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Norwegian Regional Policy Kristin Nakken Norwegian Ministry of Local Government and Regional Development Oslo. 14.March 2012. Norwegian Ministry of Local Government and Regional Development Norway: 4,99 mill inhabitants Capital city Oslo


  1. Norwegian Regional Policy Kristin Nakken Norwegian Ministry of Local Government and Regional Development Oslo. 14.March 2012. Norwegian Ministry of Local Government and Regional Development

  2. Norway: 4,99 mill inhabitants Capital city Oslo 19 counties 429 municipalities Municipalities: 216 (Utsira) – 600 000 (Oslo) inhabitants Norwegian Ministry of Local Government and Regional Development

  3. Finnmark 48615 km² Vestfold county 2224 km² (¼ of Kautokeino municipality) Norwegian Ministry of Local Government and Regional Development

  4. Urban structure: cities with more than 10,000 inhabitants Norwegian Ministry of Local Government and Regional Development

  5. Population development - type of region Whole country Sparsely populated areas 1998-2008 2008-2018 Small center regions Small city regions within target area Small city regions outside of target area Large city regions -10,0 % -5,0 % 0,0 % 5,0 % 10,0 % 15,0 % 20,0 % Norwegian Ministry of Local Government and Regional Development

  6. Aims of the regional policy • Sustain the main features of the settlement pattern • Accessible services and economic growth in all parts of the country • Freedom of choice as to where to live Norwegian Ministry of Local Government and Regional Development

  7. Regional policy - challenges • Extensive mountain areas, insular and coastal regions, arctic and sub-arctic climate • Sparsely populated, weak urban structure, long distances to main markets • Migration from peripheral to core areas – polarisation of the settlement structure At the same time: • only limited differences in education level, employment, income, housing, services.... Norwegian Ministry of Local Government and Regional Development

  8. Regional perspectives in most sectors • Funding of the municipalities • Transport and infrastructure • Higher education and research • Agriculture and fisheries • Business development • Defence Total annual spending: 36 bill NOK Norwegian Ministry of Local Government and Regional Development

  9. Particular attention - Sparsely populated areas. • Core challenges – Reaching sufficient number of people within daily commuting range to run public and private services cost-efficiently. – Establishing a well-functioning labour market. Norwegian Ministry of Local Government and Regional Development

  10. Migration – two ways to look at it Annual domestic migration 2006 – 2011. BA-landsdelar In Out Net Norwegian Ministry of Local Government 10 and Regional Development

  11. The specific regional policy • Business funding – grants and loans • Start-up grants for entrepreneurs • Incubators and business “gardens” • Support for clusters and for innovation • Local community development Annual spending: 2.7 bill. NOK • Geographically differentiated labour tax Annual costs: ca. 12 bill. NOK Norwegian Ministry of Local Government and Regional Development

  12. Regionally differenciated social security contributions Norwegian Ministry of Local Government and Regional Development

  13. Regional aid map Norwegian Ministry of Local Government and Regional Development

  14. Implementers • The county authorities • The municipalities • Innovation Norway • The State Industrial Development Corporation (SIVA) • Norwegian Research Council Norwegian Ministry of Local Government and Regional Development

  15. Main measures • Investment aid or grants • Loans • Start-up grants • Restructuring local communities • Infrastructural programmes • Business environment support. • Special programmes for women and youth. • Cross-border cooperation • Regionally differentiated social security contribution. Norwegian Ministry of Local Government and Regional Development

  16. Some instruments • NCE – Norwegian centres of expertise • The VRI programme • Incubators, business gardens • Business network • The ARENA Programme • Regional research funds • Young gründers (and mentoring) • Action zone for Finnmark and Nord-Troms Norwegian Ministry of Local Government and Regional Development

  17. Action Zone - North • No social security tax • Reduced income tax • Remission from bank-payment of loan for education • Higher child benefit • Reduced electricity charges • Reduced investment tax for construction Norwegian Ministry of Local Government 17 and Regional Development

  18. MERKUR ( program for building competence in small grocery stores in rural areas) • Secure the deliverance of groceries in rural areas • Provide good service, both public and private, through the grocery store • Attractive local communities Norwegian Ministry of Local Government 18 and Regional Development

  19. Norwegian Ministry of Local Government and Regional Development

  20. Science parks Knowledge parks Business gardens Business incubators Industry-incubators Seed/Venture Funds Norwegian Ministry of Local Government and Regional Development

  21. Interreg in Norway Norwegian Ministry of Local Government 21 and Regional Development

  22. Nordic-Baltic Regional Policy Cooperation Member of the relevant Interreg A and B programmes like • the Interreg IVB Baltic Sea Substantial financial contributions towards a more coherent • Baltic Sea Region through the EEA financial mechanism about of which 152 mill. € to Poland, Lithuania, Latvia and Estonia on annual bases for the periode 2009 - 2013. Member of VASAB • Member of the Nordic Council of Ministers. • The general aim is to promote convergence, coherence and • competiveness in the Baltic Sea Region. Norwegian Ministry of Local Government and Regional Development

  23. Transnational perspectives in Norwegian Regional Policy The transnational perspective is threefold: • – The North Sea Region – The Baltic Sea Region – The High North This reflects our geographical position but also • political priorities. Norwegian Ministry of Local Government and Regional Development

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