Regional Development in Norway[Name]

[Title]

Scenario

Scenario• The local cornerstone company closes down

• Unemployment rises

• People move

• Brain drain

Hard for remaining businesses to adapt and grow

Difficult to create start-ups/ attract entrepreneurs

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What to do?• Pool the efforts!

• Launch projects to enhance collaboration between local community, local authorities and local industries

= What Regional Development Programmes aim to do

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Regional Development Programmes in Norway

Regional Development Programmes in Norway

The Ultimate Programme Goal• CREATE JOBS!

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3 Levels of Administration Involved• National level: Government

• Regional level: County (regional authorities)

• Local level: Municipality (local authorities)

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Regional Development Programmes in Short• Up to six years

• National funding. Extraordinary grants

• Regional allocation of funds and follow-up of local programmes

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Regional Development Programmes in Short(continued)• Industry development projects• SME development

• Entrepreneurship

• Networking

• Infrastructure projects

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The Players• National level I: Government Annual grants to county authorities, provided there is quality assurance

• National level II: Innovation Norway Assignment: Quality assurance partner National level, but operates locally

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The Players (continued)• Regional level: County authorities

Process programme applications from local authorities

Grant status as “Local Development Area” + funding

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The Players (continued)• Local level I: Municipalities, local authorities

Programme owner

• Local level II: The Programme Organisation

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The Road to Regional Development1. Local authorities contact County authorities

2. County administration carry out an Impact Study

3. Local administration prepares application

4. County authorities

• Process applications• Grant the municipality status as Local Development Area

• Allocate funding for first year

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Where Does the Money Come From?

Where Does the Money Come From?

Programme Funding Scheme• Government grants allocated by County authority

(NOK 2–4 millions per programme)

• + 25 % self-funding by the Municipality

• Financial support from Innovation Norway (tools) (50–100% of total project cost, preparatory stages)

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How to Spend it?1. Industry development

2. Development of local community and public services

3. Programme administration

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How to Spend it? (Continued)1. Industry development

• Process and product development• Extraordinary start-up costs• Market research• Networking projects among local og regional industries• Hardware investments

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How to Spend it? (Continued)2. Development of local community and public services

• Mobilisation and motivation projects

• Service design projects in the public administration• Skills improvement

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We Support Preparatory Work• Funds may be spent on early-stage processes only:• Research, mapping and ananlyses • Preparatory projects

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Implementation in Four Stages

Implementation in Four Stages

Regional Development in 4 Stages1. The Impact Study

Main active player: Regional authorities

2. Strategy and planningMain active player: Project organisation

3. DevelopmentMain active player: Programme manager/CEO

4. ContinuationMain active player: Local authority (= programme owner)

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1. The Impact Study: Outcome• Impact Study/ Consequence Analysis

• County administration prepares and submits application for Government funding

• 2–3 months

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2. Strategy and planning: Outcome• Draft Programme Strategy

• Draft Action Plan, year one

• Application to Regional Authorities for status as Regional Development Area + funding

• 6–8 months

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3. Development: Outcome• Various local development- and collaboration projects

• Fullfilment of goals as stated in the Programme Strategy and annual Action Plans

• Up to 6 years

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4. Continuation: Outcome• Established local unit (project organisation or Ltd.) to keep up the good work

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Performance Measurement

Performance Measurement

Performance Measurement I.• The programme strategy must include

quantifiable goals

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Performance Measurement II.• Annual assessment workshops + reports• Programme management• Programme Board• Innovation Norway

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Performance Measurement III.• Final programme assesment by external consultant• Mandatory• Organised by Innovation Norway

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Innovation NorwayNational Competence Centre

National Competence Centre for Local Development• Innovation Norway: National level

• But operates locally

• Advisory role

• Quality Assurance

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National Level: Developing the Field • Programme and project management support

• Strategy and business development tools

• IN covers 50 % of consultancy cost

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Tools & Templates• Standardised templates to ease paper work

• Courses, workshops and assessments

• Mappings and analyses, preparatory reports

• Preparatory projects only

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Local Level: Executive Partner• Dedicated adviser from IN’s on-site regional office

• Non-voting member of the Programme Board

• Vertical/historical and horizontal/synchronous knowledge and experience

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Communication• www.regionalomstilling.no

• Introductory guide: INTRO

• Social media communication tool

• Networking activities: conferences, workshops, meet-ups

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Case I. Vågsøy• Programme period: 2005–11

• New jobs

• Population growth

• More people commuting

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Vågsøy: Challenges• High unemployment rate

• Employment fell by 40 % 1995–2000

• Unbalanced industry structure: heavily based on fisheries

• Population decline (age group 20–39)

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Vågsøy: Goals Measurable goals in three areas

• New jobs Growth in existing local businesses Start-ups

• Population growth

• More people commuting

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Vågsøy: Key Results • Employment goals accomplished

• Goal for population growth overachieved

• More people are commuting in the region

• Improved competitiveness

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Vågsøy: Success Criteria• Programme organisation: a limited company

• Local enterprises held the majority of shares

• Management & board had business development skills

• Consensus on strategies and goals

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Vågsøy: Success Criteria• Communication/PR

• Management active in local media and the community

• Public information and updates on: plans, priorities, results

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Case II. Meløy• Programme period: 2012–18

• Create 570 new jobs

Case II. Meløy

Meløy 2012–18: Challenges • March 2012: Cornerstone company REC Wafer

closed down

• 650 jobs lost

• Total employment rate reduced by 20 % overnight

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Meløy 2012–18: Goals • 570 new jobs by 2018

• 1500 new jobs by 2025

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Meløy 2012–18: Strategies • Make the most of comparative advantages within oil, gas and manufacturing

• Create more robust industrial base• Fisheries• Travel industry• Agriculture

• Make Meløy a more desirable place to live• Focus on women’s opportunities and younger generations

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Questions?

Thank you!

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