Research and Innovation Strategy for Møre Og Romsdal 2016-2020

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A manifest partner Research and Innovation Strategy for Møre og Romsdal 2016-2020

Research and innovation strategy 2016-2020 2 FOREWORD

Foreword

The region of Møre og Romsdal is currently in a period of change. The regional authority has therefore developed a research and innovation strategy to meet the challenges faced by businesses in the region. This strategy has been compiled by applying the "Smart Specialisation" method, in which the interaction between businesses, research groups and the public support system is a central aspect. The region of Møre og Romsdal has been awarded a place on a European Commission study together with several other regions in Europe, and the study involving Møre og Romsdal comprises part of the knowledge platform on which the new strategy has been based. The fact that our region has been studied and assessed by external parties eliminates any reservations that our new strategy has been based on myths and theories that cannot be documented. The analyses that were part of the study provided us with excellent guidelines in terms of both content and process for the strategy, and these have broadly been followed in the strategy process.

The strategy document shows us what our target areas must be if we are to ensure competitive businesses for the future. These are in principle as follows:

• A general need for change and a higher rate of innovation within businesses. • A reduction in petroleum-related activities with con- sequences for large parts of the maritime industry. • The green shift and its requirements on sustainability and reduced environmental impact.

The current strategy expires in 2016. The new strategy does not focus on one specific industry or branch, but has been developed to ensure access to relevant knowledge for the region in areas where the region has a competitive advantage. Nonetheless, there is a clear focus on the ocean space, as this is where our greatest competitive advantage lies. The region has strong global clusters originating from the ocean space.

During the process, there has been a focus on identify- ing both challenges and opportunities represented by the major megatrends for both society and industry.

The new strategy will be implemented via the "Action programme for value creation and expertise". This will comprise relevant actions for individual years. The strategy has strong roots within industry and commerce, research groups and the public support system. We therefore have every opportunity to work together to renew, develop and create competitive businesses via research and innovation.

Jon Aasen, Odd Gjørtz, Chairman of the Leader of the Steering County Council Committee for the Research and Innovation (R&I) Strategy TABLE OF CONTENTS 3

Table of contents

1 Introduction 4 1.1 Methodical approach – Smart specialisation 4 1.2 Ownership of the R&I strategy 5

2 Dominant industries and cluster projects in Møre og Romsdal 6 2.1 Maritime 6 2.1.1 Maritime industrial cluster project 6 2.2 Marine 6 2.2.1 Marine industrial cluster project 6 2.3 Furniture 8 2.3.1 Furniture industrial cluster project 8 2.4 Petroleum 9 2.5 Knowledge cluster project, iKuben 9 2.6 Other important industries 9 2.7 New opportunities in the ocean space 9

3 Opportunities and drivers for future industries 10 3.1.1 Sustainability 10 3.1.2 Enabling technologies – the fourth industrial revolution 10 3.1.3 Commercialisation 10

4 Challenges involving research and knowledge 12 4.1 Challenges involving knowledge for industries 12 4.2 Institutionalisation project 14 4.3 Interaction within the innovation system 16

5 Research and innovation strategy –priority target areas 18 5.1 Strategies 19

6 Appendices 24 6.1 Megatrends 24 6.1.1 The knowledge society and digitalisation 24 6.1.2 Urbanisation and attractive cities 24 6.1.3 Demography and mobility 24 6.1.4 Sustainability and the green shift 24 6.1.5 Health and lifestyle 24 6.2 Fields of knowledge 26 6.3 Business structure 27 6.4 Research activities at the research institutions 29 6.5 R&D statistics 32 Design: Eggedosis AS • Press cuttings: Tidens Krav, Romsdal budstikke and Sunnmørsposten budstikke Design: Eggedosis AS • Press cuttings: Tidens Krav, Romsdal 4 INTRODUCTION

1 Introduction

One central goal within national knowledge and business policy is to achieve more research-oriented and innovative industry and commerce. A successful regional innovation system, identified by close interaction and a flow of knowledge between businesses, research and educational groups and public authorities/ public support bodies, will promote the development of more knowledge-based businesses.

Møre og Romsdal’s research and inno- 1.1 Methodical approach – Smart related to expertise and research require- vation strategy (R&I strategy) shall help specialisation ments. Subsequently, data describing how ensure that the regional innovation sys- We have made use of the Smart Speciali- the public infrastructure supports inno- tem in Møre og Romsdal is better equipped sation method in the process to determine vation is assessed in relation to the chal- to meet the major challenges involving goals and priorities. This is the method lenges involving expertise and research. knowledge and innovation currently faced applied by the European Commission to The above analysis helped uncover a gap, by the region's businesses. The strategy promote innovation and financial growth and the R&I strategy is a method to help shall lay down the direction and content of in the regions. The European Commission close the gap. In the work to boost com- the work required within research, devel- has established incentive schemes with a petitive strengths in the region and gain opment and innovation. The strategy shall total value of close to NOK 100 billion new opportunities, efforts focus on those have a long-term perspective, and simul- per year within their Horizon 2020 pro- areas where the region has a competitive taneously act as a concrete tool for the gramme, with the aim to support research advantage. development of research for innovation and innovation processes in Europe. Nor- within industry, commerce and society. way's contribution to this totals NOK 13 The knowledge base for Møre og Roms- billion over a seven-year period. The Gov- dal has been compiled by Bjørn Asheim, The R&I strategy is assessed within the ernment's target is for Norway to achieve Markus Grillitsch and Oxford Research1. context of the national knowledge and a two percent return from the programme. The analyses conclude by recommend- industry policy. It is therefore impor- Smart Specialisation centres on the inter- ing strategies that will boost the regional tant to ensure close cooperation with the action between industry and commerce, innovation system. Research Council of Norway and Inno- research and educational groups, author- vation Norway. The strategy will pro- ities and public support systems within a vide guidelines for the regional authori- regional innovation system that gener- ties' applications to the Regional Research ates growth and innovation in a region. Fund for Central Norway, and applica- The method recommends an analysis of tions for funding from the County Coun- the business structure to provide the basic cil, Innovation Norway and the Research data with which to identify comparative Council of Norway. strengths within the region. This should be followed by an analysis of the challenges

1 • Oxford Research: Analysis of the innovation systems in Møre og Romsdal • Asheim and Grillitsch: Working papers 2015 11 INTRODUCTION 5

1.2 Ownership of the Steering committee R&I strategy • Odd Gjørtz, Chairman of The R&I strategy has its roots the Board, Legasea / CEO of in the Partnership for Value Koppernæs AS and Leader of the Creation comprising Møre Steering Committee og Romsdal County Coun- • Odd Tore Finnøy, Chairman of cil, Innovation Norway, the the Board, iKuben / President / Research Council of Norway, CEO Brunvoll AS the County Governor of Møre • Gunnar Hareide, Chairman of og Romsdal, the Norwegian the Board, GCE Blue Maritime / Confederation of Trade Unions Director Tafjord Marked AS (LO), the Confederation of Nor- • Kristine Landmark, Board wegian Enterprise (NHO), SIVA member, Norwegian Rooms / (state-owned enterprise facili- CEO Slettvoll Møbler AS tating innovation by develop- • Brian Takeda, Director of ing infrastructure), KS (the Nor- Innovation and Strategy, Kaston wegian Association of Local and • Svein Monsø, Managing Director Regional Authorities) and NAV Umoe Sterkoder AS / Dale (the Norwegian Labour and Wel- industripark fare Administration), and is gov- • Lise Halse, Associate Professor at erned politically by the Regional Molde University College Development and Industrial Com- • Elisabeth Maråk Støle, Director mittee and the County Execu- Møreforsking AS tive Committee (Regional- og • Bergljot Landstad, Head of næringsutvalet og Fylkesutva- Regional Development and let) The strategy is an integrated Industry, Møre og Romsdal part of the County Plan for Møre County Council og Romsdal. The steering committee for work on the strategy is made Observers: up of representatives from indus- • Bodil Hollingsæter, try, academia and the public sup- Innovation Norway port system. As part of establishing • Arthur Almestad, strong foundations for the strategy Research Council of Norway within the regional innovation system, meetings are held with represent- The Partnership for value atives from all the executive boards creation in Møre og Romsdal for industrial clusters, and workshops comprises: are organised for representatives from Møre og Romsdal County Council, industry and commerce, research and Innovation Norway, the Research educational groups and the public sup- Council of Norway, the County Governor port system. of Møre og Romsdal, the Norwegian Confederation of Trade Unions (LO), the The strategy will be monitored via the Confederation of Norwegian Enterprise Action programme for value creation. (NHO), SIVA, KS and NAV. The steering committee for the strategy will provide recommendations for Workshop actions to be monitored via the Action Around 50 participants came together in programme for value creation. January to make their recommendations for the strategy. These were representatives A separate process has also been imple- from industry and commerce, business mented to develop an R&I strategy for the parks, incubators, knowledge parks, public sector. research institutions and University colleges/Norwegian University of Science and Technology. Other participants included Innovation Norway, the Research Council of Norway and the County Council, represented on the project group. 6 DOMINANT INDUSTRIES AND CLUSTER PROJECTS IN MØRE OG ROMSDAL

