The Government’s New Proposal Allocates DKK 19 billion to Research Over Four Years - AU Rector Calls the Plan Wise and Well-Considered

Every autumn, the government and the parties in the Danish Parliament negotiate how to distribute the so-called research reserve funds - the billions allocated to research for the coming year, in addition to the basic funding that universities receive annually.

But the government wants to put an end to this short-term approach to setting priorities. On Wednesday, Minister for Higher Education and Science Christina Egelund (Moderates) presented the proposal at the University of Copenhagen’s innovation centre - a plan the government describes as a breakthrough in Danish research policy. 

In its new proposal, the government suggests that research reserve funds should be implemented over four years in a long-term, strategic plan for government investment in research and innovation in the coming years. 

The proposal means the government will allocate multi-annual grants to selected areas instead of negotiating this with the parties in the Parliament every year. Of course, Wednesday’s proposal will have to be negotiated with the parties in Parliament, and according to Minister for Higher Education and Science Christina Egelund (Moderates), the negotiations began on Wednesday afternoon, right after the presentation at the University of Copenhagen.

The government will allocate a total of DKK 19 billion in the period 2026-2029 to research and innovation in the areas of "critical technologies, green transition and health - and to non-targeted research and innovation funds". DKK 3.8 billion is allocated to non-targeted research and innovation funds. DKK 6.9 billion for Denmark's security, critical technologies and defence research. DKK 6 billion for green transition and DKK 3 billion for health and life science. 

Funding will come from the research reserve funds and the government's Finance Bill for 2026. 

"If Denmark is to stand stronger in a new reality, we must become better at setting a clear direction.  “If Denmark is to stand stronger in a new reality, we must become better at setting a clear direction. And that requires us to think more strategically and in the long term. Therefore, it’s also time for us to break with the tradition that has prevailed for many years, where we meet once a year and distribute a growing number of billions with only a one-year perspective," the minister said on Wednesday. 

Permanent increase in basic funding

The government will allocate DKK 3.8 billion in non-targeted research and innovation funds, increasing universities’ basic funding by DKK 500 million annually until 2029. During last year's negotiations on the research reserve funds, the basic funding was increased by DKK 500 million for 2025. The remaining DKK 1.8 billion will go towards "more innovation and knowledge-based entrepreneurship." 

"Over the past several years, there has been a shift in the balance, with more and more of the universities' funds being tied up in very specific projects. It’s good that our universities are so successful at securing funding from the EU and private foundations, but there’s a need to create a better balance. The non-targeted research funds are the ones that finance the truly bold ideas. It is with basic funding that we can increase risk tolerance in Danish research," Christina Egelund said. 

AU RECTOR: "Wise and Well-Considered"

AU Rector and Chair of Danish Universities Brian Bech Nielsen was also present at the presentation of the proposal, which he called "wise and well-considered."

"The first aspect concerns the long-term perspective. Research must have a long-term horizon. We can't just keep turning it up and down. We need to employ people with a long-term perspective so that they can carry out their work effectively. The other - and I find this a great pleasure, and I see it as a sign of trust in the universities - is that the basic funding is now being increased for a four-year period,” Brian Bech Nielsen said.

He also highlighted the billions invested in innovation at universities and pointed out, in this context, that there’s a need for cultural work at Danish universities with regard to innovation. 

Morten Meldal, professor at the University of Copenhagen and Nobel Prize winner in Chemistry, who took part in a panel discussion at the presentation, emphasised that “everyone should adopt a ‘yes mindset’.”

“That is a good initiative from the government. The long-term perspective is extremely important for research,” Morten Meldal said.

During the panel debate, Chair of the Carlsberg Foundation Board Majken Schultz supported the minister's point about the interplay between more targeted funds and non-targeted research funds. The nature of private funds contributes to some extent to creating imbalances at universities, she explained. She welcomes the increased attention now being given to this issue. Furthermore, the current funding methods result in short-term employment, which isn’t attractive, Majken Schultz explained. 

"As a fund, you sometimes find that you are putting too much money into temporary positions, when you could perhaps use the fund's money better and more wisely by thinking in a broader context," she said. 

RESEARCH AND INNOVATION ENVIRONMENT TAPPED MINISTER ON THE SHOULDER 

The research reserve – which amounts to around 1 percent of GDP – has grown in recent years and this year amounts to DKK 6.3 billion. However, if you look at the proposal, the research reserve funds amount to DKK 4 billion for the period 2027-2029, and several areas will only be funded in 2026. Christina Egelund explains that the reserve is actually bigger than it looks, because it grows with the rest of the economy, but that money is kept freely available. This means that the parties must still allocate research reserve funds annually, though less than before. 

“There must be some form of budget security in case the economy suddenly takes a downturn. There must be room for manoeuvre. We can’t know for certain how much 1 percent of GDP will be in 2029. And then there must also be room for quick reaction if something happens. All the money shouldn’t be tied up," Christina Egelund said:

“Next year, we hope to have a broad political agreement covering the four years, but there will still be DKK 2-3 billion left to allocate for 2027.”

When asked what difference it makes that research funding will now be allocated over four-year plans instead of annually, the minister replied that it isn’t really a sudden change. And that she can’t take full credit for the proposal.   

"Good people from the Danish research and innovation environment began tapping me on the shoulder over two years ago," the minister said, and continued:

“In a European context, Denmark spends a lot on research, and this, combined with the fact that research and innovation are moving higher up the international political agenda, is significant. If we want to be able to defend ourselves or become more competitive, there are certain technologies we need to master. When it becomes important, it doesn’t make much sense to just say, ‘Let’s do a one-year plan’,” Christina Egelund said.

Although the government is now negotiating with the parties in the Danish Parliament about the proposal, Christina Egelund informed them that two things aren’t up for negotiation. 

"We are democratically minded, so of course, things are negotiable. But some things are non-negotiable. For example, it isn’t negotiable that we will increase the basic funding for universities. It is also non-negotiable that we take a long-term view in certain selected areas of research,” said the Minister for Higher Education and Science, who added that “it is extremely important not to forget the humanities and social sciences.”

This text was machine translated and post-edited by Lisa Enevoldsen