Drawing on the research and analysis in this report, as well as input from Norwegian ministries, agencies and external stakeholders, this section highlights policy recommendations to achieve a more digital, innovative and inclusive Norway. These recommendations are structured around six areas that might inform its next national digital strategy (NDS): encouraging digital technology adoption and skills development; prioritising digital innovation; maximising the potential of data while maintaining Norway’s strong culture of trust; harnessing the potential of digital technologies for society; preparing for next generation networks and a future of unlimited connectivity everywhere; and designing holistic digital policies within effective governance and monitoring mechanisms. These priorities will help realise the vision of the Norwegian government for 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.
Shaping Norway’s Digital Future
Section 4. Policy recommendations for a more digital, innovative and inclusive norway
Encourage technology adoption and skills development to ensure a more digital-intensive economy and resilient workforce
Promote adoption of digital technologies among small and medium-sized enterprises (SMEs). Norwegian firms are ahead of many other countries in the use of digital technologies, including cloud computing, Internet of Things (IoT), big data analytics and artificial intelligence (AI). Yet a lack of expertise and risk aversion makes SMEs less likely adopters of these technologies. To boost productivity and facilitate the move to an economy characterised by greater digital intensity, Norway could adopt policies to increase adoption and effective use of general-purpose digital technologies targeted at SMEs. Raising awareness of information and communication (ICT) skills training programmes, such as those offered by organisations like Digital Norway, can play a key role in this respect. At the same time, SMEs often lack awareness about digital business models. This gap can be remedied by facilitating integration of SMEs into local knowledge and global skills and innovation networks.
Empower people with the right mix of skills to succeed in a digital world of work. Skills shortages mean Norway should concentrate in areas of high demand (and low supply). The lack of workers equipped with the skills to become ICT specialists and ICT-intensive users starts with the relatively low level of graduates in science, technology, engineering and mathematics (STEM) fields. Norway’s performance in foundational skills of the young in mathematics, science and reading has also declined. Policies are needed to ensure that people are equipped with the right mix of skills to thrive in a highly digital economy and society. This includes policies that integrate AI and data-related skills into educational programmes and promote training for individuals at all skill levels. It is likewise important to ensure that Norwegians can transfer such skills as they transition from one job to the next. These efforts should be co-ordinated with private sector needs to avoid mismatches between available and demanded skills. They should also be accessible to people throughout their education and working lives.
Prioritise innovation to create a more digital Norway
Encourage a culture of experimentation and risk taking. Digital technologies and data help improve productivity across sectors, but this requires experimentation and risk taking. Policy experimentation, including agile regulation and regulatory sandboxes, can promote innovation while protecting consumers, even in traditional and established sectors less inclined to experiment. Norway can leverage regulatory sandboxes in place, like those in AI and financial services, to share learnings and best practices across relevant government agencies. It should also review insolvency regimes to ensure risk taking is not unduly penalised with the aim of increasing entrepreneurship, innovation and productivity.
Reduce the regulatory burdens on start-ups and young firms. Norway should re-evaluate regulations that may not fit the digital age, such as those that require a physical presence or a minimum scale, or seek to address information asymmetries. In addition, it should consider the promise of new digital financing solutions, such as peer-to-peer lending and platform-based financing, to complement venture capital (VC) and traditional debt and equity financing options for small and young firms.
Incentivise VC investment and support firms in scaling up. Norway has one of the lowest levels of VC investment relative to gross domestic product (GDP) of any OECD country; small innovations have proven hard to scale up. Measures aimed at increasing the pool of domestic VC funding while also attracting VC investors from abroad can help achieve this objective. Tax incentives or preferential visas can be especially useful.
Promote investment in research and development (R&D). Innovation in the digital age relies on a range of inputs from both the public and private sectors, including basic research, R&D, skills and intangible assets (e.g. patents, organisational capital, data and software). Norway lags its Nordic peers on business R&D expenditure and should therefore prioritise measures such as tax credits to incentivise private sector investment in digitalisation beyond the pilot stage.
