Page 22 - U4SSC Factsheet Ålesund, Norway, June 2020

Innovation and Employment

Category KPI Result Performance to Benchmark SDG

R&D expenditure 1.13 %
(relative to GDP)

Patents (per 100 000 35.16
inhabitants)

Small and Medium-Sized 99.71 %
Enterprises (SMEs)

Unemployment Rate 2.16 %

Youth Unemployment 2.25 %
Rate

Tourism Sector 3.90 %
Employment

ICT Sector Employment 1.25 %

Ålesund’s overall unemployment rate is lower than the Norwegian rate of 4 per cent (Q1 - 2019), while its
rate of youth unemployment is significantly lower than the national level of 10.6 per cent (Q1 - 2019).
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The region’s positive performance on youth unemployment relative to other European localities of similar
size and population makeup is atypical, given the average youth unemployment rate among the European
Union countries of at least 14 per cent. This is a notable result, as youth unemployment is highly indicative
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of a region’s overall health, making it one of the most illustrative economic indicators.
ICT sector employment is reportedly low in Ålesund, although this may be an indication of the difficulty in
categorizing this KPI, as many high-tech jobs exist in other sectors like shipbuilding and do not fall within
the scope of the KPI. In order to improve performance, however, the region should look to hire locally for
its own future technology needs. As the various municipalities in the region integrate digitally and work
on smart alternatives to unify government services, there is an opportunity to generate a talent pipeline
by supporting appropriate programmes at the local university and other institutions of higher knowledge.
Creating and retaining a larger, smart workforce will be the key to unlocking Ålesund’s full potential as a
‘smart city’.
One way the region can do this is by leveraging international students and researchers at the local university
and higher education institutions. By retaining these graduates, the region can benefit from their economic
contributions that will ultimately increase new business formation, attract more capital to the region,
and drive future job creation. While immigration policy is typically set at the national or federal level,

16 U4SSC Factsheet | Ålesund, Norway | June 2020