Norway's Innovation Policy 2025-2030

1. Introduction

As global economies navigate the dual challenges of digital transformation and climate change, innovation policy has become a critical determinant of national competitiveness and sustainable development. Norway, with its unique combination of natural resources, technological capabilities, and social welfare model, has positioned itself as an emerging leader in sustainable innovation.

This report examines Norway's innovation policy framework for the period 2025-2030, a crucial timeframe during which the country aims to accelerate its transition toward becoming both a digital leader and a low-emission society. The analysis covers the current innovation landscape, strategic priorities, key stakeholders, funding mechanisms, and expected outcomes, providing a comprehensive overview of Norway's approach to fostering innovation across multiple sectors.

2. Policy Overview & Strategic Vision

2.1 Current Innovation Policy Framework

Norway's innovation policy framework is characterized by a mission-oriented approach that focuses on addressing specific societal challenges through targeted innovation efforts. The framework encompasses several key elements:

Mission-Oriented Innovation Policy

Norway has adopted a mission-oriented innovation policy that aims to drive sustainable transition across sectors, contribute to broader national development goals, and enhance innovation potential through strategic investments. This approach represents a shift from traditional sector-based policies toward more integrated, challenge-driven innovation strategies.

Digitalization Strategy (2024-2030)

At the core of Norway's innovation framework is a comprehensive digitalization strategy targeting global leadership in digital technologies by 2030. Key elements include the development of advanced digital infrastructure, promotion of digital competencies across sectors, enhancement of cybersecurity capabilities, and support for innovative use of data and digital technologies.

SkatteFUNN Tax Incentive Scheme

The SkatteFUNN program remains a cornerstone of Norway's innovation policy. As of 2025, the scheme provides tax credits of 18-20% for approved R&D projects, ensuring accessibility for all qualifying companies. The program has expanded significantly, supporting over 430 new projects annually and playing a crucial role in stimulating private sector R&D investment.

2.2 Strategic Vision and National Development Strategy

Norway's strategic vision for innovation centers around becoming the most digitized country in the world by 2030 while simultaneously achieving ambitious climate goals. This dual focus on digital and green transition is reflected in several key strategic priorities:

Digital Ambition

• Develop world-class digital infrastructure
• Foster digital competencies across the population
• Position Norway as a leader in responsible AI development and implementation
• Enhance data-driven innovation across sectors

Green and Digital Transition

• Accelerate the green and digital transformation of the business sector
• Align climate targets with digital growth strategies
• Foster innovation in green technology and sustainable solutions
• Leverage Norway's strengths in renewable energy for competitive advantage

Figure 1: Norway R&D Funding (2020-2024)

Source: Research Council of Norway, Statistics Norway (2025)

2.3 Climate and Sustainability Goals

Norway's innovation strategy is closely aligned with its climate and sustainability ambitions, as outlined in the Norwegian Climate Act (2017):

• Become a low-emission society by 2050
• Reduce greenhouse gas emissions by 55% compared to 1990 levels by 2030
• Decouple economic growth from environmental pressure
• Develop comprehensive sustainability indicators across sectors

3. Key Stakeholders and Funding Landscape

3.1 Institutional Framework

Norway's innovation ecosystem is supported by a robust institutional framework comprising public agencies, research institutions, and industry organizations:

The Research Council of Norway (RCN)

The Research Council serves as the government's primary research policy advisor and plays a central role in Norway's innovation ecosystem. It allocates approximately NOK 10 billion annually for research and innovation, manages research funding from Norwegian ministries, and promotes both basic and applied research across disciplines.

Current priorities of the Research Council include:

• Improving the quality of research and innovation in Europe
• Promoting a society where research is created, used, and shared
• Contributing to restructuring and enhanced sustainability
• Clean energy innovation (responding to climate challenges)
• Facilitating groundbreaking research
• Supporting academic freedom and international research collaboration

Innovation Norway

Innovation Norway serves as the national agency for innovation and development, providing crucial support to the Norwegian business sector. Its core mission is to help Norwegian companies grow sustainably and increase exports by providing access to competence, capital, and networks.

