GOVERNING THE DIGITAL TRANSITION IN NORDIC REGIONS: The...

nordregio report 2019:4 1

NORDREGIO REPORT 2019:4

GOVERNING THE DIGITAL TRANSITION IN NORDIC REGIONS: The human elementBy Linda Randall & Anna Berlina

Prepared on behalf of the Nordic Thematic Group for Innovative and Resilient Regions 2017–2020, under the Nordic Council of Ministers Committee of Civil Servants for Regional Affairs.

NORDREGIO REPORT 2019:4

By Linda Randall & Anna Berlina

GOVERNING THE DIGITAL TRANSITION IN NORDIC REGIONS: The human element

Governing the digital transition in Nordic Regions: The human element

Nordregio Report 2019:4

ISBN: 978-91-87295-68-3ISSN: 1403-2503DOI: doi.org/10.30689/R2019:4.1403-2503

© Nordregio 2019

NordregioP.O. Box 1658SE-111 86 Stockholm, [email protected]

Analyses and text: Linda Randall & Anna BerlinaContributors: Mari Wøien, Laura Fagerlund, Tuulia Rinne, Lise Smed Olsen, Hjördis Rut Sigurjonsdottir, Jukka Teräs & Eeva Turunen

Cover: Samuel Zeller / unsplash.com

Nordregiois a leading Nordic and European research centre for regional development and planning, established by the Nordic Council of Ministers in 1997. We conduct solution-oriented and applied research, addressing current issues from both a research perspective and the viewpoint of policymakers and practitioners. Operating at the international, national, regional and local levels, Nordregio’s research covers a wide geographic scope, with an emphasis on the Nordic and Baltic Sea Regions, Europe and the Arctic.

The Nordic co-operationNordic co-operation is one of the world’s most extensive forms of regional collaboration, involving Denmark, Finland, Iceland, Norway, Sweden, and the Faroe Islands, Greenland, and Åland. Nordic co-operation has firm traditions in politics, the economy, and culture. It plays an important role in European and international collaboration, and aims at creating a strong Nordic community in a strong Europe. Nordic co-operation seeks to safeguard Nordic and regional interests and principles in the global community. Common Nordic values help the region solidify its position as one of the world’s most innovative and competitive.

The Nordic Council of Ministersis a forum of co-operation between the Nordic governments. The Nordic Council of Ministers implements Nordic co-operation. The prime ministers have the overall responsibility. Its activities are co-ordinated by the Nordic ministers for co-operation, the Nordic Committee for co-operation and portfolio ministers. Founded in 1971.

The Nordic Councilis a forum for co-operation between the Nordic parliaments and governments. The Council consists of 87 parliamentarians from the Nordic countries. The Nordic Council takes policy initiative s and monitors Nordic co-operation. Founded in 1952.

Stockholm, Sweden, 2019


Foreword .......................................................................................................................................................... 7

Executive summary ...................................................................................................................................8

Introduction...................................................................................................................................................10

1. Digitalisation in a regional development context .....................................................11 1.1 Definingdigitalisation ...........................................................................................................................11 1.2 DigitalisationintheNordicRegion—TheEuropeanandglobalcontexts ............................... 12 1.3 Digitalisationandsustainableregionaldevelopment ................................................................. 14 1.4 Methodology .......................................................................................................................................... 16

2. Policy context......................................................................................................................................... 19 2.1 EUpolicy .................................................................................................................................................. 19 2.2 Nordicco-operationondigitalisation ............................................................................................. 20 2.3 DigitalisationpolicyintheNordiccountriesandindependentterritories ............................. 21 2.3.1 Denmark ......................................................................................................................................23 2.3.2 Finland ..........................................................................................................................................24 2.3.3 Iceland ..........................................................................................................................................26 2.3.4 Norway ........................................................................................................................................ 28 2.3.5 Sweden........................................................................................................................................ 30 2.3.6 Greenland .................................................................................................................................... 31 2.3.7 TheFaroeIslands ......................................................................................................................32 2.3.8 ÅlandIslands ..............................................................................................................................33

3. Regional cases .......................................................................................................................................35 3.1 REGION OF SOUTHERN DENMARK/VEJLE .............................................................................. 36 3.2 TAMPERE REGION/CITY OF TAMPERE ........................................................................................ 40 3.3 REYKJAVÍK ............................................................................................................................................ 46 3.4 FINNMARK/VARDØ ............................................................................................................................. 51 3.5 REGION SKÅNE/HELSINGBORG ................................................................................................... 56

4. Findings ..................................................................................................................................................... 60 4.1 WhatarethefocusareasofdigitalisationstrategiesinNordicregions? .............................60 4.2HowisdigitalisationapproachedinNordicregions? ................................................................... 61 4.3Howareregionsdealingwiththechallengesandopportunitiesrelatedto digitalisation? .........................................................................................................................................62 4.4Wherearethestrongestpotentialsforknowledge-sharing/collaborationon digitalisationatthedifferentgovernancelevels? ....................................................................... 64 4.5Concludingremarks ............................................................................................................................. 65

Table of contents


References ......................................................................................................................................................67

Appendix I. Digital technologies with high transformative potential ........... 71

Appendix II. List of interviewees ..................................................................................................73

List of figures:Map1.Regionsexaminedinthecasestudies ..............................................................................................35Map2.AdministrativebordersofTampereregion ................................................................................... 40

Table1.Shortdescriptionoftheregionalcases ......................................................................................... 18Table2.DigitalisationpoliciesintheNordiccountries:Anoverview ..................................................... 21

Figure1DigitalEconomyandSocietyIndex,2018rankings. ................................................................... 13Figure2.Digitalisationthroughasustainabledevelopmentlens .......................................................... 14Figure3.Next-generationaccesscoverageinruralareas. ...................................................................... 15Figure4.ElementsofSmartTampereecosystemprogramme………………………………………………………43


Foreword

This report arose from the research undertakenby Nordregio on behalf of the Nordic ThematicGroup for InnovativeandResilientRegions2017-2020 under the Nordic Council of Ministers’CommitteeofCivilServantsforRegionalAffairs.TheworkprogramfortheNordicThematicGroupfor Innovative and Resilient Regions 2017–2020haslistedthreethemesthatshouldlaythebasisfor understanding the factors that supportthe creation of innovative and resilient regionsacross the Nordic countries. These prioritisedthemes were digitalisation, resilience and smartspecialisationthatwereexplored inthethree in-depthstudiesconductedin2017–2018.

Amongtheactivitiesofthethematicgroupfor2019willbeasynergyreportthataimstoidentifylinkagesandcomplementaritiesamongthethreein-depth studies on digitalisation, resilience andsmartspecialisationfromaregionaldevelopmentperspective.Year2019and2020willalsobe theyears of dissemination for the thematic group,and besides publications and policy briefs, aseriesofstakeholderworkshopswillbearrangedacross the Nordic regions to disseminate ourfindingsandtoengageintoadiscussionwiththeNordic practitioners and to receive importantfeedbackandfuture ideasfromtheregionalandlocalactors.Theworkofthethematicgroupwillbe disseminated during the Nordregio Forum inReykjavikinautumn2019.

This reportsummarisestheworkandresultsachieved within the study on digitalisationtitled Governing the digital transition in Nordicregions:Thehumanelement.Thisreportexploreddigitalisation in Nordic regions by studying how

local and regional authorities are implementingnationalandregionaldigitalstrategies.Bylookingat five regional Nordic case studies, the studyexplored how the Nordic regions were dealingwith the challengesandopportunities related todigitalisationandaimedtoidentifythestrongestpotentialforknowledgesharingandcollaborationat the different levels. The in-depth study ondigitalisationintheNordicregionswascarriedoutintheperiodfrom2017to2018anddrewontheinsightsandexperiencesofregionalstakeholdersand relevant national actors considered in thisreport.

Iwould liketotaketheopportunitytothankNordregioforcoordinatinganddisseminatingtheworkofthethematicgroup.Ialsowanttothankthe members of the thematic group for theirengagementwiththeprojectsandtheimportantcontributions that they have made. I am alsogratefultoallourpartnersandotherstakeholdersintheNordicregionswhohaveprovidedinvaluablehelpandinputtoourwork.

Ihopethatyou,asareader,will findthisre- portandotherpublicationsofthethematicgroupuseful and relevant.Wewould also love to hearyourcomments,sopleasecontactus ifyouhaveideasandfeedbacktoshare.

MikkoHuuskonenChairoftheNordicthematicgroupforInovativeandResilientsRegions2017–2018


Thisin-depthstudy,Governing the digital transition in Nordic regions: The human element, conductedby Nordregio on behalf of the Nordic thematicgroup for innovative and resilient regions 2017–2020,exploreddigitalisation inNordic regionsbystudying how local and regional authorities areimplementing national and regional digital strategies.Further,itsoughttoidentifythedifferenttypes of actors (public sectors, companies andcivilsociety)andactorconstellationsthatarekeyinthedigitaltransformationofNordicregions.ThestudyexploredhowtheNordicregionsweredea- lingwiththechallengesandopportunitiesrelatedtodigitalisationandaimedto identifythestron- gestpotentialforknowledgesharingandcollabo-rationatthedifferentlevels.FiveregionalNordiccase studies were chosen for in-depth analysis:SouthernDenmark (Vejle),TampereRegion,Rey-kjavík,Finnmark (Vardø)andSkåneRegion (Hel- singborg). The following describes the responsestothemajorresearchquestions.

Focus areas of digitalisation strategies in Nordic regions. The Nordic countries are widelyacceptedasdigitalfront-runnersintheEuropeanandevenglobalcontext.Thus,perhapsunsurpris-ingly, all Nordic countries are in the process ofimplementingnational strategies relatedtodigi-talisation.Overall,thesepolicieshavefairlysimilargoals,withafocusondigitalpublicservices,sup-portinggrowthandinnovationinbusinessanden-suringdigital security.Digital competence isalsoaddressedbyeachcountryinvaryingways.Atthelocal and regional levels, digital technologies areviewed as tools to fulfil existing responsibilitiesandrealiselocalandregionalgoals.Assuch,spe-cificprioritiesvariedbasedontheissuesthatweremostpressingineachspecificplace,andtheymir-roredthetasksandresponsibilitiesoftheauthori-tiesinquestion.Itwaspossibletoidentifyseveraldigitalfocusareasthatwereconsistentacrossthecasestudyregions,includingdigitisinggovernmentservices, digital infrastructure, e-health, creating‘smart’cities,promotingpublicparticipationandgrowinglocalbusinessandastartupculture.

Approaches to digitalisation in Nordic regions. Perhapsthemostconsistentfindingacrossthere-

gionalcasestudieswastheideathatdigitalisationismoreahumanprocessthanatechnicalone.Acommonanalogywas that 20%ofdigitalisationinvolvestechnologyand80%involvespeople,withthe people component largely being a processof change management. Although this processlookeddifferentineachcase,someelementscon-sideredasimportantsuccessfactorsforworkingwithdigitalisationinapublicsectorcontextweretheexistenceofaspecificinternalteamtosupportdigitalisationwork,includingatrustedandvision-aryleader,findingachievablegoalsandpossessinga‘just-do-it’approach,creatingasharedsenseofprideinachievements,takingacustomer-centredapproachandavoidingstrategydocuments,targetsandactionplansthataretoodetailedorlongtermintheirapproach.

Challenges and opportunities related to digi-talisation. All interview participants noted thecurrent and future labour market impacts ofdigitalisation and saw these as presenting both challenges and opportunities. Specific themesthatwerediscussedacrossmultiplecasesinclud-ed embracing job change by shifting mindsetsfromacultureof fear toenthusiasmabouthow differentworkrolescouldbeimprovedbyremov-ingthemoremenialelements,exploringcreativeresponsestounemployment(e.g.,universalbasicincome and redundancy packages to encourageentrepreneurship),attractingayoungerandmoredynamic workforce to the public sector and ex-ploringnewwaysofthinkingabouteducationandtraining(e.g.,shiftingtocompetence-basedlearn-ingandagreaterfocusondevelopingtransferableskillsandthe introductionofflexibledegreepro-grammes).

Regarding the green transition, most inter-vieweescouldpointtopositiveenvironmentalout-comesoccurringasaresultofdigitalinitiatives.Inmanycases,theunderlyingassumptionwasthatsmartsolutionsweregreensolutionsbytheirna-tureandthatthecityitselfactsasa‘livinglab’fortestingnewideasandsolutions.Atthesametime,environmental sustainability appears to be anoutcomeofdigitalisation rather thanadriver. Inaddition,intervieweesraisedthepotentialofdigi-

Executive summary


talisationtoactasatoolforsocio-economicinclu-sion, e.g., throughdevelopingonline servicesandincreasingpublicparticipationanddemocracy.

The strongest potential for knowledge-sharing and collaboration.Digitalisationisclearlyanissuewithbroadpoliticalsupportand itpresentssub-stantial opportunities for long-term, consideredcollaboration across local, regional and even na-tionalborders.Whatislessclear,however,ishowthedifferentlevelsofgovernmentshouldinteractandwhichrolesarebestsuitedtoeachlevel.This

researchfoundthatthemosteffectiveattemptstoharnessdigitalopportunity involvedabottom-upapproach,embracingtechnologyasappropriatetorespondtolocalchallenges,needsandpriorities.Assuch,digitalprioritiesshouldbedefinedinlinewiththespecificresponsibilitiesofthegovernancelevelinquestion.Thestudyconcludeswithasum-maryofpotentialrolesforthedifferent levelsofgovernmentbasedonthefindingsfromthecasestudyregions.


Digitaltechnologieshavethepotentialtodrama- tically transformour lives.Despite this, researchprovidingdirectinsightintoregionalgovernanceinthedigitalageislimited.Toaddressthisgap,thisin-depthstudy,Governing the digital transition in Nordic regions: The human elementwasconductedbyNordregioduring2017and2018,onbehalfoftheNordicthematicgroupforinnovativeandre-silientregions2017–2020,undertheNordicCouncilofMinisters’CommitteeofCivilServantsforRe-gionalAffairs. It exploreddigitalisation inNordicregionsbystudyinghowlocalandregionalauthor-itiesareimplementingnationalandregionaldigitalstrategies,andthedifferenttypesofactors(pub-licsectors,companiesandcivilsociety)andactorconstellationsthatarekeyinthedigitaltransfor-mationofNordicregions.Specifically,itaddressesthefollowingquestions:

1. What are the focus areas of digitalisationstrategiesinNordicregions?2. How isdigitalisationapproached inNordic re-gions?

3. How are regions dealing with the challengesand opportunities related to digitalisation (par-ticularlywithrespecttothegreentransitionandlabourmarketimpacts)?4. Where are the strongest potentials for knowl-edge-sharing and collaboration at the differentgovernancelevels?

Thereport ispresentedinfourparts.Part1pro-videsanoverviewoftherelevantliteratureonthetopic,withaspecificfocusondefiningdigitalisa-tion, positioning the Nordic Region in the globalandEuropeancontextsandunderstandingdigital-isation inthecontextofsustainableregionalde-velopment.Part1alsodescribesthemethodologyusedintheproject.Part2presentsanoverviewofthenationalcontextsfordigitalisationinthefiveNordiccountriesandthreeindependentterritories.ItalsoaddressesNordicco-operationandbrieflytouchesontheEuropeanUnion(EU)context.Part3presentsthefiveNordicregionalcasestudies.Part4presentsthekeyfindingsfromtheregionalcasestoanswerthefourresearchquestionsabove.

Introduction


1. Digitalisation in a regional development context

Theprimarypurposeofthisknowledgeoverviewistodevelopasharedunderstandingofthecon-ceptsassociatedwithdigitalisation,withafocusontheirrelevanceinaNordicsustainableregionaldevelopmentcontext.Thispartisbasedonadis-cussionpaperDigitalisation as a tool for sustain-able Nordic regional development1preparedinJan-uary2018thatwasfurtherupdatedin2018.Thefirsttaskistodevelopadefinitionofdigitalisationbasedonselectedliterature.Then,weproceedbypositioningtheNordicRegionintheEuropeanandglobal contexts, and present an overview of themain theoretical considerations relevant to digi-talisationinaregionaldevelopmentcontext.Thesectionconcludesbyoutliningtheresearchques-tions and the methodological approach used toaddressthem.

1.1 Defining digitalisationAs with many emerging concepts, there is noshortageofdefinitionsfromwhichtochoose.Ac-cordingtoSabbaghetal.(2013:35),‘Digitalisationisthemassadoptionofconnecteddigitalservicesbyconsumers,enterprisesandgovernments,andisakeyeconomicdriverthatacceleratesgrowthand facilitates job creation’. This definition un-derstandsdigitalisationasanactiveprocessthatrequires not only the development of new tech-nologies, but also their large-scale adoption bydifferent groups in society. It regards digitalisa-tionasapositivedevelopmentfromaneconomic perspective, focusing on job creation and eco-nomicgrowth.However,eveniftheultimateout-comeof digitalisation is a net gainwith respectto jobs, defining digitalisation in relation to jobcreationalonemaybesomewhatsimplistic (De-gryse,2016).Thisperceptionalsohasthepotentialtoalienatethosewhoarenegativelyaffectedbychangestothelabourmarketintheshortterm.

1 ThediscussionpaperisavailableonNordregio'swebsite

Furthermore,thedefinitionfromSabbaghetal.(2013)failstohighlightthetransformativeele-mentofdigitalisation.AstheEuropeanCommis-sion(2015:3)explains:

Information and Communications Technology (ICT) is no longer a specific sector but the foundation of all modern innovative economic systems. The Internet and digital technologies are transforming the lives we lead, the way we work—as individuals, in busi-ness and in our communities as they become more integrated across all sectors of our economy and society.

Thus, although the technologies themselves arenew, digitalisation—the large-scale adoption ofthese technologies into different parts of socie-ty—canbeunderstoodmoreaccuratelyasaseriesofchangestotheexistingfacetsof life.This isavitaldetailfromapolicyperspectiveasitsignalsa societal change that goes beyond the purviewofaspecificgovernmentdepartmentandinsteadhasthepowertoreshapeeveryelementofourso- cieties.Giventhis,thetransformativequalitiesofdigitaltechnologiesareperhapsasequallyimpor-tantasthenovelaspects.

ThisisfurtherelaboratedbyAlmetal.(2016:14),whodefinedigitalisationas‘thebroadadop-tionofdigitaltechnologyinhomes,businessesandthesocietyasawhole’,explainingthat:

Digitalisation constitutes a transformative shift in technology across industries and society in general. It fundamentally changes the way people live, work and communicate, and how they shop for and pro-duce goods and services. It changes the way com-panies are run, how customers are acquired and how enterprises do business.

Thisdefinitionincorporatesboththeactionsasso-ciatedwithdigitalisation(large-scaleadoptionofdigitaltechnologies)anditstransformativequali-ties.Where it falls short,however, is that it fails

http://www.nordregio.org/wp-content/uploads/2017/04/Digitalisation_Discussion-Paper_Jan-31.pdf


tomakeanyspecificreferencetotheroleofthepublic sector, a consideration that is vital in theNordiccontext.

