Page 23 - U4SSC Factsheet Ålesund, Norway, June 2020

local initiatives are recommended to provide international students and researchers part-time and/or
entrepreneurial opportunities that could apply toward their visa requirements. 12

Tourism is a major economic force that is no longer exclusive to the traditional, large, urban hotspots. With
its attractiveness as a naturally, historically, culturally and architecturally beautiful region, there is potential
for Ålesund’s tourism sector to grow further, which will create more jobs in the sector.

A rise in tourism could also lead to further SMEs that are already important for growing regions such as
Ålesund. Research shows that the more flexible structure of SMEs corresponds well to the agility and
innovativeness often possible in smaller and medium-sized cities or regions, compared to that of large
firms that could find themselves constrained by their own structures and resistant or unable to change.
Given that most businesses in Ålesund identify as SMEs, continuing to identify and incorporate the needs
of small and medium-sized businesses into regional policy will be vital for Ålesund’s continued economic
growth and success. Also vital will be addressing barriers to entrepreneurship through policy, namely
obstacles in the regulatory environment, access to finance, exploitation of knowledge from research, skills
for entrepreneurship, and ensuring that women, young people and people from all social groups have an
opportunity to create successful businesses. 13
Lastly, its innovation indicators show that Ålesund is positioned well in this regard, in large part due to its
status as a university town. Incentivizing technological research – through policy and fiscal spending – that
aligns with the needs of the area’s economic sectors will be important for economic growth, given the high
SME makeup of the region. Research shows that technologies that enhance productivity and connectivity
offer vital opportunities for start-ups and established SMEs to participate in the global economy, access
skills and talent, leverage diverse financing instruments, and innovate and grow. However, the uptake and
utilization of digital technologies can be uneven, with many SMEs lagging in the adoption of productivity-
enhancing digital tools and applications. R&D and innovation, access to technology and digitalization are
key drivers of SME productivity at the firm level, which (in turn) is a key driver of long-term growth. It is
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recommended, therefore, that Ålesund facilitates and provides a platform for dialogue between its business
community, academia and not-for-profit community as part of a strategic economic growth vision. Building
a cohesive, integrated and collaborative economic eco-system will lead to more accelerated growth over
a collection of insular individual businesses and organizations.

Optimizing innovation and driving growth: In conclusion, it is recommended that Ålesund focus on the
following three areas to leverage underutilized community resources and drive economic growth:
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1. Invest in its university and other institutions of higher education as engines of innovation and
job creation, to leverage their ability to attract international talent. It is recommended that the
region utilizes job market demand analytics to align labour supply with demand, develop better
training programmes and work with institutions to fill education gaps, thereby creating a local
talent pipeline.

2. Foster diverse communities and networks, utilizing untapped synergies to drive higher economic
returns, as well as greater equity.
3. Build and modernize basic infrastructure to ensure future growth via year-round tourism and to
retain a highly trained local workforce.

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