INNOVATIVE NORDLAND Innovation Strategy for Nordland 2014–2020

CONTENTS

PART 1: Introduction 6 BACKGROUND Vision 6 Background and scope 6 AND ANALYSIS Smart specialization 7 Company input 7 Nordland‘s competitive advantages – concepts and perspectives 8 Specialization in Nordland 10 Resource-based trade and industry development – spatial planning 14 Access to knowledge and a qualified work force 15

PART 2: Objectives 26 OBJECTIVES, Strategies 26 STRATEGIES Measures 26 Implementing 29 AND MEASURES

Litterature (Norwegian and English) 31 Rib-safari in Saltstraumen Photo: Tommy Andreassen

4 ET NYSKAPENDE NORDLAND – INNOVASJONSSTRATEGI FOR NORDLAND 2014–2020 PART1: BACKGROUND AND ANALYSIS INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 5 The economy of Nordland County is strongly globalized. Companies located in Nordland deliver excellent goods and services within several industries including metal, mineral and chemicals, seafood, tourism and leisure. Innovative new companies have developed in the field of petro-maritime as well as various business service sector. These compa- nies often face strong global competition. In order to be competitive they continually need to innovate, both by developing new products and services, expanding into new markets and by improving the organization and productivity of the company.

Introduction new and better ways, by providing excellent, high qual- Statistical studies1 show that, compared to other coun- ity and unique products. Being flexible and creative will ties in Norway, there are too few company start- ups in be critical to help the county grow and develop through Nordland, and that limited jobs are created in existing innovative companies. industries. Innovation studies2 show that companies in Nordland’s innovation strategy will play a key role in Nordland are not innovative enough compared to the developing value creation and delivering the vision of the rest of Norway, and that development has not improved County Plan. The vision for the innovation strategy is in the last ten years. There are uncertainties about the therefore: indicators, the data does indicate that the innovation capability in Nordland needs to be further developed. Innovative Nordland Nordland County Government has agreed on a poli­ tical platform to develop a trade and industry policy. Background and scope The County Government requires Nordland trade and The innovation strategy has been developed based on the industry policy to facilitate the development of a compre- Nordland County Plan, as well as the objectives defined hensive framework to help improve the innovation capa- in the R & D strategy for Nordland and several sector bilities and competitive advantage of local companies. In strategies developed by the County Council. These com- the county plan for Nordland, the County Council has prise of strategies for experience-based tourism, the sea- stated a vision for an “Innovative Nordland”. food industry and the industrial strategy for Nordland. The development of these strategies are based on wider Vision consultation including with companies in Nordland, “Innovative Nordland” is the vision in the Nordland based on research carried out by Nordland Research County Plan for the period 2014-2025 for the target area: Institute into the county’s innovation potential. In total value creation and competence. This vision has been more than 600 stakeholders have been involved in the developed by undertaking wide consultation involving development of branch strategies, the R&D strategy, and stakeholders from the whole county. In order to be com- the innovation strategy. This strategy has therefore been petitive in a global market, Nordland must adapt accord- Note 1: Statistics Norway/Panda ing to increased global competition. To enable long-term Note 2: Statistics Norway: Innovasjons­ value creation means that resources must be applied in undersøkelsen indikatorrapporten 2013

6 PART 1: BACKGROUND AND ANALYSIS developed through a broad consultation and discussions innovation and value creation, with some initial research with the trade and industry community and knowledge taking place within the companies in Nordland. institutions in Nordland. Nordland has a long history of c working in part- The aim of the innovation strategy is to enhance inno- nership with other local municipalities and regions, vation across the private sector in Nordland. The public knowledge institutions and companies internationally. sector is an important provider and facilitator for trade The EU’s smart specialization platform provides us with and business, and, in this respect, is covered by the strat- a system as well as access to knowledge and networks egy. However, there is a need to develop knowledge about which can strengthen international commitment both in innovation in the public sector before Nordland County Nordland County Council, and, not least, for companies Council can develop a relevant innovation strategy for and R & D establishments in Nordland. the public sector. The EU has developed smart specialization based Nordland is a region with many small and medi- on the view that every place is unique. Nordland shares um-sized companies, as well as some large industrial this view and smart specialization has provided the back- businesses. The proportion of small and medium-sized ground for the various strategies and the R&D strategy. companies in Nordland is larger than the rest of Norway, Smart specialization aims to strengthen the opportu- and these companies are therefore essential target groups nities for a goal-directed innovation policy by building in this strategy. We need to create new companies and a business environment consisting of a network of com- further develop the existing companies. panies from a range of sectors to, learn from one another The strategy mainly includes strategic areas in which by sharing and exchanging knowledge and to do business the county has a direct or indirect responsibility and/or with. This provides each individual company with oppor- an intended role to play. In its work with regional eco- tunities to develop and grow. nomic development, Nordland County Council has a role A brilliant entrepreneur or a company without any to play in facilitating arenas and measures to improve relations to others in the region can easily move the the innovative capacities in the county, in companies, in company. He or she will find another place to develop R&D institutions, in service providers and other insti- the idea, a place where other companies and the support tutions taking part in the development process. Innova- system can better provide support. By analyzing rela- tion Norway has a key role in this respect. The strategy tions between companies, branches and structures in the focuses on improving innovative capability in companies, economy, one can identify where innovation can arise and the county council works in cooperation with other and new company establishments can be encouraged. actors, such as Innovation Norway, in order to reach This represents the new element of smart specialization. the individual company. Nordland County Council is Industrial shortcomings and poor cooperation between responsible for improving framework conditions for trade and industries in Nordland need to be identified. trade and industry for several strategic areas. The coun- Research is required in order to conduct good analyses ty council will, when appropriate, follow up by means of as a basis for action. specific political and strategic work. The innovation strategy will strengthen the inno­ Company input vation perspective in other development strategies under In developing the innovation strategy, companies from the auspices of Nordland County Council. all over the county have been consulted. They have directly influenced the formation of the different sector Smart specialization strategies, the political processes concerning develop- Smart specialization is The European Union’s strategy ment in the seafood industry, and in the development of to drive economic growth in Europe. Nordland partici- the R&D strategy. In the analyses conducted by Nord­ pates in the work on smart specialization and currently land Research Institute to assess the county’s innovation is the only Norwegian region involved in developing this potential, companies were consulted by undertaking innovation strategy within the EU’s smart specialization questionnaires and focus group interviews. The findings platform. have been used to develop the key components of the Nordland is taking part in this smart specialization strategy. because innovation, knowledge / market development The industries consulted included, seafood, metals and research funding, to a growing extent takes place and mineral industry, chemicals and tourism. Each internationally. The Norwegian economy is ever-increas- company was asked about their views in relation to their ing specialization requirements. This becomes particu- expectations of the public sector, and how the innovative larly apparent in the case of higher education research. capacity within the region could be improved. The find- Most recently, a major centralization of research funding ings were summarized into the following: has taken place to develop research and excellence cen- tres and large national and international research pro- grams. As a result, greater emphasis has been placed on