Itshouldbenotedthateachofthedefinitionshighlightedabovewastakenfromareportorar-ticlethatservedparticularpurposes.Assuch,thecritiqueprovidedhereisnotdesignedtodiscountthem, but rather to highlight the strengths andweaknessesofeachinthecontextofthecurrentstudy.Basedonthiscritique,andborrowingfromthedefinitionsabove,asappropriate,thisin-depthstudydefinesdigitalisationasfollows:

'Digitalisation is the transformation of all sectors of our economy, government and society based on the large-scale adoption of existing and emerging digital technologies.'

Thus,digitalisationisthetransformationandthetechnologies are the tools through which it willoccur. Importantly, this transformation is con-tingentontheadoptionofthetechnologiesonalarge scale. Some of these technologies alreadyexistandhavebeenadoptedtovaryingdegrees,e.g., the mobile Internet, the Internet of Things(IoT)andartificialintelligence(AI)(Manyikaetal.,2013).Othersexistbutareyettobeadoptedatascalenecessarytohaveanymeaningfulimpacton the way we live, e.g., three-dimensional (3D)

printingandnext-generationgenomics (Manyikaet al., 2013). Stillmore are at varying stages ofdevelopment, with their transformative aspectsunclear,suchasadvancedmaterials.Finally,thereis nodoubt that technologies thatare yet tobeimaginedwillplaya role in thedigital transition.Descriptionsoftheseandotherdigital technolo-giescanbefoundinAppendix I: Digital technologies with high transformative potential.

1.2 Digitalisation in the Nordic Region—The European and global contextsTheNordiccountriesareoftenpositionedasdigi-talfront-runnersinboththeEuropeanandglobalcontexts. In the European Commission’s Digital Economy and Society Index,Denmark,SwedenFin-landandtheNetherlands(inthatorder)topthelistintermsoftheoverallranking,aswellasper-formingwellonindividualindicators(seeFigure1).Norwayalsoperformswellontheindicators,de-spitenotbeing formally included in the ranking.2 Therankingisbasedonfiveaspects:1)connectivity(fixed broadband,mobile broadband, speed and

2 NorwayhasbeenaddedtoFigure1bytheauthorsbasedonstatisticsprovidedinthecountry-specificreportforNorway.AlthoughasimilarreportisprovidedforIceland,thestatisticsarenotcurrentenoughtoallowforcomparisons.

Source: John Schnobrich / unsplash.com


affordability); 2) human capital (digital skills); 3)useofthe Internet (content,communicationandtransactions);4)integrationofdigitaltechnology(business digitisation and e-commerce); and 5)digital public services (e-government)(EuropeanCommission,2017c).3WefindthatNordiccountriesalso rankhighest in the tables foreachof theseaspects.Finlandleadsthewayonhumancapitalanddigitalpublicservices,DenmarkonintegrationofdigitaltechnologyandNorwayonInternetuse.

AlongsidetheagendaattheEuropeanscale,workhasalsooccurredtomapthestateofplaywithrespecttodigitalisationintheNordic–BalticRegion(WernbergandAndersson,2016).Todate,two reports have been released that map indi-cators across theNordic–Baltic states, with themostrecenthavingaparticularfocusoncities(seeBalticWernbergandAndersson,2016).TheNordiccountries performwell in theNordic–Baltic con-text.Again,however,thereissubstantialvariationinperformancebasedondifferentindicators.Forexample,therearequite largegapsbetweenthecountrieswhenitcomestotheuseofe-procurementinfirmsorprivateR&Dexpenditureinscienceandtechnology,whereasrathersmallgapsexistwhenit comes to fixed broadband penetration andstartupsinICTacrosstheNordic–Balticcountries(WernbergandAndersson,2016).

AnotherreportbasedontheBostonConsulting

3 Notethattheindexweightsthefiveaspectsordomainsdifferently,withconnectivityandhumancapitalconsideredthemostimportant(weightedat25%each),followedbyinte-grationoftechnology(20%)andthentheuseofInternetanddigitalpublicservices(15%each).

Group’sE-IntensityIndex4includesDenmark,Fin-land,NorwayandSwedenamongnineEuropean‘digital front-runners’5 (Almetal.,2016).6There-porthighlightsthehighershareofe-GDP7inthesecountries (8% on average) comparedwithwhatittermsthe ‘EUBig5’8 (wheree-GDP is5.1%onaverage).Accordingly,theresearchsuggeststhatthesecountriesstandtomakethegreatestgainsfromfurtherdigitaladvancement,particularlyfullrealisationof theEuropeandigital singlemarketandfurtherdigitalisation inemergingfields(e.g.,IoT,advancedrobotics,bigdataanalysisandaug-mented/virtualreality).

At the same time, the authors argue thatthesecountrieshavemoretoloseifEuropefailstokeepupwiththerestoftheworld.TheyarehighlycriticalofEuropeanactionondigitalisation,sug-gestingthat‘thewindowofopportunityisclosingfast’forEuropetopositionitselfasagloballeaderinthisspace(Almetal.,2016:19).Thereportesti-matesthat,basedonthecurrentpaceofdevelop-

4 TheE-intensityindexisaglobalindexbasedonthreeequallyweighteddimensions:1)enablement(mobileInternet,fixedInternetandoverallbandwidth);2)expenditure(onlineretail,mobileretailandonlineadvertisements);and3)engagement,whichisbrokendownfor:business(businessInternetuseandICTimpact),consumers(Internetuse,onlinemediaandsocialactivity)andgovernment(e-Governmentande-Education).5 Thefiveremaining‘digitalfront-runners’inEuropeareBelgium,theNetherlands,Estonia,IrelandandLuxembourg.6 ItshouldbenotedthatthisreportwascommissionedbyGoogle.7 E-GDPisameasurethatincorporatesalleconomicactivitythatisconductedonline.Itencompassesothersectorsandcouldtheoreticallyreach100%ifalleconomicactivitywasconductedonline.8 The‘EUBig5’areGermany,France,theUK,SpainandItaly.

Figure 1 Digital Economy and Society Index, 2018 rankings.Source: (European Commission, 2017c).

n1.Connectivityn 2.HumanCapitaln 3.UseofInternetServicesn 4.IntegrationofDigitalTechnologynDigitalPublicServices

DK SE FI NL LU IE UK BE EE ES AT MT LT DE EU SI PT CZ FR LV SK CY HR HU PL IT BG EL RO

80

70

60

50

40

30

20

10

0


ment,eventhefront-runnernationsinEuropewillbebehindChina,SouthKorea,SingaporeandTai-wanby2025(Almetal.,2016).Itsuggeststhatthefront-runnersshouldworktogethertosharegoodpractice(allarestrongindifferentareas)andtakea leadership role. This includes both ideologicalleadership—toaddresstheconcernsofmorepes-simisticnations—andpracticalleadershiptotargetthecurrentlybroadEUstrategy(Almetal.,2016).

Nordic cities are also front-runners when itcomes tovarioussmart technologysolutions, in-cludingthemanagementofurbansystemsanden-vironments.Nordiccitieshavebeenearlyadoptersof ICT infrastructure in cities, and of knowledgeexpansionthroughtheimplementationof'smartcity' solutions. This builds on a long tradition ofdeveloping infrastructure tosupport thedigitali-sationofpublicservices.Forexample,Finlandwasthe first country to declare that broadband ac-cesswasalegalrightforeverycitizenandSwedenranksfourthintheworldinthepercentageoffixedbroadbandsubscriptionsonfibre-opticnetworks(Borgesetal.,2017).Sweden isamongthemostsuccessful countries in developing community-basedbroadbandinitiatives,so-called ‘localfibrenetworks’. The Swedish Local Fibre Alliance hassupportedlocalgovernmentsandcommunitiestoplanandlaunchmunicipallyownedandmanagednetworks(ENRD,2017).TheSwedishgovernmentis committed to providing expanded high-speedInternettoruralareasandStockholmisexpectedtobethefirstcityintheworldwitha5Gnetworkin2020(Borgesetal.,2017;NyTeknik,2018).

Intermsoftheprovisionofpublicservices,re-centresearchfoundthattheNordiccitieswerethemostdigitallyadvancedinEurope, independentofcitysize(ESPON,2017).Thestudyalsoshowedthatthereisagenerallyhighconfidencelevelregardingthereadinessofcitiestorespondtodigitaltransi-tionandseizetheopportunitiesofdigitalisation.

1.3 Digitalisation and sustainable regional developmentWhen thinking about digitalisation as a tool forsustainableNordicregionaldevelopment,itisuse-ful toconsidersocial,economicandenvironmen-tal aspects. Figure 2, although simplistic in itsacknowledgmentofthedynamicnatureofthesefieldsandthewaytheyinteract,providesabasicoverviewofhowsomeofthekeyissuesrelatedtodigitalisationcanbeconsideredthroughasustain-abledevelopmentlens.

Figure 2. Digitalisation through a sustainable development lens.

Fromasocial perspective,thefirstpriorityistoen-sureequalaccesstodigitaltechnologies.Persistentdisparitiesremainbetweenurbanandruralareaswithrespecttotheavailabilityofdigitalinfrastruc-ture and the adoption of digital technologies—asituation often referred to as the digital divide.Onthesupplyside,ruralareasarelaggingwhenitcomestotheprovisionofnext-generationaccessinfrastructure(seeFigure3).Onthedemandside,alackofdigitalskillsamongruralpopulationscanlimitthepossibilitiesfor innovativeserviceprovi-sionandbusinessorcustomeruse(ENRD,2017).Thetermdigitaldividecanalsobeusedtodescribeaccesschallengesrelatedtosocio-economicstatus,age,genderandhealth.Consequently,alargepro-portion of citizens in urbanareas lack the infra-structureandcompetenciesrequiredforfullpar-ticipation inadigital life.Aswithotherformsofsocialstratification,elementsofdisadvantagearecross-cutting.Forexample,anelderlypersonlivinginaruralcommunitymaybesubjecttoa‘doubledigitaldivide’(ENRD,2017).

Closingthedigitaldivideisvital,particularlyifweconsidertheincreasingshiftofotherelementsofsociallifetoonlinemediums.Governmentser-vices,e.g.,areincreasinglydeliveredonline,withaviewtoimprovingcitizenexperienceandincreasinginternalefficiency(ESPON,2017).ThisisoccurringacrossEuropetovaryingdegrees,withthehigh-estlevelsofdigitalisationreportedinthefieldsofspatial planning and construction, tourism, cul-ture,leisure,sports,e-inclusioningovernanceandeducation(ESPON,2017).Digitaltechnologiesarealsobeingusedtopromotedemocraticandcollab-

SocialEconomic

Increasedproductivity

Newbusinessopportunities

Labourmarketconsequenses

New"green"businessopportunities

"smart"solutionsclimatechallenges

Newwaysofknowing,actingandinteracting

Citizenparticipationanddemocracy

Digitalaccess

eServices

Environmental

Governance


orative approaches to public policymaking, cre-ating more open, transparent and participatorygovernments (OECD, 2014) and they can fostercitizen-drivenapproaches(citizensandbusinessesformulatinganddeterminingtheirneedsinpart-nershipwithgovernments).

Fromaneconomic perspective, digitalisationhassubstantialimplicationsforthelabourmarket.Severalforcesareatplayhere.First,thereiscon-siderablediscussionaboutthepotentialforauto-mationtodestroyorchangethenatureofexistingjobs(Autor,2015;BergerandFrey,2016;Degryse,2016).Typically,tasksthatcanbeautomatedarethosewhichachieveconsistentresultsbyfollowingwell understood and predictable procedures andwhichdonotrequireflexibility,judgementorcom-monsense.Importantly,automationdoesnotnec-essarily mean replacing humans altogether andmayapplyonlytocertaintaskswithinaworkrole.In most cases, this results in a greater demandfor high-level analytical and/or interpersonalskillsintheremaininghumancomponent(BergerandFrey,2016).Thiscanresultinskillsshortages,slowingdowndigitaldevelopmentinsomesectors(BergerandFrey,2016;ESPON,2017).Untilnow,themostsubstantialjobdestructionhasoccurredin middle-skilled professions (e.g., book-keeping,clerical work and data entry). However, AI is in-creasinglyraisingthepossibilityofautomationinhigh-skilled professions (Autor, 2015; Berger andFrey,2016).

Atthesametime,thereisconsiderablediscus-sionaboutthepotentialfor jobcreationthroughdigital technologies (Alm et al., 2016; Degryse,2016;Sabbaghetal.,2013).Fromaregionaldevel-opmentperspective,itisimportanttoconsidertheterritorialconditionsunderwhichjobcreationwilloccur.Duringthelate1990stotheearly2000s,a

bodyofliteratureemergedsuggestingthatdigitaltechnologieswouldsignalthe‘deathofdistance’,allowing socio-economic activities to become in-creasinglydetachedfromphysicalproximity.Thisideahasbeenwidelyrefutedsubsequently,perhapsmost succinctly by Morgan (2004), who arguesthat:

[The ‘death of distance’] thesis grossly over-estimates the distance-destroying capacity of ICT by con-flating spatial reach with social depth. Because information diffuses rapidly across organisational and territorial borders, it wrongly assumes that understanding does too. (Morgan 2004: 3, emphasis in original)

Infact,ratherthantheroleofphysicalproximitydeclining,territorialfactorshavebecomeincreas-inglyimportanttobusinessinnovation.Thisisevi-denced in the emergence of regional innovationclusters (Morgan, 2004;Soete, 2006),aswellasin the increasing competitiveness between citiesontheglobalstageindifferentindustries(Kourtit,2016;Scott,2011).

Thishassubstantialconsequencesforregionaldevelopment inthecontextofdigitalisation.Evi-dencesuggeststhatnewindustries(andtheasso-ciatedjobs)aremostlyemergingincitiesalreadyrich in high-skilled jobs (Alm et al., 2016; Bergerand Frey, 2016; Degryse, 2016). Thus, the placeswherejobsareleastvulnerabletoautomationarealsotheplacesthataremostlikelytoexperiencejobcreation(BergerandFrey,2016).Thispresentsparticularchallengesforsocio-economicsustain-ability inthecontextoftheNordicRegion,whichischaracterisedbyhighlevelsofurbanisationandsubstantial peripheral, rural and sparsely popu-latedareas.

Figure 3. Next-generation access coverage in rural areas. Source: European Commission, 2017a.

100%

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0%MT BE NL PT LU DK UK LV AT CY DE IE SI ES HU SE EE EU SK CZ FI BG IT RO PL HR FR EL

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From an environmental perspective, digitaltechnologieshavethepotentialtomakecitiesandregions ‘smarter’, reducing consumption, loweringcarbonemissionsand improvingqualityof life forresidents. So-called smart city initiatives havereceived considerable attention in the literature.Solutionsgenerally involveadoptingtechnologiessuchasautomation,machinelearningandtheIoTtosupportcityfunctionssuchaspublictranspor-tation,traffic,lighting,energysystemsandwasteand water management (Borges et al., 2017).Moreover,smartcitysolutionscanusedformoni-toring,theprovisionofdatatosupportdecision-makingandtomonitorprogresstowardsenviron-mental goals (Borges et al., 2017; IoT Agenda,2017).

Morerecently,thesmartcityhasbeengivenaruraltwist,throughtheadoptionofthe‘smartvil-lages’concept.Inthe‘Cork2.0Declaration’(2016),theEuropeanCommission,theruralnetworksaswell as rural stakeholders call forpolicies topay‘particularattention toovercoming thedigitaldi-videbetweenruralandurbanareasandtodevelopthepotentialofferedbyconnectivityanddigitisa-tionofruralareas’(EuropeanCommission,2016c:3).Thisworkrecognisesthat innovationanddig-itisationareequallyimportantforgreenandsus-tainableruralareasandhasaparticularfocusondeveloping a circular bioeconomy and creatinghigh-qualityjobsintheagriculturalsector.

Digitalisation also contributes to the greentransition by enabling business models that pro-motesustainableconsumptionthroughthe‘sharing’of goods and services through digital platforms.This phenomenon is generally referred to as thesharingeconomy.In2015,thesharingeconomywasestimatedtohaveaglobalnetworthof$150BNUSD (Almetal., 2016).Commonly cited interna-tional examples include Airbnb (users rent theirhomeorpartoftheirhometootherusers),Uber(usersprovideliftstootherusersusingtheirownvehicle)andUpwork(linksfreelanceworkerswithpotentialemployers,generallyforthepurposeofperformingshort-term,project-basedwork).Theterm itself is heavily contentious, primarily be-causetheso-called‘sharing’often(thoughnotal-ways) involvesa financial exchangebetween thetwo parties (Degryse, 2016). However, there aremanylocal-levelexamplesthatdopromote‘sharing’in the traditional sense (e.g., Skjutsgruppen, theSwedishride-sharingplatform).MoreinformationaboutthesharingeconomyintheNordiccontext

canbefoundinthereport,Nordic Labour Markets and The Sharing Economy—Report from a Pilot Project(DølvikandJesnes,2017).

Finally,andperhapsmostimportantly,itisvi-taltoacknowledgethattechnologiesthemselvesneither produce nor preclude sustainable devel-opmentoutcomes.Assuch,thedigital transitionrequires innovative, co-ordinated and multi-levelgovernance approaches that foster interactionbetween citizens, business, non-governmental or-ganisations and public administrations. Govern-mentshavearesponsibilitytocreatetheconditionsinwhich other sectors canmake themost of thedigitalopportunity.Theymayalsoneedtorespondindifferentwaystonegativeconsequences,e.g.,thepotential job losses described above. Successfuldigital transition requires multi-level governancearrangements, including both vertical and hori-zontal dimensions. Cross-sectoral collaborationisakeyapproach inrealisingdigitaltransforma-tion.TheEUeGovernment Action Plan 2016–2020 emphasisestheneedtofostermoresystematisedinteractionof citizens, businessandnon-govern-mentalorganisationswithpublicadministrations(EuropeanCommission,2016b).

1.4 MethodologyAsdemonstratedabove,digitalisation isabroadconcept with far-reaching consequences for alllevels of government, business and society. Re-gionalpolicymakinginthisfieldisinitsinfancyandspecificapproachesappeartobebroadinnature,aswellasdifferingbasedonthespecificcharac-teristics of countries and regions. There ismuchto be learned about the specific ways in whichregional actorsare responding to the challengeshighlighted above, aswell as the interaction be-tweenpoliciesandactorsatthedifferentlevelsofgovernance.Assuch,thisstudyhastakenabroadapproach,exploringdigitalisationasatoolforsus-tainableNordicregionaldevelopmentwithrespecttosocial,economicandenvironmentalaspects,aswellasconsideringgovernanceimplications.

Theresearchexploredthefollowingquestions:1. What are the focus areas of digitalisationstrategiesinNordicregions?2.Howisdigitalisationapproached intheNordicregions?3.How are regions dealing with the challengesand opportunities related to digitalisation (par-ticularlywithrespecttothegreentransitionandlabourmarketimpacts)?


4.Wherearethestrongestpotentialsforknowl-edge-sharing and collaboration at the differentgovernancelevels?

The empirical component of theproject consistsoftwoparts:areviewofthedigitalisationpolicycontextineachofthefiveNordiccountriesandthethreeindependentterritories,andcasestudiesinfiveNordicregions.

