Shaping Norway’s Digital Future

Section 1. Priorities and trends shaping norway’s digital future

Digital transformation touches all aspects of an economy and society. While ensuring a holistic approach is important, policy makers also need to focus on a few key priorities. These priorities sometimes address weaknesses; other times, they represent key social objectives. Even if performance in these areas is strong, there is a risk of falling behind.

Norway has identified several priorities that will shape the content and structure of its forthcoming national digital strategy (NDS): ensuring high-quality information and communications infrastructure; developing the data economy; fostering data protection and information security; increasing the digitalisation of small and medium-sized enterprises (SMEs); promoting an inclusive digital society in the context of an ageing population; supporting the green transition; and digitalising the public sector. These priorities will help realise the Norwegian government’s vision of a sustainable welfare society that safeguards a safe and simple everyday life for citizens and the non-governmental sector, a strengthened business sector and a better and renewed public sector.

Ensuring high-quality information and communications infrastructure

Norway has high fixed broadband connectivity and wide 5G network coverage. Firms and governments worldwide are investing to expand and upgrade networks so they remain ready for the data demands of tomorrow. Norway performs well compared to other OECD countries when it comes to connectivity. More households in Norway (99%) have broadband connectivity than in the average OECD country (92%) (OECD, 2024[2]). Norway also has the second lowest level of disparity between rural and urban broadband provision of any OECD country (OECD, 2024[3]). Moreover, Norway has a higher than OECD average share of businesses with broadband connections over 100 megabits per second (Mbps) (OECD, 2024[4]) and 99.9% of its population is covered by a 4G network (OECD, 2024[5]).

Despite its good performance, Norway could improve its uptake of mobile broadband (Figure 1)1. This area is key to develop next generation networks that could offer unlimited connectivity everywhere and realise the full potential of the Internet of Things (IoT) (OECD, 2024[6]). Norway’s uptake of mobile broadband is below the OECD and Nordic averages. It is also markedly lower in data-only subscriptions, which are particularly useful for IoT applications. Indeed, Norway has 1 data-only subscription per 100 inhabitants, compared to 12 for the OECD average and 14 for Sweden (OECD, 2023[7]). This could be partly explained by a propensity towards fixed connections; however, fibre penetration is high across all Nordic countries.

Figure 1. Mobile broadband uptake

Subscriptions per 100 inhabitants, 2022

Source: OECD (2024[7]), “Mobile broadband subscriptions per 100 inhabitants”, OECD Going Digital Toolkit, based on the OECD Broadband Portal (www.oecd.org/sti/broadband/broadband-statistics), https://goingdigital.oecd.org/indicator/11.

Norway’s commitment to action in this area is no surprise given the rapid growth in data consumption, the existence of older communications technologies such as fibre-to-the-cabinet, and the need to upgrade 4G networks to fibre-to-the-home and roll out 5G to meet the connectivity demands of the future.

However, upgrading existing networks in Norway represents a sizeable engineering challenge. Large amounts of new hardware are required. Meanwhile, the return on investment is far from guaranteed outside of highly populated areas. Moreover, the country relies increasingly on digital technologies and services delivered over the Internet for everything from banking and shopping to healthcare. This means the consequences of connectivity outages are increasing, particularly for rural communities. Ensuring that modern connectivity networks are robust and resilient requires upgrades to the power network. In addition, it requires suitable contingency measures in the event of long outages caused by severe weather events. Such events are likely to become more common as the global climate continues to change.

Developing the data economy

Digital technologies have increasingly made generating, storing, manipulating and managing data easier than ever, making data an integral part of daily life. Devices, services and sensors that are ever more ubiquitous help both to generate and use increasingly large streams of data. Algorithms create value from data, and data in turn improve the output from algorithms. This leads to advances in machine learning and new forms of artificial intelligence (AI). A lot of data are created and used by consumers and exchanged over the Internet. As the IoT progresses, connected devices will become even more central for data collection and consumption. However, not all data are the same. Different types of data may require different policies (OECD, 2019[8]).

From an economic perspective, data underpin digital transformation. Data have become an important source of value, including for decision making and production, and for firms, governments, people and society. The availability and prevalence of data have given rise to new or significantly improved products, services and business models, and helped enhance productivity (Mitchell, Ker and Lesher, 2021[9]). Data are also helping address societal challenges, ranging from climate change to the management of natural disasters to health crises.

