1. 1
Overview of public policy tools for facilitating business development: The
Agder region and Rogaland County, Norway
The Norwegian Labour and Welfare Administration’s role in facing the gap
between available labour/skills and the needs of public and private enterprises
A central challenge for the public sector are the inequalities between available
labour/skills and the needs of public and private enterprise. There are several bodies
and organisations in Rogaland County and in the Agder region that are involved in
addressing this issue, one that has been highlighted by the recruitment of a
considerable number of foreign nationals to fill technical vacancies in the region in
the past three years.
One very important stakeholder in this context is the Norwegian Labour and Welfare
Administration (NAV), whose mandate is to monitor and address current labour
issues at all levels. NAV is thus a natural focal point of any public initiatives and
planning with regard to the labour market, and is often seen in the role of „agent of
change‟. In order to bring together labour supply and demand, NAV provides several
information services, for example a job vacancy database. In addition, NAV posts
monthly labour market statistics on its website. The statistics serve to determine
qualification shortages and help direct schemes aimed to meet specific demands, as
they not only list labour surplus and shortage in relation to sector, but keep an eye on
the long-term unemployed including those on full or partial benefits.
NAV also provides information about Norway in general and the Norwegian labour
market in English (and partly other foreign languages). Thus, people from foreign
countries, who can fit specific labour shortages in different regions and branches, are
addressed. With its EURES (EURopean Employment Services) Service centers NAV
offers information and other assistance to Norwegian employers who want to recruit
staff from other European countries, as well as to foreign jobseekers who are
interested in working in Norway. This also includes the organization of employment
fairs.
In Rogaland, NAV posts a monthly internal listing of available posted jobs alongside
the types of jobs sought by registered jobseekers, by order of prevalence. Known as
the “Top 20” list, it shows a persistent imbalance in the local labour market in that
available jobs do not match available candidates. While this kind of imbalance is
common in many countries, its nature indicates specific needs in the region in
question and can suggest trends to be addressed.
Different organisations and companies, inclusive NAV Rogaland, publish the regional
“Industrial Barometer” – a printed business activity survey – which presents the
status of public and private enterprise and the labour market, including forecasts. A
recent issue of the Industrial Barometer explored the question of how Rogaland
presents itself to highly skilled foreign jobholders, suggesting that more can be done
for Rogaland to portray itself as an attractive place to relocate and stay, with
prospects of worthwhile career development. This question has been referred to as

2. 2
“the Battle for Skills”1 in various media, indicating apparent pressing needs in
different fields of specialisation.
In any economic downturn, unskilled young men have been the first to be hit when
unemployment begins to rise. NAV‟s primary means of addressing the needs of this
group is its catalogue of Labour Market Training courses. Targeting the long-term
unemployed, this is a regular set of schemes aimed at reintroducing jobseekers to
the job market through courses given in conjunction with market developments and
local employers‟ needs – often large industrial enterprises. Besides offering valid
employment opportunities, this allows unskilled labour to be streamed into module-
based courses that in some cases lead to an upper secondary equivalent skills
diploma. NAV is the key agent in this scheme, and is in continuous dialogue
regarding unskilled labour with the qualifications authority.
The central issue is how to raise skills levels and reintroduce unemployed labour to
working life, in tune with market needs for labour. NAV has a number of means,
including vocational courses, vocational rehabilitation programmes, work practice
schemes and other individual programmes. The organisation has come through a
major fusion and restructuring process in recent years, and continues to improve and
develop its tools with which to address the skills gap.
One such tool is a new job and skills profile used by case workers assigned to
individual jobseekers. In the past, training schemes for the long-term unemployed
have been available to the individual based on the type benefit they were receiving,
while with the current model this is directly based on their needs, as determined by
their job and skills profile. The jobseeker completes a self-assessment form
consisting of a series of questions over 12 pages, the end result of which makes part
of a skills and opportunities „survey‟ intended also to help the jobseeker to gain
awareness of ways forward with support from their case worker.
