Bornholm is a Danish island located in the Baltic Sea, situated to the east of the rest of Denmark, to the south of Sweden, north-east of Germany and north of Poland. The island covers an area of about 588 square kilometres and is home to some 40,000 people (Statistics Denmark, 2023). The largest town on Bornholm is Rønne, which serves as the administrative centre of the island with a population of roughly 13,000. Nexø is home to some 3,500 people, Aakirkeby to around 2,000, while other settlements such as Allinge-Sandvig, Hasle, Svaneke, Gudhjem and other towns, have populations ranging from around 700 to 1,500. Around two-thirds of Bornholm’s population live in towns, while the rest is spread across the more rural areas.

Bornholm has a unique geographical location, which has shaped its economy, demography and development throughout the years. The main industrial activities have historically been fishing, agriculture and farming, and machinery industries, along with a rise in arts and crafts in recent years. The most important industry is tourism, which today is Bornholm’s largest source of income (Bornholm, 2023a). In recent years, Bornholm has also been exploring renewable energy sources to strengthen its economy. The island is known for its efforts in green energy, particularly wind power (Ferieøen Bornholm, 2023). Bornholm aims to become carbon-neutral and has been involved in various projects related to sustainable energy and smart grid technology.

The Danish Baltic island is not your typical cross-border region since it’s a fairly remote island and is only accessible by air or sea. Despite transport disadvantages, Bornholm sees itself as a fairly strategic location, with a central position between other regions and different countries. The island therefore sees its geographical location as an opportunity, especially within the growing maritime industry and offshore wind power production sector, as well as a ‘central’ hub between different countries in the Baltic. Bornholm has therefore tried to attract a more remote labour force that is only partially bound to any of the nearby regions through improved digital infrastructure and remote work opportunities (interviews).

It should be noted that from a remote work and digital distance work perspective, any region could be defined as a cross-border region. Since Bornholm has actively highlighted remote work possibilities on the island since before the COVID-19 pandemic and is located between different countries which it wants to create stronger ties with, Bornholm was viewed as an interesting cross-border case study area.

Local businesses on Bornholm rely on a few important sectors that drive the economy. Bornholm’s economy faced disruption after the collapse of the Baltic sea fisheries in the early 1990s which required a restructuring of economic activities and the labour market. Despite these challenges, the island proved to be resilient and quickly recovered as other industries absorbed the available labour force. However, the population and number of jobs on Bornholm have decreased over time, with some people moving away and many native residents retiring. Additionally, the lack of qualified labour has contributed to the decrease in employment, partly due to low levels of education. As a result, Bornholm is experiencing a shortage of various skills, and the demand for specialised skills is expected to increase in the future. The municipality and local businesses are working together to establish more cooperation to improve the situation.

The tourism industry is a major contributor to the local economy, attracting visitors mainly during the summer months. Agriculture and food production also play a significant role, with high-quality dairy products, grains, vegetables and fruits being produced on the island. Renewable energy is a growing sector on Bornholm, as the region aims to be carbon-neutral by 2025 and fossil-free by 2040. To achieve this, the island will focus on increasing green electricity production through new offshore wind farms and additional solar panels, supporting the establishment of a 100 MW offshore wind farm as a priority measure to move closer to a fully green energy supply (Bornholm, 2021).

The technology and IT sector has also seen advancements, with the island hosting a few IT companies and startups that leverage its digital infrastructure and skilled workforce. Manufacturing industries also play a vital role, and there is also a vibrant art scene. Bornholm produces niche products such as ceramics, glassware and furniture, with craftsmanship and design being of great importance, at least when it comes to the image of the island. The fishing industry, although small, utilises the island’s coastal access to fish stocks in the Baltic Sea, supporting local fishing and seafood processing.

Investment in further labour market development is challenging for Bornholm due to perceived risks, especially in comparison to other regions. The interviewees for the case study agreed that traditional jobs in industries such as agriculture and fishing would not return and therefore more emphasis has been placed on supporting and expanding existing industries such as machinery manufacturing and tourism (interviews). There have been few direct initiatives to create new large-scale workplaces or industries, while the aim has been to support and foster related fields that can provide services to the existing industries.

