In Norway's first ever Report to the Storting on Innovation, Minister of Trade and Industry Sylvia Brustad promises to create a framework for facilitating innovation and cooperation in the public and private sectors alike. An important component to achieving this lies in strengthening industry-oriented research.
Competitive conditions are changing as a result of globalisation, climate challenges, dwindling natural resources and the growing number of those in need of care in relation to those able to work. These and other factors make it essential to launch a concentrated effort to promote innovation now.
Minister of Trade and Industry Sylvia Brustad, Director General of the Research Council Arvid Hall�n, and Executive Director of the Division for Innovation in the Research Council Lars Espen Aukrust. (Photo: Andreas B. Johansen)
Arvid Hallén, Director General of the Research Council, is pleased that the Report to the Storting on Innovation puts so much emphasis on the significance of research. Among other things the Ministry of Trade and Industry is promising increased funding for user-driven research and a continuation of the current SkatteFUNN tax deduction scheme. "These are prudent initiatives which may help companies to maintain their R&D efforts in spite of the financial crisis," says Hallén.
"Moreover, these measures are completely in line with the Research Council's recommendations," he continues, stressing the need to follow up any measures with substantial investment in infrastructure and equipment.
(Illustration: Jon Solberg)
However, Hallén also maintains that the measures put forward in the white paper will not be sufficient to deal with the impact of the financial crisis on industrial research and development activity. Few concrete steps are being proposed to compensate for the fact that companies give less priority to research in times of financial difficulty. The industry-oriented research institutes will also experience a downturn in their financial situation as a result of a decline in research commissions from trade and industry.
Larger companies and independent research institutes are important too
In order to enhance dialogue with trade and industry, the Government plans to establish a strategic council for small and medium-sized businesses (SMBs). The Research Council supports this, but also points to the need to devise a strategy that encompasses larger companies with high research intensity as well as to focus attention on the special situation of the independent research institutes.
The white paper places great importance on innovation in the public sector. Innovation is a key means of enhancing the public sector's ability to deliver high-quality services and promote innovation in the rest of society. "This requires coordination," says Hallén. "As of today the ministries' innovation efforts are not adequately coordinated. This complicates the provision of funding for research in this area," he points out.
Sylvia Brustad (Photo: Andreas B. Johansen)
The Report to the Storting on Innovation makes it clear that the Norwegian Government is committed to taking environmental challenges seriously, as evidenced by the establishment of a strategic council for environmental technology. According to Minister of Trade and Industry, Sylvia Brustad, one positive aspect of the environmental challenges is that they represent a major opportunity for Norwegian innovation.
The Research Council welcomes the increased focus on environmental technology. "It is vital to view investment in environmental technology in the context of Norwegian industry's gradual and long-term shift from carbon-based resources to reliance on renewable forms of energy," says Hallén.