While All Eyes Were on Silicon Valley, a Danish City Was Quietly Shaping Its Future. Today It’s Established Itself as the Capital of Robotics

Odense’s shipyards have long shaped the city’s industrial identity. For nearly a century, the Danish city’s engineers constructed some of the world’s most advanced container ships, including the Mærsk E class, which were the largest cargo ships ever built at that time. However, over the years, the country’s shipbuilding industry experienced a decline. From the late 1970s onward, shipbuilding gradually shifted to South Korea, Japan, and China, where production costs were significantly lower.

The Danish government implemented state subsidies, export credits, and strategic orders to mitigate the crisis. However, the downward trend proved difficult to reverse. Between 1977 and 1985, the market share of European shipyards fell from 41% to 18%. Meanwhile, Asia’s share increased from 46% to 70%, with China emerging as a key competitor.

Odense wasn’t immune to these changes. Until the late 2000s, shipping company Mærsk had built many of its vessels at the Odense Steel Shipyard. However, growing competition from Asian yards prompted the company to reassess its strategy. According to the Taipei Times, Mærsk commissioned Daewoo Shipbuilding & Marine Engineering in South Korea to construct its new Triple-E class containerships in 2011.

What could have led to the city’s industrial collapse became a turning point instead. Although Denmark couldn’t compete with Asia in terms of cost, it found an alternative in high-value-added technology niches. Instead of focusing on shipbuilding, local industries began to develop more innovative marine engines, port automation software, and advanced thermal systems.

Odense quickly adapted to this shift. The transition wasn’t instantaneous nor the product of a perfectly executed master plan. Rather, it was a response to immediate necessity. Without shipyards or large naval contracts, the city sought new alternatives. Public investment played a crucial role. Local universities also contributed, and the industrial ecosystem used the resources available to it. Robotics and automation emerged as promising pathways, allowing Odense to leverage the expertise inherited from its shipbuilding legacy to create new opportunities.

Transforming a city is a complex undertaking. Attracting startups and providing tax incentives aren’t enough. Governments must cultivate talent and persuade companies to remain. Most importantly, they need to demonstrate there’s a market capable of sustaining these efforts long-term. Odense is currently in this crucial phase. Its former industrial heartland is becoming a hub for companies eager to enter the robotics sector, including two prominent entities: Universal Robots and Mobile Industrial Robots.

Universal Robots focuses on collaborative robots, known as cobots. These are designed to work alongside humans in factories without the need for safety barriers or intricate programming. Traditional industrial robots are usually confined to cells and perform repetitive tasks with speed and force. However, cobots are engineered for direct interaction with human operators. They shouldn’t be confused with humanoid robots, though.

Meanwhile, Mobile Industrial Robots specializes in autonomous mobile robots, which can navigate warehouses and logistics centers to transport goods.

A Booming Technology Cluster

The expansion of companies like Universal Robots hasn’t happened in isolation. A significant factor in Odense’s transformation has been the development of a technology cluster focused on robotics. It’s now considered one of the most dynamic in Europe. More than 300 companies in Denmark are involved in robotics and automation, with over 160 headquartered in Odense.

This ecosystem started to form between 1980 and 1990 when experiments with robotics technology began at the Odense shipyards. However, its true establishment occurred over the past two decades. According to the Odense Robotics Insight Report, the number of companies in the cluster grew by 50% between 2015 and 2020. At the heart of this network is the University of Southern Denmark, which not only supplies talent for companies in the sector but also leads research in automation and AI.

Local authorities are confident: Odense aims to be a leader in robotics and the best city in the world for robot development. “Odense is already the world center for collaborative robots, but we dream of making Odense the world’s best robot city,” the local government says, according to a translation provided by Google Translate. Notably, this is more than just a slogan: It’s a strategy that’s already underway.

A key component of this plan is the creation of a robotics campus where startups, large companies, and the University of Southern Denmark can collaborate on research and share ideas. This space is envisioned as an innovation hub that fosters direct connections between emerging talent and established companies. The aim is to strengthen the existing network among businesses in the cluster and enhance the city’s attractiveness for foreign investment.

Odense Is Betting Big. Time Will Tell If It’ll Pay Off

The city has made a strong commitment to making robotics its primary industry. It has a clear strategy in place, and investments are already underway. It also has an established network of companies operating in this field. However, the biggest challenge still lies ahead: transforming this ecosystem into a sustainable model for the long term.

Odense isn’t competing in isolation. The global robotics landscape has become a technology race, and only a few players will likely achieve consolidation. China aims to lead the world in automation. As such, it’s investing billions in cities such as Shenzhen and Hangzhou, where large-scale development of industrial and service robots is underway. Additionally, companies like Unitree are trying to replicate the success Xiaomi had in the mobile sector. China’s dominance in robot manufacturing is a technological threat to the U.S. and ignites a battle for hegemony in the robotics industry.

For its part, Silicon Valley remains one of the primary centers of innovation. Tech giants like Google are venturing into robotics through several projects. For instance, Gemini Robotics aims to bring AI out of screens and into the real world, enabling robots to become more autonomous and adaptive. Sunnyvale-based startup Figure is also working toward creating the first commercially viable autonomous humanoid robot. This combination of generative AI and advanced hardware is poised to play a crucial role in the future of automation.

However, innovation in robotics isn’t confined to Silicon Valley. In Austin, Tesla is making strides in mobility-related automation and AI. Meanwhile, Boston Dynamics in Waltham, Massachusetts, continues to push the boundaries of advanced robotics, moving beyond its earlier concepts. The future of robotics isn’t just about enhancing hardware. It’s also about integrating generative AI into physical robots–a significant leap that could reshape the industry.

In this context, Odense faces competition not only from cities in the U.S., China, and Europe but from a global race to become the robotics capital of the world. To succeed, the Danish city must demonstrate that its commitment to automation and collaboration between academic institutions and businesses can be maintained over the long term.

Denmark offers a unique advantage that few other places can match: a highly competitive and stable societal model. According to IMD’s World Competitiveness Ranking, the European country was the world’s third most competitive economy in 2024, behind only Singapore and Switzerland. This recognition underscores Denmark’s ability to adapt to global changes and solidify its position as a hub for technological innovation.

For every established company, there are numerous newcomers striving to survive in a fiercely competitive industry. The challenges are massive and include attracting investors and retaining local talent. Convincing industrial giants that Odense can evolve beyond being just a well-intentioned experiment will also prove complex. While the city has laid a solid foundation, the ultimate test will be to demonstrate its potential to become the robotics capital of the world.

Images | Sufyan | Odense Robotics | Universal Robots | Mobile Industrial Robots

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