2 Dominant industries and cluster projects in Møre og Romsdal

We have identified four dominant indus- operators. As a result of the decline in oil larly to companies in Nordmøre. Møre og tries in Møre og Romsdal with the potential prices, the maritime industry has targeted Romsdal is most definitely the region in for growth and development. The selection other segments and industries, and now Norway with the highest exports of fish. is based on industries with a high num- has a more differentiated portfolio of oper- In 2015, the region alone generated NOK ber of employees in the region when com- ations. Knowledge and solutions devel- 16.6 billion in fish exports, more than pared to the national average, and with oped around advanced offshore operations 23% of the national total. The region also high export values. can now be applied to develop activities has a high rate of fish processing opera- within the new ocean space industries. tions, such as klippfisk (dried cod). It is Nature has afforded the region an impor- the fifth largest region in Norway in terms tant competitive advantage with its ocean 2.1.1 Maritime industrial cluster of fish farming, and plays an important space, and industries with links to the project role nationwide within the rapidly grow- ocean will make important contributions GCE Blue Maritime is an industrial clus- ing biomarine industry. One advantage to regional value creation. These indus- ter project and was one of two projects in enjoyed by the region is that large parts tries frequently play leading roles in the Norway to be awarded status as a Global of the value chain within the marine indus- development and utilisation of relevant Center of Expertise (GCE) in 2015. The pro- try are located here, from fishing and farm- knowledge. Such knowledge is in demand ject represents the maritime cluster, and ing to processing and biomarine ingredi- and can generate growth and sustaina- aims to create a hub for safe and sustain- ents. One part of the value chain where ble development in other countries. The able commercialisation of advanced tech- the region has few businesses is down- industries related to the region's ocean nologies and operations in the ocean space. stream operations. Significant growth is space therefore have the potential to help The project's focal point is to build knowl- expected in this part of the industry in solve global social challenges related to edge bridges to national and international the near future. food supply and health by exporting both centres of expertise within ground-break- technology and knowledge. Many of the ing maritime innovation in the ocean 2.2.1 Marine industrial cluster fields of knowledge developed are generic space, simulation and virtual proto- project in nature and can be transferred to other types that provide the foundations for an Legasea™ is an industrial cluster project industries. Cluster projects and networking increased rate of innovation, facilitating that was awarded Arena status in 2013. are important tools for such work. the creation of global leaders from small The project represents the marine cluster and medium-sized companies, and boost- that can report an annual turnover of close 2.1 Maritime ing the region’s attractiveness as a host in to NOK 40 billion. It centres on the further The maritime industry is mainly located order to attract talent, experts, entrepre- development of an integrated, complete in the peripheral areas of the region, with neurs, global operations and capital. value chain that will allow 100% utilisa- the largest concentration in Sunnmøre. tion of the raw materials taken from the Aquaculture companies and their suppli- 2.2 Marine ocean, substantiating the health benefits ers can be found throughout the region. The marine industry comprises corpora- of marine biomass, enhancing expertise The industry comprises a complete clus- tions and companies within fishing, pro- within the cluster, increasing the region’s ter with shipowners, shipyards, equipment cessing, aquaculture, marine ingredients attractiveness as a host and making Cam- suppliers and design companies. Several and their suppliers of services and equip- pus Ålesund into a natural meeting place of the companies are part of global value ment. Møre og Romsdal has the highest for the world's foremost experts within chains. Their success has been based on volume of fish landed in Norway, and ingredients derived from marine oils and responding rapidly to new opportunities has an excellent position with which to protein. The project shall also establish a on the market, where innovation has been achieve a significant role in the production meeting place for the maritime and marine achieved via close dialogue between cus- of marine proteins and the global supply of clusters to develop future-oriented fish- tomers and suppliers. The maritime clus- food. Møre og Romsdal plays an important ing vessels, catch methods and processing ter has total annual turnover of close to role in aquaculture within Norway, and is technology for the production of healthy, NOK 60 billion. It originated from the fish- home to numerous specialist companies highly processed ingredients from marine ing industry, but has increasingly focused within aquaculture technology and ser- biomass. The project shall facilitate the on the petroleum sector as this has devel- vices. Over time, a number of these compa- development of a Centre for Research- oped. Today, a large share of the equip- nies have formed links with the Teknologi based Innovation for the marine industry ment and vessels are delivered to offshore akvARENA cluster. This applies particu- (SFI) within a period of five years. 7 8

2.3 Furniture Møre og Romsdal is a hub for the Nor- wegian furniture industry. Employees within the furniture industry in Møre og Romsdal account for 40% of the national workforce in this industry. Several of the major leading companies are located in the region, and the region has a comprehensive supplier industry, mainly located in Sunnmøre.

This industry sells finished goods directly to end customers, requiring market expertise, knowledge of customers and their needs and conduct, and knowledge of competitors on the market. This is knowledge that is essential for market differ- entiation and brand building. The furniture industry represents an important supplement to the general industry and commerce based on raw materials in the region and in Norway as a whole. Although movements in the exchange rate for the Norwegian krone have provided the industry with a competitive advantage, it still faces major challenges related to global competition. The industry must ensure an increased capacity for innovation and creation, and a rapid rate of innovation.

2.1.3 Furniture industrial cluster project Norwegian Rooms is an industrial cluster project that was awarded Arena status in 2013. The cluster project aims to build competitiveness by developing expertise within sourcing, product development and conceptualisation, brand building and internationalisation etc. The furniture industry has faced challenges involving productivity. Digitalisation has an impact on manufacturers of finished goods in all parts of the value chain: production, distribution and customer contact. Digital platforms create new dimensions and new opportunities for customer dialogue in the marketplace. Brand building and securing market share are of increasing importance in such a market landscape. DOMINANT INDUSTRIES AND CLUSTER PROJECTS IN MØRE OG ROMSDAL 9

2.4 Petroleum NCE Tourism Fjord Norway had its NCE 2.7 New opportunities in the ocean The petroleum industry has two landing status extended in 2015. The cluster pro- space stations for gas, a state-of-the-art process- ject comprises companies from Rogaland The competitive advantages nature has ing industry, major bases in and around to Møre og Romsdal, and its facilitator given Møre og Romsdal are mainly related Kristiansund, and a large number of oil is located in Bergen. NCE Tourism aims to the ocean and the resources it contains. service companies in the region. Low oil to form links between companies in a Exploitation of the ocean space has allowed prices have caused major difficulties for world-leading tourism industry in the the region to develop into a marine and the petroleum industry. Given the vast oil Norwegian fjords, with eminent experts, maritime hub, where expertise gained from and gas resources in the region, cost cut- research and the public support system. experience is linked with a high level of ting and increased efficiency can pave The companies within the cluster shall formal knowledge. The capacity to exploit the way for an increased level of activ- develop their own products and com- the potential found in the ocean space is ity, and thereby future profitability. The pile attractive packages with other enter- an integral part of the foundations laid for region currently has unexploited potential prises in order to boost their strengths and future value creation in the region. If the to make use of industrialised products from innovation, and to develop a wider range. region is to succeed, more research and its landing sites. The knowledge that is cre- Such creative industries are also important development is essential – both user-di- ated from base operations is unparalleled experiential industries. rected research where the companies play worldwide, but the industry has too few a leading role and research that helps links to other industries in the region, and Agriculture and bioeconomy develop the regional research and educa- this knowledge is therefore not sufficiently Although the region’s agricultural industry tional institutions established to support distributed throughout the region. Utilisa- is currently experiencing a decline in utili- innovation within the regional industries. tion of these knowledge groups represents sation, Møre og Romsdal remains a major a substantial potential for value creation. agricultural region. Møre og Romsdal has We can now detect developments whereby a wide diversity of businesses within the the maritime industry is exploiting its 2.5 Knowledge cluster project, food industry, based on raw materials expertise and developing it further to reach iKuben from agriculture. These range from major new markets such as offshore wind power, iKuben (innovative, international indus- exporters to manufacturers of local pro- offshore mining, aquaculture etc. Another try) is an knowledge cluster project that duce, and comprise dairy and meat prod- new development is on-board process- had its Arena status extended in 2015. The ucts and ready-made foods. The green ing on fishing vessels, such that the ves- cluster comprises internationally oriented sector is also important in terms of the sel becomes part of the bioeconomy. The companies that deliver services, compo- region's cultural and experiential tourism, ocean space has vast unexploited poten- nents and advanced industrial systems. where local produce with authentic origins tial, providing new opportunities for the The cluster focuses on the Industrial Inter- represents a resource. Bioeconomy com- maritime and marine industrial clusters. net, and aims to be a national leader in prises industries and economic sectors that terms of commercialising the opportuni- produce and utilise biological resources, The traditional fishing industry has now ties provided by the Industrial Internet. The sustainable production and processing of given birth to a new industry with a sig- cluster itself is of decisive importance, as renewable biomass for food, health prod- nificant focus on sustainable and profit- it comprises individual companies that are ucts, fibre products, industrial products able exploitation of marine biomass and too small to deal with the major changes and energy. The bioeconomy covers both the large volumes of residual raw mate- required. One essential measure is rapid the blue (related to water) and green sec- rials originating from fishing and fish commercialisation using the prototype tors. Innovation in this area is strongest at farming. This development gives rise to lab, ProtoMore. This focuses on working the meeting point between different bod- activities within the processing of biom- quickly, economically and efficiently when ies and flows of knowledge, and in inter- arine ingredients, which represent con- testing new products, services and business disciplinary projects. siderable potential within feed/industry, models, and launching these quickly on health/nutrition and pharmaceutics. Close the market. iKuben's main strength within Other industries to 10% of the global processing of bioma- innovation is its inter-industry expertise, Møre og Romsdal is home to several major rine ingredients takes place in the region. with various industries coming together national enterprises within the process Within the Omega 3 concentrate segment, to share knowledge and challenge one industry, quarrying and mining, for exam- the industry in Møre og Romsdal repre- another. Continuing education within the ple Hydro Sunndal and Omya Hustadmar- sents 30% of global production. Enter- Industrial Internet and regional resources mor. One common trait of most compa- prises and suppliers involved in the ocean required to utilise big data are also impor- nies in such industries is that they compete space are well positioned to develop and tant aspects of iKuben's strategy. on the global market, and have the same introduce new technology into the produc- requirements for innovation and creation tion of marine proteins and ingredients. 2.6 Other important industries as other industries. These are companies The development of new business models, Tourism with a major focus on improving produc- resulting from the industries' technologi- Tourism is an important industry for Møre tion processes and developing products cal developments, will play an important og Romsdal. There is an increasing demand and segments within their own develop- role in determining the market positions for activities and experiences, both soft ment fields. They represent knowledge achieved by companies in this sector. and hard adventures. The tourism industry groups that have very few links with other in Møre og Romsdal aims to be the "num- industries in the region, and there is there- ber one region for activities and adven- fore little dissemination of their knowledge tures". to the rest of the region. 10 OPPORTUNITIES AND DRIVERS FOR FUTURE INDUSTRIES 3 Opportunities and drivers for future industries

