1. Publicly funded Development Foundations A Value Creation Circle put into practice Lukas Wedemeyer

2. Field of the Best Practice Development funds founded (partly) by the municipality of Kristiansand Competence Development Fund of Southern Norway (SKF) Cultiva – The City of Kristiansand Energy Foundation (Cultiva)

3. Core aims and objectives Joint overall goalSecure jobs and improve living conditions SKF instrumentStimulate competence development in Vest-Agder county Cultiva instrumentStimulate creative environments in Kristiansand Group of regional researchers and bureaucrats tried to identify future key drivers of societal and economical development (1994) -Communications -Competence -Culture/arts Cost intensive projects primarily controlled by national government Defend public funds from short term political influences – local and national Securing funds for long term development projects (eternity perspective)

4. SKF - description Public foundation – founded in 2000 by fifteen municipalities in the county Funds raised from sale of municipalities shares in regional energy company Real return is award grants (after building buffer) Purpose serve the counties inhabitants in the long term by helping to raise the level of competence in the county in order to secure and create jobs and good living conditions Support granted to university level knowledge development by public or private research/educational institutions local authorities public and private enterprises

5. SKF - description yield of -7.5% in 2011 fund’s investing profile is similar to that of The Government Pension Fund long term strategy, buffer capital has to be built up before funds are awarded funds awarded even in years of negative yield fed by buffer

6. Cultiva - description Public foundation – founded in 2000 by the City of Kristiansand Funds raised from sale of municipalities shares in local energy company Real return is award grants Purpose serve the cities inhabitants in the long term by fostering innovation, development and capacity building of creative environments in Kristiansand in order to secure and create jobs and good living conditions Support granted to projects aimed at improving living conditions and creative development of children and juveniles raising Kristiansand's attractiveness for families establishment of art-, cultural- and knowledge-institutions

7. Cultiva - description Around same yield as SKF, but Focused on awarding of sizable fund already in early years Initially too little focus on buffer capital - no funds awarded in 2012 Change of funding, investment and buffer strategy

8. Significant operational details Value Creation Circle¹

9. Significant operational details

10. Triple helix-model Industry Research and Education Public

11. Institutionalized triple helix-model Industry Research and Education Public Foundations People Public admin.

12. Used funding -The City of Kristiansand sold parts of its shares in the local energy company -As a result of strategical considerations by bureaucrats and researchers the profit was donated to the two foundations (Cultiva & SKF) -The foundations invested it in shares, obligations or property (modeled on the Norwegian pension fund) -The real return is after building a buffer used to award yearly grants (2-3 M€/y)

13. Transferable elements Preventing funds from absorption by day-to-day politics - donation to foundation - eternity perspective stipulated in statutes Very farsighted underlying overall goal – different instrument to reach those – development strategy adaptable to changing societal chalanges Actively foster triple-helix structures – through the foundations evaluation criteria Business potential Societal added value Contribution to regional R&D or Competence Development Centers Internationalization Integration Entrepreneurship & innovation Network building Co-financing Additionality

14. Innovative elements Publicly funded Foundations Advocacy not for individual interests but for the public interest Comissioned research for the corporate good not the good of corporations Implementation of tripple helix methodology in foundations awarding praxis Fostering self-fertilizing circle of value creation

15. Evidence of success Institutional Kilden – Theatre- and concerthouse Noroff – University college Projects countless projects funded over the last 10 years by both foundations ~20 per year per foundation CSI Heidelberg calculated SROI far beyond 1 (1,7-2,2) for SKFs investments

16. Contact data For more information please contact: Lukas Wedemeyer, lw@kristiansand.kommune.no, +47 907 31 476 Competence Development Fund of Southern Norway www.kompetansefond.no/english Cultiva – The City of Kristiansand Energy Foundation www.cultiva.no/english