Key strategic programs include:

• Humanitarian Innovation: Supporting projects that respond to humanitarian crisis needs
• Global Market Expansion: Helping Norwegian companies enter international markets
• Humanitarian Energy Partnerships: Enabling collaborations between humanitarian organizations and companies

Norwegian Innovation Clusters Program

This government-supported initiative fosters innovation and collaboration across different sectors through three levels of clusters: Arena, Arena Pro, and GCE (Global Centers of Expertise). The program aims to increase companies' ability to innovate, support international competitiveness, and promote collaboration between businesses, research institutions, educational environments, and the public sector.

3.2 Funding Mechanisms

Norway maintains a diverse range of funding mechanisms to support innovation across different stages and sectors:

Public R&D Funding

Public funding for research and development is channeled through several mechanisms:

• The Research Council of Norway's competitive grant programs
• Innovation Norway's support schemes
• Direct ministerial funding for strategic research initiatives
• Regional development funds

Tax Incentives

The SkatteFUNN tax incentive scheme provides significant support for R&D activities, with tax credits of 18-20% for approved projects. Additionally, expanded share option schemes with tax deferral benefits have been implemented to support startups and growth companies.

Venture Capital and Private Investment

Norway's venture capital landscape has shown significant growth, with capital investment increasing by 60% from H1-2019 to H1-2020 and the number of investments growing by 68% in the same period. The average startup funding stands at approximately NOK 5.5 million per startup, with 38% of funding directed toward impact-driven businesses.

Figure 2: Norway Innovation Investment by Sector (2025)

Source: Innovation Norway, Research Council of Norway (2025)

3.3 International Collaboration

Norway's innovation strategy emphasizes international collaboration through several key mechanisms:

Horizon Europe Participation

Norway actively participates in the EU's Horizon Europe program, with a budget of €95.5 billion available from 2021 to 2027. Norwegian actors can apply for funding on equal footing with EU member states, supporting enterprises, public sector bodies, and research institutions.

EEA and Norway Grants

These collaborative funding mechanisms involve Iceland, Liechtenstein, and Norway, with a funding period of €3.268 billion. The grants are allocated to 15 recipient countries to support research and development, fostering international collaboration and knowledge exchange.

4. Sector Priorities and Technology Focus Areas

4.1 Key Sector Priorities

Norway's innovation strategy for 2025-2030 focuses on several key sectors that leverage the country's existing strengths while positioning it for future growth and sustainability:

Digital Transformation

Norway has set an ambitious goal to become the most digitalized country in the world by 2030. This strategic priority encompasses establishing a national infrastructure for artificial intelligence (AI), focusing on ethical and safe AI development, enhancing digital infrastructure and cybersecurity, and facilitating digital transformation across both public and private sectors.

Energy and Green Transition

Norway's energy innovation strategy includes eight priority areas: hydropower, offshore wind, solar energy, batteries, hydrogen, carbon capture and storage (CCS), green shipping, and sustainable energy systems. Key initiatives include doubling public resources for developing and demonstrating clean energy technologies, promoting public-private partnerships, and building new green export industries.

Ocean and Blue Economy

Norway is leveraging its extensive maritime expertise to develop a sustainable ocean economy, with emphasis on green technology, digitalization, and innovative marine resource utilization. The country's advantages include robust maritime industry expertise, a strong scientific community, advanced aquaculture capabilities, and significant sea-related economic activities.

Healthcare and Life Sciences

Norway's healthcare innovation priorities focus on telemedicine, e-health, and welfare technology to address challenges including an aging population, increasing chronic disease rates, and rising healthcare costs. The eHealth strategy (2023-2030) emphasizes active patient participation in healthcare, simplifying healthcare professionals' working day, and leveraging digital solutions.

Figure 3: Norway Innovation Sectors: Growth vs. Investment Share (2025)

Source: Innovation Norway, Research Council of Norway (2025)

4.2 Technology Focus Areas

Norway's innovation strategy places significant emphasis on several key technology domains:

Artificial Intelligence and Digital Technologies

Norway aims to become a leading digital nation by 2030, with focus on developing advanced digital infrastructure, driving both public and private sector digital efficiency, and creating value through data-driven research and innovation. Key technology domains include artificial intelligence, cybersecurity, digital governance, and data analytics.

