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Innovation in Norway in a European Perspective

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  • Fulvio Castellacci

    (Norwegian Institute of International Affairs (NUPI), Oslo.)

Abstract

This paper seeks to shed new light on sectoral patterns of innovation in Norway in a European perspective. It puts forward a theoretical framework based on a new sectoral taxonomy that combines manufacturing and services within the same framework. It then analyses innovative activities in Norway and compare them to other European countries by making use of data from the Fourth Community Innovation Survey (CIS4). Finally, it studies the recent evolution and current characteristics of the industrial structure in Norway and points out its peculiarities vis-a-vis other European economies. The results of this work point to a contrasting pattern. On the one hand, Norwegian sectoral systems appear to be very innovative, often above the European average and, for some of the CIS4 indicators and some of the sectoral groups, they indeed emerge as the most innovative in Europe. This pattern is in fact more evident for those technologically advanced groups that the new sectoral taxonomy points out as the most progressive industries of the ICT-based age. On the other hand, these sectoral groups are relatively small in Norway, accounting for a much lower share of production than their European counterparts. In a nutshell, by focusing on the sectoral characteristics of the Norwegian economy and by analysing them in a European perspective, the paper sheds new light on the so-called Norwegian paradox, according to which Norway is characterized by a peculiar combination of low innovation and high economic performance. The commonly made statement that innovation is low in Norway does in fact hide the contrasting pattern outlined above. The problem is not with innovative activities, as frequently asserted, but it has rather to do with the sectoral composition of the economy.

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Bibliographic Info

Paper provided by Centre for Technology, Innovation and Culture, University of Oslo in its series Working Papers on Innovation Studies with number 20070609.

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Length: 45 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:tik:inowpp:20070609

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  1. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  2. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 1999. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Department of Economics, Working Paper Series qt1sz6g8bv, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  3. Hoekman, Bernard & Primo Braga, Carlos, 1997. "Protection and Trade in Services: A Survey," CEPR Discussion Papers 1705, C.E.P.R. Discussion Papers.
  4. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  5. Fulvio, Castellacci, 2007. "Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation," MPRA Paper 26408, University Library of Munich, Germany.
  6. Archibugi, Daniele & Michie, Jonathan, 1995. "The Globalisation of Technology: A New Taxonomy," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 121-40, February.
  7. Carlsson, Bo, 2006. "Internationalization of innovation systems: A survey of the literature," Research Policy, Elsevier, vol. 35(1), pages 56-67, February.
  8. Tommy Clausen, 2008. "Do subsidies have positive impacts on R&D and innovation activities at the firm level?," Working Papers on Innovation Studies 20070615, Centre for Technology, Innovation and Culture, University of Oslo.
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Cited by:
  1. Castellacci, Fulvio, 2010. "The internationalization of firms in the service industries: channels, determinants and sectoral patterns," MPRA Paper 26548, University Library of Munich, Germany.
  2. Svein Erik Moen, 2007. "Innovation and production in the Norwegian aluminium industry," Working Papers on Innovation Studies 20070604, Centre for Technology, Innovation and Culture, University of Oslo.

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