Regional Development in Norway [Name] [Title]
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
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
Regional Development Programmes in Norway
The Ultimate Programme Goal CREATE JOBS!
3 Levels of Administration Involved National level: Government Regional level: County (regional authorities) Local level: Municipality (local authorities)
Regional Development Programmes in Short Up to six years National funding. Extraordinary grants Regional allocation of funds and follow-up of local programmes
Regional Development Programmes in Short (continued) Industry development projects SME development Entrepreneurship Networking Infrastructure projects
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
The Players (continued) Regional level: County authorities Process programme applications from local authorities Grant status as “Local Development Area” + funding
The Players (continued) Local level I: Municipalities, local authorities Programme owner Local level II: The Programme Organisation
The Road to Regional Development 1.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
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)
How to Spend it? 1.Industry development 2.Development of local community and public services 3.Programme administration
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
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
We Support Preparatory Work Funds may be spent on early-stage processes only: Research, mapping and ananlyses Preparatory projects
Implementation in Four Stages
Regional Development in 4 Stages 1.The Impact Study Main active player: Regional authorities 2.Strategy and planning Main active player: Project organisation 3.Development Main active player: Programme manager/CEO 4.Continuation Main active player: Local authority (= programme owner)
1. The Impact Study: Outcome Impact Study/ Consequence Analysis County administration prepares and submits application for Government funding 2–3 months
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
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
4. Continuation: Outcome Established local unit (project organisation or Ltd.) to keep up the good work
Performance Measurement
Performance Measurement I. The programme strategy must include quantifiable goals
Performance Measurement II. Annual assessment workshops + reports Programme management Programme Board Innovation Norway
Performance Measurement III. Final programme assesment by external consultant Mandatory Organised by Innovation Norway
Innovation Norway National Competence Centre
National Competence Centre for Local Development Innovation Norway: National level But operates locally Advisory role Quality Assurance
National Level: Developing the Field Programme and project management support Strategy and business development tools IN covers 50 % of consultancy cost
Tools & Templates Standardised templates to ease paper work Courses, workshops and assessments Mappings and analyses, preparatory reports Preparatory projects only
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
Communication Introductory guide: INTRO Social media communication tool Networking activities: conferences, workshops, meet-ups
Case I. Vågsøy Programme period: 2005–11 New jobs Population growth More people commuting
Vågsøy: Challenges High unemployment rate Employment fell by 40 % 1995–2000 Unbalanced industry structure: heavily based on fisheries Population decline (age group 20–39)
Vågsøy: Goals Measurable goals in three areas New jobs Growth in existing local businesses Start-ups Population growth More people commuting
Vågsøy: Key Results Employment goals accomplished Goal for population growth overachieved More people are commuting in the region Improved competitiveness
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
Vågsøy: Success Criteria Communication/PR Management active in local media and the community Public information and updates on: plans, priorities, results
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
Meløy 2012–18: Goals 570 new jobs by new jobs by
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
Questions? Thank you!