Policy reviewAreviewofthepolicycontext ineachofthefiveNordic countries and the three independent ter-ritorieswasconducted.Thisworkwasbased ini-tiallyonareviewoftherelevantpolicydocuments,sourced through the websites of the relevantdepartments in the respective countries. It wasfurther informedby in-depthsemi-structured in-terviewswithoneortwocarefullyselectedpublicservantsineachcountryandindependentterrito-ry.Theaimsofboththeinterviewsandthepolicyreviewswere to identify the key policies, strate-gies, projects andactors, gainanunderstandingofthepriorityareasandconsidertheinteraction

between regionaldevelopmentanddigitalisationpolicies.Itshouldbenotedthatalthoughdigitali-sationisathemethatcrossesallpolicyareas,thescopeofthepolicyreviewwaslimitedtodigitali-sationstrategiesandregionaldevelopmentstrat-egies.Further,thepolicyreviewwasstrengthenedbycommentsandfeedbackprovidedbythemem-bersoftheNordicthematicgroupfor innovativeandresilientregions2017–2020.

Regional case studiesThe most substantial element of this in-depthstudywasthecasestudiesconductedinfiveNordicregions. The case selectionwas a two-step pro-cess.Alistof11caseswaspresentedtomembersof theNordic thematicgroup for innovativeandresilientregions2017–2020inearly2018basedondesktop research intomunicipalities and regionsthataremostactiveinthefieldofdigitalisation.Then,this listwasrefinedbasedonacombinationoffeedbackfrommembersoftheNordicthematicgroup for innovative and resilient regions 2017–2020 about the phenomena of most interest intheirrespectivecountries,andestablishedselection

Source: Luke Porter / unsplash.com


Table 1. Short description of the regional cases

Regional characteristics

Denmark SouthernDenmark

Intermediateregion,remote;1.2millioninhabitants;sustainableenergy,healthinnovation

Finland Tampere Intermediateregion,closetoacity;500000inhabi-tants;ICT,engineering,gameindustry

Iceland Reykjavík Intermediateregion,closetoacity(capitalregion);220000inhabitants;tourism,creativeandknowledge-basedindustries,fisheries,energyproduction

Norway Finnmark Predominantlyruralregion,remote;75000inhabitants;fisheriesandaquaculture,culture,tourism,oilandgas,military,agriculture,energyandmining

Sweden Skåne Intermediateregion,closetoacity;1.34millioninhabitants;lifesciences,foodsector,telecommunications,healthtechandgamedevelopment

criteria. The selection criteria were establishedwiththeaimofincludingarichselectionofNordiccasesrelatedtothefollowingelements:

1. Regional characteristics: Type of region (pre-dominantly urban, intermediate, predominantlyrural);9population;economicstructure;andotherspecificcharacteristics

2.Digitalisation approach: Evidence of a holisticand/or regional focus (i.e., digitalisation is ad-dressed beyond the smart city); and diversity ofpractices highlighting the social, economic andenvironmentalaspectsofsustainability

ThefinalselectionoftheregionalcasesisshowninTable1.Empiricaldatawasgatheredforthecasesthrough a combination of desktop research andsemi-structuredstakeholderinterviewsheldduringseveralfieldtripstotheselectedregions.Thedif-ferentnatureofthecasesresulted inslightvari-ationsinthestakeholdersinterviewedineachre-gion.However,asageneralrule,theyincluded:one‘localchampion’(akeyplayerinthefield);onetotworepresentativesoftheregionalauthority;oneto three representatives of a selectedmunicipalauthoritywithintheregion;onerepresentativeofaresearchinstituteoruniversity;andonetotworepresentativesfromtheprivatesector(e.g.,clus-terorganisation,technologycompanyandsoon).Thisresultedinbetweensixtoeightinterviewsforeachcasestudy,mostofwhichwerebetween45and75minutesinlength(afulllistofintervieweesisprovidedinAppendixII).

Ineachcase,the‘localchampion’actedastheinitial informant, recommending other interviewparticipantsbasedonthedesiredtargetgroups.The snowballingmethodwas thenused to iden-tify further interviewees. In the smallnumberofinstanceswhere itwasnotpossible to interviewallstakeholdersduringthefieldtrip,askypeinter-viewwasconductedata laterdate.Apilotcasewas conducted initially to test themethodology(Tampere, Finland). This resulted in someminoradjustmentstothe interviewquestionsbutnoneso substantial as to affect the comparability ofthiscase.

9 Urban–ruraltypologyofNordicregions.

Thecasestudyinterviewsweretranscribedforthepurposeofcarryingoutanin-depthcross-caseanalysis that laid the basis for developing find-ingsandmakingrecommendationsforthepolicymakersandpractitioners.TherelevantinputandcommentsprovidedbythemembersoftheNordicthematicgroupforinnovativeandresilientregions2017–2020duringtheregularmeetingswereusedtoimprovethestudy.

http://www.nordregio.org/maps/urban-rural-typology-of-nordic-regions/


2. Policy context

ThissectionpresentsanoverviewofEUpolicyandNordic digitalisation strategies at the nationallevel, providing a basis for the study of regionaldigital agendas that follows in Part 3: Regionalcase studies. It alsoprovidesabrief overviewofotherjointNordicworkinthisfield.

2.1 EU policyDigitalisation is highly important to theEU, andthe policy agenda in this area is both vast andcomplex. Theaimof this section is tobriefly ex-aminethemostrelevantaspectsoftheEUpolicytoprovide thebroader context for themorede-tailedaccountofNordicdigitalisationpolicythatfollows.TheEU Digital Agenda 2020isoneoffivepillarsoftheEurope 2020 Strategy,andprovidesan overarching framework for European effortstowards a digital society (European Commis-sion, 2014). Central to the agenda is theDigital Single Market Strategy for Europe,whichfocusesonmaximisingthegrowthpotentialofthedigitaleconomy,emphasisingthebenefitsofdigitalser-vicesforbusinessesandindustries,andalsoforEUcitizens(EuropeanCommission,2015).Thepolicyhas recently undergone amid-term review,withkeyachievementsincludingtheabolitionofroam-ingcharges,portabilityofcontentandsettingthestage for the development of 5G technology(EuropeanCommission, 2017c). The review identi-fiesthreemainareaswherefurtherEUaction isnecessary,includingdevelopmentoftheEuropeandata economy, addressing cybersecurity chal-lengesandpromotingonlineplatforms(EuropeanCommission,2017b).

OtherEUpoliciesofrelevancearethoseaimedatsocietalaspectsofdigitisation.TheEUeGovern-ment Action Plan 2016–2020identifiesthreeprior-ityareas,includingmodernisingpublicadministra-tionsusingkeydigitalenablers,enablingmobilityof citizens and businesses by cross-border inter-operability and facilitating digital interaction be-tweenadministrationsandcitizens/businessesforhigh-quality public services (European Commis-sion,2016b).TheEuropeanCommission’seHealth

Action Plan 2012–2020prioritisestheachievementofwiderinteroperabilityofe-healthservices,sup-portforresearchdevelopmentandinnovation,en-suring wider deployment and facilitating uptakeofe-healthservicesandthepromotionofinterna-tionalco-operation(EuropeanCommission,2012).TheDigital Education Action Plan(2018)prioritisesmaking better use of technologies for teachingandlearning,developingrelevantskillsandcompe-tencies for digital transformation and improvingeducation systems through better data analysisandforesight(EuropeanCommission,2018b).TheNew Skills Agenda for Europe (2016)outlinesspe-cificactionstosupportandensuredeliveryoftherighttrainingandskillsforEUcitizens(EuropeanCommission,2016e).

The European Commission also highlightsthe importance of cities and regions as enablersofdigital transformation,asoutlined in theBlue-printforcitiesandregionsaslaunch-padsfordigi-tal transformation, developed by the EuropeanCommission’s Strategic Policy Forum on DigitalEntrepreneurship2014–2016(EuropeanCommis-sion,2016a).Theblueprintunderlinesthestrategicroleofurbanandregionalecosystemsinthedigitaltransformation, calling for strong leadership andmobilisationofalllocalactors.TheEuropeanCom-missionsupportsdigitalisationthroughsmartcityinitiatives and projects and actions that aim tobuild regionaland local capacity indigital trans-formation (European Commission, 2016d). TheUrban Agenda for the EU(2016)alsoincludesdigi-talisationasafocusarea(EuropeanCommission,2016f).

Finally,itisworthnotingthenewdataprotec-tionrulesthatcameintoeffectinMay2018,basedontheGeneral Data Protection Regulation,whichwasadopted inMay2016.Thenewrulesprovideconsistency across the continent (including non-EuropeancompaniesofferingservicesintheEU),strongerandnewrightsforcitizens,strongerpro-tectionagainstdatabreachesand thepower toimposefinesforbreaches(EuropeanCommission,2018a).


2.2 Nordic co-operation on digitalisationDuringtheNorwegianchairmanshipoftheNordicCouncilofMinisters,theadhoccouncilofminis-tersfordigitalisation(MR-Digital)wasestablishedfor theperiodfrom2017to2020,which laidthefoundationforincreasingco-operationondigitali-sationintheNordicregions(NCM,2017).In2017,thejointdeclarationfordigitalisation,The Nordic–Baltic Region: A Digital Front-runner,wassignedbyNordicandBalticministersataministerialmeetingduringtheDigitalNorthconference.Themainob-jectivesofthedeclarationare:

1. Strengthening the ability for digital transfor-mation of governments and societies, especiallybycreatingacommonareaforcross-borderdigitalservicesinthepublicsector;2.Strengtheningthecompetitivenessoftheregion’senterprisesthroughdigitalisation;3.EnhancingthedigitalsinglemarketintheNordic–Balticregion.

In2018,thedeclarationonArtificial Intelligence in the Nordic–Baltic Regionwasintroduced.Theover-allobjectiveofthisdeclarationistodevelopandpro-motetheuseofAItoservehumansbetterthroughskillsdevelopment,enhancingaccesstodataanddeveloping ethical and transparent guidelines,standards,principlesandvalues.

AmongtherecentinitiativesisaNordic–Baltic Action Plan for 5G, 2018–2020thatwaspresentedtotheNordicprimeministersatthesessionoftheNordic Council on 30 October 2018. The Action Plancontainsspecificinitiativesandgoalsforco-operationupto2020,suchasthedevelopmentofnew testing facilities, removing obstacles to theexpansionofthe5Gnetworkandmonitoringthedevelopmentof5G,particularlyforcertainsectors(e.g.,transportandmanufacturing).

Nordic InnovationreceivedfundingundertheNordic Co-operation Programme for Innovation and Business Policy 2014–2017 for several light-houseprojects,oneofwhichisentitledInnovative Nordic Digital Solutions.ThisprojectwillcontributetotheambitiousgoalofmakingtheNordicRegionadigitalpioneerandincludesthreetracks:

n Track1:Nordicelectronicidentity(e-ID)wasledbytheNorwegianDirectorateforAdministrationandICTandhasdocumentedsimilaritiesanddif-ferences between the e-ID systems inDenmark,

Finland, Iceland, Norway and Sweden, with theoverallaimofpromotingcross-borderco-operationon e-ID (for the full report, see Hansteen et al.,2016).Asafollow-up,theNordic–Baltic eID Project waslaunched,whichisbeingledbyNorwayandtheAgencyforPublicManagementandeGovernment(DiFi)during2018–2020.n Track 2:NordicSmartGovernment, ledby theDanishBusinessAuthority,seekstodevelopanewdigitalinfrastructurethatwillstreamlineinterac-tions between business and government via theautomatedexchangeofbusinessdata (formoredetailsvisithttps://nordicsmartgovernment.org).n Track3:Data-driven innovation, ledbyNordicInnovation, includes the Hack4Norden challengethataimstosupportthedevelopmentofcompa-nies using data in new and innovativeways (formoreinformation,seeNordicInnovation,2016).

The project also resulted in the comprehensivereportThe Nordic Digital Ecosystem: Actors, Strat-egies, Opportunities.Theresearchfoundthat,al-thoughtheNordiccountriessharecommongoals,theyareworkinginquitedifferentwaystoachievethese goals (van Marion and Honerud Hovland,2015).Assuch,theauthorssuggestthatbilateralor trilateralco-operationmaybeamore fruitfulstartingpoint(vanMarionandHonerudHovland,2015). Inasurvey informingthereport,mostre-spondents (80%) stated that their organisationwasinvolvedinNordiccollaborationofsomekind,butevenmore (90%)believed thatpotential ex-istsforfutureco-operation.Interestingly,despiteall fiveNordiccountries reportingworkingon,orplanningtobeginworkon,adigitalstrategy,nonehad plans to include a Nordic agenda in thesestrategies (van Marion and Honerud Hovland,2015).FindingacommonplatformfromwhichtonegotiateintheEUarenawasnotedasaparticularpriorityforcollaborationwork.

The bilateral co-operation recommended inthereportisalreadyevidencedataregionalscalethrough cross-border co-operation, which formsavitalpartofNordicco-operation.Bywayofex-ploringdigitalisationinthecontextofcross-borderco-operation, Nordregio will collaborate withSvinesundskommittén (a Swedish–Norwegiancross-border organisation) to conduct a cross-border study around the theme of digitalisationasatoolforbluegrowthandsustainableNordicregionaldevelopment.


Table 2. Digitalisation policies in the Nordic countries: An overview.

Country Relevant agendas and programmes (for a full list, check each country separately)

Main themes and focus areas Regional agenda

Denmark Digital Strategy 2016–2020: A Stronger and More Secure Digital Denmark

Strategy for Denmark’s Digital Growth(2018)

Boostinggrowth(tradeand industry)

Effectiveanduser-centricpublicsectorandservicestobusinessesandcitizens

Digitalskillsforall

Regionaldigitalagendascontributetonationalgoalsetting.Theseareoftensector-specific,e.g.,regardinge-health

Supportfordigitalenhancementofsmall-to-mediumenterprises(SMEs)(SME: Digital)anddigitalskillsdevelopmentinthefieldsofscience,technology,engineeringand mathematics

Finland TheFinnishGovernmentProgramme(2015)

Digital Agenda 2011–2020: Productive and Inventive Finland

Digitalisedpublicservices

Growthenvironmentforfuturedigitalbusinesses;includesinformationsecurity

Nopushforspecialregionaldigitalagendasfromthenationallevel.Someregionsand municipalitieshavedrawnupdigitalagendasbytheirowninitiative

Other relevant reports taking a pan-Nordicperspectiveinclude:

n Digitalisation and Automation in the Nordic Manu-facturing Sector—Status Potentials and Barriers(IrisGroup,2015).Thisreportprovidesanoverviewofthe Nordic manufacturing sectors, highlightingtheirsimilaritiesanddifferencesand looking intothe status and potentials for digitalisation frombothbusinessandpoliticalperspectives.n Nordic Labour Markets and the Sharing Economy—Report from a Pilot Project (Dølvik and Jesnes,2017).ThisreportwasfundedbytheLabourMarketCommittee of the Nordic Council of Ministersand isbasedonbackgroundreportspreparedbyexperts in each of the five Nordic countries. Itsaimwastodevelopaknowledgebasefromwhichto consider the potential impact of the sharingeconomyonNordiclabourmarkets,withaviewtodevelopingfutureNordicstudies.

n Catching Up With Society—A Digital Reality Check for Nordic NGOs (Accenture, 2017). This reportexaminesthedigitalreadinessof60non-govern-ment organisations (NGOs) (15 each from Den-mark, Finland,NorwayandSweden)basedonadigitalperformanceindex, interviewswithstake-holdersthataimedtotapintotheirunmetneedsandacreativeworkshopwithNordicNGOstoin-novatenewservices.Thefindingssetoutaroad-mapforNGOstocatchupandthriveusingdigitaltechnologies.

2.3 Digitalisation policy in the Nordic countries and independent territoriesAllNordiccountrieshaveadopteddigitalagendasorstrategiesatthenationallevelinsomeformoranother.Table1providesanoverviewofthesepoli-cies,highlightingthenationalprioritiesandthere-gionalpoliciesineachcountry.Thetextthatfollowsprovidesamoredetailedoverviewofthesethemesforeachcountryandtheindependentterritories.


Iceland Iceland 2020

National Cyber Security

Strategy 2015–2026Green Paper on Statistics, Registration and Information (2018)

Focusone-participationande-government

Betterandmoredigitalpublicservices

DigitalinfrastructureincludinginteroperabilitybetweenITsystems

Nospecificfocuson digitalisationinthemunicipalities,buthigh-speedbroadbandforeveryoneby2020isapriority.

Norway Digital Agenda for Norway: ICT for an Easier Everyday Life and Increased Productivity (2016)White Paper 27 (2016–2017): The Industry—Greener, Smarter and Creative

Digitalisation Strategy for Municipalities and Counties 2017–2020

Digital21 (2017–2018)isthegovernment’scross-sectoralexpertgroup,recommendingstrategiesforfurtheringdigitalisationintheareaofgrowthinindustryandbusinesses

Digitalpublicservicesandefficientpublicsector

Developthedigitaltechnologicalinfrastructurethatthebusinesssectorwillrequireinthefuture

Digitalcompetenciesandskills

Cybersecurity

TheAssociationofLocalandRegionalAuthoritieshasencouragedmunicipalitiesandregionstoformulatedigitalstrategiesindividuallyorincollaboration.Regional ormunicipaldigitalagendascontributetonationalgoalsetting

Sweden Digital Agenda, For a Sustainable Digitalised Sweden (2017)

Digital First Policy for the Digitalisation of the Public Sector (2015–2018)

Digital Agenda, ICT for Everyone (2011)

Digilyft(2016–2019)stimulatesincreaseddigitalisationofSMEsintheindustrialsector

Digitalskills

Digitalsecurity

Digitalinnovation

Digitalmanagement

Digitalinfrastructure

Regionswereencouragedtodeveloptheirowndigitalagendasdrawingfromthe2011NationalDigitalAgenda,andalmostallregionshavedoneit.Regionalagendas'biggestpriorityareaslayininfrastructureande-services

Greenland The Digital Society: National Digitalisation Strategy 2018–2021

Digitalisationofpublicservicestopromotequalityoflifeand businessdevelopment

Securityandprivacy

OneITarchitecture

Theimplementationofthedigitalisation strategyisexpectedtoleadtoincreasingconnectivityandaccessibilityofservicesandincreasingdigitalopportunitiesforcitizensandbusinessesacrossGreenland

The FaroeIslands

The National Digitalisation Programme of the Faroe Islands (2015)

Digitalisationofpublicservices

Increasingefficiencyinthe publicsector

Increasingthecompetitiveness,growth,andproductionstrength

ITarchitecture

Digitalisationeffortsinthemunicipalitiesare focusedonaddressingthedemographicchangesandpromotinggrowthintheITindustry

Åland islands

The Digital Agenda(2012)

The IT Strategy(2018)

The IT Strategy 2018–2020 for the Education Sector on Åland

E-administrationand digitalisingpublicservices

Co-operationinITsupportandITservices

GreenITanddevelopingdigitalinfrastructure

Digitalisationisseenas atooltoincreasethe attractivenessoftheÅlandIslandsin general,includinge.g.,youngpeople


2.3.1 DenmarkPriority areasn Tradeandindustrymusttapintothepotentialforgrowthinherentindigitalisationn Thebest conditions fordigital transformationofbusiness(regulation)n Everyoneshouldbeequippedtooperateinthedigitaltransformationn Thepublicsectorshalldeliverdigitalservicestobusinessesandcitizens

Key policies/strategiesn Digital Strategy 2016–2020 A Stronger and More Secure Digital Denmark(2016)—setsthecourseforDanishpublicsectordigitisationeffortsandtheirinteraction with businesses and industries; con-tains33initiativesn Strategy for Denmark’s Digital Growth (2018)n Danish Cyber and Information Security Strategy 2018–2021n Strategy for Digital Welfare 2013–2020 Empow-erment, Flexibility and Efficiency—accelerates theuse of ICT and welfare technology in front-linepublicservicedeliveryn Research and Innovation Strategy, Denmark—Ready for the Future(2017)

Key actors (steering groups/committees)n The Agency for Digitisation (Digitaliserings-styrelsen) under the auspices of theMinistry ofFinance,2011—responsiblefortheimplementationofdigitalisationinthepublicsectorn TheMinistryofIndustry,BusinessandFinancialAffairsandtheDanishBusinessAuthorityarere-sponsible for business-focused digital initiativesin co-operationwith severalministries, e.g., theMinistryofHigherEducationandSciencen The Government’s Disruption Council—Partner-shipforDenmark’sFuture:howtomaintainarobustlabourmarketwhenmanyjobsaretransformedbydigitisation

TheAgencyforDigitisationwasestablishedin2011under theauspicesof theMinistryofFinance tooverseetheoverallimplementationoftheGovern-ment’sdigitalobjectives.Digitalisation initiativescutacrosspolicyareasandlevelsofgovernment,whiletheMinistryofIndustry,BusinessandFinan-cialAffairsandtheDanishBusinessAuthorityholdoverallresponsibilityfordigitalgrowthinitiatives.Below, two key strategies for public and privatesectordigitalisationareintroduced.