In addition, since before the pandemic, Bornholm has actively tried to become a suitable place for more specialised jobs, IT work and other occupations that do not require a specific placement (interviews). The need for improved digital infrastructure has been high on the local agenda as part of this ongoing initiative. Good digital connections are naturally vital for Bornholm to be able to take the next steps in developing itself as a remote working hub. This is something the local authorities want to build on since they have already had some success marketing the island as a green and innovative place, with its unique natural environment, rich history and culture, renewable energy resources and bioeconomy.

Denmark as such does not have a specific remote work policy although there substantial research has been done on it, e.g. by the labour market and public institutions. As such, remote work is integrated into many sectoral policies. The same can be said for the local level. In Bornholm, remote work has been on the agenda for a longer time and such discussions only accelerated during and after the COVID-19 pandemic. The Bright Green Island concept has been the central vision for creating a more sustainable society on Bornholm for about 15 years. This overarching vision guides all policies and actions within the municipality, putting sustainability at the forefront of everything the municipality does. Bornholm aims to rebrand itself as a sustainable destination while also enhancing its attractiveness to visitors and businesses (Visit Bornholm, 2023).

The core objective of the Bright Green Island vision is to achieve a 100% sustainable and CO2-free society. It strives to create sustainable and environmentally friendly solutions that benefit both residents and guests while promoting growth and attracting new businesses. This ambitious goal aims to demonstrate to the world how a small island can address pressing global challenges such as resource scarcity and climate change in a sustainable manner. Bornholm aims to achieve this while considering the needs of its residents, businesses, infrastructure and visitors, with the hope of attracting some visitors to become permanent residents.

The Bright Green Island vision focuses on four main interconnected topics: sustainable business, the good life, green technology and Bornholm as a natural destination. The aim is to involve all sectors of the economy and society to forge a new identity for the island. The Bright Green Island vision influences all other policies on Bornholm, and its goals permeate all areas of decision-making. This includes the business development strategy, which is formulated every four years by Bornholm’s Growth Forum, as well as the development plan, regional development plan, municipal strategy and Local Agenda 21 strategy. These plans are regularly reviewed, and annual plans outline concrete tasks and initiatives needed to implement the Bright Green Island concept. The concentration on sustainability has garnered attention for Bornholm, attracting more visitors and even new permanent residents. In order to achieve the municipality’s goals for development, all stakeholders, such as businesses, educational institutions, social partners and the local council, collaborate to define objectives and priorities. This collaborative approach ensures that policies complement each other and contribute to the overall vision of the Bright Green Island concept.

Analysis on remote work in Denmark, conducted and published by HBC Economics in 2023, indicates that telecommuting has seen a significant increase due to the COVID-19 pandemic and is now more common across many industries. In Denmark, over one-third of employees regularly work from home at least one day a week, and almost 30% of workers wish to have more telecommuting opportunities than currently offered by their employers. The extent of telecommuting varies based on job types and industries, with six out of ten knowledge workers working from home at least one day a week, compared to only 15% of employees in social and physical jobs. Telecommuting is most prevalent in the Capital Region, attributed to differences in the structure of the labour market, including job types and industry structures (HBC Economics, 2023).

The distribution of people telecommuting across different regions in Denmark is of relevance due to the regional variations in settlement and job seeking patterns (interviews). While the current extent of telecommuting in the Danish labour market may not fully reflect its future potential, there is a great potential for increased telecommuting in the future. Many employees would like more telecommuting opportunities than their employers currently permit, with nearly 3 out of 10 employees in the entire labour market expressing this desire. Unlike in the past, there are no significant differences across job types in terms of employees’ desire for more telecommuting, suggesting that this is not solely due to tasks that cannot be performed remotely (HBC Economics, 2023). These findings indicate that employees in the Danish labour market are generally satisfied with telecommuting and wish to have more opportunities for it. The interviewees for this study agree with this assessment. Therefore, companies should consider the importance of telecommuting in supporting employee retention and recruitment. It is also worth noting that telecommuting can become a competitive factor for attracting and retaining employees, as indicated by job advertisements. As a result, telecommuting is expected to become more widespread in the future labour market than it currently is according to the interviewees in Bornholm (interviews).

