Business and career opportunities with
Norwegian companies
Tiina Link, Commercial Manager
Innovation Norway
Innovation Norway
• Official Norway’s commercial representation abroad
• Similar organisation to Enterprise Estonia
• Ca 8000 million EEK for the reinforcement of Norwegian
industry
• 750 employees. Offices in all Norwegian counties and 30
countries abroad. The head office is located in Oslo
• Innovation Norway office in Tallinn co-ordinates activities in the
Baltic states
• Co-operates with Norwegian embassies abroad
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’Impressions of Norway’ video
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Business in Norway
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Key business fields in Norway
• By tradition a fishing nation. 90% of all the caught fish is
exported. Aquaculture a growth sector
• Long tradition as a seafaring nation. 5th largest shipping
nation in the world
• Oil & gas of the North Sea is a corner stone of the economy.
Norway is 3rd largest oil exporter in the world
• Many newly established high-tech companies
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A well off nation
• Per capita income amongst highest in the world
• No 1 in United Nations quality of life index
• Average salary ca 60 000 EEK (2007)
• Unemployment rate: 2.5% (2007)
• Over 300 000 companies in Norway. 40 000 new companies
created every year
• 80% of Norwegian companies have less than 20 employees
• 40% companies in Norway have difficulties finding competent
employees (2007)
• www.careerinnorway.no
Source:Statistics Norway, Manpower, Norwegian Ministry of Trade and Industry
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Norway purchases considerable amount of
production services from abroad
Food
6,0%
Raw materials
10,0%
Other
5,0%
Industrial goods
(cars, computers)
47,0%
Tourism
11,0%
Services
(outsourcing)
21,0%
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Source: Statistics Norway
Norway is among 10 most important trade
partners for Estonia
Norway
2,9%
Others
23,6%
Finland
26,7%
USA
3,1%
Sweden
13,1%
Denmark
3,2%
UK
3,5%
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Lithuania
Germany
4,6%
6,2%
Russia
6,5%
Latvia
8,7%
Source: Estonia’s Statistic Department
The trade between Estonia and Norway is in
the fast growth
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16
1992
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
100
1998
521
1999
637
912
913
981
1267
801
2000
2001
2002
855
2003
855
1925
2245
812
2004
2426
996
2005
2715
1580
2006
1374
2007
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Import %
Eksport%
1617
3848
5016
Source: Norway’s Statistic department. Mil.EEK
The Baltics are a substantial outsourcing
destination for Norway
Export to
Import from
Poland
9.417
9.752
Czech Republic
5.726
4.379
Baltic States
2.612
7.107
Hungary
439
2.574
Romania
714
2.017
Bulgaria
105
206
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Source: Statistics Norway 2007. Million NOK
The reasons behind popularity of the Baltics
• Attractive cost/quality ratio
• Many small and medium size companies
• Relevant business sectors for Norway (wood and metal
production)
• Good logistics
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What is being exported from Estonia to
Norway?
Prefabricated
houses
19,7%
Other
17,6%
Half-fabricates
(textile)
3,7%
Timber
18,6%
Wooden products
7,7%
Furniture
7,9%
Clothes
10,8%
Machines,
equipment
13,9%
Source: Statistics Norway
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Construction sector in Norway
• High purchasing power
• Home + vacation home
• Most houses of wood
• No 1 spenders on housing and maintenance in Europe
• 1/3 of construction sector turnover is from public sector
• Large construction companies + numerous small companies
• Many Estonian companies are active in the market
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Source: Norwegian Ministry of Trade and Industry, Innovation Norway
Information & communication technologies and
business services in Norway
Information communication technologies
• Very high user level
• Mobile solutions, niche software to certain industries
• High cost base - need for many automatised and self servicing
solutions
• Small Estonian suppliers present in the market
Business services
• High growth for the last decade
• Replacement of in-house resources with external service providers
• Due to new ICT technologies servicing becoming more international
Source: Norwegian Ministry of Trade and Industry
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Norwegian business in Estonia
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Norway - 5th largest foreign investor in Estonia
Denmark
1,5%
Russia
1,4%
others
13,4%
UK
2,0%
Norway
2,5%
Sweden
53,1%
Netherlands
3,0%
USA
2,3%
Finland
20,8%
Source: Bank of Estonia
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Over 400 Norwegian owned companies in Estonia
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Source:Innovation Norway, Commercial Register
Norway has a potential to increase business
with the Baltic states
• Norway’s activities abroad have been in good increase over the
last decade
• Largest part of Norway’s trade is with Western Europe,
regulatory side the same in Eastern Europe
• 75% of Norwegian establishments in Baltic states and Poland
are pleased or extremely pleased with the results achieved
• 75% expect increased investments, increased sales and
distribution activities in Eastern Europe in the time to come
• Many expect increased research & development activities in
Eastern Europe
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Source: Deloitte, Innovation Norway
Baltic base for developing business towards the
Nordic-Baltic region and Russia
• Most Norwegian companies in Estonia use their capacities to smaller
or larger extent towards Nordic-Baltic markets
• Companies increasingly interested in using Baltic base for developing
activities towards Russia:
- Limited capacity and relatively high project management cost in Norwegian
companies
- Existing experience of similar development from smaller and faster developed
Baltic markets (easier to make the right decisions)
- Knowledge of Russian language and business culture in the Baltics
- Nordic and Norwegian financing available to establish projects in Russia (50% cofinancing of pre-feasibility costs (travels, salaries, external competence);
Innovation Norway’s equity fond to invest 30% together with Norwegian
companies into projects in Russia)
Source: Innovation Norway
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Doing business with Norway in practice
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Sample project– establisment of Webcat
Webcat AS
- Established in 1999 in Arendal, Norway
- Webdesign and development
- Customers all over Norway, e.g. boat builders
Innovation Tallinn assistance establishing Webcat in Estonia in 2007:
-
Recruitment of key persons
Establishment of the company
Finding premises
Practical assistance and advisory during setup
Financing of the project:
- Company
- Innovation Norway
Status:
- 7 persons in Arendal office in Norway and 3 in Ülemiste City
- Doubling of development personell in Tallinn
- Company doubled turnover in 2007
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What is important when recruiting key persons?