Information and public relation tools
Bedin
The business information website bedin.no provides comprehensive free-of-charge
information about starting and running business enterprises in Norway. It is supplied
by the Norwegian Ministry of Trade and Industry.
Kompetansetorget
The website Kompetansetorget is an open and free-of-charge information tool which
serves as a contact forum between students at the University of Agder and the
business sector. Private companies and public institutions can publish project
proposals or part-time jobs on the website and students can easily search for offers
that fit their interests and education.
1
“Kampen om Kompetansen”, presentation, IRIS 2008

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Development of business sites, infrastructure and public transportation
SIVA
SIVA, the industrial development corporation of Norway, is a state-owned enterprise
which was founded in 1968. SIVA‟s main objective is to account for economic growth
and business development in the Norwegian districts. SIVA cooperates with many
partner institutions like the Norwegian Research Council, Innovation Norway and the
Norwegian county councils. One important concept for reaching the main objective is
to develop strong regional and local industrial clusters through ownership in
infrastructure, direct investment and knowledge networks as well as innovation
centres.
To stimulate the development of clusters and to foster innovative start-ups SIVA has
created different concepts of business environments like business and industry
incubators, business gardens, as well as research and science parks all over
Norway. Today SIVA owns and operates 44 business gardens and is co-owner of
another 52 business gardens, 25 science parks and 18 industry incubators
nationwide.
Within the different types of business environments SIVA and respectively the local
co-owners support entrepreneurs and small and medium sized companies with
modern infrastructure (like for example broadband and meeting rooms), business
experience, knowledge, financing and business networks.
Business gardens are generally located in less developed areas with slow growth or
specific economic challenges. They consist of different knowledge-based companies
that shall form an innovative and economically successful network. Three of SIVA‟s
business gardens are situated in the Agder region (Lindesnes Business Garden in
Mandal, Lygna Business Garden in Lyngdal and Risør Business Garden in Risør)
and five in Rogaland County (Dalane Business Garden in Egersund, Finnøy
Business Garden in Finnøy, Hå Business Garden in Hærbø, Rogaland
Ressurssenter in Avaldsnes, Suldal Business Garden in Sand).
Science parks have a stronger focus on innovation and skill-intensive companies.
Unlike business gardens they are located in bigger municipalities and are normally
either co-owned by or located near a university. Science parks shall serve as
incubators for research-based start-ups. There is one science park in Stavanger in
Rogaland County (iPark) and two in the Agder region (Sørlandet kunnskapspark in
Kristiansand and Arendal kunnskapspark in Arendal).
The industry incubator concept differs from the regular incubator / science park
concept with respect to company size. An industry incubator is usually directed to just
one large already existing industry enterprise and is supposed to stimulate spin-offs.
The concept was developed for regions that are dominated by either just one or few
large traditional industries. It is intended help these regions to build up a more
diversified industry structure in order to secure future economic growth. Both the
Agder region and Rogaland County locate one industry incubator each.

4. 4
Regular business sites that do not have a special focus on existing clusters or on
innovation, are not developed by SIVA, but by the respective municipalities or
municipality-owned enterprises (e.g. Kristiansand næringsselskap).
Tax measures, subsidy schemes and public investment funds
SkatteFUNN
SkatteFUNN is a tax reduction scheme that is intended to enhance the economy‟s
research and development activity. Business enterprises that are engaged in
research and development activity on their own or in collaboration with others may
apply for a tax reduction under this scheme. The SkatteFUNN scheme, which was
introduced in 2002, is an indirect funding scheme which is qualification-based and
regulated in the statutory framework. It is open to all industry branches and all types
of companies that are subject to taxation in Norway. Support takes the form of a tax
deduction up to 20% of the costs related to R&D activity. The intended R&D projects
have to be approved by the Norwegian Research Council.