The Digital Strategy 2016–2020, A Stronger and More Secure Digital Denmarkisajointstrategycreated collaboratively by the government, mu-nicipalitiesand regions,which thereforebindsalllevels of public administration. Joint municipalandregionaldigitalstrategiesandsector-specificstrategies,suchastheStrategy for Digital Welfare 2013–2020 (The Danish Government, 2013) arealsoavailable.Asteeringcommitteehasbeenes-tablishedtoensureco-ordinationandadaptationofthedigitalstrategyandrealisationofgoalsbycentral,regionalandlocalgovernments.

WiththeStrategy for Denmark’s Digital Growth,the government establishes directions for Den-marktocreatethebestframeworktoenablebusi-nessestoutilisetheopportunitiesinherentindigitaltransformation. The strategy has three overallobjectives: 1. trade and industry must tap intothepotentialforgrowthinherentindigitalisationtoensurethatDanishbusinessesareamongthebest inEuropewhen itcomestotheuseofdigi-taltechnology;2.creatingthebestconditionsfordigital transformation of business, including ad-dressingregulatorybarriers;and3.agoalfortheDanishpeople tobecomethemostdigitallypre-paredwithintheEU,readytooperateinthedigitaltransformation, with education and continuoustrainingtoensurethateveryone is readyfor thelabourmarketofthefuture.Toassistinachievingthe objectives, there are six main strategic fo-cusareas,asfollows:1.establishadigitalhubforstrongerdigital growth; 2.digital enhancementofSMEs;3.ensuredigitalskillsforall;4.utilisedataasadriverofgrowthintradeandindustry;5.agilereg-ulationoftradeandindustry;and6.strengthenedcybersecurityincompanies.

Atotalof38specificinitiativesareintroducedwiththeDigital Growth Strategy.DKK75millionhasbeenallocated in2018, followedbyDKK125millioneachyearuntil2025andDKK75millioninperpetuityfortheimplementationofthestrategy’sinitiatives. The pool is intended as ‘seed capital’that will help to establish a range of initiatives(TheDanishGovernment,2018:10).

Regional perspectiveThroughtheirinterestorganisations,DanishRegions(Danske Regioner)andLocalGovernmentDenmark(KL),theregionsandmunicipalitiesprovidedinputtotheDigital Growth Strategy.Forexample,DanishRegionsproducedspecificrecommendationsaimed


atsolvingthechallengesinvolvedinthedigitaltran-sitionofthehealth-caresector.

Going forward, six cross-municipal businesssupport centres (including six sub-branches) willplayaroleinengagingSMEsinrelevantinitiativesandprovideinputtofuturepubliclyfunded,decen-tralisedbusinesssupportinitiatives.Thisispartofa reformof theDanishbusinesssupportsystemfrom1January2019,underwhichtheregionsnolongerwillresponsibleforbusinessdevelopment.

TheDanishGovernment’s digital growth ini-tiativesdonottargetspecificregions,withthein-tentionbeingthattheywillbeimplementedacrossthecountry,andwillinvolvetheeducationsystem,thebusinesssupportsystemandothersystems.Below,twoexamplesoftheimplementationofthestrategicfocusareasarebrieflyoutlined,namely‘digitalenhancementofSMEs’,occurringthroughSME:Digital, and ‘digital skills for all’, occurringthroughtheTechnologyPact.

SME:Digital:TheinitiativeaddressesthedigitalcompetencechallengesthatSMEsinparticulararefacing. SME:Digital will focus on business needsby offering: economic support to SMEs seekingprivate consultancy and assistance in the devel-opmentofdigitaltransformationbusinesscases;betterpotentialfore-commerceande-exportsviaane-commercecentre;improvingtheskillsofbusi-ness leaders; and a digital design consultancy.10 SME:Digital will be accessible through the one-point-of-entry platform thatwill be launched in2019andwillincludeanoverviewofbusinesssup-portmeasures(e.g.,grants,loans,equity).

The Technology Pact:Thegovernmenthases-tablishedaTechnologyPactinco-operationwithtrade,industry,educationalinstitutionsandotherstoprovideinitiativesaimedatstrengtheningtheofscience,technology,engineeringandmathematics(STEM) skills of the population. The TechnologyPacthasbeensetupwithinspirationfromasuc-cessful initiative intheNetherlands.TheGovern-ment’sprimaryobjectivesinestablishingtheTech-nologyPactaretogetmorepeople interestedinSTEM,encouragemorepeopletoeducatethem-selveswithinSTEMandenablemorepeopletoap-plySTEMskills in their job. TheTechnologyPactisaplatformwhere initiativescanbe instigated,developedandexpandedto inspireandmotivatemorepeopletoworkwithSTEMandapplythese

10 Forfurtherinformation,seehttps://em.dk/english/publica-tions/2018/strategy-for-denmarks-digital-growth

skills to innovation and business development.11 Rolemodelsandambassadorswillbeusedactive-ly in the initiatives.Although initiativesoriginatecentrally,themainaimisforthePacttobeimple-mentedthroughbottom-upinitiatives.

2.3.2 FinlandPriority areasn Digitalised public services—public services willbeuser-responsiveandprimarilydigitaltoachieveaproductivityleapinpublicadministrationn Creating a favourable operating environmentfordigitalservicesandnewbusinessmodels(withaspecialfocusonbigdataandrobotisation); in-cludesinformationsecurity

Key policies/strategiesn Finnish Government Programme (2015)—over-arching document guiding all activities of theFinnishGovernmentfor2015–2020;therearefivestrategicpriorities,oneofwhichis‘digitalisation,experimentationandderegulation’n Digital Agenda 2011–2020: Productive and In-ventive Finland—detailsthestepsandactionsre-quiredtoupdatetheNationalInformationSocietyStrategy 2007–2015, and encourages differentsectorstoformulatedigitalstrategies;however,itdoesnotserveasanactionplan

Key actors (steering groups/committees etc.)n MinistryofTransportandCommunications(re-sponsiblefortheDigi2,whichinvolvescreatingagrowthenvironmentalfordigitalbusinessopera-tions,aswellasforbroadbandandthepromotionof5G),MinistryofEconomicAffairsandEmploy-ment,MinistryofFinance(digitalisingpublicsec-torservices)n JulkICT (public sector ICT department)—re-sponsible for the overall development of digitalservicesofpublicadministrationandtheintegra-tionofjointdevelopmentprojectsn DigiNYT(monitoringgroup)—monitorsandco-ordinates (the implementation of) public sectorprojectsrelatedtodigitalisationandautomationfollowing the Finnish Government Programme'sobjectivesindigitalisation

11 Forfurtherinformation,seehttp://www.teknologipagten.dk/teknologipagten/om-teknologipagtenandhttps://em.dk/english/publications/2018/strategy-for-denmarks-digi-tal-growth.


n BusinessFinland—innovationfundingandpro-grammes,includesaprogrammefordigitalisation.Business Finland is a new organisation formedfromTekes

The Finnish Government Programme (2015) laysoutfivestrategicprioritiesofwhich‘digitalisation,experimentationandderegulation’addressesthemostrelevantnationalpolicyobjectivesregardingdigitalisation.Work with digitalisation is dividedintotwokeyprojects:‘Digi1’,whichfocusesondig-italisingpublicservicesand‘Digi2’,whichfocusesoncreatingagrowthenvironmentfordigitalbusi-nessoperations.Inaddition,digitalisationismen-tionedasacross-cuttingthemeintheGovernment Programme.

Actioningdigitalisationislargelytheresponsi-bilityoftheMinistryofTransportandCommuni-cations,theMinistryofEconomicAffairsandEm-ploymentandtheMinistryofFinance.Theexactroles and responsibilities of eachministrywithinthethemeisyettoberesolved.Officially,theMin-

istryofTransportandCommunicationsisrespon-sibleforrealisingtheobjectivesofDigi2;inreality,theothertwoministrieshaveincreasedtheirrolesinpromotingtheDigi2objectives.

AttheMinistryofEconomicAffairsandEmploy-ment, digitalisation work is realised in variousthemesthattouchupondataanddigitalorplat-form economies. Current programmes and pro-jects include the AI programme, the transportsectorgrowthprogrammeandworkinadvancingthedigitalplatformeconomy.Inaddition,theMin-istryisworkingonagrowthprogrammeforcyber-security.Thebroadobjectivesarethatdigitalisa-tionwouldbeutilisedasefficientlyaspossible inall economicaffairsandall linesofbusinessandthat businesses should,wherever possible, graspthe new possibilities that digitalisation bringsabout.

TheMinistryofEconomicAffairsandEmploy-ment is responsible for policy preparation, legis-lativeworkandraisingawareness,aswellastheallocationofitsfundsandsteeringofitsbureaus

Source: Yadid Levy / norden.org


with regard to thedigitalisation issues.BusinessFinland, which supports companies in digitalisa-tion,andtheTechnicalResearchCentreofFinland,whichpromotesadvancementofdigitalisationontheresearchandinnovationside,arecentralplay-ersinactualoperations.

Atthenationallevel,themainopportunityfordigitalisationisthroughthegrowthofcompaniesthatutiliseAIandotherformsofdigitalisationorthat seek to develop their operations by addingdigitallayers.Further,automatisationofsomeop-erationsmayenablebusinesses to relocate theiractivitiesbacktoFinland.Theconcernsmostlyre-latetothespeedofchangeandwhetherFinlandasasocietyisreadyorwillbeagileenoughatthetimewhenthechangestakeplace,especiallyinthecasesofjoblossesasaresultofautomation.Ina2018reportonworkintheageofAIdevelopedbytheMinistryofEconomicAffairsandEmploymentofFinland,it ishighlightedthatdigitalisationen-gendersre-educationneeds,butthatthechangeitself isnotathreatforFinland(TheMinistryofEconomic Affairs and Employment of Finland,2018).

Inconclusion,digitalisationisnotapriorityperse inFinland,but it hasbeen identifiedasa keymeans to achieve growth in the business sector.Even though an all-encompassing digitalisationstrategydoesnotyetexist,digitalisationisapri-ority insectoralstrategies(e.g.,education).Digi-talisationisseenasagreatopportunity,withtheFinnishattitudebeing‘fullspeedahead’.

Regional perspectiveThereisnopushtodevelopingregionaldigitalisa-tionagendasatthenationallevel.However,someregionshaveintroducedtheirowndigitalagendas(e.g.,Laplandin2013)supportingaspectsofdigi-talisation,suchasbroadbandcoverageanddigitalskillsdevelopment.Inaddition,digitalprogrammeshavebeendrawnupandimplementedatthemu-nicipallevel(e.g.,inHelsinkiandTampere).In2018,Helsinki recruited a chief digital officer to guidethedigitalregenerationofthecity.

Another example of national and regionalco-operation isThe Six City Strategy—Open and Smart Services (2014–2020), under which thestatepromotescollaborationondevelopingsmartcityservicesamongthesixlargestcitiesinFinlandandcontributesfinanciallytothiswork.However,there is little scope to add new openings in thedevelopmentalworkduringtheremainderofthe

project.Further, regionalperspectiveshavebeentakenintoconsideration,forinstance,intheSmart Countrysideproject.Oneoftheproject’skeyaimsis to support livingandentrepreneurship in ruralareasthroughdigitalisationandexperimentation.

The spearheadsof thenational ‘Digi 2’workaddressbroadglobalissuessuchasplatformanddataeconomybutwithweakornolinkstoregions.Thus, there is notmuch interactionbetween theregionsandthenational level.However,thepoli-ciesattheEUlevelmayencourageclosercollabo-ration.Anexampleisthecreationofanetworkofdigitalinnovationhubs,underwhichhubscouldbelocatedinthemunicipalities.

2.3.3 IcelandPriority areasn Digitalservices(island.is)n Digitalinfrastructure,includinginteroperabilitybetweenITsystemsn Consolidatingdatacentres

Key policies/strategiesn Green Paper on Statistics, Registration and In-formation (Grænbók um hagskýrlugerð, grunnskrár og upplýsingamál)(2018)n Iceland 2020—a general governmental policystatementthatestablishesIceland’sdigitalisationgoalsaslyinginthespheresofe-participationande-governmentn Icelandic National Cyber Security Strategy 2015–2026—addressestheprotectionofIcelandicinfrastructure starting fromknowledgedevelop-mentandskillsindigitalsecurity

Key actors (steering groups/committees)n MinistryofFinancehastheoverarchingrespon-sibilityfordigitalisationworkn Information Society Taskforce—co-ordinatescentrale-governmentprojectsandoperatesundertheauspicesoftheMinistryoftheInterior(Trans-portandLocalGovernment)n Registers Iceland—operatesmost of the rele-vantcommone-governmentsolutionsandopera-tionalmeasuresn Cyber Security Council—supervises the imple-mentationoftheNational Cyber Security Strategy

FollowingIceland’smostrecentchangeofgovern-mentinDecember2017,theresponsibilityfordigi-talisationshifted fromtheMinistryofTransportandLocalAuthoritiestotheMinistryofFinance.


Thismeansthat,forthefirsttimeinmanyyears,all ICT is underoneministry.AGreenPaperhasbeendeveloped,whichwillbefollowedbyaWhitePaperandthenbypolicies.TheGreenPaperlaysthefoundationforalong-termstrategythatwillberevisedandrenewedeachyear.Thisisbasedonarecognitionoftherapidlychangingnatureofdig-italisation.ThefocusareasintheGreenPaperin-cludeincreasingsynergiesanddataflowbetweenpublicsystemsandmakingelectronicself-servicethefirstoptioninpublicservice.Emphasisisalsoplacedonthepublicsystemtofulfildemandsforsecurityandprivacyandenhancingtransparencyinadministration.

Therearethreepartstothedigitalisationap-proach.Thefirstiscentralisingandrenewingdigi-talservicesthroughthenationalportal, island.is.There ishighdemandfromcitizens forsuchser-vicesaswellaslargefinancialandenvironmentalincentivestocutdownonphysicalcorrespondence(e.g.,sendingletters).Thesecondpartoftheap-proach focuses on digital infrastructure, morespecifically, interoperability between IT systems.Thiswork isoccurringthroughcollaborationwithFinland and Estonia to test the X-Road infra-structure.12 The X-Road ensures interoperabilitybetweenITsystems.Ratherthanhavingaconnec-tion point to point between systems, it providesa service layer taking care of all communicationbetweenvarious ITsystems.Thisfocusareaalsoseeks to centralise IT architecture—moving from160–170 instituteswiththeirown ITarchitectureandpolicytoonecentralisedITarchitecture.Thefinalpriority in thedigitalisationapproach is theconsolidationofdatacentresandamovetopur-chasinglicencesthroughonecentralcontract.Forexample, previously there were approximately 6000contractsbetweenMicrosoftandtheIcelan-dicState;followingthiswork,therewillonlybetwo.

IcelandisworkingcloselywiththeotherNordiccountries on implementing the declaration TheNordic–Baltic Region: A Digital Front-Runner, aswell as electronic identification. Icelandhas verystrong infrastructure regarding electronic signa-turesandidentificationcards.AI,5Gandelectronicprocurement are also important topics. IcelandwillhavethepresidencyoftheNordicCouncilofMinisters in 2019 and will continue to prioritisetheseareas,aswellastakingabroaderperspec-

12 e-estoniainteroperabilityservices.

tive and examining, e.g., how digitalisation cansupporttourism,youthinclusionandacleaneren-vironment.

Regional perspectiveIcelanddoesnothaveaformallevelofgovernancebetween the local and national levels. However,eight Regional Associations of Local Authoritiesoperatearoundthecountryanddealwithregionalplanning issues. These associations do not cur-rentlyhaveastrongfocusondigitalisation.Localgovernmentshaveagreatdeal of independencein Iceland.Nevertheless, there is strongco-oper-ation between themunicipal and national levelsondigitalisation.Municipalitieshavetheoptionofusingthesystemsdevelopedatthenationallevel,althoughtheyarenotrequiredtodoso.Thisispar-ticularlybeneficialforsmallmunicipalitieswithoutthe resources to develop these systems them-selves.ThemunicipalitieswillalsouseX-Road.