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 7 a) Framework conditions for business and trade innovation element can vary, for example new ways of Nordland is a county rich in resources including energy organizing the production line, new or improved prod- and raw materials which has contributed to industrial ucts, or efforts in new markets, new cooperative relations development. The business community emphasize the etc. Arriving at something new can occur in various diff­ lack of people with necessary skills limits the growth and erent ways and various types of innovation processes will competitive advantage for the local businesses. Compa- often require different types of tools in order to succeed. nies are looking for education programmes that are more For the purposes of simplification, we can divide inno­ applied and tailored to meet the needs of the industry, vation processes into three different categories6: both at upper secondary and higher education levels. Experience-based innovation processes are about Companies are also especially interested in industry-ori- learning from experience. Employees develop new ented research and other relevant knowledge institutions. competences when addressing challenges and solving The basis for a large part of the value creation in Nord­ problems. The challenges can arise from the company’s land is the exploitation of natural resources in the wider own activities, but are often related to clients’ or users’ sense. Management of resources is therefore important requirements or needs. This type of innovation process for the development of existing and new companies in mainly occurs during day-to-day work and leads to grad- Nordland to help develop the local economy. ual improvements. In Nordland such experience-based innovation processes are common7. For these compa- b) Development of innovational ability nies demanding clients and strategic suppliers are an in companies important source of innovation. Companies benefit from Companies in the fields of aquaculture and industry their contact with suppliers and clients and from access highlight the importance of developing stronger relation- to experience-based knowledge, through, for example ships with different supplier industries. There is a need mobility in the employment market and information for a stronger focus on efforts to develop networks and exchange in networks. clusters between companies in Nordland in order to strengthen innovative capacity in the county. There are Example of an experience-based innovation also great expectations to improve the public develop- process: INVIS Ltd. ment support system. INVIS is a consultant engineering company specializing in 3D –scanning and industrial measurement using high-tech equip- Nordland‘s competitive advantages ment. The business was established by Bjørn Wiggo Eriksen in 2006. Eriksen worked as an industrial mechanic atHYDRO – concepts and perspectives Glomfjord for 14 years, before completing a degree in engi- Innovation in Nordland neering?? in 2002. While working at Hydro he saw the poten- Innovation can be defined as bringing new products, tial to simplify the processes for the use of 3D –equipment services, processes or organization forms into the mar- in production and he developed the idea. The leadership at 3 HYDRO did not wish to go further with the project. Eriksen ket . This means that something new is developed in decided to take part in a course at “Start up Salten” and set up companies and/or in public organizations that leads to a company in 2006 with Sjøfossen Business Development as the an increase in the value creation in the individual com- co-owner. The first clients were REC (solar cell producer) and pany or region. This might be gradual improvements of Yara (production of fertilizer) in Glomfjord and in 2009-10 he made several large investments in high-tech equipment through processes or product (incremental innovations) or com- financial support from Innovation Norway. pletely new things (radical innovations). In 2010 INVIS successfully built a power station for Stat- Compared to other counties in Norway we have kraft and later also won contracts with Aibel and carried out too few company start ups in Nordland, and too few major projects related to the building of the Kristin petro- 4 leum platform. This project went very well and INVIS received workplaces are created in existing companies . The low anISO certification in 2013. In 2014 INVIS established a new employment creation in Norway is a concern. company, NB INVIS, in which the shares are split 50/50 with The degree of innovation in existing companies is Scottish Surveys Ltd. INVIS Ltd. is also working in partnership with another company on 3D video and animation. INVIS Ltd. is measured through, amongst other things, the national located in Meløy in Nordland County. The company has received innovation study carried out by Statistics Norway. Sta- several prizes for its work. tistics Norway has investigated innovation activities in companies with more than five employees. It indicates that innovation activities in companies in Nordland Research-based innovation processes occur mainly are stable5, and the proportion of companies working in companies research departments, in research-inten- on product and process innovations is approximate- sive companies, at universities or research institutes. The ly the same as the average for the country as a whole. A major part of innovation activity in Norway is related Note 3: The Oslo Manual, OECD 2005 to research and development, and regions with low R&D Note 4: Statistic Norway/PANDA activity will therefore have a low score. Note 5: The Research Council of Norway, indi­ katorrapporten 2013, tabell 4.1.13s As a result this has presented the need to carry out Note 6: Isaksen (2013) further research about innovation in Nordland. The Note 7: Mariussen (2013)

8 PART 1: BACKGROUND AND ANALYSIS purpose is often to develop new “radical” innovations. Example of a combined innovation process: Heatwork Ltd. Knowledge production often takes place based on scien- Heatwork Ltd. is the sole producer in Europe of a heating/ tific methods and testing, and innovation happens main- thawing concept. The company developed its products and ly after an initiative taken for research environments. services in cooperation with its clients, but also by actively Few companies in Nordland today stem directly from using R & D. Research activity occurs within the company but 8 also through cooperation with research institutes such as research results . However, there is probably a poten- NORUT. Heatwork Ltd. has several patents and brand name tial to achieve more company establishments, based on protections. research results from R&D institutions in Nordland. The machines, produced according to European standards The University of Nordland is developing its capacity and norms, are mobile power stations, specially designed for many applications: frost thawing, concrete hardening, by working with local companies to carry out further protection against frost, heating of buildings, hot water for research. central heating plants and other purposes. HeatWork’s main office and factory are located in Narvik and the company has recently moved into 3300 m2 top modern factory premises. Example of a research-based innovation HeatWork’s clients are mainly engineering, entrepreneur, process: sterile salmon petroleum, central heating, gardening leasing and power In the beginning the business idea of sterile salmon was companies, as well as the Government. They selltheir prod- that sexual maturity has a negative effect on fish filet, as ucts andservices across Europe,and exporting is a key part well as escaped salmon representing a threat for wild salm- of its continued growth strategy. on. Researchers at the University of Nordland (UiN) wanted to develop a vaccine that could be produced and sold by a commercial partner. In the project the researchers began by opment and innovation in an industry or a company in working with broodstock fish, but since very little broodstock the region11. This can occur through the work market, actually exist, the need for vaccine islimited. The researchers then turned their attention to fry fish for which they have also applied research institutions, professional service pro- 12 developed automatic vaccination. All relevant literature was vision, local culture etc . In order to be able to call it an studied and it was concluded that it would be possible to devel- innovation system, there must be contact and exchange op a vaccine to sterilize the fish. Based on this, UiN applied for of information, ideas and competence between the vari- patent protection for the idea. The MABIT program granted a 13 small amount of money so that the researchers could test the ous actors within the system . To simplify this, an inno- project in the laboratory. This experiment then enabled UiN vation system can be illustrated as follows in Figure 1: to apply to The Norwegian Research Council for funding and the university was granted 10 million NOK to prove that the project can be carried out on salmon. The work is conducted Other companies including by The Faculty of Biosciences and Aquaculture suppliers Employees’ competence, Place specific professional local conditions Complex and combined innovation processes pro- qualification cesses characterize companies who in various ways utilize scientifically and experience based knowledge Clients Public from sources in their own innovation projects. This authorities often occurs through experience in order for work at the Research and company to be further developed through cooperating development (R & D), various competence Funding sources with researchers, and the expertise can be documented environments, incubators etc and further developed by generating new solutions. For Companies that imitate example suppliers in Nordland searching for contracts technological in the oil and gas sector must document and certify the development company, and not least develop products and services further through innovation. In order to create such com- bined innovation projects, companies need both a good Figure 1: Elements in an innovation system14. client and a good supplier network, as well as a network A regional innovation system consists of the actors and activities to a research environment. that affect learning, knowledge development and innovation in The main source of innovation in the companies an industry or business within a region. This could be through of Nordland stems from experience-based innovation labor, applied research institutions, business activities and serv­ 1 processes9. At the same time, there is great potential to ices, local culture etc . For such a system to be an effective inno- vation system, it have to be contact and exchange of information, strengthen innovation ability and competitiveness by ideas and expertise between the various players. increasing competence in the work force and strengthen- ing companies’ cooperation with research environments 10 Note 8: The Resarch Council of Norway, Indikatorrapporten 2013 in the county, nationally and internationally . Note 9: Mariussen (2013) Note 10: Mariussen (2013) Regional innovation system Note 11: Asheim og Isaksen (1997), 2 Note 12: Isaksen (2013) The concept of a regional innovation system refers to the. Note 13: Mariussen (2013), Isaksen (2013) actors and activities affecting learning, knowledge devel- Note 14: Fritt etter Isaksen (1997)

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 9 At present, there is not one innovation system Specialization i Nordland in Nord­land. At a higher political level, cooperation Historically speaking, specialization in Nordland start- between various industrial organizations, the leadership ed by utilizing the county’s natural resources and the at knowledge institutions and public actors such as The knowledge and experience of the work force. Industrial County Governor, Innovation Norway and Nordland development started when natural resources, such as fish County Council, represents one level of the innovation and minerals, were processed into products by import- system. These actors meet through the network Part- ing technology and expertise and using energy as the nership Nordland, the VRI-council, The Competence main driver in the industrialization process. Later on Forum and other business networks etc. Each industry research has the way for new technology and methods in and company may also have its own innovation system. the industry, as well as management of natural resources This concerns the actors that are included in the indi- in a more sustainable way. Altogether, this has led to the vidual company’s network: the knowledge environments development of an internationally competitive process- the company cooperates with, and whom the company ing and marine industry. This development is not due does business with. Further knowledge about innovation to research having taken place in Nordland, rather the policies and innovation systems is important. We need opposite. The major trades and industries in Nordland to understand which networks and cooperative activities depend to a great degree on national and global research companies are involved in today. This can enable, among and innovation systems. other things, the identification of areas for improvement. Nordland is a region with a considerable export sur- The companies providing inputs to this innovation plus. Analyses15 show that the regional economy is more strategy have pointed out what they think ought to be competitive than Norway as a whole, excluding the trade strengthened in order to improve the innovation system. of oil and gas. Three export sectors are especially preva- Here we refer to the companies’ input. lent in Nordland16:

Innovation and geography in Nordland • Seafood: fisheries, fish processing, aquaculture, the Knowledge development and innovation are linked food and feed industry. closely together. The geography of Nordland needs to • Industry: process industry where metals, minerals, be taken into account in the development of companies’ chemicals, metallurgical products and machines are innovation capacity. The cities have the largest knowl- produced, with the mining industry and the hydro- edge environments and many commercial services are electric power industry as the main suppliers. concentrated there. Smaller towns and thinly populated • Experience-based tourism: based on a strong tourism areas have fewer research- based companies, and are often industry with nature as the important framework and characterized by companies that rely mainly on experi- The Lofoten Islands representing the cutting edge in ence- based innovation processes. In Nordland there are the tourism industry nationally. many large companies in the periphery and rural areas, but these companies depend in many areas on suppliers These three sectors are strongly interconnected with of high-quality services. The seafood industry is a good the mechanical and maritime industries. The maritime example of this. This industry is located in the periphery industry makes it possible to operate at sea and in coastal of the county, and yet still requires research services as areas. In Nordland we have maritime companies which production is based on research based knowledge. How- can handle complex logistics and technological challeng- ever, only a small part of research services is located es in harnessing the resources. The maritime industry in the more peripheral areas of the county, with a few is also important for transport activity in the export exceptions. Research activity and provision of business industries. The maritime industry has, during recent services for trade and industry primarily take place in years, developed to become important for the increased the cities’ of Nordland and in other parts of the country. petroleum activity in Northern Norway. To develop a good service, and to connect the companies The companies in the three major industries (seafood, located in peripheral areas to relevant research environ- processing industry and tourism) are also important ments, providers and knowledge environments in the users of the commercial services sector. Commercial cities in Nordland, realize the importance of approach- service companies are often knowledge-based and are ing and developing the innovation potential in Nordland. important for connecting the nature-based and produc- Nordland County Council has set up a project for urban tion-oriented process and the seafood industries to the development in Nordland. Developing the cities business regional economy. Private consumption, a growing hous- community and knowledge environments is central to ing market and services for the public sector is part of this work, to help strengthen these relationships, espe- this. In the process and the seafood industries, this can cially for companies in peripheral areas in Nordland. be illustrated as in Figure 2.

Note 15: Mariussen (2013) Note 16: Mariussen (2014b)

10 PART 1: BACKGROUND AND ANALYSIS mainly large companies. Hence, the region is subject to

Metallurgical Aquaculture Global decisions taken and promoted to areas outside the county and seafood for future development. Another approach is to look at which regional functions in the various industries are located in Nordland and how we can create regional spin- off effects from global industries through strengthening Green energy Seafood cluster cluster the related branches such as the petro-maritime branch, commercial services, leisure industry companies in cul- ture, agriculture, and food etc. In order to achieve this Commercial Regional services Maritime we need to study the relations between the companies in Nordland and assess where it may be important to increase trading activity in order to create a more robust and regionally integrated working life. This will involve studying deficiencies in the provision of existing goods Figure 2: Relationships within industry and seafood17. and services in the region as well as looking at which The seafood industry and processing industry in Nordland consist primarily of global operating companies that are part of national parts of working life are especially important to develop and global innovation system. They are present in Nordland with for the whole of trade and business in the county. production activity. They are part of the regional economy as key There are considerable differences between the indus- players in regional clusters and networks of suppliers. Industries tries in Nordland. Tourism has other challenges and including the seafood industry are buying most goods and serv­ ices from the maritime and business support sector. Both the sea- opportunities that are different to, for example, the pro- food sector and the industry is directly and indirectly important cessing industry and seasfood. In many respects though, for the economy of Nordland. the same key issues s do keep appearing. As an example, all industries in the county are concerned about having In Figure 2 the arrows show the purchase of prod- sufficient access to qualified work staff. All the dominant ucts and services between the different sectors, hereafter industries in question are concerned with the manage- called transactions between the industries. The maritime ment of natural resources in the region, and have differ- industry in Nordland conducts 80 percent of its trans- ent approaches to managing this. The various industries actions in the region, while 90 percent of transactions in also have different innovation systems that need different commercial services are carried out in the region. The measures to be strengthened. In the work on this inno- maritime industry and commercial services are also pri- vation strategy, we have tried to describe innovation sys- marily regionally oriented, but are closely connected to tems and how innovation processes occur in the various the export industries processing industry and seafood industries. However, it is difficult to fully anticipate and as well as tourism. document the nature and extent of innovation activity. There is a need for companies in commercial services This tells us that knowledge creation about the specific to sell their services outside of the county. Seafood com- innovation processes and networks in the various indu­ panies and the process industry are continually cutting stries in Nordland should be high on agenda from now costs and jobs. Norway has a strong knowledge-based on. A common understanding and new concepts of coop- economy and much of the growth in jobs occurs in the eration must be created in order to achieve better results. field of commercial services. In order to create employ- Below is a description of the relationships between ment it will therefore be essential to strengthen com- the industry sectors responsible for the major industries mercial services that are relevant for the remaining in Nordland. This field is at an early stage of development. production oriented industries in the region. In this way more robust businesses for the future can be created. Industry In industry and seafood there are large variations in The processing industry in Nordland is centered on how integrated the companies are in the region. Aqua- metals and minerals, where all sectors are interrelated culture and metallurgical/process industries are strongly (see Figure 3). This consists of metals, metal products, connected to global and national markets, whereas other machines, repair work and instalment of ICT and elec- companies in the processing, seafood and maritime trical equipment (cables). This metallurgical core is also industries and commercial services are well integrated related to chemicals, mining and electric power gener- in the region. ation. It is interesting that ICT and electric power are A common challenge exists for the three major so central. However, Nordland does not have a strong industries in Nordland: the dominating companies in electro-technical industry, which could have supported the industry have their head offices outside thecounty ­ innovation by developing more green energy production. and several are parts of global industrial companies. As shown in Figure 2, the industry also has important The major companies in both the process industry and aquaculture, are stock exchange quoted international companies. In tourism, hotel chains and transporters are Note 17: Mariussen (2014b)

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 11 connections to other sectors such as the petro-maritime ther up the agenda and building knowledge about the industry and commercial services. innovation potential of the different sectors. The processing industry is composed of various types Access to a qualified workforce represents a vital companies, some directed at global markets and others chall­enge for the processing industry and the maritime more regionally oriented. To develop an even greater industry in Nordland. This is about both vocational diversity and regional connection to the economy of Nor- training subjects and higher education. There is a need dland, we need to undertake further research into the for people who have completed apprenticeships. The same dynamics between the companies concerned and how applies for engineers and people with other technological innovation processes occur in the industry. qualifications. It is therefore crucial to strengthen the work between the educational actors and industry in the Mining region in order to develop good and relevant educational Electricity 44256 Metal programmes and increase apprenticeships and jobs. 3150509 638023 products 54488 Chemicals Metallurgical Seafood The seafood industry consists of fisheries, aquaculture, 10719 seafood processing, the food and feed industry, as well Electro and ICT as commercial services and the supply industry. Natural