Industry and commerce of the future will What is characteristic of these technolog- 3.1.3 Commercialisation increasingly be based on innovation and ical developments is that they form links Innovation and new business areas have creation, frequently combined with the between intelligent machines, advanced little value until they are launched on utilisation of research expertise. Three analyses of vast volumes of data and the market and consumers show willing central drivers for industry and commerce human creativity. The question is now to purchase the new products or services of the future are described below. how to generate value by implementing developed. In Møre og Romsdal, industry that which is produced by the new tech- and commerce have historical traditions 3.1.1 Sustainability nologies. of gradual innovation, in which the devel- There is broad international agreement opment of goods and services is founded that we must all contribute towards min- Knowledge gained from the volumes of on experience-based knowledge. How- imising greenhouse gas emissions and data produced can help improve prod- ever, developments are now moving in reducing our impact on the environment. ucts and production processes. Systema- a direction whereby research-based and, Income distribution policy to lessen the tising data on: in part, ground-breaking innovations are gap between rich and poor countries is • processes, integrated in the product to an increas- also part of the picture. The growth in • production equipment, ing degree. In many contexts, innovation the global population and rising global • wear and maintenance and may pave the way for the establishment living standards, combined with the goal • the customer of new enterprises that utilise new busi- to reduce our environmental impact, are offers significant potential for using these ness models. leading to shortages of energy, land, water data. Automation, robotisation, use of and minerals. Research-based innovation sensors and artificial intelligence, data The production processes in several indus- and technological developments will play capture (big data), the Internet of Things tries in Møre og Romsdal are part of more a central role in the improved exploita- and new methods of communicating with or less global value chain networks, where tion of resources and in new areas. Sus- one another pave the way for new busi- companies and regions specialise in certain tainability will therefore be the corner- ness models where service and mainte- parts of the process. There is an increas- stone for developing new business areas nance become an integral part of produc- ingly frequent need for customisation and and business models. tion. Simulation, 3D printing and virtual special adaptations for numerous, often prototyping accelerate the rate of inno- small, customers. Moreover, the devel- 3.1.2 Enabling technologies – the vation and provide major savings dur- opments on the global markets require a fourth industrial revolution ing the product development phase. The reduction in the length of time from idea Technological developments are taking new technology implies more efficient conception to market launch. By investing place at a rapid rate and are so comprehen- utilisation of materials, as less goes to more knowledge in a product, a company sive that they have an impact on all parts waste in well-organised production pro- can climb up the value chain and subse- of society, industry and commerce. The cesses. Production will be so flexible that quently target new markets. This is how developments are so extensive that they it can be adapted to individual custom- the increased requirement for rapid inno- are now referred to as the fourth industrial ers, i.e. mass-produced piece production. vation and knowledge content will bring revolution. Digitalisation provides a basis These are examples of how technological about changes in business areas and busi- for major cost savings and more sustaina- developments will have a major impact ness models. The speed with which compa- ble production and consumption. on competitiveness and will lay the foun- nies are able to renew their business mod- dations for new business areas and busi- els and adapt to these new opportunities ness models. Industry and commerce in may be of decisive importance for future • Sustainability Møre og Romsdal have provided input success. Developing knowledge of the new regarding those areas where it is essential global markets is essential. Digital plat- to develop knowledge of enabling tech- forms have brought new dimensions and • The enabling nologies. These are described in detail in new opportunities for customer dialogue the appendix. to the marketplace. Knowledge of cus- technologies – the tomer requirements, customer behaviour fourth industrial revolution and customer values will play a decisive role in how companies are able to navigate this new ground. Brand building and securing market share are of increasing • Commercialisation importance in such a market landscape. OPPORTUNITIES AND DRIVERS FOR FUTURE INDUSTRIES 11

In Møre og Romsdal, industry and commerce have historical traditions of gradual innovation, in which the development of goods and services is founded on experience-based knowledge. However, developments are now moving in a direction whereby research-based and, in part, ground-breaking innovations are integrated in the product to an increasing degree. 12 CHALLENGES INVOLVING RESEARCH AND KNOWLEDGE

4 Challenges involving research and knowledge

The ability to exploit research and transfer such knowledge to production processes or products and services is of fundamental Industry 4.0 will feature: significance for innovative capacity. Barri- ers that obstruct the flow of knowledge and • a high level of automation interaction in the innovation system must and intelligent products therefore be dismantled. The R&I strategies must therefore focus on reducing such bar- riers. • resources fitted withsensors

4.1 Challenges involving knowledge and Internet technology for industries Industry and commerce in Møre og Roms- • digitalised and integrated dal are known for their experience-based value chains knowledge. Research and innovation taking place in and between companies have strong • real-time data exchange links to the knowledge generated via practical and operational experience. Although this experience-based knowledge is one of • the ability to create new the competitive advantages in the region, values and enterprise industry and commerce will need more formal and research-based knowledge in the from digitalisation. future. When compared with the national average, Møre og Romsdal has a lower number of inhabitants with higher education, but we have identified a positive development. The implementation of new When the workforce has a low ratio of personnel with higher education, the companies technology is of decisive are less able to absorb, share and exploit new technology or new knowledge in the devel- importance for Norwegian opment of unique and advanced products, processes and business models. Higher for- industry if we are to sustain mal education is important for achieving a close and productive cooperation with R&D and improve our competitive institutions. To succeed in this area, companies need the willpower to make organi- strength that mainly originates sational changes. from knowledge-based, Norwegian industry is at the dawn of a new era, referred to by many as the fourth indus- complex, advanced and trial revolution. The fourth generation of industry will be notable for its high level of high-tech products or services. automation, intelligent products, resources fitted with sensors and Internet technology, digitalised and integrated value chains, real- time data exchange and the ability to generate new value and enterprise from digitalisation. The implementation of new technology is of decisive importance for Norwegian CHALLENGES INVOLVING RESEARCH AND KNOWLEDGE 13

