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Maybe. I'm not sure the analogy to companies holds, however. Small companies are innovative since they are growing, usually out of startups -- there really isn't an analogy of a "startup" for governments. At the very least, Denmark doesn't match that description.

BTW I was curious and looked at list of US states by human development index. There's no obvious correlation between size of a state and its ranking. https://en.wikipedia.org/wiki/List_of_U.S._states_by_America...

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