Nation makes the case for knowledge-based innovation

Norway stakes its future on the knowledge of its people. This core philosophy drives the country's innovation, which relies on steady government support for promising small- and medium-sized enterprises (SMEs) through Innovation Norway. By giving local ideas global opportunities, Innovation Norway strives to make Norway the world's most innovative country.

It is off to a good start with Microsoft's expansion in the country - begun in 2008 to leverage on Norwegian search technology expertise and culminating last year with the joint development of next-generation search engines in Norway. The collaboration forms one of the world's largest specialist groups in big-data research, potentially advancing technological reach to unprecedented levels.

One indicator of this potential is the introduction of ultrasonic gesturing technology (UGT) through Microsoft's Windows 8 Gesture Suite. UGT was developed by Elliptic Laboratories, founded in Oslo and incubated in Norway's state-funded ultrasound research community. It revolutionises electronics by enabling the leap from touchscreen to touchless consumer devices.

The incubation of new technologies is central to Innovation Norway's work. Mandated to implement Norway's innovation and industry-oriented research and development policies, it administers public financing of about Euro700 million (HK$7.25 billion) annually aimed at promising Norwegian ventures. It also provides a broad range of professional support, from advisory services to networking, capacity building and promotional services.

Norwegian companies rely on Innovation Norway's advisory services as they venture overseas. Innovation Norway is present in 30 countries through more than 36 offices attached to the commercial section of Norwegian embassies. Within Norway, it has 21 regional offices supporting strategic industry clusters.

"About 50,000 start-ups are formed every year, which is a comparatively high rate internationally," says Knut Sorlie, Beijing-based Innovation Norway regional director for China and commercial counsellor at the Royal Norwegian Embassy. "The problem is that most of them do not survive after five years. Innovation Norway's task is to help develop better start-ups that can live longer and take advantage of the growth potential."

Innovation Norway promotes nationwide industrial development by clustering businesses around regional strengths. With the Industrial Development Corporation of Norway (Siva) and the Research Council of Norway, it manages the long-term development of districts and regions through two programmes: Arena and Norwegian Centres of Expertise (NCE).