industry if we are to sustain and improve our lished between the maritime cluster and the exploitation of existing expertise in the competitive strength that mainlyoriginates GCE Maritim with the University College in innovation processes. There is vast potential from knowledge-based, complex, advanced Ålesund is yet further support of the indus- to be found in developing new solutions for and high-tech products or services. New ena- try's intentions to cooperate on knowl- advanced operations at sea or on the seabed bling technologies will play a central role edge and innovation. This type of cooper- for new industries, or developing technol- in the future of all industries in Møre og ation reinforces the region as an attractive ogy or processes in existing industries that Romsdal. host region for knowledge-based compa- can provide cost reductions. nies. The regional cooperation on knowl- The furniture industry, for example, faces edge should be reinforceable within other Such adaptations will lay the foundations challenges related to cost reductions, prod- industries. There is, not least, huge poten- for development and growth in the ocean uct development and distribution to a global tial for improvements to the region's knowl- space industries of the future. market, and as such the opportunities repre- edge-based cooperation originating from sented by digitalisation are of the highest rel- marine industries, including the biomarine The challenges faced by the petroleum evance. Robot technology, automation and industry. industry relate to the development in oil digital platforms are important factors in the prices and a generally high level of costs. development and expansion of this indus- A much higher volume of the raw mate- Technological developments are the major try. Knowledge of customer conduct and rials from the ocean can be utilised in the driving force behind achieving cost reduc- customer contact provided for by the new production of seafood and in new prod- tions for the industry. The industry has a digital platforms are also important aspects. ucts, thereby boosting value creation. The highly qualified workforce, whose exper- These lay the foundations for the develop- biomarine industry that operates at higher tise can be transferred to other industries. ment of new business models and distribu- levels of the value chain with the produc- By strengthening links to the knowledge tion channels. Within the maritime industry, tion of protein, ingredients, feed and health groups in the region, synergy effects can the use of sensor technology in equipment products, is experiencing positive growth be achieved between the petroleum industry may provide vast benefits regarding pre- and has close cooperation with R&D insti- and other industries in the region. ventive maintenance and development of tutions and suppliers of equipment and ser- new services for the end customer. Within vices. This provides plenty of potential for the marine industry, traceability in value growth within the marine and biomarine A much higher volume of the chains and control of production are both sector. As with other industries, the chal- problems that may be solved by the use of lenge here is to attract sufficient knowledge raw materials from the ocean new technology. to allow full exploitation of the potential for value creation. can be utilised in the The iKuben knowledge cluster has established a cooperation with Molde University Population growth, climate change and production of seafood and in College related to the Industrial Internet. increased awareness of health and lifestyle This cooperation has resulted in the Proto- diseases will have an impact on demand for new products, thereby More innovation lab and the development seafood and marine ingredients. In order of an expertise programme for industry in to exploit this potential, investments are boosting value creation. these fields. iKuben, together with the aca- required in knowledge, equipment and ser- demic group at Molde University College, vices to deal with and process raw materi- the Norwegian University of Science and als, and ensure that these reach the market. The biomarine industry that Technology, Møreforsking and SINTEF, have Manufacturers are now faced with require- initiated several projects aiming to build ments for information on a product's origins operates at higher levels of the expertise related to the fourth industrial rev- and its benefits. We are experiencing a tran- olution. NTNU in Ålesund has a study pro- sition from the sale of raw materials with value chain with the production gramme within automation, and is in the a low level of processing to more knowl- course of developing expertise and facili- edge-based products. Integration between of protein, ingredients, feed ties within Big Data, simulation and virtual fishing boats and refineries will contribute reality. With an industry in the region that towards a more efficient and sustainable and health products, is has traditionally utilised and developed new exploitation of resources. technological solutions, Møre og Romsdal experiencing positive growth has a vast potential for developing interdis- The maritime sector has principally special- ciplinary cooperation and playing a national ised in supplies to the petroleum sector. The and has close cooperation with role in this area, in addition to laying the decline in activities in this sector is evidence foundations for measures needed to meet of how such specialisation can result in vul- R&D institutions and suppliers the new digital future. nerability. Adaptations made in the industry must be extended to cover new areas. of equipment and services. The knowledge-based cooperation estab- The strengths of this industry are found in 14 CHALLENGES INVOLVING RESEARCH AND KNOWLEDGE

4.2 Institutionalisation project The three University and University Col- and marine, providing greater oppor- The research and educational environ- lege campuses in Volda, Ålesund and tunities to recruit talented candidates. ment in Møre og Romsdal has been estab- Molde, and the University College Centre • The allocation of SFI status (Cen- lished and is developed in proximity to in Kristiansund unite education, research, tre for Research-based Innovation) to the region's industry and commerce and innovation and business development. The the University College of Ålesund and community life, with campuses in Kris- campuses are built up around diverse dis- NOFIMA's department in Sunndal, and tiansund, Molde, Ålesund and Volda. The ciplines that are in demand for working major grants from the Research Coun- Universities and University College institu- life and industry, and play an increasingly cil of Norway to expertise projects tions in the region, in addition to Mørefor- important role in the innovation processes in Møreforsking and Molde Univer- sking's three companies, have a close inter- within industry. They provide companies sity College will help enhance capac- action with businesses in the region. This is with access to a research infrastructure in ity within these groups to carry out enhanced by the presence of national insti- the form of expertise and laboratories, in strategic, fundamental research with tutions such as NOFIMA (food research which the companies lack the resources to high relevance for the blue industries institution), SINTEF, NORSØK (Norwe- invest or to build themselves. The invest- (related to water). At the same time, gian Centre for Organic Agriculture), ments in the maritime sector, via the Uni- these allocations will stimulate an NIBIO (Norwegian Institute of Bioecon- versity College in Ålesund and Ålesund increased number of innovation pro- omy Research) and NIVA (Norwegian Insti- knowledge park in cooperation with com- jects in industry and commerce. tute for Water Research) in the region. A panies, have helped build strong roots for, • Both the University and University major share of research in the region take attract and retain both companies and tal- Colleges have a common and precise place in close proximity to practice, and ent in the region. The marine ingredients goal to increase the level of publica- the agenda is set according to the needs industry is in the process of establish- tion in the region. This will enable rel- of industry and commerce. This user-di- ing strong roots in the region, although evant groups to cooperate with other rected research forms close ties between it requires access to research infrastruc- leading research groups at home and R&D groups and industry. Project manag- ture in order to achieve further growth. abroad, and provide a stronger posi- ers are frequently researchers from an R&D Knowledge and expertise related to the tion in the national and international group. One shortcoming in the regional enabling technologies play a central role competition for research funding. innovation system is insufficient ability in the efforts to improve production or to carry out more long-term fundamental service efficiency, reduce costs and com- At the same time, structural changes are research related to the region's industrial pete on new markets for working life and under way in the University and University competitive advantages. commerce. The further development of the College sector that may result in changes campuses must therefore take place as an to the framework conditions for the type The establishment of two Centres for interaction with business and working life. of research and education that can be car- Research-based Innovation (SFI) in the The challenges involving knowledge and ried out at the different educational insti- region have afforded access to relevant, expertise addressed by the four cluster pro- tutions. state-of-the-art expertise. SFI Marine jects provide a natural starting point for Operations at NTNU in Ålesund are work- the further development of the disciplines ing on technology and methods that will to be covered at the campuses. Two centres for research- pave the way for new opportunities via operations in the Arctic, in deep seas, the Møre og Romsdal is in possession of both installation of wind turbines and mining the knowledge and the capacity to support driven innovation and grants of the seabed. SFI CtrlAQUA at NOFIMA user-directed research, but less capacity food research institution in Sunndalsøra and expertise to carry out more fundamen- from the Research Council aim to develop technological and biolog- tal research. This is required to support the ical innovations for closed containment knowledge requirement of industry and will increase capacity to carry fish farms. commerce, thereby allowing the research groups to become an even more attractive out strategic, fundamental The establishment of these two Centres for cooperative partner. Nonetheless, there Research-based Innovation (SFI) and the are developmental trends and structural- research of high relevance four cluster projects is a clear indication changes in the University and University of the need for research capacity target- College sector that can reinforce the R&D for the blue industries. ing industry in Møre og Romsdal. environment in the region and help make research all the more relevant. At the same time, these The knowledge parks in Molde and in Ålesund, the incubators and business gar- These are: allocations will stimulate dens provide supplements to the knowl- • The merger between the University edge environment in their role as guides College of Ålesund and the Norwe- an increased number throughout the process of commercialis- gian University of Science and Tech- ing new business concepts. Runde Envi- nology can provide a substantially of innovation projects ronmental Centre also makes an important diverse range for industry and com- contribution to the knowledge infrastruc- merce to work with, and will reinforce in industry and commerce. ture in the region. strong disciplines such as maritime FOREWORD 15 16 CHALLENGES INVOLVING RESEARCH AND KNOWLEDGE

4.3 Interaction within the and infrastructure funding is allocated to – these are all decisive factors. With so innovation system the basic research groups, the share of many bodies involved in the public support In general, the innovation system can be national research funding paid to Møre system, it can be difficult to know where described as having a strong position, og Romsdal is very low, and the main to make the first point of contact and to with parties that support R&D, industry- share of research activities in the region navigate between the different bodies. relevant education, strong cluster is financed by industry and commerce. The different bodies need to be more organisations, knowledge parks and There is a need to increase research grants coordinated and interconnected so that business gardens. The groups are small for applied research, and for a targeted they can quickly direct entrepreneurs and and well-organised, with numerous national investment in applied research companies toward the correct funding. The constellations for cooperation and an directed at industries that can ensure lack of venture capital is an obstacle for informal tone. This lays the foundations future value creation. both new entrepreneurs and development for sharing of knowledge, dynamic actions projects in companies that do not have and the capacity to make an impact Despite the already positive cooperation capacity to finance such costs themselves. on important issues. Proximity to and between academia and industry, there is knowledge of industry and commerce in still room for improvement. This applies The labour market in Møre og Romsdal is the region have in other words represented both to cooperation with industry and a mobile, but recruitment tends to take place important aspects in the development of more coordinated cooperation between the by word of mouth or local networks. By a fully qualified public support system University and the University Colleges. The doing so, the companies in the region are that can provide rapid responses to needs researchers are in frequent contact with closing their doors to new perspectives from the innovation system. Centralised the research groups that are active on the and new external knowledge that may not functions and the establishment of large international research front, and ensure a be available in existing networks. Labour regions create a large divide between the flow of knowledge between research and mobility is an important factor if we are public support system and its users. The industry. It is absolutely necessary to build to achieve the exchange of knowledge larger the distance between the public networks that extend out of the region between companies and sectors, and support system and decision-makers, the towards national and international groups increase our potential for innovation. more difficult it will be to adapt public in order to increase both the capacity for support to local and specific needs. Large and rate of innovation. It takes time to travel between the different geographical divides will create the need parts of the region, and this obstructs for more bureaucracy in the system, which Entrepreneurship processes are important access to the knowledge and research will not be able to fulfil specific needs and for growth in existing industries and for infrastructure. As a result, the region has provide the rapid response and flexibility the development of new industries. The high potential for the exploitation of its required by industry and commerce. companies involved must procure and knowledge and research infrastructure, make use of relevant knowledge – both and thereby for value creation. By Access to innovation and research technological and market-related. The improving transport in the region and infrastructure that can contribute with function of the public support system and regional links, we can lay the foundations the transfer of technology from research the appropriateness of funding are also for improved coordination. to an integral part of a product for important issues. Good guidance, simple commercialisation increases the rate of application procedures, a well-organised innovation. As the majority of research and easily available public support system