There is a multitude of agencies and other institutions in Norway with a
complementary set of policy tools in order to support entrepreneurship, innovation
and clusters. The national institutions often have regional units. Among the most
important institutions are:
Innovation Norway
Innovation Norway (Innovasjon Norge) is a state owned company with offices in all
the Norwegian counties and in more than 30 countries worldwide. Innovation Norway
is the largest financer of development programmes and projects in Norway. The core
group of clients are Norwegian companies, predominantly SMEs. Innovation
Norway‟s aims are to boost innovation in business nationwide and to foster regional
development. This is done by providing or arranging financing, linking customer
enterprises to know-how and helping them to build networks for their innovation
projects. Financial tools include loans for innovation projects and for investment in
machinery, equipment and buildings; founding subsidies; grants for use of advisory
services, education, and R&D; as well as investments and guarantees for loan /
payments for interests on investments.
Research Council of Norway
The Research Council of Norway (Forskningsrådet) is the country‟s official body for
the development and implementation of national research strategy. It is both a
research funding agency, a strategic adviser and an initiator of meeting places and
networks. The RCN has an operational role in financing research by the business
sector.
The county councils
The county councils of East- and West-Agder have a common act programme for
regional development which includes funding for business development. Parts of the
funds go to support the science and business parks in the region or are used for
measures to strengthen certain prioritized business sectors. The counties‟ tools
include both indirect and direct measures that go directly to individual companies,
e.g. small innovative start-up firms. The counties make also financial contributions to

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the existing clusters in the region. They get special grants for regional development
from the Norwegian Ministry of Local Government and Regional Development (so
called “551.60 measures”).
Coventure
Coventure is the regional operator of the Industrial Development Corporation
Program SIVA in Agder. Coventure invests in start-ups with innovative business
ideas. It operates as an active co-owner in these companies and supports them in
their early stage of development by offering advisory services and by getting them in
contact with important private and public institutions. In a later stage of the
companies‟ development Coventure helps to find new investors.
In addition to the mentioned institutions there is a long range of programmes that
were designed to boost R&D and that directly or indirectly contribute to the
development of clusters:
Arena programme
The Arena programme, established in 2002, is a national programme for long term
development of regional business clusters with a budget frame of 30 million NOK. It
is owned by Innovation Norway, SIVA and the Research Council of Norway. The
programme offers both advisory and financial support to regional clusters. The
objective is to strengthen the clusters innovative ability through a stronger and more
dynamic interaction between the industry, R&D institutions, universities and the
public sector. Support is normally not granted for more than three years. There are
about 20 regional clusters within the programme of which two are located in Agder
(the EYDE process industry cluster in West-Agder County and a leisure boat cluster
in East-Agder County), and three in Rogaland county (Integrated Operations, Centre
for Smart and Safe Wells, and Offshore support vessels, all related to the oil
industry).
NCE programme
The NCE programme (Norwegian Center of Expertise) includes twelve clusters
consisting of “world class enterprises in their fields”. The NODE cluster (Norwegian
Offshore and Drilling Engineering) in Agder and the Culinology food cluster in
Rogaland are two of these. As the Arena programme NCE, too, is jointly owned and
implemented by the three main Norwegian innovation agencies Innovation Norway,
the Research Council of Norway and SIVA, it has a common board with the Arena
programme. The programme budget is about 45 million NOK. The companies
participating in the NCE network are offered both funding and professional support.
Financial support is given for network construction within the cluster and with external
operators, for the development of ideas, strategies and project proposals and for the
marketing of the cluster. With the programme up to 50 % of eligible costs for up to 10
years can be financed.
Regional research funds
From 2010 on this new instrument for enhancing research and innovation in the
Norwegian regions comes into operation. The Regional research funds will be
administered by the county councils and are intended to finance research projects in
the business and the public sector. As the annual total amount will be distributed on

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only seven funds, the 19 counties in Norway are stimulated to cooperate for joining
one of the seven fund regions.