Machines resources connect the various parts of the seafood indus-

Minerals try together. Both the fisheries and aquaculture deliver Repair work raw materials to the fish processing industry. Fish pro- and installation cessing and the fisheries provide input to fish feed pro- duction, as well as being the largest industrial supplier to aquaculture in the region. See Figure 4. Figure 3: Transactions within processing industry18. The seafood industry has a strong presence both in The processing Industry in Nordland consist of a variety of bran- ches that are interconnected. Figure 3 shows which branches that the regional economy and in the global market. The com- buy goods and services from each other, the amounts are given panies within aquaculture are more internationally mar- in Norwegian kroner (NOK). It is particularly electrical power, which is important for many branches, but as the chart shows, there are significant relationships between several sectors of the industry in Nordland. Fisheries 1984132 Fish The maritime sector partly overlaps this processing processing 55389 industry. The sectors are connected through the work 187832 market, specialist knowledge and a common educational system. The maritime sector especially consists of ser- 1027880 Other vices to oil and gas, aquaculture, fisheries and oil pre- foodstuffs paredness, plastics, mechanical industry, production of machines, repair work and installation, shipping and sea Aquaculture transport. The major markets for the maritime sector are 614957 sea transport, construction and aquaculture. 46096 In the processing industry, considerable develop- Commercial mental work has been going on for several years. The services Maritime network Helgeland Oil and Gas stimulates cooperation in the supply industry to the oil and gas industry. This is an important network for the development of innovation capability in the industry. The same applies to the effort Figure 4: Transactions in seafood industry19. to strengthen R & D activity in the whole of the Helge­ Seafood industry consists primarily of fisheries, fish processing, land area (the southern part of Nordland county). In the aquaculture, food and feed industries. The natural resources maritime sector, good developmental work continues connect the various parts of the seafood industry together. The size of the transactions specified in NOK in figure 4. The seafood around education and research, amongst other things, industry buy goods and services from other industries, primarily within the organization Maritime Campus. Work is also business from the support services and the maritime industry. The going on to strengthen Bodø as hub for security in the seafood industry is a somewhat closed industry in the sense that arctic. Through the research conducted on the Industrial they have little interaction and purchase of goods and services from other businesses in the region. strategy of Nordland, work is in progress to strength- en the competitiveness of the industry. A considerable amount of developmental work is taking place, and this Note 18: Mariussen (2014b) will be further strengthened by pushing innovation fur- Note 19: Mariussen (2014b)

12 PART 1: BACKGROUND AND ANALYSIS ket oriented than the companies working in white fish. of the seafood industry will be a solid educational effort The seafood industry has good internal relations, but has in relevant subject fields. In order to succeed, the educa- relatively weak relations to other parts of regional trade tional sector must develop their cooperation and offer and business. The maritime industry and commercial programmes and courses and ensure good implementa- services are the main suppliers to the seafood industry. tion through, among other things, apprenticeship work The aquaculture industry is based on extensive use placements. of R&D. Several attempts are made to create even new innovations within this industry, such as transfer of Experience-based tourism knowledge and experiences from the farming of salm- Tourism in Nordland is strongly linked to nature and on to the farming of other species, like cod, and thus culture experiences – experiences along the world’s most establish a new industry. A number of companies made beautiful coastline. massive investments in these projects. This could have Tourism is not an industrial sector in a traditional developed new companies and niches in but so far, this sense, but rather a value creation system consisting of has not been a success. More R&D has to be carried out several sectors /activities sharing that value creation before these test projects can prove to be a sustainable based on travel and visits by Norwegians and foreigners. industry. The value creation occurs through integrated interaction The white fish industry still faces challenges with between transport, accommodation, food service, leisure respect to fluctuations in raw material supply and the activities, galleries, museums etc. ability to produce during the whole year, as the salmon The concept of the experience economy is especially trade manages to do. Most of the white fish industry also relevant in the tourism industry. This is because the con- lacks direct contacts with its markets. Through better cept is based on clients’ willingness to pay for superior dialogue with customers/buyers, the white fish industry experiences. Clients look for meaningful, comprehens­ can get input for new improvements and innovations in ible, integral and well-functioning delivery, and this all its core activity. This may be linked to technology for how needs to be tailor-made to suit their needs. The focus to treat fresh material, quality improvements, logistics on continual development of new experience products and other technological solutions in production. It is, therefore becomes increasingly important. therefore, important to strengthen the white fish indu­ Knowledge of experience design and how to offer the stry’s dialogue with clients and suppliers, and build more product to the clients is important in order to develop knowledge enabling innovation in this industry. experience-based industries in Nordland. This know­ The strength of the seafood industry in Nordland is ledge must also include how one is to work on compet- its access to high quality raw material and clean water, as itiveness, profitability, and cluster development in the well as the workforce’s strong seafood culture. There will experience-based tourism trade. We are talking about be new opportunities for development and testing of new innovation between companies and creating things technology and production forms, farming new species together between clients and suppliers. A company etc. in the seafood business. An exciting example of this cluster in the experience industry is composed of sev- is the projects being undertaken to identify solutions for eral types of activity and even cultural actors (“Cross- live storage of cod. over innovation”). This perspective must be taken into Analyses made of transactions in the industry show account in the development of a future innovation sys- that the seafood business is an “introvert” industry20. It tem for the tourism industry. Often the experiences coin- is quite limited in how much the industry buys products cide with place development and an integrated part of and services from other industries in the county. Much the social structure at a destination. Public facilitation can therefore be achieved by extending the seafood and services related to a destination will also be decisive industry’s cooperation with other regional industries. factors for how the individual person comprehends his Exciting innovation opportunities can arise through or her experience. closer cooperation with suppliers and innovation activ- Some of the main characteristics in the development ity in cooperation with the maritime sector etc. In the of experience-based tourism is the growth of networks programme “Measures for Regional Innovation” (VRI) between key companies and central development actors. a project has been started to develop the supplier indus- In Nordland there is an innovation system with close try for the seafood trade. connections between regional institutions but with weak The future in the seafood industry poses major com- contacts to the national and international networks. The petence requirements. It is important that employees to central actors in this network are innovative companies, a greater degree are formally qualified to be able to make institutions running regional development, nationally the necessary improvements in quality and to enhance and internationally, as well as regional R&D institutions. the innovation in the industry. There is a need for peo- There is close interaction between the companies, the ple with various types of vocational education, as well as public measures in place and R&D. with competence from higher education in subjects like biology, technology and business. Central to the future Note 20: Mariussen (2014b)

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 13 Destination companies in Nordland mainly focus on A case study of spatial planning and concession the market. The challenge in the future is to secure tools treatment in the field of renewable energy that also enhance innovation and product development. Nordland Research Institute has assessed a selection of devel- This means that we must work closer with the market and opment projects in the fields of renewable energy21. The objec- develop products based on local conditions. tive was to obtain knowledge and learn from previous spatial planning and concession projects. How did the process go? There is a need to establish a knowledge base describ- The study presents some interesting recommendations among ing the position for experience-based tourism in Nord­ which: land. This should be done in order to strengthen the - There is large variation in how long planning and conces­ platform for innovation taking into account companies sion treatment takes. In the examples studied, this takes from and cluster development, interaction with the public and 2-10 years. The reason for this variation is among other things degree of achievement to national goals and strategies, the the voluntary sector, knowledge institutions and R&D quality of the projects, the degree of conflicts and the involved directed at the trade, destination development and mea- interest groups. sures are put in place to develop the experience-based - It is important to create legitimacy and trust in the process tourism. in order to gain quicker planning and implementation. - Access to relevant knowledge is an important factor for Resource-based trade and industry creating necessary legitimacy. It is important to have a solid knowledge base in order to create the necessary balance development – spatial planning between the various interests and in order to find good solu- The economy of Nordland is built up around the exploi­ tions for planning and implementation. tation of natural resources. Nordland has approximately - Dialogue and cooperation early in the process is important to 25% of total coastline of Norway, has a considerable tidal clarify the implementation potential of the project The County flow, several major mineral and metal reserves, oil and Councils spatial planning processes can to a greater extent start at a place and with integrated planning, instead of based gas and considerable aquaculture and fisheries resources. on individual projects. In addition, nature constitutes the framework for grow- - The county councils spatial planning processes can to a ing experience-based tourism. How we organize and greater extent start at a place and with integrated planning, regulate the use of natural resources in a broad sense instead of based on individual projects. will therefore become important in order to create future - Future innovation policy should develop a regional plan- trade and business in Nordland. There is an ongoing con- ning system that creates opportunities for future industrial development, as well as realizing national and regional policy flict between environmental and nature considerations including energy and climate. It is important for this work to between activities like tourism, agriculture and reindeer find good solutions to address environmental and nature con- herding, and activities like energy development, the min- siderations. eral industry and aquaculture. The companies involved Source: Mariussen (2014a)

