The document provides an overview of the innovation economy in the Oslo region of Norway. It makes three key points: 1) Norway's oil and gas economy is vulnerable to shocks and the Oslo region needs to diversify its economy and create new jobs, which will come from innovation and serving a growing population. 2) Everyone has a role to play in supporting the innovation economy - national and regional governments can improve infrastructure and skills while local actors can enhance livability, clusters, and cross-border collaboration. 3) Oslo has strong fundamentals like a highly educated population and quality of life but needs to improve its visibility as an innovation hub and convert its strengths into recognized innovation platforms to attract more talent and innovative

1. The BUSINESS of CITIES 1
Regional Economy and Leadership
Oslo Regional Alliance BEST conference
Prof Greg Clark
February 2018, Oslo, Norway.

2. The BUSINESS of CITIES
Proposition
Norway is enjoying a long boom but:
• is vulnerable to shocks in the Oil & Gas economy and needs a diversification
strategy.
• has a fast growing Oslo region that can host an alternative economy and
needs jobs for its increased population
• these jobs will come from smart specialisation and innovation activity, and
jobs associated with serving a larger population
• if the region wants these jobs, everyone has a role to play.
National Role: Business climate and strategic investment.
Regional Role: Coordination of infrastructure, skills, land use, and telling the
story.
Local Roles: Liveability offer, Local Clusters and Sites, Place-
Making, and cross border collaboration.
2

3. The BUSINESS of CITIES 3
Our Work
on the
Regional
Economy
in last 5
years
THE LEADERSHIP OF CITIES
AND URBAN INNOVATION

4. The BUSINESS of CITIES
1. Oslo Region and The Innovation Economy
What is it?
“New ideas that turn into companies
that change the world in ways large and
small.”
Prof Enrico Moretti
“The synergistic relationship between
people, firms, and place that facilitates
idea generation and advances
commercialization.”
Bruce Katz and Julie Wagner, Brookings
“The innovation economy is more than a
single ‘tech sector’ or ‘start-up scene’ – it’s a
way of describing how whole portions of an
economy embrace technologies and change.”
Prof Greg Clark and Dr Tim Moonen
“There has always been an innovation
economy, we just haven’t put a name on it
before… it is here, in the innovation economy,
that there will always be jobs.”
Kailey Raymond, Startup Institute
“The period in the early 21st century marked by radical socioeconomic changes brought
about by (1) globalized commerce, (2) democratized information, (3) exponential
entrepreneurship growth, and (4) accelerated new knowledge creation.
Nortech, USA

5. The BUSINESS of CITIES
1. The technology and demography disruptors
5
AI
The Global War For
Talent Aging populations
‘Millennial’
preferences

6. The BUSINESS of CITIES
1. The Innovation Economy
Spans advanced manufacturing, digital media, software, life
sciences, materials, medical devices, robotics, clean energy,
nanotechnology, business and financial services, and others.
What sectors?
“All innovation sectors have two things in common. (1) they tend to
employ workers with a high level of education. (2) they make a product
or service that is unique - cannot be easily reproduced and easily
outsourced.”
Prof Enrico Moretti
They also tend to prefer to cluster in specific locations and to prefer
urban environments

7. The BUSINESS of CITIES
1. The Innovation Economy
• Post-2008 diversification beyond finance and corporate services.
• The industrial economy in cities experiencing more competitive pressures
• Cycles of Schumpeterian creative destruction are shorter + more frequent
• New generation of tech: materials, production, IT, virtual reality, robotics,
big data, life sciences, energy, waste, water, logistics and distribution,
transport, construction, and smart infrastructure systems
• Improved access to venture capital and global financial markets
• Recognition of technology’s impact on sustainability and well-being
Why now?

