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STEP REPORT 05-2004 Knowledge Intensive Service Activities and Innovation in the Norwegian Aquaculture Industry - Part Project Report from the OECD KISA Study

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STEP REPORT 05-2004 Knowledge Intensive Service Activities and Innovation in the Norwegian Aquaculture Industry - Part Project Report from the OECD KISA Study STEP REPORT 05-2004 Knowledge intensive service activitiesKnowledge intensive service activities and innovation in the Norwegianand innovation in public home based aquaculture industry services to elderly in Norway Part project report from Part project report from the OECD KISA study the OECD KISA study Heidi Wiig Aslesen Marianne Broch STEP REPORT 05-2004 TITLE STEP - Centre for Knowledge intensive service activities and innovation in the Innovation Research Norwegian aquaculture industry - Part project report from the OECD KISA study Address/Location: Hammersborg torg 3, NO-0179 Oslo, Norway Phone: +47 22 86 80 10 AUTHOR(S) Fax: +47 22 86 80 49 Enterprise No.: NO 948 007 029 MVA Heidi Wiig Aslesen CLIENT(S) Norges Forskningsråd REPORT NO. CLASSIFICATION CLIENTS REF. This report will be 156259/220 published in the Unrestricted PROJECT NO. NO. OF PAGES/APPENDICES NIFU STEP report series KISA 38813701 ELECTRONIC FILE CODE PROJECT MANAGER (NAME, SIGN.) CHECKED BY (NAME, SIGN.) KISA_Part3_final.doc Arne Isaksen FILE CODE DATE APPROVED BY (NAME, POSITION, SIGN.) ABSTRACT This report is the last of three studies focusing on the use of knowledge intensive service activities (KISA) in innovation in specific industries in Norway (Broch, 2004 and Broch and Isaksen, 2004). Typical examples of KISA in firms and organisations includes R&D, management consulting, IT services, human resource management, accounting and financial service activities, marketing and sales, project management, organisational activities, and training. The main focus in this report is on KISA in the aquaculture industry in Norway. One of the main objectives of the study is to provide insights into how aquaculture firms maintain and develop productive and innovative capabilities through utilisation of KISA, provided by internal and / or external sources. The main research questions are: What internal and external competencies do firms use in innovation, and how are these competencies used to build the firm-specific knowledge and skill base needed to facilitate learning and innovation processes? The ultimate objective of the KISA project, i.e. the comparative studies of the specific industries in different OECD-countries , is to inform government policy and programs on how to use KISA in building innovation capability of firms and organisations across various industries and sectors in the economy. KEYWORDS ENGLISH NORWEGIAN GROUP 1 Knowledge intensive services GROUP 2 Innovation policy SELECTED BY AUTHOR Aquaculture industry STEP Table of contents 1. Introduction ............................................................................................................................................ 1 The KISA project.................................................................................................................................................. 1 Method and data of the KISA aquaculture study.................................................................................................. 2 2. KISA and innovation activity ................................................................................................................ 5 Innovation as interactive learning......................................................................................................................... 5 The role of KISA in innovation ............................................................................................................................ 6 3. The Norwegian aquaculture industry................................................................................................... 9 Major innovations in the history of aquaculture ................................................................................................... 9 Value creation and activity in aquaculture.......................................................................................................... 13 Actors and activities supporting aquaculture ...................................................................................................... 19 4. The role of public policy....................................................................................................................... 23 Policy instruments targeting aquaculture firms................................................................................................... 23 5. Characteristics of innovation in the aquaculture industry ............................................................... 37 Innovation activity in aquaculture....................................................................................................................... 37 Different innovation strategies............................................................................................................................ 44 6. The role of KISA in innovation within the aquaculture industry .................................................... 49 WHY, WHEN and HOW KISA are used in relation to innovation.................................................................... 51 Summing up KISA in relation to different innovation strategies........................................................................ 66 7. Policy implications................................................................................................................................ 69 References.................................................................................................................................................. 75 Appendix: Interviewed firms................................................................................................................... 77 - i - STEP Index of figures and tables Figure 1. Norway’s share of the total supply of salmon in the world from 1998 until 2001.................................................. 11 Figure 2. Production of salmon and large rainbow trout globally (1000 tonnes round weight)............................................. 12 Figure 3. The largest markets for Norwegian salmon 1999 - 2001........................................................................................ 12 Figure 4. Estimated creation of Value in Norwegian Aquaculture Industry 2002 ................................................................. 14 Figure 5. Employment in salmon and trout production and production in tonnes ................................................................. 15 Figure 6. The 10 largest aquaculture companies’ share of total production 1989 – 2001. Percentage................................... 17 Figure 7. Aquaculture’s total domestic input from private KIBS in 1999. In 1000 NOK and percentage............................. 20 Figure 8. Share of KIBS purchase as share of total national purchase for aquaculture firms. 1993-1999. ............................ 21 Table S 1. Stylized variants of aquaculture firms ...................................................................................................................vi Table S 2. Innovation strategies of aquaculture firms. Why, when and how KISA are used for innovation .........................vii Table S 3. Why, when and how KISA are used in relation to innovation among interviewed aquaculture firms.................viii Table 1. Geographical distribution of licenses, by county and region ................................................................................... 16 Table 2. The regional distribution of employment in aquaculture in 2001* .......................................................................... 16 Table 3. Educational background of employees in fish farming in 1992 and 2002 ............................................................... 18 Table 4. Share of innovating firms in all industries and in aquaculture, 2001....................................................................... 38 Table 5. Innovative firms, innovations new to the market 1999-2001................................................................................... 38 Table 6. Responsibility for product or service development in innovating firms .................................................................. 38 Table 7. Responsibility for process development in innovating firms................................................................................... 39 Table 8. Types of innovation activities in innovative firms, share of firms reporting such activities.................................... 39 Table 9. Types of innovation activities in innovative firms, share of total innovation cost by activities............................... 40 Table 10. Sources of information or ideas for innovation activity of firms in aquaculture.................................................... 40 Table 11. Share of firms reporting innovation collaboration by type of collaboration partners in Norway........................... 41 Table 12. Hindrances of innovation activities of innovating firms, 1999-2001..................................................................... 42 Table 13. Factors inhibiting innovation activities, medium to high degree of importance 1999-2001, all firms................... 42 Table 14. Firms’ use of external financial sources in innovation projects the last three years, 2002..................................... 43 Table 15. Stylized variants of aquaculture firms ................................................................................................................... 45 Table 16. Innovation strategies of aquaculture firms. Why, when and how KISA are used for innovation .........................
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