Harness the potential of “GovTech”. Norway could aim to reintegrate a GovTech function back into its public sector to support identification and development of innovative solutions to public sector challenges. This is especially relevant for areas like AI and the green transition (OECD, forthcoming[83]). In particular, Norway could consider reviving the StartOff programme from the 2025 national budget onwards, focusing on a digital government priority to maximise its impact and return on investment (Norwegian Directorate for Administration and Financial Management (DFØ), 2024[84]). The forthcoming NDS represents an opportunity to consider whether more could be done to help grow the GovTech ecosystem in Norway.
Maximise the potential of data, while maintaining Norway’s strong culture of trust
Leverage Norway’s culture of trust to incentivise data sharing. While Norway has made good progress on data sharing in sectors such as health and banking, it has untapped potential in other areas, especially in the oil and gas, fisheries and construction sectors. Enhancing access to, and sharing of, data requires balancing benefits with risks and considering legitimate private, national and public interests. The use of contractual agreements, restricted data-sharing arrangements and data portability may be helpful in this respect. Engaging stakeholders and fostering collaboration among communities can strengthen trust between companies and contribute to an increased willingness to share data. Communities combining both data users and holders can facilitate data sharing and help optimise data re-use. However, attention is required to address the risk of anti-competitive effects that could result from data-sharing partnerships among (potential) competitors.
Realise the potential of open government data to drive digital innovation. The public sector is a large producer and consumer of data, and there is significant potential for governments to use digital technologies and data to innovate. As one of the most important moves to drive innovation, the public sector can enhance access to public sector data. In particular, Norway could prioritise the systematic use of common standards for information management to support data quality and re-use and implementation of the “once only” principle (OECD, forthcoming[83]). Norway could also consider collecting official statistics to help measure the impact of data-sharing initiatives, including open data on the Norwegian economy and society (OECD, forthcoming[83]).
Take a multifaceted approach to monitoring and addressing cyber risks. Increase awareness and promote good risk management practices through public and private efforts. This is especially true for SMEs that often lack the capacity to properly protect themselves from cyber incidents. Norway can also assess how the country characterises uncertainty related to cyber risks using the Google Trends Cybersecurity Uncertainty Index. In this way, it could tailor training programmes to the types of cyber threats and incidents that create the most uncertainty.
Support the development of data-related skills and infrastructure. The shortage of data-related skills and competences is a critical bottleneck for the effective use and provision of data by Norwegian firms, especially SMEs. Norway could consider supporting development of skills with initiatives that integrate with those that establish data infrastructure. This includes support for the development and provision of statistical and analytical methods and tools.
Harness the potential of digital technologies for society
Increase digital inclusion through policies targeted at the groups most in need. While Norway has much to celebrate about its success in bridging digital divides, there are still opportunities to increase inclusivity. Norway’s increasing educational inequality in foundational skills, such as mathematics, science and reading, and the significant gender gap in ICT specialists, point to the need to improve the skills mix in Norway. Norway could scale up policy measures outlined in Norway’s “Digital Throughout Life” strategy and the related “Action Plan for Increased Inclusion in a Digital Society”. Implementation of digital literacy programmes through local hubs, for example, can help increase inclusivity, particularly for the elderly. Programmes focused on equipping people with the necessary abilities to navigate digital environments safely, including media literacy skills, are also important.
Discourage e-waste production and encourage e-waste recycling. Norway has placed great importance on preparing for the digital and green transitions, and has made significant progress in the adoption of zero- and low-emission technologies. However, stronger incentives could help discourage e-waste generation and encourage e-waste recycling. “Pay-as-you-throw schemes” charge businesses based on the amount of waste they produce. Expanding such schemes could encourage e-waste reduction and proper e-waste management practices. Increasing recycling capacity and creating incentives for use of secondary raw materials, through tax incentives or procurement policies, could also help with the green transition.