Norway has been trying to develop the data economy, and the healthcare sector serves as an example of the nation’s capacity to harness the benefits of data sharing. Norway excels in sharing national health datasets with both domestic and international stakeholders. In 2020, the intensity of health data sharing was 100%, showing that actors in Norway are allowed to share all national health datasets with all relevant stakeholders (Figure 2)2. The high data-sharing intensity in healthcare may be due in part to the eNorway plan, an initiative that facilitated secure communication between patients and healthcare professionals.

Figure 2. Health data-sharing intensity

Percentage of sharing potential, 2020

Source: OECD (2024[91]), “Health sharing data intensity”, OECD Going Digital Toolkit, based on the OECD Questionnaire on Health Data Development and Governance, https://goingdigital.oecd.org/indicator/64.

While Norway has made good progress on data sharing in sectors such as health and banking, other areas – including the private sector – have untapped potential. In the private sector, the immediate business incentives of opening up and sharing data are not always clear, but the positive societal externalities can be greatest. For example, the extraction industries (e.g. oil and gas) and agriculture could benefit from improved access to and sharing of data between companies. Increased efficiencies, for example, could lower production costs. However, this can be challenging in a competitive environment. Likewise, the construction and building sector has significant scope to increase the level of shared environmental data. Such efforts could bring significant benefits in energy optimisation.

Fostering data protection and information security

As the digital technology ecosystem becomes increasingly interdependent and complex, the risk of privacy breaches and systemic failures spreading rapidly and unpredictably across sectors and borders has increased. To fully embrace and benefit from digital transformation, individuals, firms and governments must be confident that engaging in digital environments will bring more benefits than downsides. Such downsides can arise from various sources of uncertainties, data and cross-border flows. Many are related to potential cybersecurity incidents (e.g. breaches of availability, integrity or confidentiality of data, systems or networks). Other downsides are related to breaches of laws and regulations such as privacy, consumer protection or product safety.

Actors in the digital ecosystem must be confident that their data are both secure and protected. While Norway’s data privacy laws are in line with European Union (EU) countries, creating a culture and understanding of data protection and information security involves going beyond legislation. Government action can help build the capacity of people and firms to protect themselves in digital environments. Better data stewardship, in turn, can lead to increased levels of data sharing, which can bring positive impacts for innovation and productivity.

Ensuring cybersecurity and resilience of critical infrastructure and services is fundamental for digital transformation to flourish in Norway and beyond. Cybersecurity uncertainty is a multifaceted phenomenon that arises from the inherent unpredictability and ambiguity surrounding cyber threats and vulnerabilities. It manifests itself in the limited transparency regarding emerging threats, the challenges of assessing known vulnerabilities and the daunting task of predicting the impact of future cyberattacks. This inherent uncertainty can significantly affect cybersecurity strategies, decision making and public perceptions of cyber risks.

Figure 33 presents a cybersecurity uncertainty index based on online search data for Norway for the period January 2010 to December 2023. Norway’s index reveals peaks aligned with significant national and global cyber incidents. These include the distributed denial of service attack on Dyn in October 2016; the WannaCry ransomware attack in May 2017; the cyberattacks on Norsk Hydro (March 2019) and on Norway’s parliamentary e-mail system (October 2020); and Amedia’s data breach (December 2021). The alignment of the cybersecurity uncertainty index with these cyber incidents indicates it serves as a reliable proxy for assessing cyber risk uncertainty in Norway.

Variations in the Google Trends Cybersecurity Uncertainty Index between countries can be attributed to a range of factors. These include differences in awareness about cyber risks, investment or exposure to cybercrime. The periods of stability, on the other hand, might indicate a relative lull in cyber incident activity or successful mitigation. Overall, a comprehensive understanding of these fluctuations provides insights into the multifaceted nature of uncertainty surrounding cyber incidents in Norway. This contributes to informed policy making and strategic planning in cyber risk management.

Figure 3. Cybersecurity uncertainty in Norway

Google Trends Cybersecurity Uncertainty Index, 2010-23

Notes: GTCU = Google Trends Cybersecurity Uncertainty Index. This figure chart presents a cybersecurity uncertainty index for Norway from January 2010 to December 2023 based on online search data.

Source: Authors’ elaboration based on OECD (forthcoming)[10].

Increasing the digitalisation of SMEs

In the OECD, SMEs and young firms create a disproportionate number of jobs relative to their size, and they underpin economic growth. Digital tools can help SMEs develop more efficient business processes and diverse product lines, as well as scale up and internationalise. However, smaller, younger firms may face barriers to adopting new business models, investing in key technologies or developing the skills to use them.

