Danish Cybersecurity funds end up abroad – A new initiative aims to strengthen the Danish market

In partnership with the Danish Industry Foundation, Digital Research Centre Denmark (DIREC), the National Defence Technology Centre (NFC), and Security Tech Space (STS) have selected seven cutting-edge research and innovation projects designed to strengthen Danish SMEs in the cybersecurity industry.

“We are facing a critical challenge. Denmark is one of the world’s most digitalized countries, yet we produce far too few of the cybersecurity solutions that we use ourselves. By supporting research within SMEs, we aim to build technological capabilities that can both counter emerging threats and secure our digital sovereignty,” says Thomas Riisgaard Hansen, Director of DIREC.

The initiative, which focuses on strengthening collaboration between research institutions and businesses, is backed by DKK 18 million in funding. The goal is to accelerate the development of competitive Danish cybersecurity solutions for both civilian and defence applications.

“Denmark has several strong cybersecurity research environments and, fortunately, a growing cybersecurity industry. However, there is huge potential in fostering closer collaboration between the research community and the business sector to develop the next generation of advanced cybersecurity solutions. This presents major opportunities for both growth and improved security,” says Malene Stidsen, Program Manager at the Danish Industry Foundation’s Cybersecurity Program.

From import to innovation: SMEs taking the lead

The Danish cybersecurity market is growing, but it remains heavily reliant on imported solutions. Danish companies primarily serve as service providers and niche players, rather than developers and owners of core cybersecurity technologies. This needs to change, says Aleksander Moos, Principal Cybersecurity Advisor at NFC and project manager:

“We need a stronger domestic ecosystem where small and medium-sized enterprises can access world-class research and build solutions that not only serve the local market but can also be exported internationally. This is about more than just technology – it’s about sovereignty and creating better conditions for sustainable businesses.“

By strengthening collaboration between universities, GTS institutes, and Danish SMEs, research-based cybersecurity knowledge can be transformed into innovative products and services.

The research projects focus on three key areas:

Theme 1: Development, implementation, and verification of software, protocols, and systems

How can we build secure software systems that are difficult to hack or compromise? This theme focuses on developing tools and techniques to verify software security throughout the development process, ensuring that security is a fundamental feature of digital solutions.

Theme 2: Monitoring critical digital infrastructure

Critical infrastructure is particularly vulnerable, as cyberattacks targeting these systems can have severe consequences. This theme explores technologies to monitor and protect Denmark’s critical infrastructure against hybrid threats.

Theme 3: Security in AI systems

AI systems rely on constant data exchange, such as through prompts or video feeds. For many companies, it is difficult to control where data flows and who can access it. This presents a security risk, including exposure to espionage and the leakage of sensitive personal information.

Selected projects include:

• Threshold key management

  Developing advanced, quantum-resistant methods for secure digital key management.
• DIPS in space

  Protecting satellite systems from cyberattacks by deploying artificial intelligence directly onboard satellites.
• Clearsight
  
Creating an active platform for detecting digital threats and monitoring critical infrastructure across Europe.
• SECUREAM
  
Using blockchain-based security to ensure data integrity and help industry players meet regulatory requirements.
• Training robust NIDS

  Combining artificial intelligence and formal methods to enhance network monitoring in complex and dynamic IT environments.
• Multilingual privacy

  Developing analytical tools to detect and prevent sensitive data leaks in mobile and multilingual applications.
• Security by design for AI startups

  Creating practical guidelines and methods to help AI startups integrate security from the earliest development stages through to full implementation.