INNOVATION MILJEUS

Regional Development in Norway[Name][Title]

Scenario

• The local cornerstone company closes down• Unemployment rises• People move• Brain drain

Hard for remaining businesses to adapt and grow Difficult to create start-ups/ attract entrepreneurs

Scenario

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• Pool the efforts!• Launch projects to enhance collaboration between

local community, local authorities and local industries

= What Regional Development Programmes aim to do

What to do?

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Regional Development Programmes in Norway

• CREATE JOBS!

The Ultimate Programme Goal

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• National level: Government• Regional level: County (regional authorities)• Local level: Municipality (local authorities)

3 Levels of Administration Involved

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• Up to six years • National funding. Extraordinary grants • Regional allocation of funds and follow-up of local

programmes

Regional Development Programmes in Short

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• Industry development projects• SME development• Entrepreneurship• Networking• Infrastructure projects

Regional Development Programmes in Short(continued)

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• National level I: Government Annual grants to county authorities, provided there is quality assurance

• National level II: Innovation Norway Assignment: Quality assurance partner National level, but operates locally

The Players

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• Regional level: County authorities Process programme applications from local authorities

Grant status as “Local Development Area” + funding

The Players (continued)

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• Local level I: Municipalities, local authorities Programme owner

• Local level II: The Programme Organisation

The Players (continued)

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1. Local authorities contact County authorities2. County administration carry out an Impact Study 3. Local administration prepares application4. County authorities• Process applications• Grant the municipality status as Local Development Area• Allocate funding for first year

The Road to Regional Development

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Where Does the Money Come From?

• Government grants allocated by County authority (NOK 2–4 millions per programme)• + 25 % self-funding by the Municipality

• Financial support from Innovation Norway (tools) (50–100% of total project cost, preparatory stages)

Programme Funding Scheme

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1. Industry development2. Development of local community and public services 3. Programme administration

How to Spend it?

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1. Industry development• Process and product development• Extraordinary start-up costs• Market research• Networking projects among local og regional industries• Hardware investments

How to Spend it? (Continued)

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2. Development of local community and public services• Mobilisation and motivation projects

• Service design projects in the public administration• Skills improvement

How to Spend it? (Continued)

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• Funds may be spent on early-stage processes only:• Research, mapping and ananlyses • Preparatory projects

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We Support Preparatory Work

Implementation in Four Stages

1. The Impact Study Main active player: Regional authorities

2. Strategy and planningMain active player: Project organisation

3. DevelopmentMain active player: Programme manager/CEO

4. ContinuationMain active player: Local authority (= programme

owner)

Regional Development in 4 Stages

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• Impact Study/ Consequence Analysis• County administration prepares and submits

application for Government funding

• 2–3 months

1. The Impact Study: Outcome

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• Draft Programme Strategy • Draft Action Plan, year one• Application to Regional Authorities for status as

Regional Development Area + funding

• 6–8 months

2. Strategy and planning: Outcome

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• Various local development- and collaboration projects• Fullfilment of goals as stated in the Programme

Strategy and annual Action Plans

• Up to 6 years

3. Development: Outcome

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• Established local unit (project organisation or Ltd.) to keep up the good work

4. Continuation: Outcome

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Performance Measurement

• The programme strategy must include quantifiable goals

Performance Measurement I.

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• Annual assessment workshops + reports• Programme management• Programme Board• Innovation Norway

Performance Measurement II.

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• Final programme assesment by external consultant• Mandatory• Organised by Innovation Norway

Performance Measurement III.

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National Competence Centre

• Innovation Norway: National level• But operates locally• Advisory role• Quality Assurance

National Competence Centre for Local Development

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• Programme and project management support• Strategy and business development tools• IN covers 50 % of consultancy cost

National Level: Developing the Field

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• Standardised templates to ease paper work • Courses, workshops and assessments• Mappings and analyses, preparatory reports • Preparatory projects only

Tools & Templates

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• Dedicated adviser from IN’s on-site regional office• Non-voting member of the Programme Board• Vertical/historical and horizontal/synchronous

knowledge and experience

Local Level: Executive Partner

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• www.regionalomstilling.no• Introductory guide: INTRO• Social media communication tool• Networking activities: conferences, workshops,

meet-ups

Communication

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Case I. VågsøyProgramme period: 2005–11

• New jobs • Population growth • More people commuting

• High unemployment rate• Employment fell by 40 % 1995–2000• Unbalanced industry structure:

heavily based on fisheries• Population decline (age group 20–39)

Vågsøy: Challenges

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Measurable goals in three areas• New jobs Growth in existing local businesses Start-ups

• Population growth• More people commuting

Vågsøy: Goals

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• Employment goals accomplished • Goal for population growth overachieved • More people are commuting in the region• Improved competitiveness

Vågsøy: Key Results

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• Programme organisation: a limited company• Local enterprises held the majority of shares

• Management & board had business development skills• Consensus on strategies and goals

Vågsøy: Success Criteria

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• Communication/PR• Management active in local media and the community

• Public information and updates on: plans, priorities, results

Vågsøy: Success Criteria

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Programme period: 2012–18

• Create 570 new jobs

Case II. Meløy

• March 2012: Cornerstone company REC Wafer closed down • 650 jobs lost• Total employment rate reduced by 20 % overnight

Meløy 2012–18: Challenges

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• 570 new jobs by 2018• 1500 new jobs by 2025

Meløy 2012–18: Goals

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• Make the most of comparative advantages within oil, gas and manufacturing• Create more robust industrial base• Fisheries• Travel industry• Agriculture

• Make Meløy a more desirable place to live• Focus on women’s opportunities and younger generations

Meløy 2012–18: Strategies

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Thank you!

Questions?

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