SMEs play a crucial role in Norway’s economy, contributing to nearly half of employment (OECD, 2023[11]) and serving as catalysts for innovation. In 2023, 64% of Norwegian SMEs had access to fixed broadband download speeds of at least 100 Mbps. This was above the EU average (62%) but below Denmark (86%), Finland (76%) and Sweden (77%) (OECD, 2024[4]). However, obstacles persist for smaller and younger Norwegian companies in integrating into digital markets, accessing capital, and acquiring information and communication technology (ICT) skills.

The shortage of risk capital is another common barrier for Norwegian SMEs to scale up and spread their productivity benefits. Venture capital (VC) firms and investors are key mechanisms for firms with high-risk profiles. Beyond financing, venture capitalists play pivotal roles in guiding firms through strategy development. They offer managerial advice and foster network connections in exchange for shared ownership of the business, with the ICT sector instrumental for knowledge and production networks (OECD, 2023[11]). However, VC investment in firms within the ICT sector in Norway is one of the lowest in the OECD (OECD, 2024[12]).

A tight labour market and the need to adapt to a highly digital economy and society in Norway add more pressure on SMEs. Recent data indicate that Norwegian medium-sized enterprises offering positions for ICT specialists (17%) lag the Nordic average (22%) (OECD, 2024[13]). In terms of sophisticated technologies, Norwegian small-sized enterprises have lower adoption rates of AI (8%), IoT (22%) and 3D printing technology (3%) than the Nordic average (17%, 29% and 6%, respectively) (OECD, 2024[14]).

Despite labour challenges, SMEs in Norway are well positioned in the development of ICT skills. Nearly a third (30%) of small businesses provide training to enhance ICT skills among their employees. Among the OECD, this places Norway behind only New Zealand (49%) and Finland (34%) in terms of ICT skills development within SMEs (OECD, 2024[15]).

To address these challenges and unlock the full potential of SMEs, Norway plans to increase digitalisation of SMEs. Digital Norway, a non-profit organisation with a special focus on SMEs, provides free online resources and training to promote effective use of advanced digital tools. Such initiatives play a crucial role in accelerating the digitalisation of Norwegian enterprises. In addition, collaborations involving data sharing, such as the incorporation of the online data repository Datafabrikken into the national open data portal data.norge.no, will further support SME participation in the data-driven economy and drive innovation.

Promoting an inclusive digital society in the context of an ageing population

For digital transformation to work for growth and well-being, a positive and inclusive digital economy and society is fundamental. While developed countries, including Norway, have achieved much progress to ensure basic connectivity, digital divides persist along a range of dimensions. Broadly speaking, digital divides refer to gaps in opportunities to access digital technologies and their use of the Internet for a wide variety of activities. Such gaps can exist between individuals, governments, firms and geographic areas at different socio-economic levels. Norway places considerable focus on closing digital divides.

In terms of Internet use, Norway’s performance is exceptional (Figure 4)4. Differences in the share of adults using the Internet in Norway by age, education level, gender and income are significantly lower than the OECD average. In the Nordic region, such differences are lowest in Norway for age, education level and income. Norway’s digital divide is above the Nordic average for gender. However, at less than half of a percentage point, this gender divide is still small in absolute terms.

Figure 4. Internet use by demographics and socio-economic variables

Differences in the share of adults using the Internet at least once over the last three months, 2023

Source: OECD (2024[88]), ICT Access and Usage Databases, https://oe.cd/dx/ict-access-usage.

Beyond closing digital divides, the creation of an inclusive digital society depends on ensuring that online public services are accessible to all. This means not only addressing disparities in access but also designing public services effectively, and in consultation with a wide range of stakeholders. Different levels of literacy and proficiency with the Norwegian language should be considered, as well as compatibility with assistive devices such as screen readers. In addition, ensuring all of society has the necessary competences to use digital technologies confidently and effectively is essential to ensure everyone can thrive in a digital society. This encompasses skills to use a broad range of applications – from e-commerce and banking to interaction with public services such as healthcare.

Supporting the green transition

As a nation producing large quantities of oil, gas and hydroelectric power, Norway will be affected significantly by the green transition. On the one hand, digital technologies can directly affect energy consumption. The widespread use of “smart” meters, for example, can promote more continuous management of electricity. Digitalised energy systems can also better identify where and when energy should be delivered, with potential impacts on long-term sustainable energy production. The increased digitalisation of energy-intensive sectors also holds promise to increase the energy efficiency and sustainability of many economic and social activities. On the other hand, digital transformation enables more trade, which could change the global distribution of environmental footprints and nationally implemented recycling regimes. Similarly, demand for digital technologies may increase energy and resource demands associated with ICT production and use, offsetting some of their environmental gains.

