Knowledge-based regional activity in the North

Ministers – ladies and gentlemen.
Thank you for the invitation to this conference.
As minister for regional development I experience the importance of higher education in our regions to ensure equal living conditions and to utilise all resources throughout the country.

Therefore education and knowledge-based jobs are a top priority in our High North Strategy.
The Norwegian Strategy for the North was launched in December 2006.
It is still on the top of the political agenda with involvement of several ministries.
A new white paper is due to come soon.

 

The driving forces in the north are:
• A dynamic and good relationship with Russia
• The huge resources in the area
• Increased marine production- including fish farming
• Oil and gas development
• New transport routes
• Climate change

My Ministry has four activities for regional development in the North:

1. Business development
   Activity on shore
2. Physical Infrastructure
   In particular broadband
3. Arctic Knowledge
4. East- West Cooperation

This conference is an example of the last bullet point.

I will in focus on the third action plan – the importance of knowledge.

Our vision is that Norway in 2020:

• is a leading research nation in the northern areas
• is a highly respected manager of the resources in the north
• that the northern region is known for its dynamic, diversified industrial and research & development sector

Our main approach is to finance research in and for the Arctic and the Northern regions.

The Government will pay more attention to onshore activities in the north.

Our concern is to create jobs, economical development and to promote innovation and local ownership in the region.

The fisheries, tourism, mineral-related industries, environmental
technology and biotechnology are important onshore priority areas.

They will play a key role in the development of the knowledge-based economy of the future.

By focusing on onshore business development, we will create a sounder basis for exploiting the full potential of the north – both offshore and onshore. The intention is to make use of Northern Norway’s natural advantages to strengthen our competitive basis and increase value creation.

The Government’s aim is that everyone should be free to settle where they wish, and to utilise the potential for value creation in all parts of the country.

It is also our aim that rich natural resources shall create viable jobs and economic development where it is exploited.

Knowledge is the key to business development in the High North.
It is only by building knowledge for, about and in the north that we can make use of the unique opportunities these areas offer and resolve the challenges we are facing.

A qualified labour force is crucial to the development of the business sector and public services.

In addition we need to make sure that young Norwegians can become entrepreneurs, and start their own businesses.
This is one of my strongest priorities.
We promote this through several measures.
Among them the organisation Young entrepreneurship, a mentoring program and entrepreneurship education at college and university.

Northern Norway is facing a lot of challenges. At the same time these challenges give the business sector in the region a comparative advantage.

This requires that companies and research institutions in Northern Norway are able to translate the experience-based knowledge of their employees into documented knowledge.

For example, this applies for the need for knowledge-based business development and the spin-off effects created by oil and gas development in an Arctic climate.

One example of a joint strategic effort across County borders is the knowledge infrastructure program to boost research in the north.

It’s overseen by the Research Council of Norway and financed by the Ministry of Local Government and Regional Development. The budget is NOK 210 million, (266 000 euro). The primary objective initiative is to strengthen and develop knowledge- based development processes in Northern Norway. This will be conducted through long-term research in close cooperation with research groups, educational institutions and industry. The thematic priority areas are tourism and hospitality and Arctic technology.

The initiative’s secondary objectives are as follows:

• To generate research-based knowledge that lays the foundation for innovation, value creation and industrial development in the priority areas.  
• To strengthen existing networks and forms of cooperation and to develop new ones.
• To enhance the attractiveness as a study location, as a workplace for researchers and as partners in collaborative research and development efforts.
• To support the educational and research institutions in their efforts to produce highly qualified graduates and provide relevant knowledge for industry and the public sector.

The program involves different projects and 21 PhD students (12 women and 9 men):

• The international dimension and the Arctic dimension
• Environment and biological resources
• Energy, petroleum and mineral resources
• Community development in the northern areas
• Knowledge-based industry development
• Exploiting the unique research potential of the northern areas

This program will be on our budget the next five years.
I am sure this will bring more knowledge-based jobs for young people living in the north.

More knowledge jobs is exactly what was recommended by a government commission published in Norway in March. 
We will bring some of the proposals from the commission in to our general regional policy. Among them the importance of:
• Infrastructure –  roads and high speed network
• Regional high schools and universities
• Alternative work - for other members in the families

It is good national policy to continue creating work for highly educated people in all regions of the country. This is the only way to secure the highest possible value making.

Norway has derived great advantage from an increasingly global economy. We have benefited from good prices on exporting raw materials, high demand on knowledge intensive services and cheaper consumer goods from low cost economies.

At the same time globalizing has demanded advanced reorganizing. It has challenged trade policies, redistribution policies and regional policies. The level of needed adjustments varies largely from county to county. On some occasions we have not succeeded in securing jobs after job reductions and shut-downs.

The government commission paper points out that the knowledge-based businesses are central in creating growth also in other businesses around them.
It is an extra challenging situation that those businesses are unevenly distributed throughout the country.
Diffusion and creation of knowledge-based jobs and businesses are necessary to bring the whole country into service and to take advantage of our resources - both human and natural.
The alternative is wasting human capital.
The commission emphasizes that to be able to manage this it is crucial to secure a reasonable geographic diffusion of jobs for highly educated people.

I am sure it is doable.

Both big and smaller communities have shown great ability to adapt.
As the document emphasizes, this is a competitive advantage for Norway.

Regionally based institutions of education are essential to keep up the dynamic of the regions. They maintain knowledge and qualified employees to the businesses, and are alone large knowledge based workplaces.

I am glad to say that we already have such institutions in many different places in Norway.

The commission has some interesting suggestions on how to improve the cooperation between education and businesses. At the same time some institutions are more specialized than others. This counts for popular institutions that attract students from all over the country and provides the whole country with highly competent workers. 

National policy can influence on a more balanced diffusion of knowledge-based jobs. We can move parts of state owned businesses from the capital area, strengthening use of remote work and give incentives to state bodies and directorates etc to move activities out in different parts of the country.

As you may have noticed, the government sees the development of the northern part of Norway as an important part of our High North and Arctic policy.

Although the Arctic region is changing at a very fast pace, three objectives remain the same:
- to preserve peace, predictability and stability in the High North
- to ensure sustainable management and development of natural resources and
- to engage in international cooperation to meet common challenges in the Arctic.

Knowledge is the key to reaching these objectives. With knowledge, we can meet the challenges and opportunities in the High North. We are this region’s custodians for future generations.

Thank you for your attention.