Clean Energy Technologies

Norway is prioritizing several clean energy technologies, including hydrogen development through renewable energy electrolysis and carbon capture and storage technologies. The Longship project represents the largest climate technology investment in Norwegian industry, demonstrating that CCS is safe and feasible and focusing on reducing emissions across various industrial sectors.

Sustainable Resource Management

Norway's innovation strategy emphasizes sustainable resource management across sectors, including green technology development, digital transformation of resource-intensive industries, innovative resource exploration and utilization, and climate and nature-resilient development approaches.

Circular Economy

Despite currently being only 2.4% circular, Norway has ambitious plans to become a pioneer in developing a green, circular economy. The approach involves systematic development of roadmaps for green competitiveness across multiple industries, with a government goal to increase circularity up to twenty times current levels.

5. Innovation Metrics and International Comparisons

5.1 Global Innovation Rankings

Norway demonstrates a strong innovation performance across multiple international rankings:

Global Innovation Index (GII)

In the 2024 Global Innovation Index, Norway ranks 21st globally with an innovation index score of 49.10. This represents a slight decline from 2023 (19th place, score of 50.70) but an improvement from 2022 (22nd place, score of 48.80). Norway's score significantly exceeds the world average innovation index of 31.57.

European Innovation Scoreboard

Norway is classified as a "Strong Innovator" in the European Innovation Scoreboard 2024, with performance at 117% of the EU average. The country shows particular strength in employment in innovative enterprises, standing at 139.8% of the EU average. Norway significantly outperforms the EU in two key dimensions: Innovators (161.0% of EU performance) and Linkages (242.8% of EU performance).

Digital Competitiveness

In the IMD World Digital Competitiveness Ranking 2024, Norway ranks 10th overall with a score of 84.58, representing an improvement of 4 positions from the previous year. The country also ranks 4th in the OECD Digital Government Index (as of 2023), demonstrating particular strength in digital government and technology readiness.

Figure 4: International Innovation Comparison (2025)

Source: Global Innovation Index, OECD, IMD World Competitiveness Center (2025)

5.2 R&D Investment

Norway's R&D investment shows a solid commitment to innovation, though still below top-performing innovation nations:

R&D Expenditure as Percentage of GDP

As of 2024, Norway's R&D expenditure stands at 1.68% of GDP, showing a recovery from 1.56% in 2022 but still below the peak of 2.24% reached in 2020. This places Norway above the world average R&D spending of 1.25% of GDP but below global leaders like Israel, South Korea, and the United States.

Public vs. Private R&D Funding

Norway's total R&D expenditure in 2024 reached NOK 97.3 billion, with private funding (NOK 50.5 billion) slightly exceeding public funding (NOK 46.8 billion). This represents a balanced approach to R&D investment, though the business sector's contribution remains relatively low compared to top innovation performers.

5.3 Innovation Output Metrics

Norway shows mixed performance in innovation output metrics:

Patent Applications

Norway recorded 946 patent applications in 2021 (up from 880 in 2020), representing 282.96 patent applications per million inhabitants. This ranks Norway 30th in total patent applications and 14th in resident applications per million inhabitants globally. Within the Nordic region, Norway ranks last in patents per million inhabitants.

Research Citations and Output

Norway demonstrates a high citation impact relative to its size, with 23 Norwegian-based researchers on the Clarivate list of most highly cited researchers. However, 18 out of these 23 top-cited researchers (78%) are affiliated with institutions outside Norway, suggesting potential for strengthening domestic research capacity.

Figure 5: Norway vs. Innovation Leaders (2025)

Source: Global Innovation Index, OECD, IMD World Competitiveness Center (2025)

5.4 Startup Ecosystem and Venture Capital

Norway's startup ecosystem shows promising growth and development:

Startup Ecosystem Metrics

Norway ranks 24th globally and 12th in Western Europe for its startup ecosystem, with over 13,367 startups and 2,990 funded companies. The total venture capital raised amounts to $44.8 billion, with an average startup funding of $5,549,842 per startup.

Investment Trends

Capital investment increased by 60% from H1-2019 to H1-2020, with the number of investments growing by 68% in the same period. Notably, 38% of startup funding goes toward impact-driven businesses, positioning the Nordic region as the most impact-focused globally.

