Innovation and innovative ideas can be turned into new North Norwegian business life. But then risk-averse capital must be willing to invest in start-up companies and entrepreneurial activities. During the year, the government will prepare a strategy for increased research and innovation in business. New workplaces and businesses based on innovations and innovative ideas, from start-up companies and entrepreneurial activity should be given a prominent place in the new strategy. The new Minister of Business and Industry should ensure that.
Norwegian law imposes universities and colleges to “contribute to innovation and value creation based on results from research”. This is part of the university’s social mission, which can thus contribute to developing Northern Norway.
UiT Norway’s Arctic University has in recent years developed a number of measures aimed at both employees and students, as well as set aside money to strengthen innovation and commercialisation. This happens in close collaboration with the innovation and commercialization company Norinnova. And we succeed.
As discussed by iTromsø so our researchers, together with Norinnova, recently raised NOK 30 million from the Research Council of Norway for the commercialization of innovative ideas. This is around 1/3 of all the funds that were allocated nationally, in fierce competition with the other research environments; it shows that our environments assert themselves well.
Public funds for commercialization of ideas aims to make projects investment-ready. This means that the business idea is sufficiently mature that private investors can step in with the funds needed to develop the business up to a financial return. And this is often where it breaks down.
In Norway it is access to capital for this type of investment particularly demanding. The so-called Capital Access Committee points out that these: “The challenges apply in particular to businesses that expect many years of capital-intensive development before commercial income can be expected, for example through the commercialization of research results”.
The Minister of Finance has wished to establish an investment fund for the north and in the north. Now it seems that it will partially become a reality when Folketrygdfondet establishes its own unit in Tromsø. The establishment will strengthen the financial environment in the north and ensure expertise in fund management. However, it must only invest in companies that are already listed on the stock exchange, which is to a lesser extent the case for companies in the north. In that case, investments in start-up and entrepreneurial companies are also outside the mandate. There is every reason for the new Minister of Business and Industry to have a conversation with the Ministry of Finance about the possibilities of expanding the mandate in a later phase to also include so-called unlisted papers and thus be able to invest in the region’s growth companies.
In the county is it developed well-functioning tools for commercializing research results. If we are to succeed in developing new growth companies from the opportunities that are created, it is absolutely essential to have access to risk capital. We strongly believe that it will be possible to establish a competent management environment in Northern Norway with a focus on investments in innovative ideas and start-up companies.
Norinnova therefore wants to contribute to the establishment of a seed fund of NOK 300 million. It opens up the possibility that 10–15 technology and research-based companies in the region can develop towards profitable businesses and thus contribute to increased value creation and more jobs in the north.
Public investment funds are good, but the Minister for Business and Industry should also promote policy for private capital to go into start-up and entrepreneurial businesses based on research to a greater extent. If that is to happen, the ministers for finance, industry and research must sit down and work out joint measures across ministries. The Minister of Trade and Industry would like to take the driver’s seat.