• Relevant industrial experience
• Work experience from a Nordic/foreign company is strong plus
• Very good English skills
• Right personality (result-oriented, trustworthy, able to take
initiative, good at communicating etc.)
• Foreign companies commonly offer higher salaries than local
ones
• Sometimes % ownership in the Estonian company is offered
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Innovation Norway business development
project in ICT in Eastern Europe
• Market scan to give Norwegian ICT companies association
overview of sourcing and market access possibilities in Eastern
Europe
• Project manager Innovation Norway Tallinn office
• Financing: hours covered 100% by Innovation Norway
• Delivery: market scan ready October 2008
• Further activities: workshops, study tours and matchmaking
meetings for the association member companies in Eastern
Europe
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How to create personal contacts in Norway:
• Nordic Council of Ministers financed Nordplus programme
(‘Nordic-Baltic Erasmus’) for studying in Norway
www.norden.ee. See also www.studyinnorway.no
• Nordic Council of Ministers Nordprolink programm for
internships in Norwegian companies www.norden.ee
• World class innovation conference in Norway
www.innotown.com
• International forums to matchmake young (technology)
companies with risk investors www.seedforum.org. Forums
also in Tallinn
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Search for a business partner from Norway
www.eas.ee trade@eas.ee Enterprise Estonia; requests to abroad markets
databases; free of charge
www.koda.ee Estonian Chamber of Commerce; www.etc.ee Estonian Trade Council;
www.chamber.no Oslo Chamber of Commerce. Fee based partner searches
Search on your own:
www.nortrade.com Innovation Norway maintained more substantial companies in
Norway database, possible to find companies by business fields and subfields
www.proff.no backround information on Norwegian companies (when established,
turnover, profit, board members, owners); in Norwegian; free of charge
www.ee.mercell.com Norwegian electronic procurement information, on public and
larger private companies procurements; fee based
www.messe.no Fairs in Norway
www.norske-aviser.com Norwegian newspapers and industrial magazines; in
Norwegian
http://www.ey.com/Global/Assets.nsf/Norway/Establishing_a_Business_in_Norway/
$file/EBIN%20web.pdf Ernst and Young compiled summary on establishment
company, taxes etc in Norway; in English
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Business proposal
• Short English e-mail
- when established, managers/owners, results
- references partnering with other Nordic/foreign companies
- indicative price level
- reference to English website with product pictures, specifications, price list
• Proposal to be sent personally
• Follow-up in some weeks with a phone call
• Invite to visit your company in Estonia – best to see with own
eyes
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Travelling to Norway
By plane and car:
• www.estonian-air.ee, www.norwegian.no, www.flysas.com,
www.finnair.fi, www.tallinksilja.com
In Norway:
• Unforgettable nature
• www.visitnorway.com (official Norway’s travel portal)
• Longer distances than one would expect
• Domestic flights in Norway www.sas.no, www.norwegian.no, train
www.nsb.no, route-planner www.viamichelin.com
• www.use-it.no youngsters’ budget guide on Oslo
• www.met.no weather
• National Geographic elected in 2004 100 most attractive tourism
magnets in the world – Norwegian fjords were no 1
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Norwegians- an Estonian view
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Honest
In-formal
Do not discuss prices
Differentiate between work and
free time (finish 16:00)
Children and family important
Creative
Take enterpreneurship risks
Equality important in society
(women=men, superiors>=subordinates)
Appreciate outdoor activites
Vikings and pathfinders
Proud of everything that is Norwegian
Äitäh! Takk!
Tiina Link
Commercial Manager
Innovation Norway Tallinn
Norwegian Embassy
Harju 6, 15054 Tallinn
Tel. +372 6313 466
tiina.link@innovationnorway.no
www.norra.ee / www.innovasjonnorge.no
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