlas in the years 1980 – 1985 could be realised by better sitting of wind turbines. The Danish type approval certification scheme has been a very dynamic tool to foster better design procedures in wind turbine manufacturing companies. It has also been important in winning the confidence of professional investors worldwide (Krohn, 2002). In the early 1980s the State of California began a programme of supporting wind energy development. Danish manufacturers having the longest track record had already developed several generations of successively larger machines in small series. The California market expanded dramatically, allowing an enormous volume of production of wind turbines. The Danish manufacturers supplied thousands of turbines to the USA from 1982. Bonus, Vestas and Nordtank all participated in the wind boom launched in California until the market came to an abrupt halt in 1986. The problem was that manufacturers had become dependent on a single market. When the California wind programme ended in 1985-1986, a large number of the 20-odd manufacturers went bankrupt because they had few alternative markets for their products (Krohn, 2002). The economic collapse in the industry caused an elimination race in the following years. All the small manufacturers disappeared or were taken over by Vestas, Bonus, Nordtank, Micon and Nordex. Thus began a long haul for the remaining manufacturers, who then tried to broaden their market base to include several countries (DWIA, 2008). 6. 4 The Energy Policy of the Danish Government since the 1980s/1990s In 1985 the Danish government decided that nuclear power should not be an element of future energy supply. Beside the 30% subsidy of the construction costs for wind turbines which endured until 1989 the government began, since the mid 1980s, to push an active agenda with the aim to implement renewable and diverse energy sources (Meyer, 2007). In a 15 year plan for large scale implementation of wind-generated electricity countrywide the government pronounced the country’s goal of meeting 10 per cent of Danish electricity consumption by wind in the year 2005, implying an installed base of 1,500 MW of installed wind capacity (Sharman, 2005). Danish government had very wide ranging powers for regulation of utilities. These regulations took many forms, including energy efficiency and demand-side management measures. Integrated Resource Planning was an integral part of the procedure through which the power companies obtained permission to install new generating capacity. Other measures included price and accountancy controls. The government had ordered the utilities to install 400 MW of wind power on land to date. The first two orders of 100 MW each were already issued in 1985 and 1990. The latest onshore order for 200 MW to be completed before the year 2000 was issued in 1996. In 1998 a new order was issued for 750 MW of offshore wind power. The Danish energy plan â€Å"Energy21† from 1996 set up a target of even 4000 MW of offshore wind power in 2030 (Krohn1, 2002). To avoid disagreements between utilities and wind power producers over conditions for grid connections and tariffs, the Danish government introduced in 1992 regulations about the feed-in tariff, which was fixed at 85% of the utility production and distribution costs (Meyer, 2007). 6. 5 The Cluster of Modern Wind Turbines since 1990 In the early 1990s Vestas, Bonus (now Siemens), Nordtank, Micon and Nordex represented the wind turbine manufacturers in the Danish cluster. Most of them had a track record of more than 10 years. The size of the wind turbines grew enormously in a perpetual race to develop renewable energy which was capable to compete with the conventional technologies in terms of electricity output and price. At the beginning of the 90s, the average wind turbine had a capacity of 200-300 kW, which had grown to 1-2 MW in the late 90s. Successful domestic turbine manufacturers became world leaders in the wind turbine production (DWIA, 2008). A service sector to maintain and repair installed equipment developed. The industry left, after further consolidation, two large manufacturers in Denmark, Siemens Wind Power A/S (owned by German Siemens AG) and Vestas Wind Systems A/S and several businesses which are involved in the industry and organised in the Danish Wind Industry Association. In 1991 the Vindeby offshore wind park opened and in 1995 the wind farm at Tunoe Knob, equipped by Bonus and Vestas. The offshore market played a more and more important role for the cluster and 95% of the offshore installed turbines are of Danish origin (DWIA, 2008). In 2001 Danish wind turbine companies had a market share of 50% of the world market (Krohn, 2002). The percentage of electricity provided by wind power rose from less then 5% in 1995 to almost 20% in 2003. The total installed base of wind power was some 1,100 MW at the end of 1997. This made Denmark to the third largest wind power country in the world. All turbines were produced domestically. In 1997 there were 10,000 people employed in the wind power sector, a number that grew up to 23,500 in 2007. In 2006 the Danish Wind Industry Association created the Talent Factory to improve the career opportunities among engineering students (DWIA, 2008). More than 80% of the 6,300 wind turbines in Denmark were owned by energy co-operatives, or individual farmers. 