Trade initiatives
Eksportfinans
Eksportfinans is the Norwegian credit institution for export financing. It is owned by a
consortium of banks operating in Norway and by the Norwegian Ministry for Trade
and Industry. Eksportfinans is the exclusive operator of government supported export
financing in Norway offers long term financing to the export industry. It provides both
export financing for foreign buyers interested in purchasing Norwegian goods and
services as well as for Norwegian buyers with strong international links.
Eksportfinans finances up to 85 per cent of the contract amount for capital goods and
up to 80 per cent for Vessels. Moreover the institution arranges export loans for
goods, ships, shipping services, as well as commercial loans for export credits. Not
least Eksportfinans offers investment loans to Norwegian exporters in order to help
financing foreign investments, purchases and other international expansions.
Kristiansand Chamber of Commerce
The Kristiansand Chamber of Commerce (Næringsforeningen i
Kristiansandsregionen) supports companies in their export activities by offering, for
example, practical help with formal documents, and by issuing a special toll pass that
allows temporary toll- and tax-free export of product and equipment samples.
Public private cooperation in education and R&D
The Vocational Training Office
In Norway, the 19 county councils are responsible for upper secondary, vocational
and adult education, including apprenticeships in their region, and are key agents in
this work. Adult education involves both private and public training institutions. The
Vocational Training Office (“Opplæringskontoret”) gives courses and conferences on
career counselling efforts, within the confines of upper secondary schools locally and
at four dedicated Career Centres in the county.
NAV has agreed on a statement of intent with Rogaland County Council‟s Vocational
Training Authority (“Avdeling for fagopplæring”) to collaborate in the field of career
guidance and upper secondary training for adults. The aim is to strengthen the
position of job and education seekers in the labour market by offering a
comprehensive training and career service with relevance to the individual. The
Vocational Training Authority can assess a person‟s qualifications based on their
particular career and training and determine the appropriate way forward in terms of
further schooling.
Nationally, NAV has put in place a scheme for supporting the internal re-qualifying of
staff in large enterprises that face transitional or structural problems (“Bedriftsintern
opplæring”). The goal is to prevent redundancies, and targets enterprises that are
willing to keep existing staff members, or hire new members, that need training,
providing this training within the organisation according to specific guidelines. This
training can then be eligible for subsidies from NAV. A related programme has been

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used in the past, targeting individuals at risk of losing their jobs due to illness or
injury.
The University of Stavanger (UiS)
UiS is relatively young (2004) and profiles itself with an agenda informed by creativity
and innovation. Its stated aim is to educate in key with labour market needs and to be
a close partner with regional business communities. To this end, and with an eye to
keeping foreign jobholders in the region, the university‟s division for continuing
education has been renamed and re-profiled as “UiS Pluss”.
Since 2005-06, a high level of growth in Rogaland has seen a related rise in
employment of foreigners in the technical/industrial sector. The issue of retaining
these jobholders, who supply needed skills, expertise and contribute to the region‟s
cultural diversity, has become an important issue to all recruiting and developing
agents operating in labour market. While high-level technical expertise is still sought,
lower-to-middle level technical staff has become at-risk due to insecurities regarding
projected industry/oil and gas developments in the near future.
In 2009, UiS Pluss has liaised with public and private partners with regard to skills-
update schemes for foreign specialists facing redundancy due to the international
recession. Several for-purchase schemes have come into place in the space of a few
months as individual courses or tailored course packages. UiS also offers classes in
Norwegian language and society to foreigners with higher education2.
Professional courses could be given (in English) within HSE, management and
economics, and include sector regulatory framework, the Norwegian Working
Environment Act, understanding local culture and more. Particular focus would be on
furthering the region‟s expertise on environmental issues and environmental
sustainability in offshore activities, with UiS as a world leader within petroleum
technology education and geology. This sector is known to drive research forward,
and the activity level in oil and gas largely determines the academic offerings of
learning institutions.
UiS is also in a position to include research bodies and enterprises, both public and
private, for development and entrepreneurship in education. One example is the
iPark business innovation cluster, located adjacent to the UiS campus, spearheaded
in this regard by the International Research Institute of Stavanger (IRIS). Since
September 2009 UiS Pluss and the project group have addressed in more detail the
shortcomings in regional education as affects these jobholders, in order to develop
courses and supplementary qualification packages together with its project partners.