6. Expected Outcomes and Future Scenarios

6.1 Short-term Outcomes (2025-2027)

In the short term, Norway's innovation policy is expected to yield several key outcomes:

Digital Transformation Progress

• Significant advancement toward becoming the leading digital nation in the Nordic region
• Expanded national infrastructure for artificial intelligence
• Increased digital competencies across the workforce
• Enhanced cybersecurity capabilities

Green Transition Initiatives

• Accelerated development of clean energy technologies
• Expanded hydrogen production facilities
• Progress in carbon capture and storage implementation
• Increased circular economy initiatives

Innovation Ecosystem Development

• Growth in startup formation and funding
• Strengthened innovation clusters
• Enhanced collaboration between research institutions and industry
• Increased international research partnerships

6.2 Medium-term Outcomes (2028-2030)

By 2030, Norway's innovation policy is expected to deliver more substantial outcomes:

Digital Leadership

• Achievement of the goal to become the world's leading digital nation
• Widespread implementation of AI across public and private sectors
• Comprehensive digital infrastructure supporting innovation across sectors
• Established position as a global leader in digital government

Climate and Sustainability Progress

• Significant progress toward the 55% emissions reduction target
• Established green export industries
• Scaled clean energy technologies
• Increased circularity in the economy

Economic and Social Impact

• Increased economic diversification
• Growth in knowledge-intensive industries
• Enhanced international competitiveness
• Improved quality of public services through innovation

6.3 Challenges and Risks

Several challenges and risks may affect the achievement of Norway's innovation goals:

Resource Allocation

• Balancing investment between traditional and emerging sectors
• Ensuring sufficient R&D intensity to compete with global innovation leaders
• Maintaining commitment to innovation during economic fluctuations

Implementation Challenges

• Coordinating efforts across multiple stakeholders and institutions
• Addressing skills gaps in emerging technology areas
• Overcoming regulatory barriers to innovation

External Factors

• Global economic uncertainties
• Geopolitical developments affecting international collaboration
• Technological disruptions requiring policy adaptation

7. Conclusion

Norway's innovation policy for 2025-2030 represents a comprehensive and strategic approach to positioning the country as a global leader in digital innovation and sustainable development. The policy framework combines ambitious goals with concrete initiatives, supported by a robust institutional infrastructure and significant public and private investment.

The analysis reveals that Norway demonstrates strong innovation performance in several areas, particularly digital government, research impact, and collaborative innovation. However, challenges remain in R&D intensity, patent generation, and research commercialization compared to top innovation performers.

Norway's focus on mission-oriented innovation policies targeting sustainable transitions positions it well for future innovation leadership, particularly in green and digital domains. The country's strategic emphasis on key sectors like energy, digital technology, ocean industries, and healthcare aligns with both global trends and national strengths.

As Norway progresses toward its 2030 goals of digital leadership and sustainable development, continued attention to strengthening the innovation ecosystem, enhancing R&D investment, and fostering international collaboration will be critical to success. With its strong foundation and clear strategic direction, Norway is well-positioned to achieve its innovation ambitions and contribute to addressing global challenges through innovative solutions.

8. References

1. Norwegian Government Digitalization Strategy (2024-2030)
2. Research Council of Norway Strategic Plan (2025)
3. Innovation Norway Annual Report (2024)
4. Norwegian Ministry of Trade, Industry and Fisheries - Innovation Policy Framework (2025)
5. SkatteFUNN Program Documentation (2025)
6. Norwegian Innovation Clusters Program Overview
7. Horizon Europe Norwegian Participation Report (2024)
8. EEA and Norway Grants Documentation (2025)
9. Global Innovation Index (GII) 2024
10. European Innovation Scoreboard 2024
11. IMD World Digital Competitiveness Ranking 2024
12. OECD Digital Government Index 2023
13. World Bank R&D Expenditure Data 2022
14. StartupBlink Global Startup Ecosystem Report
15. World Intellectual Property Organization (WIPO) Patent Statistics 2021
16. Clarivate Analytics Highly Cited Researchers List
17. OECD Reviews of Innovation Policy: Norway (2022)
18. Norwegian Climate Act (2017)
19. Statistics Norway (Statistisk sentralbyrå) R&D Statistics (2025)
20. Nordic Innovation Ocean Economy Report