150,000 Danish families owned wind turbines or shares in wind co-operatives in 2002 (Krohn, 2002). 7. Description of the Wind Energy Cluster Today Denmark hosts some of the world’s largest wind turbine manufacturers. Vestas Wind Systems, a truly Danish company is situated in Denmark (Vestas). Furthermore, German Siemens Wind Power and Indian Suzlon have established their global head quarters in the country (Siemens, Invest in DK1). Also German Nordex (formerly Danish) and Spanish Gamesa have established respectively offices and R centres in Denmark (Nordex, Gamesa). These are big global players; In 2008 Vestas counted for 19% of the world market, Gamesa for 11% and Nordex and Siemens 7% respectively (EcoSeed). Other smaller manufacturers are Norwin A/S, Wincon A/S and Gaia Wind Energy A/S. There is a strong branch of associations connected with wind energy and among them are the Danish Wind Industry Association (www. windpower. org), Danish Energy Industries Association and Danish Wind Turbine Owners’ Association. In 2007, wind energy in Denmark produced about 7,173 GWh. This corresponded to 19. 7% of domestic energy supply or to the consumption of about 2. 03 million Danish households, compared to 16. 9% in 2006 and only 1. 9% in 1990. In 2007, wind power capacity accounted for 3,124 MW (i. . 24. 1% the total electricity capacity), 424 MW being offshore wind turbines. In 1990 wind power capacity was 343 MW (Energy Statistics, 2007). Projections by the Danish Wind Industry Association estimate an increase of the yearly instalment of new c apacity of about 17% by 2011, reaching more than 200,000 MW. As far as offshore turbines are concerned, 7,600 MW are expected to be installed by the same year (EREC). Wind turbine manufacturing, maintenance, installation and consultancy services account for some 16,000 jobs in Denmark, while component supplies and installation of these Danish turbines currently create another 8,000 jobs worldwide. The global job creation of Danish wind turbine companies are substantially larger than these figures indicate: only about 9 billion DKK (1. 2 billion EUR) is due to turbines manufactured in Denmark. The rest are manufactured in Germany, Spain, India, Italy, and the U. S. , i. e. in countries where there is a substantial home market (Krohn, 2002). 7. 1 VESTAS: World’s no. 1 Turbine Manufacturer As Vestas is the world leader on the global market for wind energy and one of the key drivers of the Danish wind energy cluster a short description of the company will be given. Vestas was founded in 1898 by H. S. Hansen, a blacksmith, in Denmark. He and his son manufactured steel windows for industrial buildings. In 1945, his son established the company VEstjysk-STalteknik A/S, whose name was shortened to Vestas. In 1979, Vestas delivered the first wind turbines. Vestas have installed over 39,000 wind turbines in 63 countries on 5 continents. In 2008, Vestas installed a new turbine every three hours worldwide, generating more than 60 million MWh a year. Vestas has developed from a pioneer in the industry with a staff of around 60 people in 1987 to a global, hi-tech and market-leading company employing more than 20,000 people. Vestas reached revenues of EUR 6,035 million with operational margin of 11. 1% in 2008 and they got global market share of 19% (5,581 MW). Vestas’ core business comprises the development, manufacture, sale and maintenance of wind turbines. Their expertise in modern energy covers more than just wind turbines. They specialise in planning, installation, operation and maintenance. Their competencies cover everything from site studies to service and maintenance. Vestas is distinguished by a high degree of vertical integration. At the same time, production and sourcing are carried out as close to the market as possible. In 2008, Vestas opened the world’s largest research and development centre for wind energy in Aarhus (Denmark) which will house more than 900 employees (Vestas). 8. Wind Energy Cluster – Cluster Diamond Now Porter’s Diamond model will be used to analyse the competitive strengths and weaknesses of the Danish wind energy cluster. 8. 1 Factor Conditions Factor conditions important to the wind energy cluster are the natural resource in form of wind conditions and the scientific base as well as human capital within the field of wind energy. Denmark has relatively modest to good average wind. Onshore wind resources are highest in the Western part of the country, and on the Eastern islands with coastlines facing South or West. The country has very large offshore wind resources and large areas of sea territory with a shallow water depth of 5 to 15 m, where sitting is most feasible. These sites offer higher wind speeds (Krohn1, 2002). The relatively good wind conditions have been an advantage in the past when the wind energy cluster was growing and still operated primarily in the home market. As the operations have gone global the Danish wind conditions are not so important anymore. In stark contrast to Germany, Sweden, the