Given its sparsity, connectivity is key issue inIcelandandhavinghigh-speedbroadbandforeve-ryoneby2020isapriority.Manycommunitiesarelaggingbehind in this regard.Anotherconcern istoensurethatruralareascanbenefit(oratleastnotlose)fromthebroaderchangesbroughtaboutbydigitalisation.Althoughitispossibletofindin-dividualcasesofconnectivityenablinginnovationin small communities, the majority of new jobsbroughtaboutthroughdigitalisationarefoundintheurbancentres.Assuch,thereisaconcernthatruralcommunitiesmaybecomesimply ‘receivers’whenitcomestotechnology,withonlineservicesgradually replacing physical ones. Although thismayimproveaccesstoservicesintheshortterm,therelatedjoblossesmayhaveanegativeimpacton the sustainability of rural communities in thelong term. One strategy to counter this threatisanew initiative that involvesadvertisingasetportionofgovernmentjobswithnofixedlocation.Inotherwords,someonelivinginanypartofthecountrycouldapplyforsuchajoband,ifsuccessful,workremotely.Itistooearlytojudgethesuccessofthisinitiativebutitwillbeinterestingtoobservetheoutcomes.Anotherapproachtodecentralisa-tionistohavedifferentteamslocatedindifferentpartsofthecountry;asyet,noconcreteinitiativeshaveoccurredinthisarea.

https://e-estonia.com/solutions/interoperability-services/x-road/


2.3.4 NorwayPriority areasnDevelopthedigitaltechnologicalinfrastructurethatthebusinesssectorwillrequireinthefuturenEnsurecybersecuritynEnsure sufficient and necessary competencesandskillsnDevelopapublicframeworkthatenablesinno-vationanddigitalisationnDigitalpublicservices

Key policies/strategiesn White Paper 27 (2016–2017): The Industry—Greener, Smarter and Creative highlights the im-portanceofdigitalisationandtechnologydevelop-mentaspartof the futureNorwegian industrialmodeln Digital21 (2017–2018)isthegovernment’scross-sectoral expert group, recommending strategiesforfurtheringdigitalisationintheareaofgrowthinindustriesandbusinessesn Digital Agenda for Norway: ICT for an Easier Everyday Life and Increased Productivity(2016)—presentstheGovernment’soverallpolicyonhowNorwaycanutiliseICTinsociety’sbestinterestn Digitalisation Strategy for Municipalities and Counties 2017–2020(Digitaliseringsstrategi2017–2020)bytheNorwegianAssociationofLocalandRegionalAuthorities (2017)—astrategy targeted

tolocalandregionalpublicofficialsandpoliticiansondigitalisation

Key actors (steering groups/committees)nDigitalisationCouncil, 2016—helps governmentagenciesinallphasesoftheirdigitisationprojects,ensuringthatprojectsrunontimeandthattheirscopeisinlinewiththeirbudgetnDifi, 2008—co-ordinates between municipali-ties,governmentagenciesandthestateinrelationtodigitalisationworknTheNorwegianAssociationofLocalandRegion-al Authorities—co-ordinates between municipali-tiesandthestateindigitalisationworknThe Ministry of Trade, Industry and Fisheries,theMinistry of Education and Research and theMinistryofLocalGovernmentandModernisation

Digitalisation is high on the Norwegian nationalagenda, as exemplified by the recent attentiongiven todigitalisationasa trend impacting vari-ousfactionsofNorwegiansociety(cf.Meld.St.272016–2017;MeldSt.292016–2017;Digital21;MeldSt.272015–2016)13.In2016,theNorwegiangovern-mentsetupaDigitalisationCounciltoaiddialogueondigitalisationprocessesandoverlappingpolicy

13 MeldSt.(Melding til StortingetinNorwegian)standsforGovernment White Paper

Computer-based learning has been widely used for language training of migrants in Nordic countries. Source: Yadid Levy / norden.org


areasacrossministriestofacilitatepotentialsyn-ergiesandavoidconflictsof interest. Issuesmaybebroughtforwardbyministers, interestgroupsorprivatecompaniesforconsideration.Theestab-lishmentofsuchadigitalisationcouncilwithoutapoliticalmandatetomakedecisionsisconsideredimportant in ensuringanagile approach todigi-talisation.

In2016,theNorwegiangovernmentproducedtheWhitePaperDigital Agenda for Norway (MeldSt. 27 2015–2016), which has been the guidingstrategy for the past few years. TheWhite Pa-per is closelyalignedwith theEU’sdigitalisationpoliciesforasinglemarket,whichwouldoperatethroughtheNorwegianmembershiptotheEuro-peanEconomicArea.TheinternationalaspectsofthedigitalagendainNorwayareconsideredveryimportantandtheNordicco-operationisconsid-eredtobehighlyvaluable.

In 2017, the government delivered anotherWhitePaperThe Industry—Greener, Smarter and Creative(MeldSt.272016–2017),whichsketchesout opportunities and challenges for Norwegianindustry, and relevant government objectives(Ministry of Trade, IndustryandFisheries, 2017).Digitalisationplaysanimportantroleinthiswork,especially with regard to business development.The White Paper emphasises the cross-sectoralnatureofdigitalisationand its impactonthe la-bourmarket,asitcallsforastrongerfocusonthedevelopmentof skills and competencies requiredforthefuturelabourforcetomaintainacompeti-tive Norwegian industrial structure. Green per-spectivesarealsoat the forefrontof thisWhitePaper,astheyareconsideredpartofthestrategicdevelopmentofindustryandbecauseitisconsid-eredthattheywillbeenabledbydigitalisation.

This2017WhitePaper(MeldSt272016–2017)laid the foundation forestablishing theDigital21committeeandprocess(Digital21,2018).Digital21was composed of six expert groups,with repre-sentativesfromtheuniversitiesandresearchcen-tres,companiesandbranchorganisations,along-sideasteeringcommittee. InSeptember2018, itpresented a compendium of recommendationsto the government on facilitating digitalisationamongbusinesses.ThegroupproposedfourareasofstrategicimportanceforNorwegianbusinessestocapitaliseondigitalisationopportunitiesbyuti-lisingnewexpertise,technologyandresearch.ThefourareaswerebasedaroundAI,bigdata,theIoT

andautonomousvehicles.Thegroup’srecommen-dationsencouragethegovernmenttothinkdiffer-entlyaboutorganisation,emphasisingcross-sec-toralthinkingforbuildingskillsandcompetencies,standardisingsolutions,cross-sectoralinnovationandregulationsthatworkacrosssectors.TheDig-ital21processsuggestedacommonplatformforsynchronising efforts across differentministries,includingtheMinistryofTrade,IndustryandFish-eries,theMinistryofEducationandResearchandtheMinistryofLocalGovernmentandModernisa-tion,tobreakdowntraditionalsilos.

Regional perspectiveTheNorwegianAssociationofLocalandRegionalAuthoritiesisakeyco-ordinatorbetweenmunici-palities,countiesandthegovernment,andspecificagreementsaremadebetweentheseactors(e.g.,on guidance services for citizens) asmost publicsectorservicesaremunicipal.TheAssociationofLocalandRegionalAuthoritieshasaDigitalisation Strategy 2017–2020formunicipalitiesandcounties(Digitaliseringsstrategi 2017–2020), inwhichitre-flectsontheprioritiessetbythenationalDigitalAgenda(2016).Italsohasanadvisorycommitteeondigitalisation(KOMMit).Thisstrategyencour-agesregionsandmunicipalitiestoformulatedigi-talisationstrategies.Mostcountiescurrentlyhavedigital strategies that set an overall agenda fortheregion,andthesetendtofocusontheinternalfunctionsand thebetteringofdigitalpublic ser-vicesforcitizens.

Thereiscurrentlylittlecollaborationbetweenthenationalandregionallevelswhenitcomestopolicymakingfordigitalisation,although,insomecases,digitalsolutionsdevelopedthroughregionalco-operative platforms trickle upwards towardsthenationallevel.Onesuchexampleisthecollab-oration with CountyMunicipal Optimal Services(Fylkeskommunale Optimale Tjenester). Therearealso good examples of the regions lobbying thegovernment to provide them with digital infra-structure, e.g., in the case in Finnmark. In termsofdevelopingdigitaltoolsforbetteringpublicser-vices, themunicipalities are in forefront. A goodexampleisSvarUT,adigitalsolutiondevelopedin2011 byBergenMunicipality to improve dialoguewithresidents(e.g.,digitalcommunicationinrela-tiontohealthandchildwelfareservicesandbuildingpermits).SvarUTsubsequentlybecameastandard-isedsolutiononthenationaldigitalplatformAltinn


(SveinbjornssonandJorgenrud,2013)aftersigninganagreementwithAltinnandtheNorwegianAsso-ciationofLocalandRegionalAuthorities.14

Giventheincreasedfocusonacceleratingthedigitalisation of industry and trade seen inDigi-tal21andtheWhite Paper 27(2016–2017),coupledwiththerecentregionalreformandthenewtasksand administrativemandate devolved to the re-gionallevel,itislikelythatcollaborationsbetweenthe national and regional levels on digitalisationwillbestrengthenedfurther.

Theregionalreformsplannedfor2020inNor-wayenvisageareductioninthenumberofregionsfrom19to11,toprovidethecriticalmassrequiredtotakeonnewtasksandresponsibilitiesanden-sureservicequality(TheNorwegianGovernment,2018).Digitalisation in the context of the forth-comingreformiscloselytiedtotheregional long-term perspectives on education, culture, health,businessdevelopmentandinfrastructure.Withre-gardstoeducation,digitalisationmaybeapositiveforce for ensuring equal opportunities through-out a larger region. For example, public librariesin Troms have been working towards solutionsthrough regional collaborations for students liv-inginsparselypopulatedareas,giventhataround40%ofalllong-distancestudentsusepubliclibrar-iesfortheirstudies.Theextenttowhichtheregion-alreformwillinfluencedigitalisationattheregionallevelisuncertain,althoughdigitalisationmaybeanimportant facilitator inensuringgoodpublicser-vicesinthenew,geographicallylargerregions.

2.3.5 SwedenPriority areasnDigital skills: everyone should be familiarwithdigitaltoolsandservicestoparticipateinthedigi-taldevelopmentnDigitalsecurity:people,companiesandorgani-sationsshouldtrustandbecomfortablewiththeuseofdigitalservicesnDigital innovation: the conditions for new orbettersolutionsthatprovidevaluefortheenviron-ment,society,companiesandindividualsarecreatedandspreadnDigital management: operations should bestreamlined, developed and improved throughcontrol,measurementandfollow-up

14 AltinnisadigitaldialogueplatformforthedevelopmentofdigitalpublicservicesandanInternetportalforbusinesses,privateindividualsandpublicagencies.

nDigital infrastructure: the importance of en-hancing hard and soft infrastructure is empha-sisedtoallowdatatobetransportedasefficientlyaspossible

Key policies/strategiesn Digital Agenda for Sweden: For a Sustainable Digitalised Sweden (2017)—outlines how digitali-sation policy will contribute to competitiveness,full employment and economically, socially andenvironmentallysustainabledevelopmentn Digital First policy for thedigitalisation of thepublic sector (2015-2018)—this is a programmetorenewthepublicsector,withafocusonITande-governance.Thepolicyalsoaimstoreducedif-ferences in the availability and quality of digitalservicesacrossmunicipalitiesandregionsn Digilyft (2016-2019) stimulates increased digi-talisationofSMEsintheindustrialsectorn Digital Agenda for Sweden: ICT for everyone (2011)—collatedongoingactivitiesintoacohesivestrategytoensurethefullpotentialofdigitisationandworkedasapointofdepartureforthecreationofregionalagendas

Key actors (steering groups/committees)nTheAgencyforDigitalGovernment,2018—willco-ordinateandsupporttheoveralldigitisationinthepublicsectornDigitalisation Council, 2017—promotes the im-plementation of the government s digitalisationpolicyandco-ordinatesbetweendifferentgovern-mentalandpublicorganisationsandsubjectareasandreachesalsoouttoprivateactorsnSwedish Association of Local Authorities andRegions—ensures that strategiesare turned intoinitiativesandactions,e.g.,inthefieldsofeduca-tionande-healthnSwedishNational Agency forGrowth—admin-istersand runs several supportprogrammes (in-cludingDigilyftandregionaldigitalisationco-ordi-nators)

Digitalisationisahorizontalpriorityacrossallmin-istries and government agencies in Sweden. Thekeyresponsibilityforformulatingdigitalpolicyandco-ordinating the digitalisation work across thedifferentministriesinSwedenlieswithintheMin-istryofEnterpriseandInnovation.

A digital strategy, For Sustainable Digital Transformation in Sweden, was launched by thegovernmentin2017.TheoverallgoalofSweden’s


digital strategy is to establish itself as a worldleader in harnessing the benefits of digitalisa-tion. The strategy sets out several target areastoachieve thisgoal:digital skills,digital security,digital innovation, digital leadership and digitalinfrastructure. The strategyargues that there isaneedtopromotenotonlysmartcitiesbutalsosustainableruralareasthroughdigitalisation,andstressestheimportanceofenhancedlocalandre-gionalcommitmenttoandengagementindigitali-sation. It promotes linking the regional develop-mentstrategiesineachcountytothedigitisationpolicyandco-operationacrossvariousstakehold-ers (Government Offices of Sweden, 2017). Al-thoughthestrategysetsouttheoveralldirectionandvisionforSweden,itisnotsupportedbycon-cretepolicyactions.

Regional perspectiveThe local and regional actions supporting digitaldevelopmentarehighlightedascrucialforthesuc-cessful implementation of the Sweden’s digitalstrategy.Atthesametime,theregionsandmu-nicipalitiesare independent in theirdigitalisationapproaches and priorities. Thus, the role of thenational-levelgovernment istoprovidedirection,institutionalsupportandfundingfordigitalisationworkintheregions.

With the presentation of the National Digital Agenda (2011), regional actors were invited tosignavoluntaryletterofintenttoshowtheirsup-port for theAgenda’sgoalsandto indicatethattheywoulddrawuparegionaldigitalagenda.All21 counties have signed the letter of intent, butnot all have developed regional digital agendasyet.Digital infrastructureande-servicesare thebiggestpriorityareasinregionalagendas,astheregion’s hold responsibility for broadband infra-structureinSweden.

Recently,theSwedishgovernmentlaunchedasupportinitiative,whichwillrununtil2020,toap-pointregionaldigitalisationco-ordinatorswhowillimproveco-ordinationandstrategicco-operationbetween relevant actors in the region (Govern-mentOfficesofSweden,2018).TheSwedishNa-tionalAgencyforGrowthwillactasasecretariatandprovidesupport,e.g.,byencouragingnetwork-ingandtheexchangeofexperiencesandskillsde-velopment among the regional digitalisation co-ordinators(GovernmentOfficesofSweden,2018).

The Forum for Sustainable Regional GrowthandAttractivenessisthemainarenaforinterac-

tionbetweendifferent levelsofgovernmentanddifferenttypesofgovernmentactors.Theforumtakesplacefourtimesayearandprovidesanop-portunitytoinfluencenational-levelpolicymakingviadialogue.Digitalisation issuesareamong theprominenttopicsaddressed.

2.3.6 GreenlandPriority areasn Digitalisation of public services to promotequalityoflifeandbusinessdevelopment

Key policies/strategiesn The Digital Society: National Digitalisation Strategy 2018–2021

Key actors (steering groups/committees)n TheSelf-RuleGovernmentn TheGreenlandicAgencyforDigitalisation(im-plementation)

The Greenlandic Agency for Digitalisation con-ducted a survey in 2017 onThe Citizen and IT. Itrevealedthat83%oftheGreenlandicpopulationover15yearshasaccesstotheInternetathomeand89%havesmartphones.ThisindicatorsshowthatGreenlandisnowinlinewiththeEUaverages(Greenlandic Agency for Digitalisation, 2018: 8).Whilethepreviousdigitalisationstrategyfortheperiod2014–2017wasconcernedwithdevelopingbroadbandinfrastructure,thecurrentstrategyismorefocusedonfacilitatingtheuseoftechnologyby citizens and businesses. The strategy has sixfocusareas thatwill be implementedduring theperiod2018–2021,asfollows.

The digital citizen: Thisarea focusesonmak-ingiteasierforcitizensandbusinessestoreporttoandcollectinformationfromthepublicauthoritiesthroughonepublicportal.‘Thedigitalcitizen’alsoinvolvesdevelopingacross-bordercompliante-IDsolution.

Security and privacy:Thisfocusareaisaboutenhancing cybersecurity and enablingGreenlandtogainthestatusofasafethirdcountryintheEU(astatusachievedrecentlybytheFaroeIslands).Thisshouldfacilitateinternationaltradeandmakeit easier to exchange personal data. Therefore,third country approval is of high priority for theSelf-RuleGovernment.

Digital formation:AsGreenlandiccitizensarelagging when it comes to digital competences,initiativeswillbe implementedtoenhancedigital


skills. There is a separate digitalisation strategyforthepublicschools.

Digital innovation, entrepreneurship and busi-ness: This is elaborated further below regardingimplicationsforregionaldevelopment.

One IT architecture:AselsewhereintheNordicregion,GreenlandhaschosentousetheEstonianX-Roadsystemforthepublicdigitalarchitecture.Greenlandhasselectedtheclosed-sourceversion,whichmeansthatitdependsonexternalsuppliersfordevelopmentofitssystem.

A more digitalised health-care system:Digitali-sation of patient records and other reforms areunderdevelopmentinco-operationwithpartnersinDenmark.

Regional perspectiveOverall, the implementation of the digitalisationstrategyisexpectedtoleadtoareductionoftheeffectsofphysicaldistancebyincreasingconnec-tivityandaccessibilityof servicesand increasingdigitalopportunitiesforcitizensandbusinesses.

Ambitions to attract datacentres and other international investments: The Self-Rule Govern-menthasambitionstoattractdatacentresfrominternational companies toGreenland. ItwillnotbeabletofulfiltheseambitionsuntilithasgainedthestatusofasafethirdcountryintheEU.How-ever, itmeets three preconditions set out in thedigitalisation strategy for establishing datacen-tres:alargeuntappedpotentialtousehydropowertoensurestableelectricityandgreenenergy;ex-tensive water/sea resources for cooling; and ITinfrastructure, in the formof the sea cable thatisconnectedtoCanadaandIceland,wherethereisplentyofunusedcapacity.With theestablish-ment of datacentres, broadband traffic will in-creaseandpricesforusingtheInternet(whicharecomparativelyhighinGreenland)areexpectedtodecrease.

Promoting digital entrepreneurship and in-novation: The strategy sets out the objective topromote an innovative environment for digitalentrepreneurshipandinnovation.Initiativestoim-plementthisobjectivehavenotyetbeendecided.However,thereareplanstoestablishfundingop-portunities, introduce digital competence devel-opment initiativesandorganiseevents tocreateawareness of opportunities for digital entrepre-neurshipandinnovation.

Thestrategyhassettheobjectiveofincreas-ingthenumberofITspecialistsinthecountryby

25%by2021.Inconnectionwiththesolutionsthatare developed under the national digitalisationstrategy,consideration isgiventowhethertaskscanbesolvedbylocalbusinesses.Thisisnotalwayspossible,withconsultancies fromoutsideGreen-land being contracted to implement solutions inmanycases.However,effortsarebeingmadetoanchor theknowledge locally.Forexample, in thedevelopmentof theX-Roadsystem,althoughanEstonian consultancy is managing the project,theyareinvolvinglocals,whoarebeingtrainedtotakechargeofsecond-andthird-levelsupportinrunningthesystemonceitiscompleted.

2.3.7 The Faroe IslandsPriority areasnModernisethewelfareandservicesoftheFaroeIslandsn Producepreconditionsforefficiencyinthepub-licsectorn Increasecompetitiveness,growthandproduc-tionstrength

Key policies/strategiesn The National Digitalisation Programme of the Faroe Islands(2015)Keyactors(steeringgroups/committees)n TheMinistry of Foreign Affairs, Trade and In-dustryandtheMinistryofFinance(which jointlydevelopedthestrategy)n Aprojectorganisationtoimplementthestrategy

The Faroese IT infrastructure is well developed,and thepublic IT systemsare ready tobe inter-connected.Alargemajority(92%)oftheFaroesepopulationhaveaccesstotheInternetfromtheirhomes. The outlying islands have good Internetconnection,andnearlyeveryonehasacellphone(1.2 cell phones per citizen) (Ministry of ForeignAffairs,TradeandIndustryandtheMinistryofFi-nance,2018:6).However,ITsystemsinsomeareasandsectorsdonotmeetmodernstandardsanddonot intercommunicate,andtheFaroe Islands lagwhenitcomestodigitalservicesandbusinesses.

The Minister of Foreign Affairs, Trade, andIndustryandtheMinisterofFinanceco-operatedtodevelopadigitalstrategy.Aprojectgroupwasestablishedin2015,whichdevelopedtheNationalDigitalisationProgrammeoftheFaroeIslandsfortheperioduntil2021,withtheaimofdigitalisingpublic services. The programme has four sub-projects,asfollows.


