Denmark has the world's eighth most competitive economy according to the newly-released global competitiveness report from Swiss business school the International Institute for Management Development (IMD).
The nation's eighth place ranking is one position higher than last year's report and put Denmark just ahead of neighbours Sweden and Germany. Norway nipped Denmark by one spot.
Denmark was ranked number one in the world for green technology and was also singled out for the competitiveness of its labour market and its business efficiency.
According to IMD World Competitiveness Center director Arturo Bris, nine of the top ten overall countries were also top performers in business efficiency.
"Simply put, business efficiency requires greater productivity and the competitiveness of countries is greatly linked to the ability of enterprises to remain profitable over time," Bris said.
"Increasing productivity remains a fundamental challenge for all countries," he added.
The competitiveness study also found that Denmark has the world's highest public expenditures on education and the third best overall infrastructure.
The United States topped the list, followed by Hong Kong and Singapore. The highest-ranking European nation was Switzerland at number four.
Even though the IMD ranking represented an improvement over last year, Denmark has come out even better in other similar reports. In December, Forbes magazine declared Denmark the best country in the world for business, while the World Bank's Doing Business report put Denmark as the fourth best in the world and the top country in Europe.