USA, Canada, and the UK, publicly financed R projects played a relatively minor role in initiating the early development of the Danish wind turbine industry. The early stimulus came in the form of investment grants, supporting market development for small scale privately owned turbines. Later, the Danish Government and the EU have financed a significant number of basic research projects, and given some support to development projects (Krohn, 2002). One of the reasons for Suzlon to establish its global headquarters in Denmark was exactly the specialised knowledge the country possesses. The chairman of Suzlon declared: â€Å"Denmark is global leader in know-how for wind-energy. That is why our global head quarter will be here. † (Invest in DK1). On the educational front, the universities offer specialized wind engineer educations and the research centres offer various training courses targeted especially at the wind energy industry, for instance the Technical University of Denmark (DTU) – Wind Master Education; Aalborg University – Wind Master. Engineering College of Aarhus (IHA) has developed a specialisation in wind turbine construction with the main focus on mechanical components (DWIA, 2008). Risoe Wind Energy Department, University of Aalborg and University of Aarhus have jointly established a knowledge centre – Danish University Wind Energy Training (DUWET) which offers a research based supplementary education for employees in the wind industry. DUWET collects wind energy knowledge and research and offers courses and specialist training for anyone in the industry. A consortium consisting of the research centres Risoe National Laboratory, Danish Hydraulic Institute (DHI), The Technical University of Denmark (DTU), and Aalborg University form a national power centre within wind energy research and thus a vital part of the wind energy cluster. Therefore, the scientific base for the wind energy cluster is highly developed and provides the cluster with highly skilled labour. 8. 2 Demand Conditions Denmark is somewhat unique among wind turbine markets, since the market really grew out of a popular interest in alternative generating technologies, partly in opposition to the use of nuclear power, partly as a result of the energy supply crisis in the late 1970s, when oil prices skyrocketed due to OPEC action and political and military unrest in the Middle East. The well-organised Danish wind turbine owners have been a very important driving force for debugging and improving Danish wind technology in its earlier years (Krohn, 2002). Private individuals, either as members of wind energy co-operatives, or as owners of a wind turbine (farmers) account for more than 80% of the 5024 wind turbines in Denmark (DWIA, 2009). This number shows the strong interest of Danes in wind energy and their support for building new wind farms. The Danish home market is what created the modern Danish wind industry originally, and gave it the testing ground to sort out both wind technology and manufacturing technology. The openness and interest of the Danish consumers have definitely supported the demand in the early years of the cluster and pushed its development. Today few wind turbines are set up in Denmark compared to the world market and the local demand has lost some of its importance. 8. 3 Context for Firm Strategy, Structure and Rivalry Danish energy policy has indirectly played an important role in fostering the commercial success of the Danish wind industry. The Danish energy policy for renewable energy has been a model for many markets in the world. In countries as close as Germany, France or Spain and as remote as China or Argentina Danish support schemes for renewable energy have been copied and/or adapted to local circumstances. Danish long-term energy planning such as â€Å"Energy 21† has been widely quoted throughout the world. One of the basic reasons why wind energy has such a prominent place in Danish energy planning is the need to reduce greenhouse gas emissions. According to the Kyoto Protocol Denmark has to reduce emissions of greenhouse gases by 21% in relation to 1990. The targets apply from 2008 to 2012 (COP15). More than one third of that target is being met using wind energy to replace coal-fired power generation (Krohn3, 2002). Thus, the Danish policies give good conditions for renewable energy companies. Denmark has introduced feed-in tariffs for renewable energy plants connected prior to 21 April 2004. Renewable energy plants receive the spot market price plus a subsidy to provide a guaranteed price of 8. 1 eurocents/kWh, applicable for 20 years from date of connection. Renewable energy facilities connected after 21 April 2004 are getting production incentives. Wind plants receive the spot market price plus a 1. 3 eurocents/kWh production incentive which will be applicable for 20 years from the date of connection. Moreover, additional subsidies of 1. 6 eurocents/kWh are provided for new facilities that replace decommissioned wind turbines 450 kW and smaller (Porter, 2006). The Energy Agreement of 21 February 2008 contains an objective of increasing the percentage of renewable energy to 20% of the gross energy consumption by 2011. In the projection, the renewable energy share in 2011 is 20. 