Norwegian Competitiveness in a Changing World

The global economy is changing more quickly than ever before. Emerging markets are rapidly developing the infrastructure, talent, and funding to compete with their established peers. Global economic headwinds and an uptick in political volatility have made investors and multinational companies decidedly more cautious regarding long-term investments.

In short, the global battle for investment and jobs will increasingly affect Norway in the years to come.

Norway is undoubtedly well-positioned to thrive in a more competitive global environment. The country performs strongly in a wide range of international rankings, including Forbes’ Best Countries for Business and the UN Human Development Index. In addition, the government, highlighted by the release of the Whitepaper on the Health Industry and the Whitepaper on Public Procurement, continues to show a strong commitment to attracting investment and stimulating growth.

It is critical, however, that Norway continues to actively promote its strengths abroad and implement predictable policy frameworks at home. Norway’s Nordic neighbors are also highly competitive, similarly offering highly-educated populations, attractive business climates, and high living standards.

Attracting FDI & Jobs

In recent years, Sweden, Finland, and Denmark have consistently outperformed Norway in attracting foreign direct investment (FDI) and FDI related jobs, according to Ernst & Young’s 2018 Nordic Attractiveness Report. The report’s findings were echoed by a panelist at AmCham’s Transatlantic Forum, who candidly noted, “I have to fight very hard for investment to Norway instead Denmark or Sweden. Historically, we favored Norway, but now it’s getting challenging,” when discussing how multinationals chose to invest in regional and global contexts.

Indeed, both regionally and globally, Norway faces a more competitive landscape. According to BI Norwegian Business School’s Torger Reve, however, current numbers and antiquated perceptions do not reflect Norway’s rapidly diversifying economy, its overall competitiveness, and its growing economic potential, noting the importance of building awareness around Norway’s newfound strengths in a wide range of industries.

“You don’t fully see the changes in the numbers yet, but the next generation of businesses are being formed right now. Oslo is rivaling Stockholm in the Nordics, and we have the same characteristics as rising stars like Singapore and South Korea – we’re eager to apply new technology, and, as a small country, we can move quickly. In areas that are really picking up speed, however, areas like AI, we have not made it well-known that this type of technology is being developed in Norway.”

It’s a sentiment that resonates with Cisco’s Sandeep Mehra, Vice President & General Manager for Webex & Telepresence, who argues Norway is a “best-kept secret.”

“We make world-class technologies here, but not everyone knows that,” he adds.

Reve contends the maritime sector, where companies are retrofitting technology originally developed for the offshore petroleum industry to other ocean-based industries, will help Norway establish a global reputation that goes beyond energy – highlighting Norway’s economic resilience and creativity, in addition to serving as a catalyst from diversification and attracting FDI.

“We are well underway in terms of diversifying, and the shock we got when the oil price fell in 2014 was a real game changer in this regard. During that time, we found out that technology originally designed for offshore petroleum production has a wide range of applications across the maritime industry – applications that include everything from renewable energy to salmon farming,” he concludes.

Torger Reve

BI Norwegian Business School

The Strong Reputation of Norwegian Companies

In addition to its growing potential as an innovation hub, Norway enjoys another key competitive advantage – Norwegian companies are perceived the world over as responsible, reliable, and knowledgeable partners, a reputation that resonates with Christian Espolin Johnson, Group Communications Director for Jotun.

“We experience that Norway has a good standing around the world, and we are generally welcome where we do business,” he notes, reflecting over Jotun’s presence in over 100 countries worldwide.

The strong reputation of Norwegian companies is built upon another valuable asset in the global competition for talent and investment – Norway’s corporate leadership culture. As multinationals are dealing with increased political turbulence globally, the democratic style of Norwegian corporate leadership is an invaluable tool for global companies looking to build stronger relationships with communities and employees.

“In many locations, we are considered a local company, not a Norwegian one,” Johnson observes, explaining how their company culture, embodied in the “Penguin Spirit,” has allowed the company to retain employees and build long-lasting relationships around the world, making Jotun more competitive globally.

In short, Norway boasts the innovation ecosystem, adaptable management structures, and strong reputation necessary to compete in an increasingly more competitive global economy.

Predictable Policy Frameworks Are Essential

To realize the country’s full potential and attract more FDI, however, the continued implementation of predictable policy frameworks will be essential – making it critical for the business community to maintain a robust dialogue with public officials in the years to come. As Member of Parliament Heidi Nordby Lunde noted at AmCham’s Transatlantic Business Assembly, “Ask politicians to meet with you – we will come! Making people aware of the value you create in this nation – that is really crucial.”

AmCham will continue play its part in maintaining these dialogues, helping facilitate the public-private partnerships and investments Norway’s economic future will be built upon. If Norway can continue combine its existing strengths and innovation potential with competitive, predictable policy frameworks, there is no doubt this future will be a bright one.

2019-2020 AmCham Membership Guide

This article originally ran as a part of the 2019-2020 AmCham Membership Guide.

Our largest annual publication, this year’s guide featured articles highlighting Norway’s economic strengths, exploring areas for improvement, and analyzing how sound, predictable policy frameworks will ensure that the country’s international business climate remains competitive. In addition, the guide included articles on our cross-industry forums, leadership development programs, and the wide range of gatherings we have hosted over the past year.

In addition to significant contributions from the Norwegian-American business community, the guide also featured contributions from:

US Senator and Presidential Candidate Amy Klobuchar
Norwegian Foreign Minister Ine Eriksen Søreide
Ohio Governor Mike DeWine