8. The BUSINESS of CITIES
1. New Global
System of
City-Regions
8
Oslo

9. The BUSINESS of CITIES
What we learnt from the 2016 State of the City-Region
 Oslo is emerging into a distinctive and
attractive international location for firms,
investors + talent.
 Oslo is admired for its quality of life,
government and stability, but its its visibility in
comparisons of successful and ‘up-and-
coming’ cities is below where it could be.
 Oslo has not yet converted its educational
and knowledge strengths into a recognised
innovation platform.
 Oslo has some real and perceived areas of
under-performance relative to other
established and higher-income cities
worldwide.
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10. The BUSINESS of CITIES
The Oslo Region is the most dynamic in the Nordics
10
Population change in leading Nordic regions
Region performance (Source: Nordregio)

11. The BUSINESS of CITIES
Business and investment fundamentals are good
1st in the world in 2017 JLL
Investment Intensity Index
Big climbs as a financial centre
– now top 25 globally (GFCI)
8th of 41 cities for broadband
maturity, ICT costs, and modern
tech.
Educational attainment + job
market inclusion has improved
from an already high level.
11

12. The BUSINESS of CITIES
Oslo’s progress in innovation
12
Amsterdam
Zurich
Copenhagen
Helsinki
Stockholm
Bristol
Hamburg
Madrid
Barcelona
Munich
Prague
Lisbon
Cologne
Manchester
Vienna
Brussels
Gothenburg
Rotterdam
Warsaw
Glasgow
Milan
Istanbul
Lyon
Frankfurt
Marseille Rome
Stuttgart
OSLO
-5
0
5
10
15
20
25
30
35
40
0 500 1000 1500 2000
Numberofglobaltop10,000innovationfirms
Number of Innovation firms
Valencia
Dublin
London
Berlin
Paris
0
100
200
300
0 10000
Oslo is at the
head of the 2nd
wave of high
innovation cities
Among global
top 30
Rapid growth in
VC funding
Source: Crunchbase, March 2017

13. The BUSINESS of CITIES
Becoming a leading mid-sized region for innovation
13
Source: Dealroom, March 2017
1 of the top 10 most
innovation-intense
regions in Europe,
ahead of Barcelona,
Paris, Vienna and
Lisbon.
Fueled by city’s
strengths in
infrastructure,
energy, data and
smart city
applications.

14. The BUSINESS of CITIES
Raising Oslo’s innovation profile is a priority
Just 23rd in Europe in terms of
entrepreneur reputation.
Not included in some key innovation
and digital cities indexes
Promotion will be an essential piece
of Oslo’s innovation jigsaw.
The role of districts to foster the
character, diversity, critical mass,
visibility to communicate the story.
14
Start-up Genome Top 20 Ecosystems –
Berlin + Stockholm are in.
CITIE – Oslo not included but 20 European
cities measured
BCG Global Innovation Index
Dubai Chamber Innovation Index
Nesta European Digital Cities Index

15. The BUSINESS of CITIES
Oslo’s quality of life offer
• Oslo is performing more strongly in
indexes that reflect perceptions of urban
lifestyles.
• Why? (proximity to nature, diverse
architecture, waterfront development,
culinary offer, ‘hip’ neighbourhoods)
• Rated one of the least at-risk cities in the
world thanks to low levels of inequality
and exposure to natural disasters.
• Excellence in pollution and CO2
emissions confirmed (Numbeo, IESE)
• 4th of 50 global cities for climate change
leadership, markets and investment
• Inflation and unaffordability (housing,
living costs) risks overshadowing its
reputation for positive work-life balance.
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16. The BUSINESS of CITIES
Oslo’s social and environmental model is a big
advantage
16
he top of social and environmental
sments. Source: IESE.
Abu Dhabi
San Francisco
BostonTel Aviv
Warsaw
Barcelona
Marseille
Manchester
Lyon
Montreal
Glasgow
Eindhoven
Vancouver
Sydney
Melbourne
Dublin
Stuttgart
Copenhagen
Berlin
Hamburg
Frankfurt
Oslo
Stockholm
Vienna
30
40
50
60
70
80
90
100
30 40 50 60 70 80 90 100
SocialCohesionPosition
Environmental Sustainability Position
More socially
sustainable
More
environmentally
sustainable
Global
pioneers
ource: Arcadis
Source: Arcadis

17. The BUSINESS of CITIES
Oslo’s spidergram
17
0
1
2
3
4
5
6
7
8
9
10
Business-friendliness
Productivity
Innovation
Competencies and
knowledge
Leisure and recreation
Personal safety
Sustainability and resilience
Work-life balance
Attractiveness to visitors
Attractiveness to talent
Friendliness
Welcoming to foreigners
Social stability
Quality and integrity
Transparency and reliability
Influence and status
2015 performance
2017 perception
ersion 2017 performance

