The law concerning inventions at public research institutions (L347) permits research institutions to take over rights to inventions made by their employees, and obliges the institutions to try to commercialise the inventions they have taken over.

New knowledge, ideas and inventions from the public funded research can turn into commercial businesses in two different ways:

• The inventions are developed and utilized within existing businesses. This can take place through the sale of research patents and licenses from the institution.

• New knowledge based start-up is founded. This can take place when university researchers or employees in existing companies establish themselves as entrepreneurs.

Once the research institution has decided to exploit an invention, done by its researchers, the institution is obligated to start the process of commercialisation.
 
An alternative to selling the research patent is a licensing agreement or setting up joint ventures and partnerships to share both the risks and rewards of bringing new technologies to market.

The Danish Government’s Knowledge Strategy