Whalesafari at Andøya Photo: © Marten Bril, www.visitvesteraalen.com

14 PART 1: BACKGROUND AND ANALYSIS in the preparatory work for the innovation strategy high- opment, while in other projects there is a need for more lighted that land and sea spatial planning and concession planning competence. processes take too long and are unpredictable. This cre- The nature of Nordland is a beautiful and vulner­ ates unstable investment conditions. able resource. Nordland is situated in The High North In order to obtain more knowledge about the rele- and management of resources must take place based vant issues in spatial planning and concession processes, on preconditions about future sustainable development. Nordland County Council has commissioned Nordland Knowledge must be developed in important areas adapt- Research Institute to undertake research studies includ- ed to natural conditions existing in The High North. This ing a selection of renewable energy projects (see the text is where Nordland can take a lead in the development of box)22. The study shows that there is great variation in spatial planning management. how long the various spatial planning and concession Analysis of the innovation potential23 of Nordland processes take. This tells us that it is not necessarily the shows that the spatial planning and concession policy law (for example the law pertaining to planning and in Norway is important for regional development in the building) that is the reason why companies face chal- county. In industry, many opportunities exist to de­vel- lenges with spatial planning and concession processes. op new green industrial production. One of the precon- We must search for other explanations. ditions here is predictable energy conditions regarding Nordland County Council has extensive experience delivered volumes and prices. Nordland is a large net with various types of spatial planning casework. By tak- exporter of electric power. Weaknesses in the power ing part in a number of different projects, we see that transmission grid limit the export capacity out of the knowledge of spatial planning processes is an ongoing county, which leads to the situation that several renew- challenge at many levels. Spatial planning processes are able energy projects are not profitable and therefore relevant in all projects involving the use of land areas, not developed. Therefore a strategy to increase energy such as the building of fishing quays, broadband infra- demand in Nordland by initiating new industrial pro­ structure, renewable energy projects, building of new jects using hydro electric power, is sustainable because it power lines, aquaculture and minerals activity. The reduces the global emissions of CO2. Loss of energy in operators’ lack of competence or ability to involve the the transmission grid is also avoided. Such development important stakeholders often leads the project in the is dependent on national industrial, energy and climate wrong direction right from the start. Many municipal- policy and spatial planning and concession case-treat- ities and other management authorities also face chal- ment of the national authorities. The national level there- lenges with respect to competence, and especially in large fore must be involved in these processes. and complex cases. Nordland County Council will therefore initiate The operator is responsible for fetching the necessary a development project that can lead to improvements knowledge for his or her project. Objections and other in the spatial planning and concession processes. The kinds of discussions often arise because important issues project aim is to establish knowledge and methods for are not assessed, and new knowledge has to be acquired. knowledge sharing and dialogue/cooperation between Early dialogue between the operator and the relevant the operators, public planning authorities and stakehold- stakeholders can help improve the process by highlight- ers. Systematic work will be carried out together with ing important issues- Nordland County Council has national authorities in order to develop integral planning started the process of testing projects with operators and management in Norway. will further develop the system for early dialogue. In the field of renewable energy, recent data shows Access to knowledge and that several projects have received concession but have a qualified work force still not been built. This is because the project profitabili- Education and innovation: diversity and the roles of ty is too low. The commercial assessments in the projects the school in the innovation system seem to come into the agenda too late for these projects, Education and research are important measures to sup- or the time span between application and received con- port innovation processes in both the private and the cession is too long and the cost increase in this period public sector, and public authorities have an important has been too big. It is therefore important for Innovation role to play in guaranteeing and enabling knowledge to Norway and Nordland County Council to be concerned be developed, made available and to be used. The role of with profitability in the projects at an early phase. This education in innovation processes is diverse, and there means assessing whether, from a spatial planning point exists a two-way relationship between innovation and of view, it is acceptable to grant loans and fund pro­jects school/education. On the one hand, the educational sect­ involving the use of ground space and other natural or must take care of its important roles within a national resources. It is also important to achieve interaction between commercial development and spatial plan and Note 21: Mariussen (2014a) concession case-working. In some projects there is a need Note 22: Mariussen (2014a) to strengthen competence regarding commercial devel- Note 23: Mariussen (2013)

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 15 SALT Lofoten Photo: Espen Mortensen

16 PART 1: BACKGROUND AND ANALYSIS Winner of “Female Entrepreneur of the Year” in 2014 was SALT Lofoten AS

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 17 Welding at Mo Industripark Photo: Rita Bogholm Engen

and regional educational system. On the other hand, it as well as innovative workplaces supporting individual is necessary that the school itself is capable of change, and organizational development and learning processes. is future- directed and takes care to produce graduates It is important to be able to recruit the best people. An with the relevant skills that are required in the work important finding in research is that there is solid evi- place and to enable them to carry out further studies24. dence to suggest that there is a clear connection between The syllabus in the various subjects and the pedagogical access to higher education work force (universities, uni- practice should be designed to enable pupils and students versity colleges, vocational training) on the one hand and to integrate skills and the ability to develop critical and increased demand for technological and organizational innovative thinking skills professionally and personally. innovation on the other hand26. This requires an active student, competent school leaders, Working life is becoming more and more knowledge and able teachers who can balance the broader mission based. The development of competence, formal and infor- in educating students by addressing the specific needs of mal, is important for future value creation in Nordland. society, trade and industry. Business activities working systematically with compe- International studies and documents point to higher tence development in their organization will have a great- education as well as vocational training as being import- er opportunity to strengthen their innovation capability, ant hubs in an innovation system, and the actors in this competitive power and value creation over time. Small sector represent an important “glue” between the various and medium-sized companies face particular challenges companies and institutions in such an innovation system. to put competence on the agenda and work systematically Education and schools have an important role as produc- with competence development. There is therefore a need ers of relevant knowledge of high quality, and schools to have good interaction between the various actors who can do a lot to facilitate development of entrepreneurial work together on competence development in working attitudes and skills in pupils, students and employees25. life. The consulting company NIVI Analysis presented During recent years, much has been done to map the relationship between innovation and knowledge and Note 24: OECD (2014) Note 25: OECD (2010) skills. Research shows that innovative societies require Note 26: Toner, P. (2011) a combination of different knowledge and skill types, Note 27: NIVI-rapport 2011-7

18 PART 1: BACKGROUND AND ANALYSIS Sundsfjord Smolt Photo: Arne Sklett Larsen

a report about the study centres in Nordland, the orga- this objective. The main challenge is to improve the com- nization, the results and their future role, in 201127. There pletion rate in vocational programmes where at present is a need to have good actors who can be drivers for com- many young people leave programmes between the 2nd petence development in working life, i.e. to clarify the and the 3rd and final year at a company (apprenticeship). needs, to facilitate and connect the suppliers and those The central document for following up the develop- demanding competence. In this role as competence bro- ment goals is “Better Learning: Strategy for 2014 -2018”. ker for education, the upper secondary schools can play This strategy identifies the most important measures in an active part. the three main areas of effort: professional school lead- ership, professional teaching and professional vocational We have to deliver regarding the central task training. These areas of effort must be followed up by Upper secondary education can play several roles in school owners, as well as by the schools themselves. The innovation in the trade and industry of Nordland. Per- strategy emphasizes the importance of better interac- haps the most important role it can play is to ensure that tion between schools and society, where the school as working life and trade and industry in the county is sup- a regional development actor and their cooperation in plied with highly competent and relevant staff to cover local society must be included as part of the school’s core the needs for skilled employees and leaders. This is there- activity in all educational programmes. fore a long-term area of work on quality, and relevance in upper secondary education as an important corner stone The regional development role in our regional innovation system. of upper secondary schools Ambitious goals have been set for upper secondary Upper secondary education should have an active devel- education in Nordland. These were agreed on by Nord- opment role both regionally and locally. This means land County Council in June 2013. The overriding objec- being a cooperation partner and an instigator for devel- tive is that “Before 2018 75% of pupils and apprentices opment in trade and industry in the region. The various in Nordland are to finalize upper secondary education schools in our region have found different ways of fulfill- in the regular space of time prescribed plus two years”. ing this role. OPUS (secondary school training centers) is As of today, a major gap exists between the status and for many schools an important tool. In Nordland ­County

