Rapport-6-omslag.qxd 09.11.2004 12:17 Side 1 RAPPORT 6/2004 RAPPORT 6/2004 Governance of the Norwegian innovation policy system Contribution to the OECD MONIT project Svend Otto Remøe in collaboration with Morten Fraas, Aris Kaloudis, Åge Mariussen, Rannveig Røste, Finn Ørstavik and Siri Aanstad Norsk institutt for studier av forskning og utdanning - Governance of the Norwegian innovation policy system Senter for innovasjonsforskning Hegdehaugsveien 31, N-0352 Oslo Tlf. +47 22 59 51 00 • www.nifustep.no Rapport 6-2004m.fm Page 1 Wednesday, November 10, 2004 9:29 AM RAPPORT 6/2004 Svend Otto Remøe in collaboration with Morten Fraas, Aris Kaloudis, Åge Mariussen, Rannveig Røste, Finn Ørstavik and Siri Aanstad Governance of the Norwegian innovation policy system Contribution to the OECD MONIT project Rapport 6-2004m.fm Page 2 Wednesday, November 10, 2004 9:29 AM © NIFU STEP Norsk institutt for studier av forskning og utdanning/ Senter for innovasjonsforskning Hegdehaugsveien 31, 0352 Oslo Rapport 6/2004 ISBN 82–7218–490–7 ISSN 1504–1824 For en presentasjon av NIFU STEPs øvrige publikasjoner, se www.nifustep.no Rapport 6-2004m.fm Page 3 Wednesday, November 10, 2004 9:29 AM Foreword The MONIT project was endorsed by the TIP working party in December 2002. Building on the results of the TIP NIS project, its main objective is to generate knowledge on how to improve innovation policy governance and create a more coherent and comprehensive innovation policy. The focus is on how to achieve a more horizontal innovation policy through co-ordination with non-core po- licy areas, vertical integration and coherence, and new forms of governance and policy making processes. More specifically it studies the foundations for inno- vation policy governance by highlighting issues such as political leadership, building effective co-ordination mechanisms, socio-political foundations for information exchange and policy learning, cultural factors in policy systems and related sources for coherent policy making. The MONIT network consists of 13 countries, all devoted to generate know- ledge to be shared by the others. The MONIT project is organized in 3 work pac- kages (WP): • WP1 consists of a broad analysis and assessment of the national policy pro- files and challenges, as well as of key governance issues; • WP2 includes policy case studies in the areas of information society, sus- tainable development and transport, and regional policy; • WP3 will synthesize the results from WP1 and WP2 and draw the policy implications. STEP is in MONIT studying the Norwegian innovation policy system through several inter-linked studies. A main focus is to better understand the underlying logic of the Norwegian system, its roots in terms of cultural traditions and the main priorities coming out of it. Both mapping studies and more detailed stu- dies of parts of the innovation policy system are therefore covered in the project. Norway is the lead country in this network, while Austria, Finland and Netherlands are co-leads. The Norwegian part of the project is commissioned by the Research Council of Norway (RCN), and funded by this council and the mi- nistries of Science and Education, Trade and Industry and Regional Affairs. The project also consists of a learning arena organized by the users through which re- sults and perspectives generated by MONIT is disseminated and discussed. Oslo, juni 2004 Per Kock Svend Otto Remøe Assistent Director Project Leader 3 Rapport 6-2004m.fm Page 4 Wednesday, November 10, 2004 9:29 AM 4 Rapport 6/2004 Rapport 6-2004m.fm Page 5 Wednesday, November 10, 2004 9:29 AM Table of contents Executive summary ................................................................................... 9 1 Introduction ...................................................................................... 11 1.1 Background: The MONIT project .............................................................. 11 1.2 Interactions in policy systems ..................................................................... 12 1.3 Coherence: A key feature of horizontal innovation policy ..................... 13 1.4 An institutional approach ............................................................................ 14 1.5 The focus of the report ................................................................................. 16 1.6 Methodological considerations ................................................................... 16 2 Historical development of the science and innovation system and governance structure ........................................................................ 18 2.1 Introduction ................................................................................................... 18 2.2 1946 to the late 1970s: State supported development of large-scale industry ....................................................................................... 19 2.3 The 1980s: Growth through new technology and market mechanisms 20 2.4 The 1990s: Searching for a new model ....................................................... 24 2.5 Recent developments: Break through for a broad innovation policy? .. 28 2.6 Towards a 3rd generation innovation policy? ........................................... 31 3 An overview of the current innovation system and the key actors .. 33 3.1 Mapping the actors ....................................................................................... 33 3.2 Three key agencies ........................................................................................ 35 3.3 Support institutions ...................................................................................... 36 4 Perceived policy challenges and policy mix ..................................... 40 4.1 Performance of the STI system ................................................................... 40 4.2 Perceived policy challenges .......................................................................... 43 4.2.1 A methodological note ....................................................................... 43 4.2.2 Challenges ............................................................................................ 44 4.3 Policy mix ....................................................................................................... 56 4.3.1 Current priority areas ......................................................................... 58 4.3.2 Contents and organization of Norwegian innovation policies ..... 58 4.3.3 Framework conditions ....................................................................... 59 4.3.4 Research and development ................................................................ 61 4.3.5 Quality in higher education ............................................................... 62 4.3.6 Commercialization of research results ............................................. 62 4.3.7 Interaction between industry and education/research institutions 63 4.3.8 Company start-ups .............................................................................. 64 4.4 A summary of innovation policy measures ............................................... 64 4.5 Looking ahead: the 2003 Government proposition on instruments for an innovative and creative industry ..................................................... 64 5 Rapport 6-2004m.fm Page 6 Wednesday, November 10, 2004 9:29 AM 5 Agenda setting, prioritisation, and stakeholder involvement ......... 68 5.1 A corporatist system in a macro-economic environment ....................... 68 5.2 The politics of agenda setting ...................................................................... 70 5.2.1 Multi-dimensional tensions ............................................................... 70 5.2.2 Processes in Parliament ...................................................................... 72 5.3 Prioritization in R&D: The role of ministries and RCN .......................... 74 5.4 Innovating a new policy: The case of the tax credit scheme ................... 80 5.5 The need for long term perspectives: The case of the fund for research and innovation ............................................................................... 84 5.6 Innovation in fish farming: Different agendas from different ministries 86 5.7 Setting a new agenda? The Government’s plan for a coherent innovation policy ........................................................................................... 87 5.7.1 Introduction ......................................................................................... 87 5.7.2 Which agenda? .................................................................................... 88 5.7.3 Loosing coherence: Towards prioritization and implementation 91 5.7.4 Inherent contradictions in the policy cycle: A summary analysis 93 6 Co-ordination of policy formulation and implementation ............. 98 6.1 Indicators of horizontalization .................................................................... 98 6.1.1 STI funding in Norway ....................................................................... 99 6.1.2 Measuring coordination in innovation policy agendas ................. 102 6.1.3 Co-ordination practices ..................................................................... 104 6.2 Two levels of R&D policy co-ordination: The role of RFU and GFU ............................................................................ 104 6.2.1 RFU (the Government’s research committee) ................................ 105 6.2.2 DFU (the ministries’ research committee) .....................................