Norway: Horizontal linkages—Local context as the main driver for horizontal linkages

The document analyzes Norway's strategic management of its petroleum resources to avoid the 'resource curse' and foster a competitive high-tech sector. Key mechanisms included the creation of Statoil in 1972 to build independent technological capacity and the establishment of the Government Pension Fund Global in 1990 to manage revenue volatility. The government implemented local content requirements, such as mandating that 50% of petroleum R&D be conducted domestically, and forced collaboration between multinationals and local universities. These efforts transformed Norwegian manufacturing into a specialized engineering and supply industry, with the oil and gas sector serving as an enabling market for broader high-tech innovations in telecommunications, satellites, and automation. The study concludes that Norway's success was predicated on its pre-existing skills base, strong government enforcement, and a long-term approach to innovation.

• The establishment of the state-owned Statoil Oil Company in 1972 was a primary innovation used to secure a 50% stake in production licences and build the independent technological capacity necessary to challenge multinational oil companies.
• Norway managed petroleum revenue volatility and ensured long-term financial stability by creating the Government Pension Fund Global (the Oil Fund) in 1990, which reached a value of USD 1 trillion by the end of 2017.
• Early local content policies required firms to submit local content plans for licence approval and mandated that at least 50% of petroleum R&D activities be performed within Norway.
• The Norwegian government used technology agreements to force foreign oil companies to collaborate with local universities, leading to the creation of specialized research centres such as Sintef, Christian Michelsens Research, and Rogaland Research.
• The oil and gas sector acted as an enabling sector for the broader high-tech industry, providing a profitable domestic market that allowed firms to develop technologies with applications in telecommunications, satellites, and automation systems.
• Norway's ability to successfully implement local content requirements was attributed to the government's strong enforcement and the fact that the country already possessed a significant existing skills base and manufacturing capabilities.

APA

Dolo, S., Odendaal, M., & Togo, G. (2018). Norway: Horizontal linkages—Local context as the main driver for horizontal linkages. International Institute for Sustainable Development. https://www.iisd.org/sites/default/files/publications/case-study-norway-horizontal-linkages.pdf

Chicago

Dolo, Somine, Martin Odendaal, and Guire Togo. Norway: Horizontal linkages—Local context as the main driver for horizontal linkages. International Institute for Sustainable Development, 2018. https://www.iisd.org/sites/default/files/publications/case-study-norway-horizontal-linkages.pdf.

Wikipedia

{{cite report |last1=Dolo |first1=Somine |last2=Odendaal |first2=Martin |last3=Togo |first3=Guire |title=Norway: Horizontal linkages—Local context as the main driver for horizontal linkages |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/sites/default/files/publications/case-study-norway-horizontal-linkages.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dolo2018norway, author = {Dolo, Somine and Odendaal, Martin and Togo, Guire}, title = {{Norway: Horizontal linkages—Local context as the main driver for horizontal linkages}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/sites/default/files/publications/case-study-norway-horizontal-linkages.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }