This paper digs into the successful stories of norways

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Unformatted text preview: reduces the opportunities for the companies to develop cutting ­edge technologies. Finally, an increasing share of operations abroad gives more location options for headquarters and exposes the companies to geopolitical risks. This paper digs into the successful stories of Norway’s economy and the oil and gas supplier cluster but, most importantly, identifies key challenges and provides recommendations for Norway for the post ­oil era. The oil & gas cluster in Norway 2 1. Overview of Norway Norway is a parliamentary democracy and constitutional monarchy in Northern Europe. Having emerged from unions with Denmark (1397 ­1814) and Sweden (1814 ­ 1905), Norway gained independence in 1905. The country rejected EU membership in referenda in 1972 and 1994, but is part of the European Economic Area, which ensures wide market access to the EU. Norway was a founding member of the UN, NATO and WTO. Political power is centralized, with limited authority devolved to 19 counties and 430 municipalities. The border to the East with Sweden, Finland and Russia is 1,592 miles long, and the 16,000 miles of coastline to the South, East and North face the North Sea, the Norwegian Sea and the Barents Sea. With its vast continental shelf where the petroleum resources are found, its total territory, including the territorial waters, is 810,814 square miles, an area equivalent to the US 1803 Louisiana purchase of the whole of Louisiana, Missouri, Arkansas, Iowa, North Dakota, South Dakota, Nebraska, and Oklahoma, and most of Kansas, Colorado, Wyoming, Montana, and Minnesota (Encyclopedia Britannica, 2012). 88% of the five million inhabitants are ethnic Norwegians, and they are predominantly Protestant Christians....
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