Revitalizing Local Economies: Regional Development Programs in Norway

1. Regional Development in Norway [Name] [Title]

2. Scenario

3. 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 www.regionalomstilling.no

4. 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 www.regionalomstilling.no

5. Regional Development Programmes in Norway

6. The Ultimate Programme Goal • CREATE JOBS! www.regionalomstilling.no

7. 3 Levels of Administration Involved • National level: Government • Regional level: County (regional authorities) • Locallevel: Municipality (localauthorities) www.regionalomstilling.no

8. Regional Development Programmes in Short • Up to six years • National funding. Extraordinary grants • Regional allocation of funds and follow-up of local programmes www.regionalomstilling.no

9. Regional Development Programmes in Short(continued) • Industry development projects • SME development • Entrepreneurship • Networking • Infrastructure projects www.regionalomstilling.no

10. The Players • National level I: Government Annual grants to county authorities, provided there is quality assurance • National level II: Innovation Norway • Assignment: Qualityassurancepartner • National level, but operates locally www.regionalomstilling.no

11. The Players (continued) • Regional level: County authoritiesProcess programme applications from local authorities Grant status as “Local Development Area” + funding www.regionalomstilling.no

12. The Players (continued) • Local level I: Municipalities, local authorities Programme owner • Locallevel II: The ProgrammeOrganisation www.regionalomstilling.no

13. The Road to Regional Development • LocalauthoritiescontactCountyauthorities • Countyadministrationcarryout an ImpactStudy • Localadministrationpreparesapplication • Countyauthorities • Processapplications • Grant themunicipality status as Local Development Area • Allocatefunding for first year www.regionalomstilling.no

14. WhereDoesthe Money Come From?

15. ProgrammeFundingScheme • Governmentgrantsallocated by Countyauthority(NOK 2–4 millions per programme) • + 25 % self-funding by theMunicipality • Financial support from Innovation Norway (tools) (50–100% of total projectcost, preparatory stages) www.regionalomstilling.no

16. How to Spend it? • Industry development • Development oflocalcommunity and public services • Programmeadministration www.regionalomstilling.no

17. How to Spend it? (Continued) • Industry development • Process and productdevelopment • Extraordinary start-up costs • Market research • Networking projectsamonglocal og regional industries • Hardware investments www.regionalomstilling.no

18. How to Spend it? (Continued) • Development oflocalcommunity and public services • Mobilisation and motivationprojects • Service design projects in thepublicadministration • Skills improvement www.regionalomstilling.no

19. We Support PreparatoryWork • Funds may be spent onearly-stage processesonly: • Research, mapping and ananlyses • Preparatoryprojects www.regionalomstilling.no

20. Implementation in Four Stages

21. Regional Development in 4 Stages • The ImpactStudy Main activeplayer: Regional authorities • Strategy and planning Main activeplayer: Project organisation • Development Main activeplayer: Programme manager/CEO • Continuation Main activeplayer: Localauthority (= programmeowner) www.regionalomstilling.no

22. 1. The ImpactStudy: Outcome • ImpactStudy/ Consequence Analysis • Countyadministrationprepares and submitsapplication for Governmentfunding • 2–3 months www.regionalomstilling.no

23. 2. Strategy and planning: Outcome • Draft ProgrammeStrategy • Draft Action Plan, year one • Application to Regional Authorities for status as Regional Development Area + funding • 6–8 months www.regionalomstilling.no

24. 3. Development: Outcome • Variouslocaldevelopment- and collaborationprojects • Fullfilmentof goals as stated in theProgrammeStrategy and annual Action Plans • Up to 6 years www.regionalomstilling.no

25. 4. Continuation: Outcome • Establishedlocal unit (projectorganisation or Ltd.) to keep up thegoodwork www.regionalomstilling.no

26. PerformanceMeasurement

27. PerformanceMeasurement I. • The programmestrategy must includequantifiable goals www.regionalomstilling.no

28. PerformanceMeasurementII. • Annualassessment workshops + reports • Programme management • Programme Board • Innovation Norway www.regionalomstilling.no

29. PerformanceMeasurementIII. • Final programmeassesment by externalconsultant • Mandatory • Organised by Innovation Norway www.regionalomstilling.no

30. National Competence Centre

31. National CompetenceCentre for Local Development • Innovation Norway: National level • Butoperateslocally • Advisoryrole • QualityAssurance www.regionalomstilling.no

32. National Level: Developingthe Field • Programme and project management support • Strategy and business development tools • IN covers 50 % ofconsultancycost www.regionalomstilling.no

33. Tools & Templates • Standardised templates to ease paper work • Courses, workshops and assessments • Mappings and analyses, preparatory reports • Preparatoryprojectsonly www.regionalomstilling.no

34. Local Level: Executive Partner • Dedicated adviser from IN’s on-site regional office • Non-votingmemberoftheProgramme Board • Vertical/historical and horizontal/synchronousknowledge and experience www.regionalomstilling.no

35. Communication • www.regionalomstilling.no • Introductory guide: INTRO • Social media communicationtool • Networking activities: conferences, workshops, meet-ups www.regionalomstilling.no

36. Case I. Vågsøy • Programmeperiod: 2005–11 • New jobs • Populationgrowth • More peoplecommuting 

37. Vågsøy: Challenges • High unemployment rate • Employment fell by 40 % 1995–2000 • Unbalanced industry structure: heavily based on fisheries • Population decline (age group 20–39) www.regionalomstilling.no www.regionalomstilling.no

38. Vågsøy: Goals Measurable goals in three areas • New jobsGrowth in existing local businesses  Start-ups • Population growth • More people commuting www.regionalomstilling.no

39. Vågsøy: Key Results • Employment goals accomplished • Goal for population growth overachieved • More people are commuting in the region • Improved competitiveness www.regionalomstilling.no

40. Vågsøy: SuccessCriteria • Programme organisation: a limited company • Local enterprises held the majority of shares • Management & board had business development skills • Consensus on strategies and goals www.regionalomstilling.no

41. Vågsøy: SuccessCriteria • Communication/PR • Management active in local media and the community • Public information and updates on: plans, priorities, results www.regionalomstilling.no

42. Case II. Meløy • Programmeperiod: 2012–18 • Create 570 newjobs 

43. Meløy 2012–18: Challenges • March 2012: Cornerstone company REC Wafer closed down • 650 jobs lost • Total employment rate reduced by 20 % overnight www.regionalomstilling.no

44. Meløy 2012–18: Goals • 570 new jobs by 2018 • 1500 new jobs by 2025 www.regionalomstilling.no

45. 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 www.regionalomstilling.no

46. Questions? Thankyou! www.regionalomstilling.no