They also actively compete with other course providers.
The University of Agder (UiA)
In September 2007 the former Agder University College received university status.
With approximately 8500 students and 1000 employees it is the largest research
institution in the region. The new University of Agder (UiA) cooperates extensively not
only with other research institutions, businesses and civil service institutions, but also
with technology, research and commercial networks in the region. Several
2
Norwegian classes for foreign adults with higher education are given at a cost of €400 for 52 hours.

8. 8
businesses and organizations have signed memorandums of understanding with the
university, and many faculties cooperate with the companies on student projects. The
Centre for Entrepreneurship at the University of Agder, a cooperation with the
research institute Agder Research, Innovation Norway and the Competence
Development Fund of Southern Norway, offers courses and academic studies in
entrepreneurship for international students.
Competence Development Fund of Southern Norway (CDFSN)
The Competence Development Fund of Southern Norway (CDFSN) supports public
and private research and educational institutions, local authorities, as well as
enterprises to secure jobs by raising the level of competence in the region. CDFSN is
organized as a public foundation and was created in 2000 by the fifteen local
authorities in the county of Vest-Agder. CDFSN funds can be invested in shares,
bonds, unit trusts or real property. Companies and institutions that receive support
must develop knowledge at the university college / university level.
CDFSN has a main focus on four industries where the region already has a certain
weight. This is the process industry (esp. material technology), maritime industries,
information and communication technologies and creative industries. One example of
CDFSN‟s investments was the new-founded NODE competence centre: The
companies within the NODE-cluster cooperated with Agder University and the
Kristiansand branch of the Norwegian School of Management in developing
advanced vocational training courses that fit the companies‟ specific needs. Main
focus was on courses in project management, mechatronics and logistics.
The East-Agder development and competence fund (Aust-Agder utviklings- og
kompetansefond), established 2003, is a public foundation which is financed by the
15 municipalities in East-Agder County. Main aims of the fund are to increase the
region‟s general competence, to secure existing and create new jobs. Another
objective in this context is to strengthen the academic environment. Eligible for grants
are public or private research institutions, higher education institutions, municipalities,
as well as public or private companies that are located in the county. The grants can
be given to projects or investments that fit the aims of the fund.
Programme for Regional R&D and Innovation (VRI)
The VRI-Programme, initiated by the Research Council of Norway, offers
professional and financial support to long-term, research-based development
processes in the Norwegian regions. The VRI programme is designed to increase
value creation in regional trade and industry by promoting R&D projects that both
expand existing business areas and create new ones. One of the main aims of the
VRI-programme is to foster cooperation activities between industry and R&D
institutions. This shall both enhance the companies‟ ability to develop their own
research projects and to stimulate professional researchers to interact with
companies on R&D projects. VRI-Agder and VRI Rogaland are the regional initiatives
of the programme. The VRI-programme in Agder, for example, is financed by the
Research Council of Norway, the counties of East- and West-Agder and Innovation
Norway. In Agder the fundings are concentrated on three areas: the information and
communication sector; the energy, oil, gas and process industry as well as the
culture and event industry. In Rogaland the programme focuses on the energy, the
food and the maritime sector.

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Research Council of Norway
Most of the above mentioned institutions that are active in facilitating and financing
clusters are also involved in public private cooperation projects in R&D. The
Research Council of Norway granted for example 6.3 million NOK to the project
"End Use of Photovoltaic Technology in Norway." This is a cooperative project
between the silicon producer Elkem Solar and the University in Agder with the
support of the municipality of Kristiansand. The project has a total budget framework
of 8.6 million NOK and also includes financing two PhD candidates.
