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Norways position in outward fdi2 is relatively better

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Unformatted text preview: he economy is based on natural resources; oil and gas accounts for only 6% of all private sector R&D, despite accounting for 23% of GDP. However, even accepting these structural constraints, there is room for improvement. The figure above shows that the United States produces almost 3 times more patents than Norway per $ invested in R&D (US Patent and Trademark Office, OECD, The oil & gas cluster in Norway 11 Eurostat, 2010). Despite public funds accounting for 47% of R&D spending, most innovation occurs in the private sector, suggesting that the public R&D base (Colleges, Research Institutes, Universities) lags behind the private sector in terms of efficiency and effectiveness. Context for Firm Strategy and Rivalry: Foreign Direct Investment (FDI) The benefits of FDI would be particularly valuable for a small country like Norway due to the performance of its education and innovation systems. However, inflows and inward stocks of FDI in the last decade are below those of the most dynamic economies (including South Africa, Australia or Brazil) and, what is more worrying, far from neighbor countries like Sweden, Finland, Denmark, UK or the Netherlands (UNCTAD, 2010). Norway’s position in outward FDI2 is relatively better, but still worse than peers. 2 The investments undertaken by The Government Pension Fund  ­ Global are not considered as FDI because they never take more than a 10% equity stake in any given company. The oil & gas cluster in Norway 12 Company Operations and Strategy: The Role of the State in the Economy The State has historically played a critical role in the economy of Norway. Excluding petroleum, public expenditure is the highest...
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