18. The BUSINESS of CITIES
Oslo’s spidergram
18
0
1
2
3
4
5
6
7
8
9
10
Business-friendliness
Productivity
Innovation
Competencies and
knowledge
Leisure and recreation
Personal safety
Sustainability and resilience
Work-life balance
Attractiveness to visitors
Attractiveness to talent
Friendliness
Welcoming to foreigners
Social stability
Quality and integrity
Transparency and reliability
Influence and status
2015 performance
2017 perception
ersion 2017 performanceAreas of improvement

19. The BUSINESS of CITIES
Oslo’s spidergram
19
0
1
2
3
4
5
6
7
8
9
10
Business-friendliness
Productivity
Innovation
Competencies and
knowledge
Leisure and recreation
Personal safety
Sustainability and resilience
Work-life balance
Attractiveness to visitors
Attractiveness to talent
Friendliness
Welcoming to foreigners
Social stability
Quality and integrity
Transparency and reliability
Influence and status
2015 performance
2017 perception
ersion 2017 performanceAreas of decline

20. The BUSINESS of CITIES
Dynamic innovation eco-systems tend to emerge
where there are:
 well-established growth sectors
 dynamic population growth
 access to capital
 connectivity to growth markets
These are nurtured over several decades. They cannot usually be
constructed quickly.
So role for public policy is more to enable, foster and encourage >
designate, plan, predict
20
 knowledge rich institutions
 conducive regulatory
environment
 collaborative working culture.
 firm competition pressures
2. Key Ingredients of the new
Regional Innovation Economy

21. The BUSINESS of CITIES
There are many kinds of anchors to
innovation clusters:
• Universities
• Hospitals
• Corporate R&D departments
• Defense Institutions
• Scientific Institutions
• Sporting Institutions
• TV and Media Broadcasters
• Iconic locations
BUT Not all innovation locations have major anchors, and
Not all anchors play a role underpinning innovation.
Anchors on their own do not = an innovation economy
21
2. The role of ‘anchors’

22. The BUSINESS of CITIES
Regions as the key location for Innovation Economies.
Ecosystems operate at a whole-city, whole-region or larger geographies.
Districts concentrate some elements where close proximity and identity is needed.22
2. The relationship between Innovation Ecosystems
and Regions
THE INNOVATION ECOSYSTEM

23. The BUSINESS of CITIES
3. What do All Stakeholders Need To Do to support
the Innovation Economy?
23
Foster the eco-system
then
• Match the scale of ambition and
resources to the size of the location
• Invest in quality and depth of
collaboration between innovators,
mentors, investors, established
business, and local leaders
• Put right management systems and
competences in place
• Anticipate how locations will ride the
cycles (access to ‘grow on’ space,
relationships with other locations)
• Build a total place perspective
• Proactively engage with local skills
supply and future skills demands
Create conditions for location
success

24. The BUSINESS of CITIES
Business National Government Higher Education
Foster internal culture of
innovation and overcome
middle management
inertia
Enhance the geographical
and spatial lens of the
economy.
Commercialisation of
cutting edge research
Grow presence in fast-
moving clusters and
precincts
Optimise the wider
business and policy
environment.
Act as a strategic anchor
to related clusters and
local entrepreneurs
Foster collaboration and
eco-system with related
start-ups.
Enabling infrastructure to
foster proximity and
mobility.
Relocate and expand
tactically to maximise
multipliers
3. Innovation Economy’s implications for different
stakeholders

25. The BUSINESS of CITIES
Real Estate Owners and
Operators
Real Estate Investors
Local and Regional
Governments
Adopt ‘service provider’
mindset. Provide hands-on
stewardship
Look to second districts in
established cities as well
as second cities. Redefine
and build more ‘core’
assets.
Adopt innovation economy
intelligence and seek to
meet needs of innovation
workers, investors, and
employers.
Align interests and build
transparency between
owners and users
Focus on total values and
revenues, rather than
rental multiples.
Organise around
liveability, placemaking,
anchor institutions and
assets
Learn from customised
environments. Prepare for
continuous adaptation
Invest in the eco-system
and enterprises, not just
the RE
Put flexibility into land use
planning, and support
transition to new business
models.
3. Implications for different stakeholders