Development of an e-ID: Thissolutionisunderdevelopmentinco-operationbetweenthenationaltelecomcompanyanda local ITcompanyand isexpectedtobereadyforusein2019.

Portal and digital services:Theonlineportalforcitizenstoaccessallpublicservicesand,infuture,privateservices,suchasbanksandinsurancecom-panies,isunderdevelopment.

Basic Data:Thissub-projectconcernsthede-velopmentof thedata systems required to sup-port and realise the first two projects, with in-dividual, business, land and GIS data required,amongothers.

IT architecture:TheITarchitectureisalsousedfor the first twosub-projects.TheFaroe IslandsdecidedtousetheEstonianX-Roadsolution,whichhasbeendevelopedaspartofanEUprojectusingopendata.15BeforedecidingwhichITarchitecturetochoose,thelocalITindustrywasconsulted,giv-ingthemtheopportunitytoinfluencetheprocess.

Earlyintheprocess,theresponsibleministriestook inspirationfromDenmarkandEstonia.Dis-cussionswiththeDigitalisationAuthorityinDen-mark inspired the strategy development phase.ThepossibilitiesforusingtheDanishe-IDsolution(NemID)wasdiscussedbutrejectedbythepoliti-cians,whoadvocateddevelopingtheirownFaroesesolution.AswithFinlandand Iceland, theFaroeIslandsdecidedtoapplytheEstonianX-Roadsolu-tionfortheirITinfrastructure.AsmembersoftheNordicCouncilofMinistersfordigitalisation(MR-Digital),theFaroeIslandsarestrongadvocatesforadigitallyintegratedNordicregion.Cross-bordercompatible solutions should also make it easierandmoreattractiveforindividualsandbusinessestomovetotheFaroeIslands.

Regional perspectivePromotinggrowthintheITindustry:TheFaroeseITindustryhasbeenindeclineforsomeyearsafterthe Danish banks decided to centralise their ITdepartmentstoDenmark.TheDigitalisationPro-grammeprovidesanopportunitytopromotethedevelopment of a stronger local IT industry. TheFaroeIslandsarenotamemberoftheEU,whichallows them to set requirements in their publicprocurement processes. Consequently, in publictenders,theyhaverequiredthatdevelopmentofIT

15 Formoreinformation,seehttps://news.err.ee/831293/faroe-islands-look-to-estonian-example-setting-up-own-e-government-system.

solutionswilltakeplaceontheFaroeIslandsorin-cludealocalITsupplierandhaveemphasisedthatknowledgeandsolutionsbeanchoredlocally,eveniftheyaresourcedinternationally.Thisshouldas-sistinensuringthesubsequentlocalmanagementoftheirsystems.

Addressing demographic challenges: Depopu-lationhasbeenachallengefortheFaroeIslandsfor a long time. In general, digitalisation of thepublicsystemisexpectedtofacilitatecreationofnew jobs, includingontheremote islands.The ITprojectshaveattractedsomeindividualsworkingabroadintheindustrytomovebacktotheFaroeIslands.

Expected challenges with implementation in smaller municipalities: With 27 municipalities ontheFaroeIslands,manyareverysmalladministra-tiveunits,andmanyhavepopulationswithahighproportionofelderlypeople.Thelocalgovernmentassociation (Føroya Kommunufelag) will take arole in developing suitable solutions to supportimplementationof thedigital systems in smallermunicipalities.

2.3.8 Åland IslandsPriority areasnE-administrationthatstemsfromthecitizens’needs,e.g.,theavailabilityofpublicservicesnIncreasingco-operationinITsupportandITser-vices,e.g.,co-operationbetweenpublicauthoritiesnGreenIT,e.g.,usinglessenergynDigitalinfrastructure

Key policies/strategiesn The Digital Agenda(2012),anoverarchingregu-latorydocumentn The IT Strategy (2018),a regulatorydocumentsupporting decisions for organisational develop-mentintheITsectorn The IT Strategy 2018–2020 for the Education Sector on Ålandnstörmig.ax,awebsitewherecitizenscansubmitcomplaintsthatcanhaveadigitalsolution

Key actors (steering groups/committees)nTheGovernmentofÅland—overallresponsibilitynÅdaAb—responsibleformanagingandsupportingtheITservicesinthepublicsectornThe Digital Council (2016–2017)—activities tosupportthedigitaltransformationnThe Digital Commission (established 2017)—responsibleforstörmig.ax


Digitalisation has been an important topic ontheÅlandIslandsforseveralyearsandmakesupasubstantialpartoftheGovernmentofÅland’spolicyplatform.ADigital Agendawasadoptedin2012withtheaimofmodernisingthesocietyandcreating socio-economic opportunities throughdigitaltechnology.Theagendaputscitizens’needsat the centreand focusesprimarily on e-admin-istration,organisationalservice, ITsupport,greenITandinfrastructure.Italsopromotesincreasingefficiency in thepublic sector by co-ordinating ef-fortsandmakingiteasierforcitizenstousewelfareservices.TheagendawasdevelopedincollaborationwithÅland’sHealthcare,theCityofMariehamnandÅland’sMunicipalCoalition,anddrewinspirationfromthedigitalagendasofFinland,SwedenandtheEU.

In2016,theGovernmentofÅlandestablishedaDigitalCouncilwiththeaimofdevelopingdigitalactionsrespondingdirectlytocitizens’needs.TheCouncil’sfinalreportresultedintheestablishmentofaDigitalCommissionin2017—theprimaryroleofwhichwas to set upwebsite https://stormig.ax/ that helps to resolve digital issues in Åland.OnthiswebsitethecitizenscannotifytheÅlandGovernmentofproblems(traffic,maintenanceofinfrastructureandotherissues)andsuggestpos-siblesolutions.Theoveralldirectionforworkwithdigitalisation is set by theGovernment ofÅlandand all public authorities and municipalities areresponsiblefor implementationintheirarea.Theprivatesectorplaysanimportantroleindeliveringsystemsandservices.

Akeystepinrealisingthegoalsofthe Digital AgendawastheestablishmentofÅdaABin2014,a

not-for-profitenterpriseresponsibleforITservicesacrossthepublicsector.ÅdaABofferse-servicesandvariousITfunctions,aswellasmanagingco-operationbetweenactorstoensuremoreefficientandeffectivedevelopmentofpublicsectorITsolu-tions.More recently,ÅdaABwasresponsible fordevelopingan IT Strategy for the Government of Åland.ThestrategywasadoptedbytheRegionalCouncilinJune2018andregulatesITdevelopmentinthepublicsector(e.g.,sustainablerecyclingofITequipment).Theprimaryfocusofthestrategyfor2018wassecurityandnewprioritieswillbeiden-tifiedeachyearbasedonstakeholderworkshops.

Regional perspectiveTherecentlyadopted ITStrategy is linkedtotheDevelopment and Sustainability Agenda for Åland Islands. Digitalisation is employed as a meansthroughwhichtorealisethegoalofdevelopingasustainable society inÅland Islandsby 2051.Forexample, barkraft.ax, an online platform, is be-ingusedtocreateadialoguearoundsustainabledevelopmentforallwholiveandworkin,orvisit,ÅlandIslands(GovernmentofÅland,2017).

Toadaptto labourmarketchanges,thegov-ernment is investing in IT training at the highereducationlevel,aswellasactivelytryingtomakeÅlandattractive for youngpeoplewhohave lefttheterritorytostudyelsewhere.Inschools,theIT Strategy 2018–2020 for the Education Sector on Ålandisdrivingtheuseofdigitaltechnologiesasatooltosupportskilldevelopmentinareassuchasreflection,analysis,problemsolvingandflexibility.


3. Regional cases

ThissectionpresentsfindingsfromthefiveNordicregional case studies (Map 1) that were imple-mentedin2018.Eachregionalcasestudydescribesthedigitalisationapproachand focusareas, col-laborations with other actors in the region and

beyondinthefieldofdigitalisation,aswellasthekey challenges and opportunities. The regionalcasestudiesarediverseintheirpracticesandini-tiatives,highlighting thedifferentapproaches todigitalisation.

Map 1. Regions examined in the case studies. Source: Eeva Turunen / Nordregio.


Region of Southern DenmarkPopulation:1222370(2018)Area:12260,30km²Density:100/km2Municipalities: 22Administrative centre:Vejle(55000inhab-itants)Regional strengths:Sustainableenergy(especiallyenergyefficienttechnologiesandoffshoreenergy),robottechnology,automation,healthandsocialinnovation,experienceeconomy,technological development,designprocessesand creativethinking

Smart city initiatives fall under the respon-sibility of the Department for Environment andPlanning intheMunicipalityofVejle.Thedepart-ment has a long list of project ideas and haveimplemented several. According to the Head ofDepartment,theprocessofdevelopingtheResil-ience Strategy hasmade it possible to bemoreambitiouswithurbandevelopmentprojects,e.g.,climateadaptationmeasuresthatsimultaneouslydevelop attractive recreational areas. With thedevelopmentofthestrategy,thedifferentpublicadministrationsgainedabetterunderstandingofeach other through discussions about resilience.Thishasmade iteasier to findcommongroundtodayinconnectionwithurbanplanningandde-velopmentprojects.

The Department for Environment and Plan-ning’sapproach todigitalisation is to implementsmaller projects to create better conditions forcitizensandbusinessesbyaddingdigitalfunctionstoexistingmunicipalservices,ratherthan imple-mentinglargesystemicsolutions.Thedepartmentgainedinspirationforthisapproachandseveraloftheprojectstheyhaveimplementedfromastudytrip toAmsterdamandEindhoven.Oneexampleinvolves the implementationof intelligent lightingatamainstreetwithbarsandrestaurantsinVejle.The lighting is now controlled according to thetime of night and the number of people on thestreet.Theuseofwarmerlightingatcertaintimeshasbeenshowntocreateaquieteratmosphere.AnotherexampleisthatthemunicipalityinstalledasensorinitiallyattheCityHalltotrackhowmanypeoplewalkedpast.Today,sensorsaresetupallovertowntocollectdataandvisualisehowpeoplemoveintown.ThedataisusedbyCityVejle(the

About the case study areaThe Region of Southern Denmark (Region Syd-danmarkinDanish)consistsofSouthernJutlandandthe islandsofFynandLangeland. Itborderswith Germany. The administrative centre of theregionisVejle,whilethebiggestcityisOdense.Intotal,68.8%ofthelabourforceworkintheprivatesector,withthefoodandconstruction industriesemployingmostpeople.Tourismisalsoanimpor-tantsectorinSouthernDenmark(Kontur,2017a).The region is the best-connected region in Den-mark in terms of digital infrastructure, which isa considerable strength. Southern Denmark hasdeveloped a strong innovation environment andclustercollaboration,withaninternationalimpactinthehealthandwelfareandroboticssectors,andstrongexportsinindustrialelectronics.TheRegionof SouthernDenmark oversees health care andregionaldevelopment.

Vejle Municipality is a part of the Region ofSouthernDenmarkandtheTriangleRegion,whichinvolvesapartnershipwithsixneighbouringmu-nicipalities to attract residents, businesses andinvestments to the region (The Triangle Region,2018).Vejlecityitselfhasaround55000inhabit-ants,whilethemunicipalityishometoaround114000people.Historically,themanufacturingindus-tryhasbeenanimportantpartofVejle’sdevelop-ment. Around 70%of the citizens in Vejle todayare employed in the private sector and, like theRegionofSouthernDenmark,thebiggestsectorsarefoodandconstruction(Kontur,2017b).Vejleisstrongincitydevelopment,sustainabilityandde-velopmentofsmartcitysolutions.

Digitalisation approachVejleMunicipalitydoesnothaveageneraldigitali-sation strategybut, aswithmanyothermunici-palitiesinDenmark,ithasadigitalisationstrategyfortheeducationsector,The Digital School 2016–2020.Vejleispartofthe100ResilientCitiesglobalnetworkandhasdevelopedaresiliencestrategy,Vejle’sResilienceStrategy.Thestrategyhas fourstrategicpillars: theco-creatingcity, theclimateresilient city, the socially resilient city and thesmartcity.Particularlywithinthesmartcitypillar,thereisafocusondigitalisation.

3.1 REGION OF SOUTHERN DENMARK/VEJLE by Lise Smed Olsen & Laura Fagerlund


localretailassociation)andbythedepartmentintheir communicationwith local politicians to im-proveplanningprocesses.

The municipality has invested in a 3D cave,which has made it possible to visualise plannedurban development projects for politicians. The3Dsystem isalsousedasa communication toolbetweenEnvironmentandPlanningDepartmentand businesses that wish to expand. The GreenTechCentreisasignificantlocalpartnerengagedin green business development and innovation.Theyoftenserveasa‘matchmaker’whentheskillsofaprivatebusinessarerequiredinthepublicsec-tor.GreenTechCentrealsopromotes the smartcityandresilienceagendaofVejle,attractingap-proximately6000visitorsperyearfromDenmarkand abroad. About 30 green profile companies,whichhavemorethan200employees,rentofficespaceatGreenTechCentre.GreenTechLabisabusinessincubatorforstartups,wherebusinesseshaveaccesstotesting,demonstrationandproto-typingproductionfacilities.

Vejle Municipality has an ongoing cross-de-partmental competence development projectcalled ‘service with purpose’. Through trainingsessions,thestaffwilldevelopastrongerunder-standingofhowtocombinedigitalsolutionswithstrongercustomerservice.Asanexample,itwas

realisedthatcitizenswantedstafftositdownwiththemandinstructthemonhowtousethedigitalservices.Anotherexampleisthatthemunicipalityhasremovedtheautomaticselectionmenufromitscontacttelephonenumber,replacingitwithre-ceptionstafftoredirectcalls.Thus,themunicipal-ityhasaimedtoremainservice-mindedandmeettheneedsofcitizenswhiletestnewdigitaltools,but also is willing to improve or remove digitalfunctionsthatdonotenhancetheuserexperienceorimproveefficiency.

The regional context and collaborationTheRegionofSouthernDenmarkhasnotdevel-oped an overall regional digitalisation strategy,butdigitalisationasameansforinnovationandre-gionaldevelopmentispresentinotherstrategies.Forexample,itispartoftheInnovationStrategyforRegionofSouthernDenmark,which includesafocusondigitalisationinhealthcare.Aswellasafocusonsustainableenergyandanexperienceeconomy,TheRegionalGrowthandDevelopmentStrategyincludesanemphasisonroboticsandin-novationinhealthcareandwelfare.Digitalisationisacross-cuttingperspectiveinthisstrategy.

TheRegion of SouthernDenmark foundedaDigitalisation Committee in January 2018. Thecommitteewillpromotedigitalisationandtheuse

Southern Denmark has developed a strong innovation environment and cluster collaboration, with an interna-tional impact in the health and welfare and robotics sectors, and strong exports in industrial electronics. Source: shutterstock.com


of IT solutions in the health-care sector. IT alsodealswithITandinformationsecurity.Oneofitsupcomingtasksistoinvestigatethedevelopmentof a regional digitalisation strategy and, longerterm, consider implementation issues, includinghow sucha strategywould fitwith the nationaland local strategies. Through its IT department,theRegionofSouthernDenmarkiscollaboratingwiththehospitals’ ITdepartments,asdigitalisa-tionisakeytoolindevelopingthehealth-caresec-tor. Digitalisation is seen as ameans to achieveproductivityincreasesinhealthcare,aperspectivethat has been important since the regionswereformedalittleover10yearsago.

AninnovationenvironmentintherelatedfieldsofroboticsandhealthcareiscentredonthecityofOdense.Itisinproximitytothelarge-scalehos-pitalthat iscurrentlyunderconstruction,aswellas to the University of Southern Denmark, theDanishTechnologicalInstitute,whichhasastrongresearchenvironmentforrobotics,theclusteror-ganisationWelfareTech,andHealthcareDenmark,which isworking to promoteDanish health-caresolutions internationally, as well as to differentbusiness support organisations. The Health In-novation Centre of Southern Denmark (SDSI),aprojectorganisationunder theauspicesof theRegionofSouthernDenmark,isapartofthisen-vironmentandakeyactorontheRegion’sbehalfinpromotinginnovationinthehealth-caresector.TheSDSI’s overall goal of improving the patientexperienceincludesafocusondigitalisation.

TheRegionofSouthernDenmarkisfocusedonenhancingtheuseoftelemedicine.Onepotentialinitiative isthe installationofvideoequipmentintheofficesoflocaldoctors,enablingthemconductconsultations with patients in their own homes.SDSIoverseesimplementationofthevideocom-munication.

Another example of the development of aproduct/solution being facilitated by SDSI is ageriatricstoolkitforcarryingouttestsonelderlypatientsintheirownhomes.TheideawasderivedbyaprofessoringerontologyworkingatVejleUni-versity Hospital and the University of SouthernDenmark.Often,geriatricspatientsareadmittedintohospitals for lessthan48hours.Theadmis-sions cause stress for many of these patients,whoconsideritunpleasant.Thetoolkitwoulden-ableteststobecarriedoutintheirhomesinstead,avoiding hospital admission. It is currently beingtestedinpatients’homesandSDSIhastheoverall

projectmanagementresponsibility.SDSIcollectsdatafromthedifferentmeasurementequipmentinthepatient'shomeandstoresitinadatabasethat can be accessed by the responsible doctor,the hospital and themunicipality. This enhancesthe well-being of patients and there is also aneconomicbenefittothemunicipalitiesinreducinghealth-carecosts.ThereispotentialtoimplementthesolutionacrossDenmarkandadaptittootherpatientgroups.

In general, co-operation on digitalisation be-tweenmunicipalitiesandtheRegionofSouthernDenmarkisnotpronounced.Thehealth-caresec-tor,wherethereisanaturalneedforco-ordinationbetweentheregionandthemunicipalities, istheexception.

VejleispartoftheDanishCitypackcollabora-tion, togetherwith the other four ofDenmark’slargestcities.Theaimsofthiscollaborationaretofosterthedevelopmentof intelligentcities, influ-enceanupcomingnationalSmartCityStrategy,develop intelligent solutions and provide inspira-tionandapointofentryforcompaniesthatwishtocollaborateonthesamethemesandsolutionsastheCityPackcities(Citypack,2018).

Challenges and opportunitiesThe challenges of ageing populations,which putpressureonthehealth-careandwelfaresystems,are being felt in the Nordic Region and beyond.Moreover, urban planning increasingly requiresmore efficient and multi-purpose solutions thatcancombattheeffectsofclimatechange,whilesimultaneouslycreatingattractiveurbanenviron-ments.ThecasestudyoftheRegionofSouthernDenmark has demonstrated examples of howpublic–private collaboration can be organised toimplementdigitalsolutionsinthehealth-caresys-temandinsmartcityinitiatives.

Usingdigitalisationasatoolto improveeffi-ciency inthepublicsector,whilemeetingthede-mands of citizens and businesses, calls for newopportunitiesforpublic–privatecollaboration.Thecasestudyhasdemonstrateddifferentapproachesto organising such collaboration. In the case ofhealth care, this is centred on a triple-helix co-operation environment, which makes it possibletofacilitatedigitalsolutions,whichmayalsohavecommercialvalue,fromthehospitalsandtestthesolutions in collaboration with the patients anddoctorswhoaretheendusers.Inthecaseofsmartcitydigitalsolutions,thefocusisplacedonimple-


menting step-by-step solutions to improve thecommunicationoftheEnvironmentandPlanningDepartmentwith citizens, businesses and politi-cians,whilealsofacilitatingbusinessdevelopment,e.g.,theretailsector,whichhasgainedanewtoolforplanningbasedoncustomerbehaviour.