While the full effects of remote work on rural development, mobility and job transitions are still unknown, remote work has shown to have positive implications for work-life balance, mental well-being and job satisfaction (HBC Economics, 2023). Aspects like these are often highlighted by those working with the subject in Bornholm, who further point out that employees perceive improved efficiency and quality of work with remote work, and that it can promote a performance-based culture and enhance company agility. However, there are also challenges mentioned in terms of collaboration and development tasks in hybrid work environments. Different workers may have varying perspectives on the benefits and challenges of remote work (interviews).

Being an island in the Baltic Sea, Bornholm has limited traditional cross-border possibilities. However, there are still some cross-border opportunities that exist for the island, leveraging its unique geographical location. Bornholm benefits from ferry connections with neighbouring countries like Germany, Sweden and Poland. These connections provide avenues for cross-border travel and the transportation of goods, fostering economic cooperation and cultural exchange. The island’s attractiveness as a tourist destination further facilitates cross-border interaction, with visitors coming from neighbouring regions.

In addition to tourism, Bornholm’s economy revolves around agriculture. This presents opportunities for cross-border trade, be it exporting agricultural and food products, or importing goods required by the local market. Moreover, Bornholm’s location and geographical characteristics offer possibilities for cross-border research and collaboration. Partnerships with universities, research institutions and businesses from neighbouring countries, have been discussed as possible fields to explore. Especially when addressing environmental, energy and sustainable development challenges and solutions, which have been associated with Bornholm’s image in previous years.

While the physical constraints of Bornholm’s location may limit its cross-border possibilities, there is potential for the island to focus on digital cooperation. Bornholm can actively foster partnerships in areas like technology, research and entrepreneurship. Through cross-border e-commerce, data sharing, innovation hubs and joint research projects, Bornholm can promote digital collaboration, exchange knowledge and support the growth of digital startups and initiatives. Bornholm’s unique geographical location also provides avenues for collaboration in renewable energy and sustainability. This has in fact been a field Bornholm has advanced in, as it tries to establish itself as a hub for servicing new and planned wind power plants in the Baltic sea. With access to wind, sun and sea resources, Bornholm could further develop joint projects to harness renewable energy and implement sustainable practices.

Bornholm faces certain challenges in terms of cross-border cooperation and utilising its geographical location. Being an island, physical connectivity can pose logistical difficulties for the movement of goods and people. The limited transportation infrastructure, compared to land-border regions or areas with extensive air connectivity, requires efforts to improve links and foster cultural understanding. But as a digital cross-border area, with certain advantages as a centrally located island in the middle of many different countries in the Baltic sea, possibilities do exist. This is something the authorities in Bornholm realise and are actively working towards. This however demands both resources and commitment at the national level, as well as from established businesses in both Denmark and neighbouring countries. The allocation of resources, both financial and human, is therefore a challenge since sufficient resources are required to support cross-border cooperation efforts, such as funding joint projects and personnel dedicated to facilitating collaboration. Differences in regulatory frameworks, language barriers and disparities between digital infrastructure and internet connectivity can complicate such cross-border initiatives. Therefore, coordination, alignment of regulations and policies, and addressing such disparities become crucial steps to streamline activities and ensure compliance. Despite the challenges, proactive efforts and strategic planning would help Bornholm overcome these obstacles and maximise the possible benefits of cross-border cooperation. By capitalising on its unique geographical location, the island can foster economic growth, become a hub for digital innovation and sustainability, and enhance its position in the region.

Something highlighted by the interviewees in Bornholm is the importance of well-functioning co-working spaces. On Bornholm, there are said to be valuable opportunities for entrepreneurship, networking and collaboration among professionals (interviews). These spaces act as platforms for knowledge sharing and innovation, fostering the growth of new businesses and contributing to economic development on the island. However, there are challenges in terms of the availability of infrastructure, resource accessibility, and attracting a diverse and vibrant community of professionals. Effective management and government support are crucial to ensuring the long-term viability of co-working spaces, enabling them to continue fostering innovation and entrepreneurship. The municipality of Bornholm has supported such initiatives and continues to do so. As a result, connectivity is steadily being increased on the island as part of the strategy and policy to secure more equal access.

