Multipliers

In general a foreign supplier's industrial co-operation obligation will be credited with the value of the contracts it has entered with Danish companies. Certain contracts including R&D, training, technology transfer, marketing assistance, financial assistance, or other transactions which substantially benefit and enhance the technological level and market opportunities of Danish companies may incur multipliers.

Multipliers do not apply under a Banking Agreement when the terms of an existing Industrial Co-operation Contract are fulfilled, however, it is accepted in a Pre-qualification Banking Agreement.

All projects including multipliers need pre-approval by DECA before commencing.

Multipliers above 10 will not be approved.

Marketing assistance is normally not approved with a multiplier. However, offset credit can be accepted for the resulting sales in a limited time period and within a preset financial frame.

Transfer of technology or know-how can be credited with multipliers of up to 10. The multiplier related to transfer of machinery or equipment is dependent on the uniqueness of transfer and its availability on market conditions. Normally a multiplier above 5 will not approved in connection with transfer of machinery or equipment.

Immaterial transfer of knowledge such as transfer of licences and other IP-rights or training can be approved with a multiplier. If the value cannot be determined on market basis, it can be established based on the value for receiving company.

Multipliers may be included in satisfying any portion of the Industrial Co-operation Contract. However, multipliers can not be used in combination with reward for the over-fulfilment under the 30 per cent requirement. (See Incentives in ICCs exceeding DKK 100 million.)