The researchers are in frequent contact with the research groups that are active on the international research front, and ensure a flow of knowledge between research and industry. It is absolutely necessary to build networks that extend out of the region towards national and international groups in order to increase both the capacity for and rate of innovation. 17 18 RESEARCH AND INNOVATION STRATEGY • HIGH PRIORITY TARGET AREAS

5 Research and innovation strategy High priority target areas

Objective: Increase capacity for innovation within industry and commerce Industry and commerce in Møre og because they want to be part of a dynamic, and exploitation of new knowledge, Romsdal have traditionally shown regional business environment. The fact utilisation of new technology or new a unique capacity for change and that knowledge groups have been founded and improved methods by which to use innovation. Crises and recessions have and developed in geographic proximity to resources, as described in chapter 3. The given rise to new opportunities and new such companies and in cooperation with rate of development and the increase in innovative solutions. New companies have industry is an important strength for the global competition require that we reduce been founded, in the innermost reaches region. the length of time from when an idea is of the region's deep fjords and far out conceived until we can launch the product on the coast. Global corporations acquire Renewal and change in industry will or service on the market. local companies, and stay in the region mainly be related to the development

The rate of development and the increase in global competition require that we reduce the length of time from when an idea is conceived until we can launch the product or service on the market. FOREWORD 19

5.1 Strategies The research and innovation strategy shall pave the way for reinforcement of the region's natural and structural competitive advantage, allowing industry and commerce to strengthen and further develop their market position, both nationwide and worldwide. The following high priority measures have been defined:

Measures targeting industry and commerce 1. 2. 3. 4. Reinforce cluster projects Facilitate user-directed Increase absorption Increased involvement Cluster projects play an research and innovation capacity in national and important role in executing There is a need for a targeted The capacity to exploit international fora for measures that individual national effort to increase new technology and new research and innovation companies are not able to carry research grants for user- knowledge is important in Industry and commerce in the out alone, and in developing and directed research and innovation processes. The region are under-represented on applying relevant knowledge. industry-oriented research recruitment of personnel with national and international fora Cluster projects represent infrastructure. This will higher education, and the use for research and innovation. the interaction between ensure value creation for the of the Industrial Ph.D. scheme Such representation will help knowledge development and future. Not only are efforts launched by the Research firmly establish the region's exploitation by companies, required to increase funding, Council of Norway will help needs on the agenda. and are decisive for we also have to work towards increase absorption capacity. developments at the campuses the objective of reinforcing Study programmes that are and related industrial clusters. regional capacity to compete held in proximity to practice This measure shall stimulate for such funding. by the regional educational the foundation of new cluster institutions will also represent projects within industries with an important contribution potential in the region. towards increasing expertise among the regional workforce. 20 RESEARCH AND INNOVATION STRATEGY • HIGH PRIORITY TARGET AREAS

Measures targeting institutionalisation 1. 2. 3. 4. Reinforce the campuses Enhance research A hub for the biomarine Develop and The campuses linked to the capacity and improve industry apply generic University and University research infrastructure Advanced processing of fields of knowledge Colleges are at the very core Priority targets for the biomarine ingredients Møre og Romsdal has a of innovation and research future must be to increase represents significant potential unique opportunity to gain activities in the region, and the research infrastructure within feed/industry, health/ a nationwide position within must be further developed available, such as laboratories nutrition and pharmaceutics. new enabling technologies by and reinforced. The campuses and simulators, and research The region’s competitive increasing research capacity must have a clear professional capacity in the form of advantage provided by and expertise in professional identity with strong national/ expert employees involved nature and the increasing groups linked to industry international relations, and in long-term fundamental rate of integration within the and commerce in the region. must be recognised as having research and in the industrial marine cluster allows for the This may for example boost national, and in some fields competitive advantages of establishment of a Centre for competitive strengths, improve international, weight. A clear the region. The region's Research-based Innovation for market access, increase the identity and strong network knowledge infrastructure the marine industry during share of sustainable products make the campuses more must be accessible and the planning period, thereby and processes, increase attractive. The development of effective. To achieve this, developing the cluster so exploitation of raw materials the campuses must be based improvements to transport it can achieve a leading and accelerate the rate of on cooperation and interaction and closer cooperation within position worldwide, based innovation. The development between industry, academia the innovation system are on sustainable and profitable and exploitation of such and students. Moreover, important. development and exploitation knowledge must be combined efforts are required to link our of marine bioresources and with industry-specific institutions/campuses with the residual raw materials on knowledge, while at the same University environment via an industrial scale. This time helping industries and binding agreements so that we investment will also involve disciplines learn from each can play a more significant role technological developments other. The current capacity in long-term basic research. related to fishing, farming of companies to implement and processing. There is and develop new technology, vast potential within the combined with the ongoing development of ingredients development of knowledge from marine biomass that are and commitments within beneficial for health. Product their field, allow for the commercialisation will require establishment of a Centre for data to support the claims Research-based Innovation of health benefits. A large within enabling technologies number of the clinical studies for logistics, and new business required can be carried out by models. the Regional Health Authority. However, to achieve this, research capacity and expertise in the Regional Health Authority must be improved. FOREWORD 21

Measures targeting interaction within the innovation system 1. 2. 3. 4. Influence national Simplify and coordinate Rapid commercialisation Strengthen the authorities to invest the public support of new ideas by linking region's reputation and more in user-directed system to enhance the knowledge and capital in attractiveness research impact of funding innovation processes The region must be recognised Møre og Romsdal must develop Both economic funding and Innovation and business as attractive for talent, and stimulate the meeting other services offered by the concepts have little to no value companies, venture capital and points between politics, public support system must until they can be launched on public funding. It is therefore industry and academia. This is be organised so that they a market. Guidance during important to demonstrate not only a question of gathering meet the needs of businesses. entrepreneurship and links the opportunities in Møre parties in appropriate arenas, Attempts must be made to to economic funding and og Romsdal as a region for but also promoting dialogue coordinate and simplify professional knowledge are innovation and knowledge. between the leaders within funding, both regionally and decisive for success with Both the region's own politics, industry and other nationwide. Knowledge of and innovation, for both new inhabitants and companies, institutions with national familiarity with industry and and established companies. in addition to potential authorities. It is important to commerce are essential for the Venture capital invested at newcomers, investors and influence national authorities development of funding that early stages of new growth national authorities are to increase grants to regional is customised to local and businesses must be made relevant target groups for the research funds and regional specific needs. available and facilitated via above. development funding. the knowledge parks or other groups established for this purpose. 22 FOREWORD

The high priority strategies provide important guidelines for the operational efforts to be implemented. The work involved in establishing roots, specifying, prioritising and executing measures will determine whether we succeed in achieving our objective to increase innovation capacity in industry and commerce.