For the Department for Environment andPlanningatthemunicipality,the implementationofsmall-scaleinitiativesandinnovationsarehigh-lighted as an opportunity for public authorities.ThenationalDigital Strategy 2016–2020 isbeingimplemented indifferentwaystostreamlineap-proaches across public authorities. However, thehead of department has argued that it is notthe large-scale strategies and system solutionsthatdrivedigitalinnovation.Rather,step-by-stepchangesthatfacilitatetheconditionsforcitizensand businesses have an impact. This approachto digitalisation calls for awareness and strongleadershipbypublicauthoritiestoestablishacul-tureofpromotingincrementalchangesindialoguewiththeendusers.Embracingthetransformationandchangethatdigitalisationentails—forcitizens,for co-workers and for everybody—is one of thechallengesthatliesahead.

InthelightofthereformoftheDanishbusi-nesssupportsystem,itwillnolongerbepossiblefortheRegionofSouthernDenmarktoco-financebusiness development initiatives. However, astheregionsarerunningthehospitals,theRegionof Southern Denmark will continue to work onhealth-care innovation.Regardingnew technolo-gies,thisworkismainlyundertakenbySDSI.Therole of theRegion considering its responsibilitiesthatcutacrosshealthcareandbusinessdevelop-mentisuncertain,asthelawshavenotyetbeenpassedbytheparliament(asofNovember2018).ItseemsasiftheRegionswillmaintainresponsibil-ityfordevelopingregionaldevelopmentstrategiesintheareasofhealthinnovation,publictransport,culture, education, environment, infrastructure,development of the peripheral areas, natureand recreational purposes, green transition, cli-mateadaptationandcross-bordercollaboration.Health care will remain the responsibility of theRegionand,notably,health-careinnovation,whichiscloselylinkedwithbusinessdevelopment,isoneoftheareaswherethereisanapparentchallengeandopportunityassociatedwiththereformprocess.


About the case study areaTamperewasestablishedasanindustrialtowninthemid-19thcentury,asfactoriescouldexploittherapidsofTammerkoskiwhichfactoriesforhydro-power(CityofTampere,2015).Abrownfieldcityuntil the 1990s, it has evolved over the past 15years to become an example of amedium-sizedpost-industrialNordiccitythathasnotonlysur-vived, but is thriving. This success can largely beattributed to its ability to adapt and transformtochangingeconomicconditions.Inthecontextofthedigital transition, it canalsobeexplainedbythe region’sparticular industrial trajectory,most

notably the presence, and subsequent decline, ofthe technologyand communicationsgiants,Micro-softandNokia,who,attheirheightin2007,sup-plied 40% of the world's mobile phones (BBC,2016). This history, combined with the relativelybroad skills base, which is constantly being re-newed through the city’s four higher education

institutes,16 puts Tampere in aunique position to capitalise ondigital trends. The city has de-veloped a reputation for beingbold—bothfromtheperspectiveofinvestingininfrastructureandpromotinggrowth,andwithre-spect to testing new technolo-giesandsolutions.

From a geographical per-spective,thereareseveralwaystoconceptualiseTampere(seeMap2). At the municipal level, theCity of Tamperewithits231853inhabitants isthe largestcity inthe regionandthethird largestin Finland (Statistics Finland,2017).Tampere City Regionhasapopulationof385301(2018)andismadeupof theCityof Tam-pereand itssevenneighbouringmunicipalities (Tampere CityRegion, 2018). Tampere Region (Pirkanmaa, in Finnish) has apopulationofjustover500000(see Map 2) making it the sec-ondmost populous of Finland’s19 regions (Council of TampereRegion,2017).Despitetheseof-ficial boundaries, several inter-vieweesforthisprojectstressed

16 TampereUniversityofAppliedSciences,TampereUniversityofTechnology,UniversityofTampere&PoliceUniversityCollege.

Tampere Region (Pirkanmaa in Finnish)Population: 512081(2017)Area:14613,23km²Density:40/km²Municipalities: 22Administrative centre:TampereRegionalstrengths:ICT,engineering,gameindustry,strongstartupculture

Map 2. Administrative borders of Tampere region. Source: Eeva Turunen / Nordregio.

3.2 TAMPERE REGION/ CITY OF TAMPEREby Linda Randall and Tuulia Rinne


Box 1. Regional reform in FinlandFinlandisheadingtowardsoneofitsmostsubstantialadministrativereformsinhis-tory.Thereformswillinvolvegreaterandmoreclearlydefinedresponsibilitiesattheregionallevel,mostnotably,thetransferoftheresponsibilityforsocialandhealth-careservicedeliveryfromthe311municipali-tiesto18newlyestablishedregions.Fromaregionaldevelopmentperspective,itishopedthatthereformswillchallengethepreviouslycentrallydrivennatureofFinn-ishpublicpolicy.Atthesametime,thereissomeconcernthattherenewedfocusonserviceprovisionwilldetractfromtheregionaldevelopmentrolethatiscurrentlytheregionalauthorities’primaryconcern.Thus,fromtheperspectiveofdigitalisation,abigquestionishowtoensurethatthedigitalisationisprioritisedinpolicymak-ingandnotcrowdedoutbythefocusonservicedelivery.Thisaside,thecentralisa-tionofsocialandhealth-careservicesnodoubtoffersanopportunitytoaddressthecompatibilityofICTsystemsintheareaofdigitalpublicservices,ataskthathasbeenchallenginginthepastbecauseofhistoricinvestmentsinabroadarrayofdifferentsystems.Theregionalgovernmentsareex-pectedtobeelectedin2019andthereformtocomeintofullforceinJanuary2021(TheMinistryofFinance,2018).

the fluid nature of the ‘region’ in the context ofdigitalisation,disputingthevalueoffixedspatialboundaries. In linewith this, the case studypre-sentedhereisnotstrictlyfocusedataparticularadministrative levelandinsteadframesTampereasa‘smartcityregion’.ThisframingacknowledgestheCityofTampereasanimportantcentralnodewhileatthesametimeconsideringthepotentialfor‘smartness’toextendbeyondtheurbanfabricandencompasstheregionaleconomyasawhole.

Theregion’sadministrativeorgan,theCouncilof Tampere Region (Pirkanmaan liitto in Finnish),focusesprimarilyonregionalplanninganddevel-opment. However, this will change substantiallyfollowing the administrative reforms currentlyunderwayinFinland(seeBox1).Regionaldevelop-mentisalsosupportedbyBusinessTampere,theeconomic development agency of Tampere City

Region,whichplaysakeyroleinpromotingthere-giontopotential investors,supportingcollabora-tionbetweenexistingcompaniesandbuildingupecosystemsintheregion.Someofthetoolsusedforthisincludehackathons(onecompanypresentsachallengetoteamsofprivatepeople,studentsandcompanies,whocomeupwithdifferentsolu-tionsoveratwo-tothree-dayperiod);pitchingbyinvitation (again, companiespresentachallenge,but companieswith specific expertise related totheproblemaregiventhreeorfourmonthstode-velopasolutionandwinthecontract);andpitchingdays(onecompanygetsthechancetohear20–30pitchesinoneday).BusinessTampere’skeyfocusareasare: theexperienceeconomy (filmmaking,virtualreality,gamesandtheideaofTampereasreallyattractiveplacetolive);smartcitysolutions(the city as a platform/test bed); and renewingindustry(matchingICTcompanieswithsolutionswiththemoretraditionalmanufacturingindustryto‘makethefuturehappenfaster’).

Digitalisation approachUnderstandingTampere’sapproachtodigitalisa-tionrequiresfirstplacing it inthecontextoftheregion’sindustrialdevelopmenttrajectory.Asnotedabove, Nokia and Microsoft played an importantrole in this. These flagship companies shapedthe currentenvironment fordigitalisation in twokeyways.First,NokiaandMicrosoftactedasin-cubators for ICTskills in the region fornearly 15years—they developed skills within the existingpopulationandattractedhigh-tech,skilledwork-ers from abroad. These years were also forma-tive indeveloping strongnetworksanda sharedworkingcultureamongapopulation ideallysizedtomaintainthem.However,from2008,Nokiabe-gantoloseitspositionasanindustryleaderandwasforcedto layoffover 10000employees,or19%ofitsworkforce.InTamperealone,morethan2500people lost their jobs.Bytheendof2013,theregionfacedauniqueproblem—anoversupplyofhighly-skilledandexperienced,unemployedtechtalents(O’Brien,2012).

The events that followed can largely be at-tributed to the redundancy programmes of thetwocompanies,NokiaBridgeandMicrosoftPolku (whichmeanspathinEnglish).Theseprogrammesnot only provided substantial support to exitingemployeesbut,moreimportantly,didsoinawaydesigned to encourage entrepreneurship. This in-cludedtrainingprogrammesandpersonalcoaching.


Thecompaniesalsoallowedredundancypackagestobestructuredsothattheywerepaidoutoveralongerperiodoftime,functioningmorelikeawagethana lump sum.Thisapproach, combinedwiththehighcalibreofthosewhowerebeinglaidoff,resultedinexcellentpreconditionsfornewandin-novativebusinessmodelsandstartupstoemerge.At the same time, the regionbecameattractiveto foreign companies seekingworld-class exper-tiseavailableinlargeteams.Asaresult,thetalentthatwasonceconcentratedwithintwolargemulti-nationalsisnowspreadacrossamyriadofdifferentsized companies and startups, both homegrownandinternational.Thistransitionhasbeenimpor-tantinbuildingthelong-termeconomicresilienceoftheregionandhascreatedtheperfectprecondi-tionsfortheworkondigitalisationthatiscurrentlyunderway.Respondingtothecrisisalsobroughtarangeofregionaldevelopmentandbusinessactorstogether,creatingfoundationalrelationships.

Giventhishistory,itisperhapsnosurprisethatdigitalisationhasbeenacoreelementofregionaldevelopment policy in Tampere for at least 20years.Ratherthanaspecificpolicyarea,theCouncilofTampereRegion’scurrentregionaldevelopmentprogrammeidentifiesdigitalisationasoneofthreeglobal mega-trends alongside resource wisdom

and occupational restructuring (Council of Tam-pereRegion,2017).Digitalisationisdefinedintheprogrammeas:‘involv[ing]thetransformationofworkand lifestylesthroughtoolstoenhancetheuseofinformation,especiallycomputersandotherdigitaldevices,throughthewholesociety,inareassuchashousing,services,mobility,goodsproduc-tion, entertainment and health-care practices’(CouncilofTampereRegion,2017:21).Theregion’ssmartspecialisationstrategy,incorporatedintheimplementationplan,laysoutfourkeyareas:digi-tal manufacturing, smart city solutions, circulareconomy,andwell-beingandhealthservicesandsystems,all ofwhichareboostedbynewdigitaltechnologiesandintelligentsolutions.

Atthemunicipal level,thecoredriverofdigi-talisationworkistheSmartTampereprogrammefor2017–2021,theessenceofwhichissummarisedinitsthree-wordtag-line:‘Grow.Smart.Together’.The starting point for programme developmentwastoidentifytheregion’sstrengthsandconsiderways to build on these, with the aim ofmakingTamperethemostwell-knownsmall-to-medium-sizedsmartcityintheworld.Currently,therearemore than 300 companies involved in the pro-gram,with 37official partners ranging frombigcompaniestosmallstartups.Smart Tamperewas

A brownfield city until the 1990s, Tampere has evolved over the past 15 years to become an example of a medium-sized post-industrial Nordic city that has not only sur vived, but is thriving. Source: pixabay.com


officially launchedin2016withtwocomponents,thedigitalisationprogrammeandtheecosystemprogram.17

The digitalisation programme aims to makeeveryday life easier for residents through user-friendly digital services,with thegoal ofmakingmost city services digital by 2025. Despite thename,onlyabout20%oftheworkdoneunderthedigitalisationprogrammeisabouttechnology.Theother80%isaboutpeople—specifically,managingchange.Twentymotivatedandreformistemployeesfromdifferentdepartmentshavebeenrelievedoftheir regularworkloadsand requiredtodedicate100%oftheirtimetorenewingtheirdomain.Newideasarepilotedonasmallscaleand,ifeffective,arescaledupacrosstheorganisationordepart-ment. These ‘change managers’ also meet as agrouptonetworkanddiscussoperationalmodes,i.e.,whatworksandwhatdoesn’t.Similartotheregional level,themunicipalityhasa longhistoryworking with digitalisation and conceptualisestechnologyasavitaltoolthroughwhichtorealiseother policy priorities, rather than as a distinctpolicy area in-and-of-itself. Examples of areaswhere pilots may take place include: customer-oriented services, renewal of payment systems,digital learningenvironments,healthandperfor-mancepromotion,renewalofland-useprocesses,renewingthecoursesofactioninemploymentac-tivitiesandeffectivespaceutilisation.

The ecosystem programme has a more out-ward focus and aims to create clusters aroundsevencentral themes(seeFigure4).Eachthemehas a leader, a relevant actor from the field inquestionwhoisgenerallynotfromthecityadmin-istration. For example, the director of InfotriplaOy, a company providing transport system ser-vicestargetedtosmartmobilityandtransport,isresponsiblefordevelopingthesmartmobilityeco-system.Therearealsoexamplesofthememanag-erswhoworkparttimefortheprojectandparttimeaspractitionersintheirfield.Althoughmostactorswithintheecosystemprogrammearefromoutsidethecityadministration,thecityitselfstillplaysanimportantrole,actingasa‘livinglab’fornewideas,bothphysical(e.g.,newtramways)andnon-physical(e.g.,data).Usingthecityinthisway

17 Athirdsub-programme,SustainableTampere,wasaddedinautumn2018topromotesustainabilityandbusinessco- operation.Asthisoccurredaftertheregionalcasestudyvisit, itisnotexploredinthisresearch.

providesopportunitiesforcompaniestotestnewsolutions, making the smart city a place wherenewideasareborn,notjustimplemented.ItalsomeansthatTampereresidentsaredirectbenefi-ciaries of innovation in the region. Several inter-viewees suggested that Tampere is an ideal sizeforthiskindofwork.

Figure 4. Elements of Smart Tampere ecosystem programme (Source: Tampere Municipality)

AlthoughSmart Tampereisfundedandoper-ated by themunicipality, its scope is not neces-sarily confined within municipal boundaries. TheSmart Tampere teamwork closely with the Re-gionalCouncilandBusinessTampere,andmanyoftheprogrammepartnersoperateoutsidethemu-nicipality.Corefundingfortheprogrammecomesfromthecitybudgetanditiscurrentlyfundeduntil2021.ParticipationinnationalandEUfundedpro-jects provides an opportunity to explore specificprojectareasinmoredepth.Careistakentoensurethatthisworkistargeted,andthattheteamonlyinvesttime inapplyingforprojectfundingthat iswellalignedwithexistinggoals.

Thehighereducation sectoralsoplaysan im-portantroleinTampere’sdigitaltransition.ThenewTampere University (expected to open 1 January2019), together with the Tampere University ofAppliedSciences,will formanewuniversitycon-sortiumand higher education community during2019,withsome35000studentsand5000staff.Thenewuniversitycommunityplaysanessentialrole indigitalisationthroughvariousmeans,suchas creating and providing new relevant knowl-edge,developingandprovidingaccessible servic-

nordregio report 2019:4 4 4

esand tools todevelop competences of thedigi-tal era through R&D partnerships and providingopen infrastructure and collaborative innovationplatforms. The university community-wide vision2023fordigitalisationwillguidethefuturedevel-opmentoftheglobaldigitalcampus.Thevisionisconcernedwith renewal in the areas of learningandteaching,research,administrationandman-agementandcollaborationwith the surroundingsocietyandecosystem.

The regional context and collaborationIntervieweeswereexcitedaboutthegenuineop-portunity that digitalisation presents for multi-disciplinary,multi-sectoralendeavours.Thecom-plexity and cross-cutting nature of digitalisationmakesitincrediblydifficultforonepersonorteamtodoitalone.Thiscreatesnewpossibilitiesforcol-laborationbothwithintheregionandbeyondit.Asexplainedbyoneinterviewee:

'It means, e.g., that Smart Tampere programme is not only looking to Finland or to Tampere Region when they are looking for a smart city solutions or platforms. They are open for global offerings, for big corporations or smaller companies from anywhere. It means also that when we are developing our in-novation environments related to digitalisation, we would like to keep them open not only for compa-nies and people from our region but also globally. It means also that we have been encouraging some of our innovation platforms to go global, create a global network where digital talent can get con-nected globally to our ecosystems.' (PetriRäsänen,CouncilofTampereRegion)

The political climate for this work is also good.Digitalisationisanissuewithbroadpoliticalsup-port—mostpoliticiansareawarethatmanyofthechangeswillhappenwithorwithouttheirsupportandareeagertofindproactivewaystorespond.Althoughthe initiativesand ideasareverymuchdriven from the local level, Tampere’s digitalisa-tionworkalignswithandiswellsupportedbythenational government, with the region generallyviewedasafront-runner inthenationalcontext.Forexample,Tampereisoneofthefirstmunicipal-itiestobeginusingthenationalserviceinfrastruc-tureandistheonlycityregionwithco-operationbetweenmunicipalitiesforsharedICTinfrastruc-ture.Theagreementonregionaldataadministra-tion,whichincludestheCityofTampereandeight

of its neighbouring municipalities, has been inplacesince2008(itwasrenewedin2014)andhasbeenofbenefittoboththelargerandthesmallermunicipalitiesintheregion.Anothergoodexampleof thenationalsupport for locallyandregionallydrivenactionondigitalisationisthe6Aika(6CitiesinEnglish)initiative,whichcommencedin2014andwillrunto2020.ItinvolvesthesixlargestFinnishcities collaborating on smart city solutions,withtheaimofcreatingnewknow-how,businessandjobs(6Aika,2018).

Challenges and opportunitiesPerhapsthemostimportantthingtounderstandabout the Smart Tampere programme is that,muchlikedigitalisationitself,itisdesignedtobeavehiclefortransformationratherthananactivityper se.Theaim is to facilitate sustainable, long-term,structuralchange—tomakeSmartTampereaplaceandnotaprogram.Thisisundoubtedlyasignificant challengeand there is a risk that theculture of innovation being fostered will not bemaintainedwithout the programme to act as adriverpost-2021.However,severalelementsoftheworkbeingundertakendirectlymitigatethisrisk.First,themulti-sectoralandmulti-stakeholderna-tureoftheworkisalreadychallengingestablishedways ofworking. For example, co-operation be-tweenthecity,studentsandresearchinstitutesincitydevelopmentisanintegralpartofthesmarteducationecosystem(SmartTampereEcosystem,2017).Second,asdescribedabove,theecosystemprogramme encourages clear ownership of thedifferent ecosystems by industry leaders, whohaveaclearinterestinmaintainingtheseecosys-temsbeyondanyallegiancetotheSmartTampereprogram.Similarly,initiativesunderthedigitalisa-tionprogrammeareledbydepartmentrepresent-ativeswhowill return to their ongoing positionsonce the Smart Tampere programme comes toanend.Third,fromSmartTamperetoTampere3totheworkofBusinessTampere,thefocusisonbringingpeopletogethertosharetheirexpertiseandworktowardstangiblegoals.Unitingpeopleforaspecificpurposethatisinlinewiththeinter-ests of their everydayworknot only encouragesmultidisciplinaryworkbutpavesthewayforfuture,mutuallybeneficialcollaboration.