5% (Energy Statistics 2007). Improvement of incentives to encourage the installation of wind turbines is among the initiatives which will follow up the political accord of 21 February 2008. The new act comprises the framework for overall local government planning for wind turbines and a guarantee fund of DKK 10 million to subsidise the funding of local wind turbine guild preliminary investigations etc. and a model for local co-ownership. In connection with onshore wind turbine planning, the government will enter into an agreement with the National Association of Local Authorities in Denmark on municipal planning for 75 MW each in 2010 and in 2011. In addition, work is being done on establishing a payment scheme which will cover neighbours to onshore wind turbines for losses in property values as a result of wind turbine installations. The continued expansion of offshore wind turbine facilities will make an important contribution to achieving renewable energy targets. The work of offering two offshore wind turbine farms of 200 MW each or possibly one farm of 400 MW started in 2008 with a view to commissioning in 2012. In addition, work started on the updating of the offshore wind turbine action plan, which examines the location of new farms, the possible adjustment of the tender model, considerations of previous building maturity and open doors with payment as onshore turbines. Subsidies for new wind turbines will be increased to 25 oere/kWh for 22,000 peak load hours and 2. 3 oere/kWh in balancing costs and 0. 4 oere/kWh for the â€Å"green fund† (Energy Policy Statement, 2008). Rivalry can hardly be explained on a local level anymore as the wind turbine manufacturers have gone global and are operating all over the world today. In the earlier stage of the cluster, rivalry on the Danish market was tense – resulting in many take-overs and mergers and ending with one single true Danish company, Vestas. 8. 4 Related and Supporting Industries The background of the Danish turbine manufacturers was different from wind power companies in the U. S. , Sweden, or Germany. Names like Boeing, Lockheed, Westinghouse, MBB, and Siemens indicate a strong background in aircraft and generator manufacturing. Interestingly, however, practically all of today's remaining larger wind turbine manufacturers have a machinery manufacturing background rather than an aircraft background. Although modern wind turbine technology resembles helicopter technology, the operating requirements are very different (Krohn, 2002). A number of industrial enterprises have developed important businesses as suppliers of major components for wind turbines. LM Glasfiber A/S is the world's largest producer of fibre glass rotor blades for wind turbines, with an employment of more than 1,000 people. Danish manufacturers of electronic wind turbine controllers likewise have a very large market share worldwide. DanControl Engineering A/S, Mita Teknik A/S and DWC A/S produce controller and communication systems. Svendborg Brakes A/S is a leading vendor of mechanical braking systems. Also Danish subsidiaries of large international industries such as Siemens, ABB, SKF, FAG, etc. have developed businesses in the wind power industry (Danish Energy Authority, 2002). Other industrial service enterprises have created important businesses in servicing the wind power industry. For example companies are specialised in providing cranes for installations of wind turbines; providing transport of turbines, towers and blades domestically and for export. Service and maintenance of the more than 6000 wind turbines in Denmark is carried out by the manufacturers’ own service departments. But also a handful of independent service companies have been established for instance DWP Molleservice A/S and DanService A/S. Moreover, there are also specialised service providers like banks (Ringkoebing Bank has specialized in financing wind power projects), insurance companies, engineering and management consultancies (Andersen, 2003). The major Danish consultancies in wind energy utilisation are BTM Consult Aps, E Data, Tech-wise A/S, SEAS Wind Energy Centre, WEA ApS and Tripod ApS (Danish Energy Authority, 2002). Figure 3: Cluster Diamond [pic] Source: Team Analysis 9. Strategic Issues Facing Denmark and the Wind Energy Cluster Denmark is at the moment the leading centre within the field of wind power. However during the recent years a significant change in technology and markets has taken place. Denmark is faced with the challenge to maintain its leading position in spite of growing competition from firms operating in lower cost countries, especially China. The wind energy cluster and the political system must assume a proactive position towards this change to ensure that Denmark will strengthen its position as unique value creator. Denmark must provide the most effective wind power that ensures its best integration in the accumulated energy system, so that Denmark in the future can still provide wind power technology to energy systems with a large proportion of wind power. The industrial environment is built on a foundation which consists of a significant effort in research