26. The BUSINESS of CITIES
Science, Tech and
Research
Community Talent
Reduce silos, build cross-
agency links,
More involvement on
impact on jobs, social
infrastructure, public
space and housing.
Greater choice, global
mobility, search for labour
markets that provide best
mix.
Identify collaboration with
adjacent/convergence
sectors
Partnerships with local
companies and industries
to engage young people.
More premium on lifelong
learning, re-trainng and
cross-functional skills
Upgraded and modernised
IP systems and sharing,
and funding regimes to
boost risk-taking.
Contribute to identity,
authenticity and visibility of
innovation locations.
Choosy about
environment, demand for
amenities, quality of life.
3. Implications for different stakeholders

27. The BUSINESS of CITIES
4. Regional Approaches: Co-ordination requirements
Co-ordination within the Innovation Economy is needed in many
areas:
• business climate and scientific environment
• within the science and technology itself
• public policy responses to support the innovation economy
• the eco-system organisation (REGION)
• building brand story, narrative and visibility (REGION)
• spatial clustering and co-operation (REGION)
But top-down co-ordination is ineffective as most organisations in the system are
mobile, nimble, not necessarily obedient to external intervention
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28. The BUSINESS of CITIES 28
Types of innovation location

29. The BUSINESS of CITIES 29
Regional Innovation
Districts and Smart
Specialisation
There are
many types
of innovation
location in
Regions

30. The BUSINESS of CITIES
4. Regional Policies for the New Economy:
Ontario
Background
Very strong public sector investments in healthcare
planning and environmental technologies.
Highly proficient network of universities led by
University of Toronto, supported by sustained
Canadian national investment in R&D
Major magnet for medium and high-skilled
migration.
Emergence of handful of world-class innovation
locations spanning software, life sciences and green
economy (e.g. MaRS Discovery District, Downtown
Waterloo, Mississauga)

31. The BUSINESS of CITIES
4. Regional Policies for the New Economy:
Ontario Business Growth Initiative 2017
• Aim: fast-track innovation economy through
investments in R&D and adoption of new
disruptors (e.g. IoT, AI etc.)
• 5-year timescale; $650mn budget
• Creation of tech hubs within existing
industrial clusters (e.g. automotive, mining
and biochem)
• Supporting partnerships between
universities and businesses
• Scale-up incentives for SMEs in cleantech, IT
and life sciences
• $26mn Low Carbon Innovation Fund to
support cleantech innovation & reduce CO₂
emissions

32. The BUSINESS of CITIES
Greater Toronto
Region
Growth Planning
Transport
Brand and Story
Investment Agency
Place Management
Anchor Institutions

33. The BUSINESS of CITIES
4. Regional Policies for the New Economy:
Bavaria’s Innovation Strategy
Background
1945-2000s
Post-war industry (Automotive, Energy, IT,
Engineering, eg Siemens)
Strong federal + Bavarian investment in R&D,
HE, transport
“Institutional thickness”: biz, unis/R&D,
unions, govs
Inclusive, rigorous planning framework
=“Munich mix”, spatial balance
2000s-now
One of top innovation regions in Europe
Emerging space constraints

34. The BUSINESS of CITIES
• Launched 2011; aims to secure Bavaria’s
leading position as innovation leader in
Germany & Europe
• Bavarian Cluster Initiative to modernise
and enhance business/research in energy,
health, mobility and materials engineering
• Funding programmes to encourage growth:
• Technology support programme
• “New materials” R&D programme
• >50 tech centres & business
incubators
• Digital Bavaria programme:
• Establish centre for digital
production
• Expand field of digital engineering
Regional Policies for the New Economy: Bavaria’s
Innovation Strategy

35. The BUSINESS of CITIES
Munich City Region
35
Growth Planning
Transport
Housing and place making
Sector Strategies

36. The BUSINESS of CITIES
What these regional approaches share…
 Robust recognition of region’s strengths and proper auditing in relation to
science & technology
 Rooted in ability to attract and retain science PLUS commercial capability
 Finding mechanisms to do higher risk investments in tech-led businesses
 Co-ordination of government activity in terms of business climate as well
as institutional frameworks
 Building an innovation and enterprise brand and promotion programme
 Focus on livability, place-making, and talent attraction/retention.
 Identify and optimise anchors and catalysts
 Strategies that make innovation process more accessible to outsiders.
 Foster and encourage eco-system, NOT just picking locations

37. The BUSINESS of CITIES
Thank You
37