24 APPENDICES

6 Appendices

6.1 Megatrends within numerous fields. Knowledge- also comprises an ambition to minimise A number of megatrends have an impact on based industries and institutions cultivate the differences between poor and rich our communities and businesses. Although proximity between knowledge owners, and countries. Both the authorities and markets in some contexts these megatrends impose this is possible in urban areas. Centrality and place increasingly stringent requirements limits, they can also represent opportunities size coincide with access to knowledge and on companies and bodies with important and drivers for innovation, thereby leading innovation resources in the form of public roles in society to operate according to the way to the development of new products, and private capital, well-informed and sustainable principles. Innovation and services, production methods and operations. creative people and entrepreneurs. Urban, technological developments play an attractive areas tend to win the competition important role in this aspect. In a world 6.1.1 The knowledge society and for such knowledge resources. The question where access to energy, land, water and digitalisation is whether smaller towns and areas can minerals will become increasingly scarce, we The rate of technological change is compete in this field. have to do things smarter. New raw materials accelerating and is driven by knowledge- and substances formerly considered useless based development processes. Businesses, 6.1.3 Demography and mobility will more frequently form the basis for people and things are all interlinked via the The global population is rapidly increasing, new products. A higher degree of resource Internet, which represents access to vast and now counts more than 7.3 billion. Asia exploitation provides both economic and amounts of information. Digital trading and Africa make up a relatively large share environmental gains. The fall in oil prices trends are making our world a smaller of the population. At the same time and has produced yet another driving force for place and eradicating market boundaries. across the nations, we have longer life change, in a direction moving away from Digital devices will allow for significant expectancy, particularly in countries with petroleum-based operations. At the same value creation. Examples of this are when a high standard of living. The UN estimates time, the potential to make use of other types digital devices are used to simulate factual that the number of elderly people in 2100 of resources from our oceans is increasingly and physical forms of the virtual world will be three times the current number, and in focus. using 3D visualisation and simulators, will as such represent 25% of the global and via automation and advanced robot population. A larger population represents 6.1.5 Health and lifestyle technology. Sensors that are connected to a higher demand for food, energy and work. Health and lifestyle are attracting increasing units in production processes or in the actual In many parts of the world, a new and large interest and are drivers for innovation. products provide more precise and functional middle class will emerge with expectations The awareness among the population and designs. New concepts, design and advanced for education, welfare and material assets. authorities about lifestyle and diet has an operations can be virtually developed and An increasing number of people leave their impact on suppliers of products and services. tested prior to realisation. Digitalisation place of birth and country of birth, seeking Consumers now expect to be provided with can also be exploited to quickly analyse opportunities and a higher standard of living. information on the origins of a product, how and make use of the vast and increasing This creates a mix of cultures, creativity and it was manufactured and what it contains. volumes of data we now can access. In many knowledge that can be positive from the Knowledge of traceability and the effects scenarios, the technological and digital perspective of innovation. A society with an end product has on the consumer are developments will take place irrespective a rapidly ageing population and thereby equally important. Other dominant trends of type of technology, and will be mutually fewer people in work may experience lower are an increased interest in local produce, reinforcing. Such developments lay the economic growth. Europe is currently facing outdoor experiences and everything that foundations for a growth in productivity and such challenges. In Norway, it is evident that is "slow". Increased life expectancy will new business areas that can follow a much several regions outside the major cities have in its turn require renewal and innovation shorter path from idea to commercialisation. a population decrease and an imbalance in within health care and health technology, age and gender. Improvements to transport for example. As a result of the higher focus 6.1.2 Urbanisation and attractive and regional ties can to a certain extent on lifestyle combined with the increase in cities counteract the disadvantages implied. welfare, an increasing number of people A much larger share of the world's population are taking more time off work. Demand now lives in cities. The large cities are like 6.1.4 Sustainability and the green for holidays and leisure pursuits is on the magnets for people, capital, knowledge shift increase. This also brings a need for mobility and attention. The cities are attractive and Sustainable development is a question of and the potential to move quickly between productive thanks to the diversity they fulfilling the needs of the current population, different places. There are also expectations can offer. In urban, densely populated without destroying the opportunities for that the authorities will provide facilities areas, the potential to bring employees future generations to meet their own needs. for a good life in those areas where people together with employers, customers with There is unanimous international agreement live and work. Norway has to find smarter suppliers is much higher than in areas with that we must all contribute towards a green working methods to counterbalance lower a dispersed population. The cities allow shift in order to reduce our greenhouse gas working hours and high costs. for a concentration and specialisation emissions and environmental problems. This FOREWORD 25

Social

Just Acceptable

Sustainable

Environment Economic

Viable 26 APPENDICES

6.2 Fields of knowledge The knowledge base compiled for the strategy process indicates that industries linked to the ocean and ocean space emerge as the most important industries in Møre og Romsdal. The ocean space provides vast development potential related to: • Oil and gas, not least seabed operations • Shipping and transport • Marine industry, including marine ingredients and farming • Fishing • Renewable energy

The figure below portrays more specific disciplines that emerged from the strategy process, and to which access is essential for Møre og Romsdal.

Three high priority fields of knowledge for innovation and value creation

SUSTAINABILITY ENABLING COMMERCIALISATION TECHNOLOGIES • Bioeconomy • Entrepreneurship • Digitalisation • Biotechnology • Business models • ICT • Ingredients • Conceptualisation • VR and simulation • Health and nutrition • Brand building • Production processes • Environmental • Networks technology • Material technology • Knowledge platforms • Traceability • Design • Mediation • Resource efficiency • Logistics

• Responsible business • Business models models

If we are to realise the development industrial clusters to continue to build sectors. This mindset is also reflected potential within these areas, we have to upon and reinforce these technologies/ in national strategies such as HAV21, build knowledge of generic technologies fields of knowledge. This is a matter of Masterplan for marine research and the such as biotechnology, logistics, material both developing new and more knowledge- Government's new maritime strategy, technology, automation/robotisation, intensive products and increasing the Maritime opportunities – blue growth for simulation/visualisation, media and level of automation/robotisation in the a green future. communication. The need to reinforce production processes. Ocean-oriented the regional knowledge base within these industries also have a strong focus on inter- The need for new activities/development areas is reflected in the strategic work industrial developments to technology paths with an increased level of knowledge carried out by the cluster organisations in and knowledge, and developing new content and a need for research is clearly GCE Blue Maritime, Legasea ™ and iKuben. development paths along the interface expressed in the strategic work currently The R&D groups are challenged by the between e.g. the marine and maritime under way in the four cluster organisations. APPENDICES 27

These are e.g.:

• Increased focus on advanced ship design and management of complex projects (Maritime)

• Increased use of test labs and simulation for testing/planning of maritime operations and development of new, radical innovations and production processes (Maritime, others)

• Development of vessels and technology that targets recovery of minerals on the seabed and similar for offshore wind industry (Maritime/Energy)

• More cost-efficient and eco-friendly solutions on the continental shelf (Petroleum/Maritime)

• More proximity in the value chain for marine products, with a focus on marine ingredients that have a high potential within feed/industry, health/nutrition and pharmaceutics (Marine)

• Moving the processing of marine ingredients from shore to vessel (Marine)

• Closely monitoring developments that aim to move fish farms to open seas (Marine and Maritime)

• Increased use of biomass from the ocean for food, health and energy (Marine)

• Developing new innovations within business models and services (all)

• Increased level of automation in production processes The above also comprises new opportunities related to disruptive technologies such as robot technology, the Internet of Things, Big Data etc. (Furniture/Maritime/Marine)

6.3 Business structure When compared with the rest of Norway, the main difference in total for Møre og Romsdal is that a higher share of the region's workforce works in agriculture, forestry and fishing in addition to secondary industries, while a lower share work within services.

Business structure Møre og Romsdal and Norway, 2015, in %

45% Møre og Romsdal Norway 40%

35%

30%

25%

20%

15%

10%

Agriculture, Secondary Service Public admin, Education Health care Personal forestry and industries industries defence, social and social services fishing insurance services 28 APPENDICES

Møre og Romsdal has a business structure in which the maritime and petroleum-related businesses in the outermost parts of the region employ a large share of the workforce, and these businesses can be classified as both national and in part international hubs. Many of the companies in the region have long histories and local ownership is strong in Møre og Romsdal. The region is the largest seafood region in Norway, Businessand is the national hub structure for the furniture industry. Smøla

Maritime cluster Petroleum Prosessing industry Aure Fishing / Aquaculture Kristiansund Halsa Furniture / Timber Agriculture-based business Rindal Averøy Mining / Stone / Mineral Tingvoll Surnadal Textiles / Ready-made clothing Eide Fræna Gjemnes Tourism Aukra Sandøy

Midsund Molde

Nesset Sunndal Haram Vestnes Giske Skodje Rauma Ålesund Ørskog Ulstein Sula Stordal Hareid Herøy Sykkylven

Sande National hub Ørsta Stranda Norddal County hub

Vanylven Smaller concentration Volda Exports per employee Region in NOK 1,000 In 2012, Menon published a report on exports from Norwegian Møre og Romsdal 711 regions, the first report at that time to combine exports of goods and services. The report showed that Møre og Romsdal is the most Hordaland 566 export-oriented region in Norway, with NOK 711,000 in exports per Vest-Agder 495 employee, almost NOK 150,000 more per employee than Hordaland. Rogaland 385 Møre og Romsdal – and West Norway, which also showed good Sogn og Fjordane 459 statistics for exports – is home to major export industries such as Oslo 237 offshore, maritime and seafood. Nordland 423 With such a high level of exports, the region is exposed to Telemark 397 international economic cycles. Given the large share of petroleum- Vestfold 375 related activities, the region is also vulnerable to changes in demand Akershus 262 from the petroleum sector. The latter has been very evident in 2014 Buskerud 278 and 2015 in the wake of the substantial fall in oil prices. Aust-Agder 314 Østfold 229 Sør-Trøndelag 178 Finnmark 202 Troms 173 Nord-Trøndelag 172 Oppland 166 Hedmark 92 APPENDICES 29

6.4 Research activities at the is important reinforcement for the research within logistics, and health care and social research institutions and knowledge platforms for the advanced sciences. Researchers with diverse academic This paragraph provides a short insight into maritime operations of the future. backgrounds (engineers, economists, social the most important areas of research for the scientists, natural scientists) take part in different research institutions in the region. NTNU in Ålesund is one of three geographic research into logistics, focusing on areas campuses organised under the Norwegian such as production planning, distribution Volda University College University of Science and Technology. planning, transport economy, value chain Volda University College aims to carry out analyses, information systems, sourcing high quality research and development work It has an excellent research and and cluster problems and health care to provide solid foundations for educational educational infrastructure. This comprises logistics. programmes. Volda University College has interdisciplinary laboratory facilities four faculties and an academic staff of for simulation and visualisation, special Research related to health care and social around 200. The University College bases its simulators for advanced maritime sciences comprises areas such as protection R&D activities on a wide ranging common operations and advanced health simulators. against violence and risk, interdisciplinary platform comprising the humanities and Under the laboratory umbrella organisation, cooperation, clinical research within areas social sciences. Its regional and national Marine Operations in Virtual Environments such as mental health work, caring for the research profile is developed on this basis. (MOVE), NTNU in Ålesund has a number elderly and dementia, palliative care and of laboratories for activities within design, organisational and coordination-related The strategic areas for research are media prototyping, simulation and visualisation. challenges in the health care and social and journalism, the meeting of cultures, NTNU in Ålesund also has laboratories sector. A large part of the research focuses research into professions, educational for engineering, biology, chemistry, on the interaction between professions, and research, welfare research and practical biotechnology and a full-scale research the interaction with patients and users of arts. In addition, the University College licence for organic salmon, which promotes health care and social services. has an excellent reputation for its teacher numerous innovation and research projects training, and has taught teachers for the for improved welfare and value creation. The University College also carries out region for more than a century. comprehensive research into sports and Via SFI MOVE, the maritime discipline events, and research into municipalities The University College reported the public has a comprehensive cooperation with and organisation. defence of six doctoral degrees in 2014. industry and commerce. NTNU in Ålesund Volda and Molde University Colleges were also participates in the GCE Blue Maritime 21 research groups have been established, awarded approval in 2014 for a mutual cluster. There is close cooperation with several of which have members from PhD programme within health care and the marine cluster on issues involving the both Møreforsking Molde AS and Molde social sciences. This is the first mutual PhD marine discipline as a participant in the University College. Some of these groups programme to be provided as a cooperation Legasea Arena project. NTNU in Ålesund also have external members, from e.g. the between two public University Colleges. takes part in Forskningsforum Møre (a Regional Health Authority and various The first PhD students were admitted in the research forum comprising Møreforsking, municipal networks. spring of 2015, and the programme starts NOFIMA, SINTEF Fisheries and Aquaculture, in the autumn of 2015. NINA, Runde Environmental Centre, Molde Møreforsking Molde AS is regarded as The University College is co-owner of University College, Volda University Molde University College's institution for Møreforsking AS, and has signed a College). NTNU in Ålesund also cooperates commissioned research, and the majority cooperation agreement regarding the with Møreforsking regarding laboratories of commissioned projects are therefore execution of operative research and project in Atlanterhavsparken, and with SALMAR allocated to Møreforsking Molde AS, cooperation. regarding organic fish farming. Other frequently with employees from Molde cooperation comprises health care with University College as key contributors. Volda University College had a total of 306 the Regional Health Authority and the Nonetheless, Molde University College employees as of 1 October 2015. At the same municipal health care service. aims to increase its share of commissioned time, it had 3,998 registered students. The research, not least within research financed share of academic staff with competence for As of 1 October 2015, NTNU in Ålesund by the European Commission. The University an associate professorship is 51%. had a total of 243 employees in full- College has taken part in several of the EC's time positions and 29 Adjunct Professors/ framework programmes for research, and NTNU in Ålesund additional positions. At the same time, NTNU is currently involved in two such projects. The mutual target area for NTNU in in Ålesund had 2,375 registered students Ålesund is "Oceans and health", with (2,455 including students on preliminary Molde University College had a total of 179 generic platforms such as simulation and courses). The share of academic staff with employees as of 1 October 2015. At the same visualisation, in addition to innovation and competence for an associate professorship time, it had 2,498 registered students. The entrepreneurship as tools with which to is 44%. share of academic staff with competence for realise ground-breaking research. NTNU an associate professorship is 59%. in Ålesund is the leader of the Centre Molde University College for Research-based Innovation within Research activity at Molde University College maritime operations – SFI Move. This status centres on the two doctoral programmes 30 APPENDICES

Møreforsking AS in Ålesund. The institution has three lab- Møreforsking has 55 employees with the Møreforsking is an applied research insti- oratories for the marine academic field, following distribution: 20 marine research- tution with offices in Molde, Ålesund and including a lab for biochemistry at NTNU ers, seven within transport (including one Volda. The institution has 55 research- in Ålesund and a facility for live marine additional position), 11 within logistics ers, was founded in 1979 and is the sec- organisms in Atlanterhavsparken. (including three additional positions), four ond largest of the regional institutions within industry (including one additional in Norway with a turnover of approxi- Møreforsking Volda AS position) and four within health, educa- mately NOK 60 million. Møreforsking AS This institution cooperates with Volda tion and society. has three subsidiaries all with local owners University College and is mainly involved linked to the three campuses in the region. in the following four academic areas: Ado- Distribution of researchers with compe- lescence and education, health and wel- tence for an associate professorship within Møreforsking carries out regional, national fare, working life and expertise and social the above mentioned fields: Transport: and international research projects, and change. Over the past year, the institution 2, Logistics: 6, Industrial economics: 3, the largest projects managed by the insti- has focused on subjects such as migra- Health, education and society: 3 tution have a value of around NOK 35 tion, immigrants, employment immigra- million. The institution cooperates with tion, world heritage, municipal structure/ SINTEF both the private and public sector, and reform, regional development and public/ SINTEF Raufoss Manufacturing AS' vision also has several general agreements with private services. is to create sustainable and efficient solu- ministries and public authorities. Those Møreforsking Volda has its offices at Volda tions that provide competitive advantages businesses with which Møreforsking has University College campus. for the material production industry in the closest cooperation are linked to the Norway. The company is involved in a region's clusters, such as GCE Blue Mar- Møreforsking Molde AS broad range of disciplines and has exper- itime, LEGASEA, iKuben and Norwegian Møreforsking Molde AS has its offices tise within areas such as additive produc- Rooms. at Campus Molde, and carries out com- tion, light-weight materials, automation missioned research for industry, com- and robotics and product and production Over the past seven years, the institution merce and authorities in academic fields development. SINTEF Raufoss Manufac- has been responsible for the Programme taught at Molde University College. The turing AS aims to be the national cen- for Regional R&D and Innovation (VRI) institution has research groups within tre of expertise for Norway within mate- in the region. the following areas: Transport economy, rial production and has offices in Raufoss, logistics, industrial economics, health, in Trondheim and in Ålesund. The com- Møreforsking Ålesund AS education and society. The institution car- pany's assignments in Møre og Romsdal This institution carries out research into the ries out projects for both private and pub- mainly involve the material production entire marine value chain, from research lic commissioning parties, regionally and industry (both ships and ship equipment, into ocean resources to marketing in the nationwide. Møreforsking Molde has an furniture, mechanical and other finished export market. Møreforsking Ålesund has annual turnover of NOK 20 million and goods industries, marine/food and pro- a long history within applied research, and has 17 full-time equivalents in terms of cessing industry). The company is cur- has developed a strong standing in the researchers. rently witnessing an increased interest in fishing industry and as a partner for indus- subjects related to Industry 4.0 (the fourth try and commerce. One important target The institution is located in the knowl- industrial revolution), such as automa- area is biomarine ingredients, which form edge park with its offices on the Molde tion, robotisation and additive produc- the basis for the LEGASEA industrial clus- University College campus. tion (3D printing). ter. Møreforsking builds bridges between industry and academia, and has a compre- Møreforsking’s cooperative partners can Norwegian Centre for Organic hensive network covering other research be found in the region, nationwide and Agriculture (NORSØK) institutions both at home and abroad. abroad. NORSØK is a national centre for interdisciplinary research and information aim- Important research areas include sustaina- • International academic groups, both ing to develop organic agriculture. The ble management and harvesting of marine within industrial economics and Centre aims to provide knowledge to resources, impact on the climate, qual- marine research. Møreforsking is the create more sustainable agriculture and ity of seafood, welfare for living marine project manager and participant on communities. They work in the fields of organisms, exploitation of new marine international research projects such as organic agriculture and food production, resources, marine ingredients, develop- PROMAC. the environment and renewable energy. ment of by-products, 100% exploitation of • The institution has cooperation with NORSØK is a private, independent foun- raw materials, chemical and biochemical global clusters, such as GCE Blue dation located at Tingvoll farm in Ting- documentation, health benefits of marine Maritime, national clusters such as voll municipality. Tingvoll farm is used as proteins and markets (B2B / B2C). NCE NODE and Arena programmes an arena for research, development and such as iKuben and LEGASEA™. information. The research is user-directed Møreforsking Ålesund has its offices at the and has close links with different sections Norwegian Maritime Competence Center, of industry and commerce. NORSØK has in close proximity to the campus at NTNU 17 employees. APPENDICES 31