Prepare for next generation networks and a future of unlimited connectivity everywhere
Upgrade fixed and mobile networks to 5G and beyond. Norway has excellent 4G connectivity and good fixed broadband connectivity, but meeting increasing demand requires ongoing investment in fixed networks. Norway’s connectivity targets recognise the need to upgrade to 5G and fibre to the home. This will require investments by the Norwegian government and private sector in broadband to prepare for ever-more people, things and technologies going on line. Government investment is needed in high-speed fixed and mobile networks or additional incentives for private investment, including by competitive tendering, tax exemptions, low-interest loans or lower spectrum fees, such as in Norway’s 2021 spectrum auction.
Close geographic connectivity divides by focusing on the underserved. Expand access in rural and remote places to connect everyone. While rural areas in Norway are increasingly connected to broadband, not all connections are of sufficiently high quality for future connectivity needs, such as 8K streaming to multiple devices. Mechanisms like passive infrastructure sharing and co-investment can help expand coverage, depending on local market conditions. Given Norway’s unique geography, the Norwegian government may wish to consider the role that alternative communications technologies, such as satellite broadband and high-altitude platforms, could play in the wider connectivity ecosystem to connect underserved areas.
Foster competition and reduce red tape. Norway has three mobile operators and a competitive telecommunications market, but market dynamics move quickly. As Norway continues the transition from 4G to 5G, simplifying administrative procedures would facilitate the rollout of key infrastructures, such as towers, masts and small cells.
Support businesses to improve their connectivity. Given that most Norwegian businesses do not have the highest speed broadband connections (download speeds of at least 1 Gbps), the Norwegian government may wish to consider policy initiatives to incentivise businesses to upgrade their connectivity, such as connection vouchers or information campaigns.
Design holistic digital policies within effective governance and monitoring mechanisms
Use the Framework as the basis for designing future digital policies co-ordinated by the forthcoming NDS. The Norwegian government should consider how the Framework can be used as a guide to digital policy development. Norway’s forthcoming NDS should co-ordinate all major digital policies effectively within Norway’s digital policy landscape, ensuring coherence and alignment with future policy developments. Norway should dedicate a budget to each policy measure in the forthcoming NDS rather than repurpose existing budgets. This would help ensure that policy initiatives are properly implemented.
Integrate relevant digital policies in the Jobs and Market openness dimensions into Norway’s digital policy landscape. Norway should consider whether it needs additional policy development in these dimensions to achieve a whole-of-government approach to digital policy making. Alternatively, it could better integrate relevant existing policies into its digital policy landscape by, for example, ensuring they are co-ordinated with the forthcoming NDS.
Foster interministerial co-operation in the field of digital transformation and continue to involve stakeholders in digital policy design and implementation. Norway should build on the success of its first dedicated digital ministry by ensuring all ministries work together to increase digitalisation throughout the entire Norwegian economy. This will involve combining the domain-specific knowledge of each individual ministry and body under the auspices of the Ministry of Digitalisation and Public Governance, which will deliver clear leadership. Norway should continue its strong tradition of involving stakeholders in the policy process.
Monitor progress using the OECD Going Digital Toolkit as Norway’s national digital dashboard. Norway should continue to monitor and evaluate digital performance, using results to iterate and improve the digital policy landscape to ensure that policy priorities are achieved. The indicators on the OECD Going Digital Toolkit could be used in this context, complemented by more granular indicators in key areas.
Strengthen a whole-of-government approach to the adoption of digital technologies in the public sector. While Norway is a leader in digital governance compared to OECD countries, it could do more to enhance its digital government maturity. For example, as the government explores the integration of data-driven technologies like AI to enhance public services, Norway could advance its digital maturity by expanding algorithmic transparency initiatives (OECD, forthcoming[83]). This could include development of an open algorithm register,1 with comprehensive details about the algorithms used across various public sector entities. Such measures would contribute to greater transparency and accountability in the use of digital technologies. In so doing, it would optimise benefits for both the government and the citizens it serves (OECD, forthcoming[83]).
Note
← 1. Examples include the Netherlands’ Algorithm Register and Canada’s Algorithmic Impact Assessment tool (OECD, forthcoming[83]).