The Norwegian government aims for investments in research and development in Norway to increase to three percent of GDP. The increase is intended to come from private sources, which will require a doubling of R&D activities in the business sector from its current level. Such a boost will require a comprehensive approach, where research policy considerations are taken into account even in policy areas where research is not a primary concern.
In a recent report for the Research Council of Norway, Oslo Economics has mapped private funding of research, development, and research-based innovation in Norway. The report highlights several measures that can strengthen private research funding. Some measures directly impact research and innovation policies, while others require a stronger connection between research policy and other policy areas, such as industrial policy, ownership policy, and foundation legislation.
The Norwegian R&D and innovation system is well-developed, with solid resources, stable institutions, and a broad portfolio of instruments. However, the system is increasingly reliant on public funding. This can partly be explained by the Norwegian societal model, where the government has primary responsibility for policy areas such as health, education, and research. Additionally, Norway has a business structure that is less R&D-intensive compared to countries like Denmark and Sweden. Nevertheless, there exists a potential for increased private funding of R&D and innovation.
Among the measures highlighted in the report, is the improvement of general framework conditions for private investments in R&D and innovation. The report suggests making qualified labor and research environments accessible for private R&D investments. Another measure is to strengthen existing industry-oriented instruments and promote free research on add-on value. The report also emphasizes that considerations for R&D and innovation can be prioritized in active industrial policy and ownership policy.
The report was made in collaboration with NIFU.
