1. Norwegian Experiences and Challenges Ragnhild Solheim Executive Director Division for Innovation

2. Norwegian Experiences Norwegian Challenges Agenda

3. Strategic programs established in nationally prioritized areas VERDIKT ICT Core competence and Growth Long-term – 10 years, annual budget 100 mill. NOK Target groups – Industry, RTD units and authorities Aquaculture An industry in growth NANOMAT Nanotechnology and new materials PETROMAKS Optimal management of petroleum resources NORKLIMA Climate changes and consequences for Norway FUGE Functional genomics RENERGI – Clean Energy Programme

4. Central elements in the research and development portfolio for industry SkatteFUNN SFI/ Institutes Breadth Depth  Broad mobilisation of SMEs  Based in law  Industry drive  Not bureaucratic  Long term perspective  Expertise  International  ”Common good” User-driven innovation projects  Competitive – stimulate highest potential  Highly R&D intensive  High added value Thematic programmes  Cutting edge  Concrete challenges  Consortium

5. Innovation Norway promotes nationwide industrial development, and helps release the potential of different districts and regions by contributing towards innovation, internationalisation and promotion The Research Council of Norway SIVA - The Industrial Development Corporation of Norway co-owner in more than 60 innovation centres in Norway, and functions as an exchange for sharing of industrial and innovative approaches Cooperation for innovation Close cooperation for innovation across governmental agencies

6. Innovation programs VS2010 Value creation, organisational development and innovation SkatteFUNN Tax incentive scheme to support R&D BIA User-driven Research based Innovation DEMO2000 Petroleum project related technology development FORNY Commercialisation of R&D results CLIMIT Natural gas power with improved environmental performance The Food programme Innovation in the value chain from consumer to primary production WOOD Forest and wood-related value chains AREAL Area- and nature-based industrial development HØYKOM broadband based, information intensive eGovernment services MAROFF Maritime and offshore operations Centres For Research- Based Innovation World class research centres

7. New Instrument: Centres for Research-based Innovation 8-12 MNOK per year Companies + research institutes and or universities 14 centres announced June 16th – 4 Biotech: MabCent - Centre on marine bioactives and drug discovery Medical Imaging Laboratory for Innovative Future Healthcare Stem Cell Based Tumor Therapy - (SENIT) Tromsø Telemedicine Laboratory

8. RCN’s user-driven portfolio has a high return on investment 0,7 billion in public funding (1996-2001) has contributed to generation of a net present value (1) of 5, 0 billons for participating companies B NOK 0,74 1,62 2,36 RCN funding Company investment Invested total Total NPV (1) Net present value calculated as current project value after all investments have been deducted Source: Møreforskning 5,0

9. Some results from user-driven research Registered patents Licensing contracts New companies New business areas 71 50 7 20 13 16 24 16 Count Source: Evaluation, questionnaires

10. R&D example: Rapid and sensitive detection methods for bacteria Time consuming to detect pathogens in food with standard methods With a a recently developed method based on DNA- technology the detection of Campylobacter is ready within 3-5 hours The method is also used for the detection of other pathogens Prior Norge, Genpoint, MATFORSK Næringsmiddelprogrammet: 1,2 million NOK over 4 years

11. FORNY-program – Commercialisation of R&D TTO funding – 15 TTOs/science parks throughout Norway Institutional change projects to promote commercialisation 30 MNOK (2006) “proof of concept”-projects Commercialisation stipends – new in 2006 24 % of commercialisations in 2005 within Biotech 65 % of “proof of concept”-applications in 2006 within Biotech

12. FORNY-example: DiaGenic – from Trees to Humans Disease in one part of a tree detected from genetical activity elsewhere in the tree Applicable to humans: ” when a disease is localised at a specific part in a body, secondary responses characteristic of the disease can be measured in peripheral parts ” Patent for breast cancer detection Received support from Forny, Research park, seed fund and TTO during start-up and early phase in late 1990s

13. Norwegian Experiences Norwegian Challenges Agenda

14. Norwegian innovative capacity is low compared to GDP level

15. A need to stimulate Norwegian industry to invest more in R&D Especially the industry sector is investing below European level Other Nordics are more research- intensive Total R&D Expenditures as share of GDP 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 19811985198919911993199519971999200120022003 %% Sweden Finland Iceland Denmark OECD Norway Sweden Japan Finland Iceland USA Denmark Germany France UK EU 25 Belgium Netherlands Norway Ireland Spain % of GDP (2003) Public Private

16. New White Paper on research in 2005 – ”Commitment to research” Norway is to become a leading research nation Total R&D expenses 3% of GDP by 2010, of which 2% from industry

17. INTERNATIONALISATION BASIC RESEARCH (with emphasis on research quality and math and sciences ) RESEARCH-BASED INNOVATION Energy and environment FoodOceansHealth ICT New materials Nanotech. Biotechnology Biotech and Health have High Priority in Norwegian Research

19. Research programmes:  Basic research programmes  Action oriented programmes  User directed innovation programmes  Large scale programmes  International exchange schemes Basic budget to independent institutes:  Long term funding of core activities  Strategic programmes related to themes for long term competence building Independent projects New instruments:  Centres of Excellence  Centres for Research-based Innovation  Young investigators award The Funding Instruments in RCN: Three Main Groups

20. Participating companies has benefits beyond economic results Calculated economic value Benefits not calculated economically Economic result Technological development Cooperation/ network development Increased competence Reasons for project success, all projects 2000-2004 27% 26% 13% 34% 100% 5,0 B NOK