In navigating the challenges posed by the green and digital transitions, Norway has invested heavily in technological development and innovation to support its green transition. This is demonstrated by an increase in patents related to green technologies (Research Council of Norway, 2021[16]). Moreover, it also made notable progress in zero- and low-emission technologies. For example, Norway is a world leader in zero emission vehicle adoption (OECD, 2022[17]) with the share of newly registered such vehicles reaching 79% in 20225.

However, the generation of e-waste remains a challenge for the country. Since 2016, Norway has consistently held a prominent position in e-waste production per capita, with a slight decrease from 28.5 kg to 26.0 kg per capita between 2016 and 2019. This figure surpasses both the OECD average of 17 kg per capita and the Nordic average of 22 kg per capita. Norway remains proactive in e-waste management by recycling more than half of its generated e-waste (OECD, 2024[18]). However, its gap between e-waste generation and recycling per capita is second only to Denmark across Nordic countries (Figure 5)6. Addressing this gap is crucial for sustaining Norway’s environmental goals and advancing its sustainability efforts.

Figure 5. Overall e-waste generation

Difference between e-waste generation and recycling in kg per capita, 2019

Source: OECD (2024[18]), “E-waste generated per capita”, OECD Going Digital Toolkit, based on the Global E-waste Monitor, Eurostat Waste Electrical and Electronic Equipment, and the OECD National Accounts Database, https://goingdigital.oecd.org/indicator/53.

Norway has set a clear national priority to support the green transition, recognising the importance of action in this area. Given the extent to which traditional extraction industries dominate the Norwegian economy, the growth of digital-intensive sectors represents a clear path to Norway’s future if properly managed. Norway’s abundant renewable energy has the potential to power the digital revolution without increasing emissions, and new forms of employment can emerge for those willing and able to re-skill. Digitalisation can further drive efficiencies and growth, increasing prosperity and ensuring quality of life continues to improve throughout the green and digital transitions.

Digitalising the public sector

Digital government leverages digital technologies and data to deliver more effective, holistic and user-centred services, public sector innovation and stronger civic engagement. A core principle of digital government is to leverage digital technologies more fully to design, develop, deliver and monitor public policies and services centred around the needs of people and firms. Two key enablers of wider uptake of digital services across the economy and society are digital identities (i.e. eIDs) and electronic and/or digital signatures. As the public sector both produces and consumes large amounts of data, there is also significant potential for governments to use digital technologies and data to innovate.

Norway is a leader in digitalisation of the public sector. Many countries still have significant potential for general use and wider uptake of digitalised public services. About 65% of people across the OECD visit or interact with the websites of public authorities; less than 45% use the Internet to download or send filled forms via public authorities’ websites; and 52% use the Internet to send filled forms via websites of public authorities (Figure 6)7. Norway outperforms the OECD on all indicators; indeed, Norway is among the leaders in the digitalisation of government services in line with other Nordic countries.

Figure 6. Uptake of digital government services

Use of digital government services by individuals, as a percentage of individuals aged 16-74, 2023 (or latest available)

Source: OECD (2024[88]), ICT Access and Usage Databases, https://oe.cd/dx/ict-access-usage.

As the Norwegian government develops its new digital strategy, it is exploring the use of data-driven technologies such as AI to improve its services and address critical societal issues. At the same time, active participation in collaborative digitalisation projects across Europe underscores Norway’s commitment to strengthening public sector efficiency and tackling pressing societal challenges. Within this landscape, Norway is committed to establishing a solid foundation for a mature digital government, closely aligned with the OECD’s Digital Government Policy Framework (OECD, 2020[19]).

Notes

← 1. Mobile broadband penetration includes subscriptions to mobile broadband networks that provide download speeds of at least 256 kilobits per second (e.g. using Wideband Code Division Multiple Access (WCDMA), High Speed Packet Access (HSPA), Code Division Multiple Access (Evolution-Data Optimised) (CDMA2000 1x EV-DO), Worldwide Interoperability for Microwave Access (WiMAX IEEE 802.16e) and Long-Term Evolution (LTE)), and excludes subscriptions using only General Packet Radio Service (GPRS), Enhanced Data for Global Evolution (EDGE) or Code Division Multiple Access (Single-Carrier Radio Transmission Technology) (CDMA 1xRTT) networks. The data reflect the number of active handset‐based and computer‐based (USB/dongles) mobile broadband subscriptions to the public Internet, due either to including a recurring subscription fee for data/Internet access or the subscriber having accessed the Internet in the last three months. Broadband subscription penetration rates do not provide information about the prices that users pay, realised connection speeds or whether there are restrictive data caps. Countries performing well in one measure may be weaker in another. Mobile broadband subscriptions data are provided to the OECD by communications regulators that collect them directly from network operators according to common definitions. The OECD average is based on a simple average of all available member states. Similarly, the Nordic 5 is a simple average of the values from the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden).

