11.0 Information
and Communication Technology Financing in Norway
One aspect of Norway’s ICT policy is the development of E-businesses. Seed financing, start-up financing, and
expansion financing are generally available through a number of sources. These sources
include government seed capital, venture capital, bank loans, and private
loans, all of which are facilitating the development of SME (small & medium
enterprises) initiatives. Government funds typically are arranged through large
agencies, municipalities (via research parks), and/or public/private seed
funds. Norway is also taking part in a SME’s
program in the EU. The Norwegian government has establish
the Research Council of Norway’s Program for the information of communication
technology industry[1] (a.k.a. Progit). Progit concentrates on
funding projects with international export potential as important criteria for
acquiring government capital. This criterion makes complete sense as Norway’s ICT strategy specifies that developing ICT exports
is a priority. Three other government programs are also available for those
looking for ICT seed capital: The Norwegian Guarantee Institute for Export
Credits, the Norwegian Industrial and Regional Development Fund, and the
Norwegian Trade council also support ICT development.
Venture Capital is also
playing a large role in Norway’s ICT financing. According to a survey by the OECD,
high-technology sectors have consumed up to 60%[2] of
the total venture capital from 1995-1999. OECD’s statistics denotes high-technology
sectors to comprise Communications, Information Technology, and
Health/Biotechnology industries. Interestingly enough, 84%[3] of
Norway’s venture capital went towards financing Norwegian domestic
initiatives in 2001. In 2001, the 2 billion (NOK) was invested in 214
companies, 87 of them are initial investment. These financing trends are a
promising signal that Norwegian financiers believe in the Norway’s ICT potential.