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 19 Council’s case 64/14 regarding the organization and run- • Develop initiatives to strengthen cooperation between ning of OPUS, upper secondary schools may adopt OPUS the actors in education in the fields of maritime sub- in order to raise the level of competence in working life, jects and trade and to promote regional interaction together with other competence development actors. The schools need to keep Education and innovation: a good dialogue with trade and industry in their own subject diversity is necessary region, and develop and facilitate the relevant training. The education sector works to promote innovation to In order to address society’s future work force require- develop trade and business and is not just limited to ments and the goal of increased completion of vocational a single or a few subject areas. It is necessary to include training/education, there is a need for more cooperation a range of competences and subjects. Examples of such between school and working life in several areas. This fields are as follows: work needs to be professionalized, formalized, and inte- grated into the training in a good way. The purpose for • Vocational colleges provide important educational the cooperation is to support quality and relevance in the programmes building on upper secondary education. training to ensure that trade and industry have future Today there are five vocational colleges in Nordland. skills requirements covered. The Norwegian Ministry of Education has established The educational sector of Nordland County ­Council a committee to study the vocational college sector in will, in addition to the extra effort regarding OPUS, Norway28. One aim of this committee is to assess the prioritize the following areas regarding the innovation possibilities for students progression between voca- strategy: tional colleges and universities/university colleges. The Committee’s report was produced at the end of 2014. • Facilitation of good cooperation models for local • Science is an important focus area. STEM subjects cooperation between school, industry and other and technological knowledge are important for value actors. creation and welfare, and this is an important compe- • Development of a digital tool that can lead to increased tence for future industry in our region. A three-year insight into regional industry increase the amount of effort has been put into scientific subjects at upper apprenticeships available, provide a better basis for secondary level and this has produced good results. the choice of vocational subjects, systematize­ and Based on this experience, there is a need to continue create greater predictability in cooperation between and focus even more sharply on this area. Upper sec- school and working life. ondary education can use several important activities • Strengthen cooperation for completing vocat­ional to strengthen scientific subjects. Closer cooperation subjects especially in the fields of seafood and indus- with primary, lower secondary, as well as higher edu- try. It will be especially important to strengthen coop- cation will be targeted here. eration with trade and business in order to increase • Creative and cultural subjects are not just import- access to apprenticeships. ant to maintain the subject range in education, from

Recruiting qualified personel is a key to innovation in the county.

20 PART 1: BACKGROUND AND ANALYSIS a trade perspective, such subjects can form the basis recruitment has become a skill in itself. It is about sales for future employment in particular tourism and cul- and marketing as well as having specialized knowledge ture-based businesses. about other countries and new educational programmes. • The need for expert linguistic competence is also Recruitment has therefore become more expensive and important, especially in the export and tourism demands different resources. county of Nordland. For example, Germany is our More and more employees in Nordland are starting largest export market, with about 15% of total Nor- their own companies, including those originating from wegian foreign trade. Good foreign language skills other countries. In important trades and industries such represent an important success factor for trade and as the fishing industry, building and construction work, business in Nordland. transport, research and higher education, and health, the • Nordland is also a large agricultural county. A study major employers have between 25% and 40% of foreign conducted into future agricultural education in Nord­ staff. land29 emphasizes the importance of nature-based Many methods and tools are available to work with education being developed in a direction serving the recruitment and these have been tested by various com- skills needs of future agriculture. This study formed panies and public actors – some with more success than the basis for a County Council case in December 2014. others. The needs vary between companies and therefore • The educational sector in Nordland should pay spe- the measures to be used have to vary. Moreover, the chal- cial attention to how upper secondary education can lenge is not over when the recruitment process is com- serve the competence needs in trade clusters given plete and the new employee has started work. The major priority in the innovation strategy. challenge is getting the newly employed employee to stay. • Entrepreneurship and entrepreneurial skills are key Nordland has for over 20 years been the county with the in education and training. The county has focused highest decrease in population in Norway. The age group on this field for several years and the project “Young between 20 - 40 years old are most likely to leave the Entrepreneurship” plays a central role. There is a need county. Another recruitment challenge in Nordland is to push forward in this field. Moreover, further the increase in temporary employment. This prevents research needs to be carried out on how teachers and professional development. pupils/apprentices can obtain a deeper knowledge Recruitment of the work force is the responsibility of of trade and business through special programmes, the individual company. Trade and industry in Nordland including practice and learning for working life consists of many small companies that will face chal- (teachers) or pilot schemes for entrepreneurial lenges in managing demanding recruitment processes. apprenticeship during the apprenticeship period. The lack of work force is now starting to become a major societal challenge that many actors in Nordland should Recruitment and qualified work force address together. Nordland County Council will there- In order to keep up with the welfare level, businesses fore invite companies and branch organizations in one or need to create new work places and develop those we more of the major trades and industries in Nordland to already have. The combination of great opportunities participate in a development project about recruitment. in trade and industry and the low population growth in Nordland is challenging. This is shown and docu- Trade and industry-directed higher education and mented in the Government strategy Knowledge Gather- research ing – Value Creation in the North30. In this document The University of Nordland and Narvik University changing work force requirements are highlighted for College are vital to the development of Nordland and the whole of Northern Norway. The population devel- Northern Norway. The institutions have developed opment also shows that the most important employment considerably and today educate highly skilled students group in the population, i.e. those aged between 20 and for trade and industry. New study programmes have 40, are considerably underrepresented in the county of been added and the relevance of these programmes to Nordland compared to the country as a whole31. Pres- trade and industry in several subject fields, has radically ently companies report recruitment challenges and this improved. Nordland County Council has invested con- will continue to increase over the next decade. Access siderably in developing the University of Nordland in the to qualified work force cannot, therefore, just be solved fields of seafood and tourism, the High North, maritime through ­educational policy and measures alone; there is subjects as well as other subjects. In the field of inno­ not enough young people in the county to cover future vation and entrepreneurship, the academic environment needs when today’s post-war generation retire. of UiN leads the way in Norway. The nature of work force recruitment has changed. Previously an employer could mainly recruit locally Note 28: http://www.regjeringen.no/nb/dep/kd/dep/styrer-rad-og- and choose between several good candidates for the job. utvalg/utvalg-for-gjennomgang-av-fagskolene.html?id=735487 Note 29: Trøndelag FoU (2014) Putting it bluntly, recruitment was about sorting the Note 30: NHD (2014) queue of applicants and making the right choice. Today Note 31: Indeks Nordland (2014)

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 21 The R&D strategy of Nordland County Council de­cid- vary. A large part of trade and business knowledge acqui­ ed to strengthen research activity in the county so that sition needs cannot be covered adequately in Nordland. Nordland increases their country average for R&D. Since We have to both stimulate more cooperation with other 2001 there has been stable growth in research activity experts in and outside Nordland, and also become spe- in Nordland, both measured as index-regulated and in cialists in Nordland in important fields. It is a challenge terms of absolute costs32. At the same time, research to mobilize more R&D activity in trade and business development in the rest of the country has been even without having regional actors who can motivate, carry stronger. This means that if Nordland is to catch up with out regionally relevant research and not least provide the rest of the country and achieve the goals set in the networks to other experts outside Nordland. In order to R&D strategy, a R&D activity in the county needs to rad- get companies to use more R&D in their development ically increase. In the final report from the government’s work, a system of regional R&D brokers in Nordland will Knowledge Gathering – Value Creation in the North it is be established as part of the VRI programme (Measures stated that R&D investments and competence develop- of Regional Innovation). ment will result in major impact for trade and business The University of Nordland and the other research in Nordland33. institutions are continually developing but R&D capacity The university and university college sector has con- in the county is still limited, and consequently not all tinued to grow in Nordland during recent years, primar­ subject fields can be covered. It has been acknowledged ily driven by the expansion of the University of Nordland. for a long time that technological development and edu- At the same time, there has been a fall in R&D acti­vity in cation is a field in which R&D activity and trade and private trade and business. The fall in Nordland amounts business needs do not correspond well. Narvik Univer- to 22% from 2007 to 2012, whereas the country as a whole sity College and Norut are important actors, but do not had 5% growth. Therefore, the development of more cover the needs of trade and business sufficiently. This research activity is a critical challenge, particularly for particularly applies to the Helgeland area of Nordland small and medium-sized companies. but also the Salten area. Work has therefore been going There are not many R&D institutions and commer- on for a long time to strengthen technological education cial services companies in Nordland and those that do exist are not of significant size. At the same time, com- Note 32: The Research Council of Norway 2013, indikatorrapporten panies and their R&D challenges and knowledge needs Note 33: Minsitry of Trade, Industry and Fisheries (2014)