← 2. National health datasets surveyed by the OECD contain personal data on hospital and mental hospital in-patients; emergency healthcare, primary care and formal log-term care data; prescription medicines data; cancer, diabetes and cardiovascular disease registry data; and mortality data. Not all countries have national health datasets covering each of these areas. Domestic stakeholders include healthcare providers; the government; universities and non-profit research centres; and for-profit businesses. International stakeholders include foreign governments, universities and non-profit research centres. A summary of the results of the OECD Questionnaire on Health Data Development and Governance can be found in: Oderkirk, J. (2021[106]). “Allowing some sharing” refers to the share of datasets present in each country that allow sharing with at least one of the above stakeholders. Maximum (100%) sharing potential is achieved when all of the national health datasets present in a country are shared with all of the above stakeholders. A percentage of sharing potential of less than 100% indicates that one or more of the health datasets present in the country do not allow sharing with one or more of the above stakeholders. A percentage of sharing potential of 0 indicates that no sharing of the health datasets present is permitted. Sharing does not necessarily imply fully open access to a dataset; sharing is usually subject to privacy protections such as de-identification and stakeholders must apply and be approved to access a dataset. The Nordic 4 is a simple average of the values from Denmark, Finland, Norway and Sweden.

← 3. The figures comprises two distinct elements: the primary line represents the index itself, quantifying the level of uncertainty associated with cyber incidents in Norway. The secondary line depicts the trend component, derived from seasonal decomposition, which effectively isolates and highlights the underlying long-term trends in the index data.

← 4. For panels A-C, the Nordic 5 is a simple average of the values from the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden). For Panel D, the Nordic 4 is a simple average of the values from Denmark, Finland, Norway and Sweden.

← 5. More information available at: www.ssb.no/transport-og-reiseliv/landtransport/statistikk/bilparken/artikler/fire-av-fem-nye-biler-i-2022-var-elbiler (accessed on 4 March 2024) (Statistisk sentralbyrå [Statistics Norway], 2023[108]).

← 6. E-waste refers to all items of electrical and electronic equipment that have been discarded as waste without the intent of re-use. It includes cooling and freezing equipment, screens and monitors, lamps, large equipment (e.g. washing machines and solar panels), small equipment (e.g. vacuum cleaners, microwaves and electronic toys), and small IT and telecommunications equipment (e.g. mobile phones, personal computers and printers). The Global E-Waste Monitor estimates stocks of e-products for each country and the amounts being discarded in each year. Due to a lack of direct data on sales of e-products, new additions to the stock are estimated based on imports less exports. Domestic production is also included for EU countries and Norway. National authorities provide recycling and re-use figures to Eurostat under the Waste Electrical and Electronic Equipment directive, based on surveys and administrative data from waste collectors and treatment facilities. The Nordic 5 is a simple average of the values from the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden).

← 7. For “Visiting or interacting with public authorities’ websites” and “Downloading official forms”, data refer to 2023 except for Canada, Colombia and Mexico (2022), Iceland and the United States (2021), and Israel and the United Kingdom (2020). For “Sending filled forms via public authorities’ websites”, data refer to 2023 for Switzerland, to 2022 for Canada and Mexico, to 2020 for the United Kingdom and to 2021 for the other countries. For Israel, data refer to individuals aged 20 and over instead of 16-74. For “Visiting or interacting with public authorities’ websites”, in the Social Survey 2020, the question was asked without time limit: “Do you use the sites of government bodies, ministries, the National Insurance Institute, etc.?”. For “Downloading official forms”, data relate to the following question: “In the past twelve months, did you make use of online forms, such as filling them out online, downloading them or sending them on government websites?”. For Mexico, for “Visiting or interacting with public authorities’ websites”, the following categories are considered: “communicate with the government”, “consult government information”, “download government formats”, “fill out or send government forms”, “perform government procedures” and “comment on government consultations”. For the United States for “Visiting or interacting with public authorities’ websites”, the CPS Supplement uses the previous six months as the reference period. The Nordic 5 is a simple average of the values from the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden).