Ladies and gentlemen,

Thank you for giving me the opportunity to address the Bologna conference. On the agenda for this session is a an important and demanding subject: The strategy for SME’s.

The world is changing. Every day the Digitalisation, the Individualisation and the Globalization challenge our basic institutions. Our job as politicians is to promote competition, minimalize regulations and to educate our citizens to cope with the rapid changes. For the SME’s this reality demands innovation - the key-factor for survival in the new economy. Innovation is driven by knowledge and in this area the governments have an important role: To develop systems which deliver knowledge to all in close cooperation with the social partners

The Norwegian population is highly educated and the technological infrastructure is well developed. 97 per cent of our enterprises have less than 20 employees. Only one per cent of the enterprises have more than 100 employees. Even though both large and smaller enterprises have to improve their structure, to focus more on design, research and development, to implement new technology, and to update both management and work force, there is no doubt that these challenges will be most demanding for the smallest enterprises.

And which challenges do the SME’s meet ? A hard international competition, the need for well-educated personell, the need to develop cultures to foster innovation, and the SMEs need access to venture capital. In my opinion, it is important to ensure that the leaders of small and mediumsized enterprises gain skills and competence to take real advantages of e-commerce. And I will say: SME’s that do not see e-commerce as an oppourtunity, will face problems in the future.

Business and consumer confidence in electronic commerce is closely linked. A major priority for the Norwegian Government is to work out legislation, regulations but most of all guidelines in order to foster confidence in the electronic marketplace. As a supplement to the regulatory framework our policy is based on extensive self-regulation.

In order to guarantee consumers in the electronic marketplace a certain standard of protection we established a voluntary and independent brand named N- safe in 1999-. Steps are now taken to expand this net label to the rest of the Nordic countries.

Like many other nations Norway need skilled workers. We have to further educate our work force, and to attract skilled people to take jobs in our country. High living standards gained through our welfare system, our culture and a good environment will therefore be a factor to support our businesses into the new economy.

Both in Silicon Valley and in Oulu (Finland) we have seen how young people seek toghether in communities that attract them – communities where knowledge clusters and new businesses are developed. These new factors have to be a part of our philosopy concerning infrastructure. In some ways it is better to establish café’s, cinemas and kindergardens rather than to establish traditional infrastructure.

In my opinion, the OECD Industry Committee carries out an important work by analyzing the ICT-sectors` need for innovation and economic growth. We monitor with great interest this work to identify political tasks and framework that support ICT-based growth.

Last but not least - I see a great potential for Norwegian SME`s to manage a challenging future. I also see great possibilities for our businesses to cooperate with SME`s in transition or developing countries. Public funds for co-investing with SME`s in northwestern Russia and in Eastern Europe have been in operation for some years.

NORFUND, a new fund for co-investing in developing countries is established as a result of the positive development in many economies. Traditional instruments like export finance and promotion have been re-directed the last years in order to take better care of small businesses.

We have to work together. The SMEs must be ambitious in responding to the challenge of e-commerce. The governments need to develop the right framework and manage to go into challenges. Otherwise we might end up as a major obstacle.

The Bologna document will serve as a background for our further discussions. But, most of all it will be a basis for the future process both in the businesses and between the politicans. A process that hopefully will transform into a good policy for the SME’s .

Thank you for your attention !