Simulator at Bodin upper secondary school and tertiary vocational college. Photo: Trond-Erlend Willassen

22 PART 1: BACKGROUND AND ANALYSIS in more parts of the county, as well as increasing R&D Strong expert environments in the activity. Campus Helgeland is an important move to help fields of innovation and business development build a strong knowledge environment for the whole of In order to create value from new ideas, competence in the Helgeland region. Engineering education has been business development is needed. There is a need for thor- established, starting in 2014, and R&D activity is also ough knowledge about market opportunities, business increasing. In Bodø engineering education has also models, financial solutions, ownership models, access started, as from 2014. The development of the Maritime to networks, etc. Such knowledge must also, in many Campus at University of Nordland and Bodø Maritime cases, be related to particular business sectors. In the College in Bodø are other important examples. To cre- county of Nordland there are several incubators, know­ ate better collaboration between education and research, ledge parks, a research park, an new research park being and to help meet the knowledge requirements of trade developed, as well as several business gardens/ innova- and industry, Nordland County will in the future pri- tion centers. Innovation Norway is the most important oritize education and research activity in fields that are actor in financing projects within innovation projects important for trade and industry in the region. and entrepreneurship. These actors have provided an Research activity is international and results and rel- important input to the strategy: to share and exchange evance are compared against strong competition from knowledge on business development, innovation and other research environments. If research institutions in entrepreneurship. The innovation centers and Innova- Nordland are to compete at this level, the environments tion Norway want to achieve closer cooperation and must be strong within their respective specializations. have a lead role. Nordland County Council will follow This means more focus must be given to enhance research up on these initiatives to help create a common learning activity in Nordland. Nordland County Council will arena for innovation and clarify the role of innovation help develop a strong knowledge base of research activ­ centres in the county. There is a need for stronger expert ity within the various institutions in Nordland, partic­ centres in business development in the various parts of ularly those relevant for trade and business in the region. the county. An example of an important trade and industry directed project is the development of a Centre for Research- Driv- en Innovation in Experience-Based Tourism.

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 23 Rocket launching from Andøya Space Center as seen from Andenes lighthouse. Photo: Kolbjørn Blix Dahle, Andøya Space Center

24 ET NYSKAPENDE NORDLAND – INNOVASJONSSTRATEGI FOR NORDLAND 2014–2020 PART 2: OBJECTIVES, STRATEGIES AND MEASURES

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 25 Based on the analyses and assessments of the innovation potential of Nordland described previously, there is a need to develop objectives and strategies for further work. The objectives must be realistic to achieve. The innovation strategy will be mea- sured by how we create results in trade and industry.

Objectives ening pupils’ and students’ competence in innova- The innovation strategy for Nordland has three objectives: tion and entrepreneurship. - Further develop the University of Nordland’s 1. To increase the competitiveness of trade and industry strong trade and industry-focused study and by strengthening the innovative ability of companies. research activity. 2. To grow employment in commercial services and - Developing strong expertise in innovation and innovative supply companies. business development. 3. To achieve an innovation system in Nordland with - Strengthening companies’ knowledge about and good interaction, learning and cooperation between measures for recruiting a qualified work force. central actors in trade and industry, the work market, • More effective spatial planning and concession pro- education, research and various public sector fields. cesses.

Strategies Measures The objectives must be followed up using more concrete In order to follow up the challenges, opportunities and strategies. Based on analysis and initial discussions and strategies defined above, various types of measures must the objectives set for the work, the following strategies be used. The measures are to be developed and possi- are to be developed: bly changed along the way as the innovation process is implemented. The measures are to be included in the • To stimulate increased innovation in trade and indu­ Development Programme for Nordland and are to be stry in Nordland, with special emphasis being put on: assessed in the annual budget processes. - Developing innovative destinations in Nordland. - Strengthening innovation processes in the supply Innovation in trade and business industry. • By building relations between R&D and trade and - Strengthening cooperation within the seafood industry in Nordland we can strengthen knowledge industry, including white fish, with supply trades, about innovation in trade and business. clients and industry in Nordland. • The County Government wants to concentrate effort - Stimulating growth in commercial services with special emphasis on small and medium-sized • To strengthen access to competent and qualified companies in its further work on innovation policy work force. in Nordland, and assess how dialogue and cooper- - Strengthening the cooperation between school, ation with this target group can be strengthened in society and trade and industry, developing a supply a well-structured way. structure in upper secondary school and strength- • To build better interaction in the innovation system in Nordland by creating a common knowledge basis

26 PART 2: OBJECTIVES, STRATEGIES AND MEASURES and conceptual system, clarifying roles and responsi- in cooperation with The National Centre for ICT in bility and developing methods and measures to stim- education, a national pilot project. Knowledge of and ulate increased innovation in trade and business. As information about regional working life and local part of this endeavor, an innovation forum is to be companies is important in order to make well-in- established in Nordland. formed educational and career choices. The actors in • To develop work on clusters and networks in Nordland industry need the cooperation with the school sector by putting more effort into innovation and R&D in the to be systemized, and the measure is to help achieve cluster projects. As part of this, new clusters are to be a good balance between industry’s needs and educa- stimulated and work is to be done to ensure long-term tion of work force. benefits in the cluster efforts beyond today’s measures. • To develop the structure of study offered in upper sec- It is important to involve small and medium-sized ondary education. The school structure in Nordland companies in this work. requires further development to correspond better • To develop work on entrepreneurship in Nordland, with the trade and industry structure in the coun- especially regarding how new business start-ups with ty. Closer cooperation must be established between growth potential are assisted by Innovation Norway upper secondary schools and employers with regard and the innovation centres in Nordland. to the study programmes offered. In this work, actors • To build stronger competence in developing business, such as OPUS, the career centres, the vocational innovation and entrepreneurship on a regional basis. training centers, the study centers and the pupil The innovation centres in Nordland will be central follow-up service amongst others must be brought actors in this work. together. With regard to upper secondary education • To establish an open innovation meeting place under the apprenticeship situation is unsatisfactory and one the auspices of The Doctoral Scholarship Programme of the main reasons for the completion rate being low. for Nordland. Researchers and students are to assist Popular subjects lack apprenticeship schemes. This with knowledge about innovation through dissemi- especially applies to electro, many technical subjects, nation of research results from the expert innovation and industrial production (TIP), and not least health centres in Nordland. service subjects. In other educational programmes, • To use R&D stimuli measures targeted at building especially service and communications, technical strong expert environments in chosen trades and subjects for building, plant, and food service, there industries. Work is to be done to create trade and is a lack of applicants and the available apprenticeship industry, relevant to educational and research envi- places are not filled up. Here the challenge is a lack of ronments in Nordland, of high quality in order to applicants and recruitment through the educational compete with national and international research system. programmes. • To strengthen the R&D effort relevant for companies In The County Council case number 070/14 it was through the so-called VRI-project, and to find good established a regional cooperation body in which schools, ways to continue this after the completion of the VRI- vocational training offices, and industry/sectors were project in 2017. A system with competence brokers in represented. The aim of this is to be an advisory body at Nordland will be established to help strengthen small county level with regard to determining the study offer and medium-sized companies R&D work. structure in upper secondary education. The body has an important role in coordinating the study offer provision Access to knowledge and qualified work force and as an actor in a future regional competence market. Education It is especially important to strengthen vocational • To develop appropriate models for systematic coop- training provision and apprenticeship places relevant eration between schools, working life and other for the processing and the seafood industries. Nord- regional actors. The development of a digital tool land County Council will assume its responsibility by for interaction between school and trade/working assessing whether in cases of supply and funding, it can life is to be included as part of this. The purpose of have a requirement on the use of apprentices. In addition this measure is to ensure the achievement of societal the supply contract may require apprentice places to be goals regarding increased quality and relevance in established for the project in question, on the basis of education through completion of vocational train- sector need34. ing/upper secondary education. The recruitment of a Nordland County will seek to strengthen coopera- work force based on the needs of industry are also an tion between educational actors in maritime subjects and important element in this endeavor. The development trade and business. of a digital tool is to help with better systemization of the work and provide a better overview of the vari- • To strengthen pupils’ and students’ competences in ous actors involved, is an important part of this. The innovation and entrepreneurship. Vocational sub- development work to be sought will be carried out ject pupils are an important target group in order

