Norwegian economy grows thanks to ICT investment
(Fornebu, 30 November 2015) Almost 50 per cent of productivity growth in Norway is as a result of investment in ICT. This is far more than previously thought. ‘The ICT sector is so important that we ought to have had a “national digital transport plan”’, says Berit Svendsen, CEO of Telenor Norway.
New technology makes everyday life simpler, makes employees more efficient and can offer major economic benefits in the years to come. This is the conclusion reached by NyAnalyse and Samfunnsøkonomisk Analyse in a study commissioned by Telenor.
The ICT industry contributes far more value creation and productivity than its share of employees in Norway - around six per cent of the private sector - would suggest. One of the reasons for this is that ICT investment takes place in far more industries than simply the IT and telecom sectors.
“A national digital transport plan”
We must continue building and renewing infrastructure, while also making investments in secure and robust networks. Telenor has great expectations for the government’s new digital agenda for Norway and the new plan for the economy to be presented in the spring of 2016.
‘The fibre network is the digital motorway connecting the country together. Modernisation of the fixed network in Norway is the E18 motorway development of the future. A new digital agenda and economic plan from the authorities ought to become society’s “national digital transport plan”’, says Berit Svendsen, in a rallying call to politicians.
Strong ICT growth
During the period 2006-2013, ICT investment - both direct and indirect - contributed 47 per cent of the growth in productivity in Norway. During the period 1995-2005, the contribution was closer to 30 per cent, even though growth was higher during this period, according to Rolf Røtnes, the Director of Samfunnsøkonomisk analyse.
‘In a situation where we have an increasing number of elderly people and fewer people in work, while the oil and gas industry is currently in decline, we must better exploit new technology. We must use our heads and hands effectively with new technology and smarter municipalities. Sufficient access to a qualified workforce in this country will be scarce in future. This means it is important to analyse where we can obtain the greatest contribution to growth in our society. This study clearly shows that ICT investment can be the key to continued growth in productivity in Norway,’ says Terje Strøm, Head of NyAnalyse.
Digital solutions are the answer
Telenor's ambition is to play a role in the future of Norwegian technology as a supplier of digital services.
‘New investments in ICT and the use of digital solutions help practically all companies to produce in a smarter way - whether they are in the public of private sector. To safeguard productivity and welfare, we need more ICT services that we make better use of,’ Svendsen maintains.
Welfare technology in the public sector and smarter mobile banking solutions for the consumer market offer enormous potential, which is amply demonstrated through the case studies in the study.
The Status Technology Norway conference, which is organised by Telenor, was held on Monday 30 November. Productivity was one of two key themes on the agenda for the day.