Norwegian Centre for Offshore Wind Energy (NORCOWE)
Another recent example of public private cooperation in R&D was the founding of the
Norwegian Centre for Offshore Wind Energy (NORCOWE). At NORCOWE, key
industry players and research groups from Norway pool their efforts with leading
stakeholders from other countries in order to develop new, innovative solutions for
offshore wind power. The center is neither located in Agder nor in Rogaland, but both
the universities of Agder and Stavanger and several local oil and offshore-industry
companies, as well as energy providers are cooperation partners and will without
much doubt benefit from the centre‟s work in the future. The local stakeholder‟s
involvement in the centre‟s work will most likely strengthen the two regions‟ roles as
energy clusters.
Teknova
Teknova is a research institute for technology and science that carries out applied
research for regional firms while having a strong focus on university-industry
cooperation. It was established in 2007 as a result of collaboration between the
University of Agder, Agder Research, and world leading industrial companies located
in the south of Norway. Teknova offers contract research services both regionally and
nationally and aims especially at contributing to more environmentally friendly
solutions (e.g. solar cell technology). As a result of the cooperation with the
University of Agder Teknova can use the university‟s labs and facilities.
Young Entrepreneurship (Ungt Entreprenørskap)
YE, founded in 2001, is a set of programmes that educate pupils and students in
entrepreneurship throughout the educational system. Within these programmes the
regional business sector and the schools cooperate in order to give children and the
youth a deeper understanding of business activities. The young people are
encouraged to start an own business for one school year under realistic
circumstances, with teachers and representatives from local companies as mentors.
The YE organizations in Agder and Rogaland are part of the YE-Norway organization
which itself is part of a European initiative with 37 member states. In Agder, for
example, more than 10.000 pupils and students take part in the different YE-
programmes every year. The programmes are managed by representatives of both
important companies, public authorities and other institution in the region. The
programmes‟ ulterior motive is to stimulate young people to found a company in the
future by giving them the necessary knowledge and motivation in an early stage of
life.
Trainee Sør
Trainee Sør is a regional trainee programme in Agder that has the aim to support
high-skilled young people in finding an adequate first job in the region and by this

10. 10
avoiding these people to move to other regions. Within the 18 months trainee period
the candidates work in three different private enterprises or public institutions in the
region. By joining the trainee programme the trainees build up contacts than can be
useful in the future job seeking process. The programme is also useful for the
cooperating companies, because they can “test” the trainees‟ abilities before a
potential regular employment in the future. The trainees‟ salaries are paid by the
Trainee Sør programme.
Public and industrial research and development contracts
Public research and development contracts (OFU) are binding and goal-oriented
cooperations between business enterprises and public bureaus about the
development of a specific new product or service. Enterprises with a corresponding
know-how can receive grants for developing the requested product or service. By this
measure the public stakeholders can stimulate the local economy to develop a more
diversified product portfolio. An important requirement is that the requested product
or service is not available and that it will be developed in Norway.
Industrial research and development contracts (IFU) work in the same way as
public research and development contracts, with the difference that IFU are
cooperations between two or more business enterprises. The objective is to foster
the position of SMEs as suppliers to large companies in Norway and abroad, which
means that the company that develops the requested product or service has to be a
small or medium-sized one under certain definitions. The product shall preferably
have an international dimension, i.e. that it is orientated towards overseas markets.
Both the OFU and IFU-regulations are administrated by Innovation Norway.
Network meetings / platforms and b2b matchmaking
There are by far too many stakeholders in Rogaland and Agder that are organizing
network meetings and creating network platforms to mention all of them. Almost all of
the agencies and institutions so far mentioned in this overview support firms in
networking processes.
Innovation Norway is, of course, one of the most important providers of network
activities, but also SIVA, the industrial development corporation of Norway, has
established networking initiatives in order to foster innovation, especially for
enterprise start-ups in the incubator projects and in the business gardens.
To give just one more example the companies that join the NCE programme
(Norwegian Center of Expertise) get professional support for organizing conferences
and seminars.
The numerous network initiatives in Agder and Rogaland contribute to a closer
interaction between the business sector, the R&D milieu and state actors and make
an important contribution to regional development.