Public job initiatives play a pivotal role in generating employment opportunities in rural areas like Bornholm. In recent years, many public sector jobs have been actively moved to more rural regions and now, in the aftermath off the pandemic, remote work options are being considered for public positions. These initiatives also aim to attract more people and enhance the employability of residents. The Danish authorities acknowledge that they can successfully stimulate sustainable economic development and job creation through financial incentives, training programs and infrastructure support. Challenges do however arise in aligning job initiatives with specific regional needs, ensuring equal access to opportunities, and developing institutional capacities for effective implementation. Collaboration between government bodies, private organisations and local communities is necessary to overcome these challenges and maximise the potential benefits of job initiatives. This is something both the local and national authorities aims to coordinate.

Bornholm’s attractiveness stems from its natural and cultural resources, which offer tremendous potential for the development of tourism. However, Bornholm faces challenges related to seasonality, limited infrastructure and the delicate balance between promoting tourism and preserving local environments and communities. Sustainable tourism practices, community involvement and strategic planning are key to maintaining Bornholm’s attractiveness while mitigating associated challenges. This is something Bornholm has actively addressed and taken into account when developing their Bright Green Island plan, where public participation in the policy process is encouraged. This has partly been done to try and adopt sustainable tourism practices and ensure the long-term viability of its tourism industry while preserving its natural and cultural heritage.

The availability of robust physical and digital infrastructure is crucial for overall regional development (Bornholm, 2023 and interviews). A well-connected transport network, including roads, ports and airports, ensures easy accessibility, trade opportunities and connectivity with the mainland. High-speed internet and digital services enable remote work, knowledge sharing and e-commerce. Challenges exist in ensuring equitable access to infrastructure, particularly in rural areas, enhancing transmission capabilities and fostering digital inclusion. Moreover, the housing sector plays a critical role in rural development by addressing local and second-home needs. Challenges include housing affordability, limited availability for local residents and ensuring social sustainability amid rising second-home ownership. One of the main challenges in Bornholm is related to housing, since a large share of the houses are second homes, and many houses are old and do not meet today’s standards (interviews). Even though Bornholm has quite a lot of empty houses, many are often too big, meaning there is a lack of smaller apartments to accommodate individuals and some families. Collaboration between government bodies, private developers and community organisations is crucial to finding viable solutions.

Bornholm, with its unique blend of natural beauty, cultural heritage and geographic advantages, holds immense potential for cross-border collaboration, sustainable rural development and economic growth. By prioritising digital cooperation and leveraging its favourable location, the island can explore and expand cross-border opportunities in domains such as tourism, trade, research and cultural exchange.

To fully harness this potential, Bornholm must address challenges through coordinated efforts, resource allocation and alignment of regulations. By fostering strategic planning, community engagement and collaboration, the island can unlock its potential for sustainable rural development, creating inclusive and resilient communities.

Bornholm’s traditional industries of fishing, agriculture and tourism have laid a strong foundation for its economy. However, it is crucial to diversify the economy, reducing reliance on these sectors while fostering new economic opportunities. Embracing green and renewable energy initiatives can play a vital role in propelling the island towards a more sustainable and environmentally friendly future.

Attracting remote workers and digital nomads by investing in digital infrastructure and promoting co-working spaces can further boost Bornholm’s economy. The island’s serene and nature-centric lifestyle, coupled with its small size and close-knit community, offers a unique work environment for remote workers to engage with local businesses and participate in community activities.

To foster sustainable tourism, Bornholm should highlight its natural landscapes, cultural heritage and environmentally conscious practices. By becoming a responsible travel destination, the island can attract tourists seeking authentic and eco-friendly experiences. Supporting local businesses, entrepreneurship and innovation will also play a crucial role in stimulating economic growth and countering depopulation trends.

In conclusion, Bornholm has the opportunity to embrace its cross-border potential, promote sustainable practices, and create a vibrant and resilient economy. By focusing on digital cooperation, sustainable rural development and harnessing the advantages of its location, Bornholm can position itself as an attractive destination for remote workers, while preserving its unique natural landscapes, cultural heritage and quality of life for its residents.