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 27 to increase innovation activity. The apprenticeship • To establish regional structures to facilitate educa- period is an important practice period. In relation tional offers in accordance with industry, actors must to this, it may be desirable for the individual pupil to act as catalysts for developing professional compe- start his or her own activity/business. Methods are tences. This includes clarifying the needs of work- therefore to be tested to enable increased entrepre- ing life, arranging for various flexible competence neurial activity in vocational training. Here training measures corresponding to the need by brokering in the food and tourism trades needs to be integrat- offers to various educational providers. Together with ed. In higher education the qualifications framework national authorities, work has to be done to put in determines its learning goals that degrees in higher place basic financing for a study center function or education address innovation and entrepreneurship education competence broker. competence. This would mean an integration of the work on innovation in bachelor, master and PhD Recruiting qualified work force study programmes. • Nordland County Council is to report the experience gained from the ongoing living settlement project. • To stimulate increased cooperation between the Uni- The findings are to be disseminated with partners in versity of Nordland and trade in order to strengthen the private and public sector. educational and research activity at the university. • Nordland County Council will invite companies The university needs to increase its range of cours- and branch organizations with major recruitment es in cooperation with trade and business. This requirements to take part in an integrated recruit- means, amongst other things, building a research ment project to strengthen companies’ competences park, establishing a strong maritime campus, build- and activities in the recruitment process. ing competence environments in preparedness and stimulating strong research environments in tourism, seafood, innovation and entrepreneurship, energy and industry, as well as important research for trade in The High North region.

Mo Industripark Photo: Rita Bogholm Engen

28 PART 2: OBJECTIVES, STRATEGIES AND MEASURES More effective spatial planning Operative follow-up and concession processes Three areas of responsibility have been defined to follow • A project is to be implemented, aimed at developing up the strategy. The work on implementing the strategy knowledge, cooperation between planning authori- is to be separated into three projects: ties, to develop new methods for dialogue in spatial planning processes etc. The objective is to create more • The Innovation Project, with responsibility held by effective spatial planning and concession processes. Nordland County Council’s trade and development department. Implementing • The Education Project, with responsibility held by The County Council has overall responsibility for imple- Nordland County Council’s education department. menting this strategy, as well as for making any changes • The Plan Project, with responsibility held by Nord­ in the overriding policy. The County Council will follow land County Council’s culture and environment up the strategy in its annual budgets and in the revision department. of the Development Programme for Nordland County Council. The County Government holds the delegated The projects must be organized according to the needs responsibility for managing the strategy and reporting of each project. In addition, resource groups are to be back to The County Council. established for each of the projects, amongst other things The strategy is mainly about strengthening several to ensure interaction with trade/business and other rel- elements in Nordland’s innovation system and about the evant parties. interaction between the various actors. A project board Participation in Interreg-projects will be considered will handle the operative management and ensure imple- in order to implement the innovation strategy. The pro­ mentation of the strategy and this board will consist of ject will lead to learning and comparison with other rel- some of the Heads of the Departments in Nordland evant groups. County Council. The management group is to be led by The work is to be financed through regional develop- the Director of Economic Development. ment funds, the county budgets, applications to regional research funds, Interreg-programmes and other financial sources.

Freeriding at Blåtinden in Vågan municipality. Photo: Espen Mortensen

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 29 The innovation strategy will create effects for trade 1. Increased competitiveness in trade and industry and industry in Nordland. The work therefore needs to through strengthening companies’ innovative capa- be discussed with industry along the way. Trade and bility. industry representatives should, therefore, be invited to Competitiveness is to be measured through the meet the political leadership and provide input to the growth of in the economy of Nordland, and the various projects directly. innovation capability is to be identified through developing innovation studies for Nordland. Statis- Result objectives tics Norway’s innovation study and Innovation Nor- To follow up the development of the various strategies, way’s new system for performance management will results orientated goals and indicators must be set, in be the starting points for developing the indicators order to monitor progress. The management group is for measuring innovative capability responsible for defining the indicators within the three 2. More employees in commercial service provision and target areas: more innovative supplier companies. Statistics Norway’s trade and industry statistics are to be used to monitor the development in the trades and industries in question. Consideration much also be given to how innovation can be measured in supplier companies. 3. An innovation system in Nordland with good interac- tion, learning and cooperation between central actors in trade and industry, the work market, education and research and various parts of the public sector. In order to measure interaction development, gap analyses are to be carried out - as well as various qualitative studies. Nordland Research Institute has conducted an initial analysis as part of the initial work on the strategy. This provides a solid basis for establishing data to show the development over time in the strategy areas to be worked on.

30 PART 2: OBJECTIVES, STRATEGIES AND MEASURES Litterature (Norwegian and English) Asheim B.T og Isaksen A. (1997): Regionale innovasjonssystemer – en teoretisk diskusjon, i Isaksen A. (red) Innovasjoner, næringsutvikling og regionalpolitikk, Høyskoleforlaget, Kristiansand, ss. 51-79 Asheim B.T. og Isaksen A. (2001): Regional innovation policy towards SMEs: Learning good practice form European instruments. STEP-gruppen Oslo. European Commision (2012): Guide to Research and Innovation Strategies for Smart Specialisations (RIS 3). Isaksen A. et. al (2013): Can small regions construct regional advantages? The case of four Norwegian regions, European Urban and Regional Studies April 2013 20: 243-257, first published on March 29, 2012. Kunnskapsparken Bodø rapport (2014): Indeks Nordland 2014, Kunnskapsparken Bodø, Bodø. Mariussen Å. et.al. (2013): Smart 4H – Forslag til Smart spesialisering for Nordland. Nordlandsforskning, Bodø. Mariussen Å. et al. (2014a): Challenges for smart strategies in resource based regions: The case of wind energy in Nordland. Nordlandsforskning, Bodø Mariussen Å (2014b): Weak bridges and missing sectors in Nordland, Working paper, Nordlandsforskning, Bodø. Nilsen J. og Langset M. (2011): Studiesentrene i Nordland – organisering, resultater og framtidig rolle. NIVI-rapport 2011-7. Norges forskningsråd (2013): Det norske forsknings- og innovasjonssystemet – statistikk og indikatorer. www.forskningradet.no/indikatorrapporten Nærings- og handelsdepartementet m.fl. (2014): Framtid i nord, Sluttrapport fra Kunnskapsinnhenting – verdiskaping i nord. OECD (2005): Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition, OECD, Paris OECD (2010):, The OECD Innovation Strategy: Getting a Head Start of Tomorrow, OECD, Paris OECD (2014):, Measuring Innovation in Education: A New Perspective, OECD, Paris Toner, P. (2011):, Workforce Skills and Innovation: An Overview of Major Themes in the Literature, OECD Educa- tion Working Papers, No. 55, OECD Publishing. Trøndelag FoU (2014):, Framtidig naturbruksutdanning i Nordland, Rapport 2014:12,

Political documents and cases (in Norwegian only) Bedre læring: Strategi 2014-2018 Felles politisk plattform for posisjonen - 2013-2015 FoU- strategi for Nordland 2013-2025 Fylkesplan for Nordland 2013-2025 Regional Plan Politikk for marin verdiskaping i Nordland, FT-sak: 018/13 Industristrategi for Nordland – prosess, mineral- og leverandørindustri, FT-sak 043/13 Organisering og drift av OPUS, FT-sak 64/14

INNOVATIVE NORDLAND – THE INNOVATION STRATEGY FOR NORDLAND 2014–2020 31 Cover photo: Kolbjørn Blix Dahle, Andøya Space Center

design: bynorth.no - ­ County Photo: Geir Johnsen Prinsensgate 100 Nordland County Council [email protected] Adress: Bodo 8048 Norway 00 50 65 TLF: 75 +47 Afterword County Councillor Tomas Norvoll Afterword County Tomas Councillor industry and business. In the regional plan Nordland for the county’s parliament jointly adopted the vision "Innovative The setwe Nordland." have ambition in the innovation strategy are high: will we competitive createa more business environment through increased innovation in enterprises. is important It that togetherwe, with partners in the academia public sector, and industry, create opportunities future for innovative companies and jobs in Nordland. The The County CouncilNordlandof has, in the common politicalplatform, ambit proactive a more develop to ions industrial and business ­ The policy. Council wants the develop to industrial and business policy in Nordland facil to a good of frameworkitate the development a competitive for and innovative