and education as well as innovative development focused on environmentally sustainability. This field of wind power is influenced by cooperation and knowledge-sharing to find technological development tracks. Nevertheless this foundation has been weakened regarding the cooperation within the industry, new technological tracks within the industry and education and recruitment. The Danish research-environment has a leading position within a number of areas, but great challenges in step with the rapid development of international markets put a lot of pressure of the Danish knowledge centre to hold on the talented researchers and students. In order to maintain the unique Danish position, an extraordinary effort must be put in. The strategic issues are focusing on both, development of the wind power industry by improving wind turbines and effectiveness of wind power, and the improvement of the knowledge centre regarding research and education. As innovation and demonstration focusing on the testing of windmills has previously been one-dimensional there are strategic issues to mentioned, that recommend an accumulated strategy for esting and demonstration of components and turbine parts, wind turbines and wind farms and wind power plants in the energy system, so that the facilities cover the whole value chain. Creating one strategy for the whole value chain with sub-strategies for each of the three dimensions would strengthen the integration and the competitiveness of the wind power industry. Another important issue regards the research effort. The long-term university research and education should be strengthened by prioritisation of fundamental or generic technologies that are part of the development of wind turbines and power plants. This also considers the whole value chain, so from turbine part until integration of the wind power into the electricity supply system (e. g. urbine design, blades, wind loads and sitting, integration into electricity supply system and offshore technology). Including a roadmap and measurable criteria for every area, this strategy could be developed by using the existing research environment as a basis and build on the efforts from previous research. Especially offshore technology research should be strengthened and framework conditions for cooperation between research institutions and industry. This could b e provided through common guidelines for the frames of cooperation. Following these recommendations, Denmark will be prepared to face the current challenges. 10. Policy recommendations for the appropriate constituencies National and regional authorities As Denmark faces now serious challenges in terms of the development of their cluster structure, it is essential that respective authorities undertake significant steps in order to prepare the environment for sustainable growth. First of all, it is worth mentioning that authorities have to actively participate in funding of regional growth environments. As well as this, they should encourage and support the emergence of appropriate initiatives, especially in those regions, where other constituencies have already been mobilized. Clusters in Denmark have proven to be a sufficient and effective tool in innovation policy and therefore it is necessary to sustain and improve their presence. Next, authorities have to focus on building sound economic framework, in order to create investment-friendly environment. As inflow of capital is inextricably connected with Denmark clustering strategy, it is necessary to maintain an incentive-oriented structure of attracting new investors. That step is also crucial in case the authorities are unable to further finance certain projects. Therefore, respective responsibilities have to be shifted to private sector. Companies and trade associations With the emergence of clusters, companies are starting to play increasingly more important role. They should – along with trade associations – be able to clearly formulate their needs and be able to influence the authorities to implement them. As well as this, it becomes their responsibility to focus more on investments in innovation. That is why it is necessary for respective companies and supporting associations to work together in creation of competence and knowledge centers. Universities As far as academic involvement is concerned, universities specializing in certain arts should play a supportive role in development of clusters. It has proven to work in the past, as Copenhagen Business School provided companies with field research and required theoretical frameworks. Therefore, the ties between academic and business world have to be tightened, so as to achieve a 360-degree cooperation of all the constituencies involved in projects. 11. Conclusion In this paper I analysed Denmark and its wind energy cluster. Denmark has a very stable and solid economy, but also faces some serious challenges in increasing productivity growth and educating and attracting human capital. Denmark’s heavy tax burden might be a hindrance. The wind energy cluster is by the end of its growth stage in its life cycle and now needs to innovate to keep growing. 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