NIBIO (Norwegian Institute of The institution's research station for RMS is a private company owned by private Bioeconomy Research) sustainable aquaculture is located in entrepreneurs and by Møre og Romsdal NIBIO aims to be the leading research Sunndalsøra. This station's greatest County Council. The centre's buildings institute in Norway for the development strength is its diversity. Over the past 40 are owned by Herøy municipality, Møre of knowledge on bioeconomy. NIBIO years, the research station has developed og Romsdal County Council and private aims for improvements in food safety, numerous tools to solve special problems. investors. The centre makes use of a total sustainable resource management, social The station has research facilities for floor area of 2,000 m2 comprising offices, development, innovation and value nutrition, formulated feeds, physiology, laboratories, an information centre, creation within agriculture, environmental breeding, recirculation, radiography and apartments and course and conference and biobased industries via research and metabolism studies. The station also has its facilities. management support. own radiography and analysis laboratory. NIBIO Tingvoll has research activities It was built in 1971, as the first research The centre cooperates with industry on within the Division for Food Production station within aquaculture in Norway. It is the development of wave power and other and Society, the Division for Forest and now the workplace for around 40 NOFIMA environmental technology. Cooperation Forest Resources and the Division for employees. has also been initiated with oil companies Environment and Natural Resources. Their and the offshore fleet for the collection of research primarily involves farm animals The main activity at the station is research data on the ocean environment. and grazing, game and land use, biogas into nutrition, feed and feeding, breeding and sludge. and genetics, new species, quality, The centre participates in several regional preventive health measures, production and national cooperation projects with NIBIO is owned by the Ministry of technology and the environment. Møreforsking, the Norwegian Institute for Agriculture and Food as an administrative Water Research (NIVA), Geological Survey agency with special authorisation and its CtrlAQUA is a Centre for Research- of Norway (NGU), the Norwegian Mapping own supervisory board. The main office based Innovation (SFI) formed to lay Authority, the Institution of Marine is located in Ås, in Akershus. The institute the foundations for the development of Research, the Norwegian University of has 16 regional units and a departmental closed-containment fish farming for the Science and Technology, the University office in Oslo, with a total of 700 employees. future. By achieving greater control over of Bergen and several other national the production process, we can minimise institutions. NIBIO Tingvoll has offices, a preparation problems related to mortality and salmon The centre also has cooperation with a laboratory and analysis laboratory, access lice, and reduce production time for number of R&D institutions in Europe via to a barn, biogas facility and land for field farmed salmon. the project financed by the EC, NEXOS trials. (http://www.nexosproject.eu/). The NOFIMA Centre for Recirculation NIBIO Tingvoll's research takes place in in Aquaculture (NCRA) is also located Runde Environmental Centre has close cooperation with industry, and with at the research station. This centre was also established cooperation with the local, regional and national authorities. built in 2010 and is suitable for testing University of Tokyo, and one of the Cooperation with industry takes the form technology and studying farmed fish in centre’s employees has been offered a of participation by industry in project the aquaculture systems of the future. professorship at the University. compilation, project groups, steering Research is currently carried out in six committees groups and financing. NIBIO halls with a total floor area of 6,500 The centre has 10 all-year positions. Of Tingvoll also participates in network m2. The centre has 22 biocontainment these, six persons work within R&D and groups with industry. departments with just over 1,000 tanks, two have competence for an associate and 600 hatcheries of various sizes. The professorship. NIBIO Tingvoll has 18 employees, eight main areas of research at the station of whom have a doctoral degree and one concentrate on salmon, and it has licences with expertise as Professor. to work also with cod, haddock, wrasse and lumpfish. NOFIMA The food research institution, NOFIMA, is Runde Environmental Centre AS involved in research and development for The main target area for Runde aquaculture, fishing and the food industry. Environmental Centre (RMS) is The institution has around 340 employees interdisciplinary research into marine and annual turnover of approximately ecosystems and the environment. Their NOK 545 million. NOFIMA AS has its main work centres on the ocean environment, office in Tromsø and research activities climate, seabirds and mountain birds, in Alta, Bergen, Stavanger, Sunndalsøra, renewable energy (from the oceans), Tromsø and Ås. fishing biology and fish farming. RMS' main aim for its research is to contribute towards business development. 32 APPENDICES

6.5 R&D statistics

Grants from the Research Council of Norway The grants allocated by the Research Council of Norway increased by around NOK 600 million from 2014 to 2015. The increase in grants to Møre og Romsdal amounted to NOK 29.6 million.

The region with its wide range of educational institutions receives approximately 85% of the total grants allocated by the Research Council of Norway. Research funding allocated to Møre og Romsdal accounts for 1.4% of the total grants from the Research Council in 2015.

2,500.0 100%

90%

2,000.0 80%

70%

1,500.0 60%

50%

1,000.0 40%

30%

500 20%

10%

0.0 0% Oslo Troms Østfold Vestfold Svalbard Oppland Akershus Telemark Hedmark Nordland Buskerud Rogaland Finnmark No region Hordaland Vest-Agder Aust-Agder Sør-Trøndelag Nord-Trøndelag Sogn og Fjordane Møre og Romsdal APPENDICES 33

Grants to industry The Research Council's grants to industry increased by NOK 123 million from 2014 to 2015 when measured according to consecutive prices. In Møre og Romsdal, the increase in grants allocated was around NOK 13 million.

Oslo, Akershus and Sør-Trøndelag counties receive approximately 52% of grants to industry from the Research Council.

Source: Figures from the Research Council of Norway, 2015

400.0 100%

350.0

80%

300.0

250.0 60%

200.0

40% 150.0

100.0

20%

50.0

0.0 0% Oslo Troms Østfold Vestfold Svalbard Oppland Akershus Telemark Hedmark Nordland Buskerud Rogaland Finnmark Hordaland Vest-Agder Aust-Agder Sør-Trøndelag Nord-Trøndelag Sogn og Fjordane Møre og Romsdal 34 APPENDICES

R&D in industry Møre og Romsdal is ranked fourth in Norway when it comes to the percentage of companies that perform R&D. The number of full- time equivalents involved in R&D within industry in the region has increased by 25% from 2010 to 2014. The national increase was 16%. The increase in the number of full-time equivalents with a higher education is 2.1% during the same period. The national increase was 14.6%. Møre og Romsdal has the lowest share of employees with a much higher education, i.e. minimum four years at University or University College or doctoral programme.

R&D full-time equiv- Employees with R&D full-time Expenses for Percentage of alents carried out by higher education as equivalents purchased R&D companies with R&D persons with higher percentage of total in total (NOK million) education (persons) employees

Region 2010 2014 2010 2014 2010 2014 2010 2014 2010 2014

Sør-Trøndelag 19 20 1,622 2,071 1,280 1,635 630 1,086 9.7 11.5 Akershus 15 20 2,216 3,113 1,796 2,613 795 700 9.4 11.2 Oslo 16 18 4,343 4,058 3,336 2,968 1,440 1,829 14.8 17.6 Møre og Romsdal 19 18 571 714 287 293 119 122 4.1 5.5 Rogaland 15 17 1,151 1,309 742 766 1,062 1,004 6.9 9.2 Sogn og Fjordane 20 17 213 191 127 80 47 60 4.5 5.7 Hordaland 14 16 1,086 1,287 693 855 307 312 8.2 10.1 Vest-Agder 11 16 370 506 187 280 112 82 5.5 7.2 Vestfold 17 16 937 996 565 613 212 208 5.2 6.6 Aust-Agder 15 16 150 208 83 89 65 40 5.1 6.5 Nord-Trøndelag 14 16 125 123 60 56 21 31 5.1 6.0 Buskerud 16 15 934 1,221 538 760 236 184 5.5 7.2 Østfold 17 14 367 422 194 217 46 81 4.6 5.6 Oppland 16 14 298 424 143 201 44 58 4.5 5.6 Telemark 17 13 554 533 348 373 251 430 5.2 6.2 Troms 12 10 218 293 140 216 73 97 8.2 9.9 Finnmark 2 10 5 20 2 4 3 17 4.6 5.6 Hedmark 10 9 102 94 38 56 30 61 4.8 5.8 Nordland 10 9 188 266 120 161 20 38 4.3 5.6 Total 15,450 17,849 10,679 12,236 5,513 6,440

R&D expenses In 2013, a total of NOK 959 million was invested in research and development work in Møre og Romsdal. This is up by NOK 211 million since 2011. The largest share of the total R&D expenses are incurred by industry and commerce in Møre og Romsdal, at 72% in 2013. Nationwide, industry accounts for 44% of total R&D expenses. R&D expenses in Møre og Romsdal only comprised 1.89% of total R&D expenses in Norway in 2013. There are vast differences between the counties. Oslo had the highest R&D expenses in both 2003 and 2013, followed by Sør Trøndelag, Akershus and Hordaland. Source: Nordic Institute for Studies in Innovation, Research and Education (NIFU), R&D statistics bank

Industry Institution sector University and University College sector

800

600

400

200

2003 2005 2007 2009 2011 2013 APPENDICES 35

Skattefunn tax incentive scheme In 2015, companies in Møre og Romsdal had a total of 436 active Skattefunn tax incentive projects on going. The total budgeted project expenses were NOK 1.2 billion. This represents a budgeted tax deduction of NOK 223 million. The marine and maritime industries make most use of the schemes.

Budgeted tax Figure deduction Project

80,000 160

70,000 140

60,000 120

50,000 100

4,000 80

30,000 60

20,000 40

10,000 20

0 0 ICT Metal Other Maritime Transport Health care Environment Power/Energy Administration Travel/Tourism Marine/Seafood Forestry/Timber Agriculture/Food Petroleum, Oil/Gas Building/Construction Culture/Entertainment

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