Anothercloselyassociatedchallenge is recon-ciling the fast-paced nature of technologicalchangewith the long process of culture change.This again reinforces the importance of the hu-


manelementofdigitalisationandthe20%tech-nology/80% people analogy mentioned above.Although people may be supportive of triallingsomething new at a smaller scale, scaling up asuccessful pilot is often more challenging, par-ticularlywhenthisinvolvesthetransformationofexistingworkroles.Goodsupportfrommanage-ment(includingresources)helps,emphasisingtheimportance of department heads in leading theprocess andworking closelywith their teams toaddressanyfearsandconcerns.

Despitethesechallenges,thereisaclearsenseofoptimisminTampere.Althoughtherewerenoattempts todownplay the traumaof theperiod

followingtheNokiaandMicrosoftlay-offs,itwasclearthattheseeventsarenowseeninanewlight:ascreatingnewpossibilities,opportunitiestobuildregionaleconomicresilienceandachancetotellanewstoryaboutentrepreneurshipandentrepre-neurialspiritintheregion.UnemploymentratesintheregionarestillhighcomparedwithDenmarkorIceland,e.g.,buttheyareimproving.

Overall,Tampereisinastrongpositiontotakefull advantage of the benefits of digitalisation.Thechallengenowistoshowthatitcanbedone—thatthereareinfactactionsthatthecityandre-gioncantaketoinfluencethecourseofthisglobalmega-trend.


About the case study areaIcelandhastwolevelsofadministration,nationalandlocal,butnoformalgovernancestructureatthe regional level. Instead, regional developmentinterests are represented by the Association ofLocalAuthorities in Icelandandmostmunicipali-tiesarealsomembersofindependentregionalor-ganisations. Regarding digitalisation, there is noevidence of a regional approach and there is noformalstrategyaddressingdigitalisationfromtheregional perspective. Interestingly, several inter-vieweesnotedthat,becauseof itssmallpopula-tion,itisperhapsusefultothinkofthewholecoun-tryasone‘region’withrespecttothisissue.Atthelocal level,despiteevidenceof somesmall initia-tives happening around the country, Reykjavík istheonlymunicipalityinIcelandworkingwithdigi-talisation in a holistic and co-ordinatedmanner.Given these considerations, this case focuses ontheCity ofReykjavík, using the national context(asopposedtotheregional)asabackdrop.

ReykjavíkisthecapitalcityofIcelandandtheworld’snorthernmostcapitalofasovereignstate.The Icelandic population is concentrated in thecapitalregion,with126000persons(2018),overonethirdofthepopulation,livinginReykjavík(Sta-tistics Iceland,2018).Thecentreofeconomic lifeissituatedinthegreaterReykjavíkarea,includingadministration, commerce, services, industries,transportandcommunication,aswellasthecoun-try’smainculturalandeducationalinstitutions.

Digitalisation approachReykjavík Municipality began developing digitalservicesin2002,whenaround30digitalprocesseswereputinplaceandmaintainedbytheITdepart-ment. At this time, thementality around digitalserviceswas‘openaself-serviceportalandlet ittake care of itself’ (interview 2018). The digitaltools were implemented sporadically to supportanaloguefunctionsandtherewaslittlelong-termthinkingabouthowtodevelopadigitalapproach.Theoverarchingviewwasthatdigitalisationwassomething that would just happen. However, in2016, the city council realised that change wasrequired,astheexistingdigitalfunctionshadbe-comeoutdatedandthefailuretodevelopnewso-

lutionswasresultinginpressurefromcitizens,whowereincreasinglydissatisfiedwithcouncilservices.

There was broad political agreement that adigitalapproachwasthekeytoimprovementand,inJanuary2017,theDigitalServiceCentre(Rafræn þjónustumiðstöð in Icelandic) was established(ReykjavíkCityCouncil, 2016). Itsaim is tomakedigitalservicespeople’sfirstchoice,withself-serviceultimately superseding face-to-face in front-lineservices.

Today, three local policies support digitalisa-tion in various ways: information policy, servicepolicy and an Internet policy. These policies em-phasise high-quality digital services, access toinformation, transparency and openness, higherservicelevelsandincreasedpublicparticipation.

The Digital Service Centre sits within theOffice of Service and Operations alongside theITDepartment and theDocumentManagementTeam.Itcommencedwithonlytwoemployeesbutthishadgrownto10byApril2018.Theteamalsoemploysmanyfreelanceworkers,particularlyfortechnicalissues,allowingforflexibilityandagilityinitsapproach.Thepreviousunsystematicapproachand lackof long-termthinkinghasnowbeen re-placedwithacommitmenttodigitalfirstandanunderstanding that realising this commitmentrequires hard work, dedication and a proactivepolicyapproach.Theteamhastwodistinct ‘usergroups’—thecitizensofReykjavíkandthestaffofReykjavíkMunicipality. It isdivided into threeso-called‘disruptive’units:thesmartcityunit,thedigi-talserviceteamandtheservice-disruptionteam.

The smart city unitwas the first of the dis-ruptiveunits. Ithastwoteammembers,onefo-cusedonbringingtogetherdifferentdepartmentstoimplementdigitalsolutionswithinthecity,andanotherdedicatedtosecuringexternalfundingtofurthersupportandgrowthiswork.Connected-

Greater Reykjavík (‘The Capital Region’)Population:217711(2018)Area: 1062km2Density:213/km2Municipalities: 7Administrative centre:ReykjavíkRegionalstrengths:tourism,creativeandknowledge-basedindustries,fisheries,services,energyproduction,commerce,educationandR&D

3.3 REYKJAVÍKby Linda Randall & Hjördís Rut Sigurjónsdóttir


nessisseenasacentralcomponentofthesmartcity but, interestingly, this does not just refer todigitalconnectedness.Italsoconcernsconnected-nessbetweenthefunctionsofthecityandthosewhoprovidethem—makingthesmartcity intoacity that perceives the whole picture and getspeopletothinkdifferently.

Thisisseenasthekeydistinctionbetweenbe-comingatrulysmartcityandsimplybeingacitythatworkswithmanyITsolutionsandprojects.Aconcreteexampleofthis isthe ‘smarttrashcans’projectthathasbeen implementedrecently.Thesolutionrequiredcollaborationbetweenthesmartcityteamandthemaintenanceteamandresultedintrashcansbeingemptiedonceaweekinsteadoftwiceaday,whichfreedmunicipalstaffuptotakeonotherroleswithinthecity.Anothercomponentoftheapproachiscreatinganenvironmentforin-novation within Reykjavík. This includes workingwithestablishedcompaniesinterestedinusingthecityasa‘testbed’,butalsoprovidingopportuni-tiesforindividualsandstartupstotestandlaunchnovelideas.Asoneintervieweestated:

In my opinion, if Reykjavík is not doing this, trying to be smart and trying to make an environment where startups and entrepreneurs can thrive, we will basi-cally lose a lot of brain power … If you don't have an environment that people can thrive in and get jobs that fit them, we will lose these people and we will turn into a place that only has tourism, fisheries and these kinds of jobs. (ÓskarSandholt,ReykjavíkMunicipality)

The next team is digital services. This team isworkingonmakingall council servicesdigital.Asnotedabove,therearecurrently30municipalpro-cessesthatarefullyelectronic,fromfront-endtobackofficeandbacktothecitizen.Originally,theaimwastotakethesameapproachforall100–150 processes within themunicipal government.However, it became apparent that the scale ofthistaskwasbeyondtheorganisation’scapacityforchangeandtheprocesscametoastandstill.Inresponse,theteamdecidedtobeginbyfocusingexclusivelyonfront-endservices,withtheaimofeliminatingeveryPDFfileonthewebsiteby late

At the local level, despite evidence of some small initia tives happening around the country, Reykjavík is the only municipality in Iceland working with digi talisation in a holistic and co-ordinated manner. Given these conside-rations, this case focuses on the City of Reykjavík, using the national context (as opposed to the regional) as a backdrop. Source: pixabay.com


2018. The intention with this approach is two-fold.First,itwilldramaticallyimprovetheexperi-enceofcitizensinteractingwiththecity.Second,itwill demonstrate progress and create positivemomentumbehindthebroaderandfarmorechal-lengingtaskofdigitisingtheworkthatgoesonbe-hindthescenes.

This iswherethelatestteam,service disrup-tion, comes in. The service-disruption team areusing a ‘design-thinking’ approach to completelyreimaginethewaythatcityservicesaredeliveredandrun.Althoughdigitalsolutionsarelikelytobeanimportanttool,theprocessputsthecustomeratthecentre,notthetechnology. It involvestak-ing each service and going through an iterative,customer-centredprocess todetermine thebestpossibleapproach.Asanexample,thecallcentrehadbeencriticised for longwait timesandpoorservice. They have now implemented a processwherebycustomerscanleavetheircontactnum-bers immediatelyandhavetheircall returnedbythepersontowhomtheywishtospeak. Internalprocessesarealsobeingdisrupted.Forexample,the city maintenance staff, who previously hadnosystematall tomanagetheir tasks,arenowworkingwithIndriðitherobot.Municipalstaffex-plaintheirproblemtoIndriði,whologsthemintoasystemwheretheyareassignedtomembersofthe maintenance team. Indriði provides severalnotificationstothestaffmemberthroughouttheprocess, including informingthemwhenthetaskhas been resolved. Peoplewere sceptical of thisprocessatfirstbutitsintroductionwaseasedbymakingithumorousandfun;therobot’snameIn-driðiisbasedonanoldIcelandiccomedyseriesanditusescatchphrasesfromthecharacter.

Interestingly, aside from the IT department,none of the team have technical backgrounds.Theirjobismoreaboutworkingwithpeople,man-agingchangeandcreatingdisruption.Contractorsarebroughtonboard for the technical elementsandthereisaconsciousefforttoworkwithyoung-erpeopleandwithstartups.Thesecompaniescanoffer lower cost and greater efficiency, are flex-ible enough to adapt to the style and ‘run fast’,aswellasgivingadynamicand‘hip’feelingtothework.Publicprocurementlawscanbeachallengetoimplementingsuchanapproachastheytendtounintentionally havea bias towards larger,moreestablished companies. This has been addressedbybreaking theworkdown intosmallerprojectsthat canbeput intoactionmorequickly.Other

departmentshavebeguntousesomeofthesamecontractors.Havingamixof ‘oldandnewblood’within the teamwasalso citedas an importantsuccessfactor.

Until recently, Reykjavík Municipality’s workwith digitalisation largely occurred behind thescenes.ThischangedinApril2018,whenthecityhosted its firstSmartCity conference. The con-ferencewas the first outward step in presentingReykjavík as a smart city and was attended byover400people,withanother1700followingtheonlinebroadcast.Apartfromcityemployees,theconference visitors included entrepreneurs, poli-ticians, people from well-established companies,universitiesandmunicipalitiesandemployeesfromtheministriesandofficial institutions.Newsolu-tions for innovative infrastructure and serviceswerepresented,includingsmartlightingandself-driving cars. As part of the conference, anotherevent,HacktheCity,washeld,attractingnearly200participantswho attempted to derive solu-tionstoaddressproblemsfacedbythecity(Rey-kjavík City Council, 2018). Again, this approachrepresentsashift in thinking.Rather than ‘whatdowedoandhowcanwedoitbetter?’,theques-tionbecomes ‘whatproblemsarewe facingandhowarethesebesttackled?’Theeventwasalsoseenasawaytocreatesome‘buzz’inthecityand‘seewhathappens’.

The national context and collaborationThere was not a strong sense of collaborationbetween different levels of government in Rey-kjavík. Somemunicipal-level informants reportedfeelingthattherewasa lackoffocusatthena-tionallevelandsuggestedthat,followingthesuc-cessoftheworkthathasoccurredinthepast18months, Reykjavík could actually be a model toinspirenationaltransformation.Thegreatestcol-laboration betweenmunicipalities in Iceland hasoccurredthroughthedevelopmentoftheregionalplan.AsnotedintheIntroduction,theplanlargelydealswithissuesrelatedtophysicalplanning(e.g.,transport)andthereiscurrentlynocollaborationevident on digitalisation.Oneway inwhich Rey-kjavíkMunicipalityisworkingtoincreasecollabo-ration and transparency between municipalitiesisbyusingallopen-sourceprogrammes(it istheonlymunicipalityinIcelanddoingso).Thismeansthat ifanothermunicipalitywants to implementa similar serviceplatform, they caneasilydo so.


Inaddition, thedigital service teamhavehostedmeetingswithneighbouringmunicipalitiesforthepurposeofknowledge-sharing.

ReykjavíkUniversityplaysanimportantroleinsupportingtheneedsof Icelandicsocietyand in-dustry.Theuniversityworkscloselywithindustryandwithinternationalexpertstoidentifywhatisaheadandtoattempttoprepareforit.Currently,the university is working on making its educa-tionalofferingsmoreflexibleandcurrent,aswellasmakingcoursesavailabletopeopleofallages(seeBox2).Althoughpeopleareexperts in theirown fields, theyoftenhaveno idea, e.g., howtousebigdata.Theuniversityaimstoprovidepeoplewiththetoolstodotheirjobbetterinthecontextoftechnologicaldevelopmentor,inotherwords,tobethebridgebetweensocietyandthedigitalrevo-lution.Thisincludesworkingwithpeopleonhowtodobusinessinadifferentway(e.g.,legalandethicalframeworks). Themunicipality is alsoworking tocontributetothedevelopmentofknowledgeinthefield,withateammemberdedicatedtodevelopingandexecutingaresearchagenda.

Challenges and opportunitiesAlthough the city’s work with digitalisation hasbroadpoliticalsupport,thissupportisnotneces-sarily very focused—no one is against the work,but there are no passionate allies advocatingfor specific actions or outcomes either. There isa sense that this issue becomes lost among themoremundane issues.Thestrongpenetrationoftechnologymeansthatthereissomeresistance—many people are using these tools in their dailylivesandthereissomewhatofagapbetweenhowthegeneralpublicisusingtechnologyandthepaceof transformation ingovernmentandpublic ser-vices,whicharestilltryingtocatchup.

Asnotedabove,digitalisationworksitswithintheOfficeofServiceandOperations.Asignificantchallengeforthisofficeisthat,despiteitsname,ithaslittlecontroloverthewayservicesaredeliv-eredwithinthecity,withthemajorityofcityfunc-tions being delivered by other departments. Assuch,animportantfirststephasbeenovercominginertiaandgettingothersonboardtosupporttheneedforchange.Therootofthischallengewasde-scribedinseveralways.

First,thesimplerealityisthatchangemanage-mentisaslowanddifficultprocess.Theconnected-nessthattheDigitalServiceCentreteamistryingtoachieveisashumanasitisdigitalandthus,itrequires both the introduction of new processeswithinexistingteamstructures,andencouragingnewwaysofworkingthatchallengetheseexistingstructuresandbringnewconstellationsofpeopletogether.Therealityisthatmanypeoplehavebeendoingthingsacertainwayforalongtimeandtheyarenotnecessarilyreadyforchange.Thisisalsoachallenge in theprivatesector,whereembracingdigitalchangemayrequirepeoplewhohavebeenconsideredtohavetheanswersforalongtimetoadmitadegreeofvulnerability,stepoutsidetheircomfort zone and learn new skills. At the sametime,manypeople are simply sobusywith theirday-to-dayactivities thattheystruggletomaketimeforsomethingnew.Changingprocessestakesalongtime—itisnotjustaboutmakingitdigital,youmustlookateveryelementofaprocess(whichcaneventakeoneortwoyears).Fromatechnicalperspective, existing systems can be entrenchedand there is often resistance to replacing some-thingthatwastimeconsumingandexpensivetoimplement.

Withinthemunicipality,theservicepolicyhasbeenausefultoolas itprovidesacleardirective

Box 2. Children and young people at Reykjavík UniversityReykjavíkUniversityrunssummercoursesforchildrenasyoungassix,withtheaimofgettingthemexcitedaboutthe technologythatsitsbehindthedevicesandapplicationsthattheyinteractwitheveryday.Thecoursewascreatedby studentsinapsychologycourseat ReykjavíkUniversityin2010.Thestudentswonanentrepreneurcompetitionin2011fortheirconceptandshortlyafter,acompanywascreatedaroundtheiridea,calledSkema.ReykjavíkUniversitytookovertheprojectin2017andtheinventoristheprojectmanager.Effortsarealsounderwaytointegratethecourseintotheschoolsystem,soitwillbeavailableallyearround.

Withinthedigitalserviceteam,therehasbeenaconcertedefforttohireyoungerpeople.Thiscanbeachallengeinacontextthatputsahighvalueon experienceandtendstoofferlowerwagestolessexperiencedcandidates(youngpeoplearepaidbetterontheprivatemarket).


from the elected officials that digital processesshouldbethefirstchoiceforbothusersandstaff.Startingwiththefrontendhasalsobeenagoodway togaina head start, by improving the cus-tomer experience, obtaining some momentumandthenmovingtothelongerprocessofworkingwith the back office. Starting with the depart-ments that show the most enthusiasm (or theleastresistance)hasalsobeenagoodstrategy.Inboththepublicandtheprivatesectors,theneedto ‘keepup’wascitedasameansofovercomingresistance to change. In the public sector, therewasasensethatonceasufficientnumberofde-partmentshadrenewedtheirservices,thegapinqualitybetweenthesedepartmentsandtheonesthatweremoreresistanttochangewouldactasadriver for change. In theprivate context, thestory is similar, but themotivator is financial—ifthebusinessisnotdoingwell,thereisnochoicebuttochange.Ultimately,thekeyingredientforsuccesswastoavoidcompromise—goallthewayandbepreparedtofightforwhatyouwant.

Interestingly, the director of the service andoperationdepartmentstressedtheimportanceofnotleaningoncostsavingsasapoliticalmotiva-tor.First,itwasconsideredthatpoliticalsupportwasmore likely tobechannelledandeffective ifitwas based on a belief in the end goal—in thiscaseabettercityforthecitizensofReykjavík. Inaddition,thechangemanagementchallengesde-scribedabovearelikelytobemagnifiedifdepart-ment heads believe that the change will involvedownsizingtheirteam.Finally,andperhapsmostimportantly, digitising services and processestakestimeandrequires investment (e.g.,gettingthe rightpeopleonboard todo the job).Even iftherewillbesavingsinthelongterm,tryingtore-alisethesetooquicklyislikelytoactasabarriertogettingthejobdone.

When it comes to opportunities, Reykjavík’spositionasthenationalcapitalputsitinastrongpositiontotakeadvantageofdigitalopportunityandbecome,asone intervieweeput it: ‘an inter-estingplace,forinterestingpeople’.Thecityhasahighlyeducatedandrelativelydiversepopulation,creatingfertilegroundforinnovation.Atthesametime,beingarelativelysmallcityonaglobalscalemeans that there are likely to be fewer barrierstoexperimentationandchange.However,changewill not happen by accident and there is a riskthatwithouttherightenvironment,thebrightestmindswilltaketheirtalentselsewhere.

The increasing automation ofmenial tasksallowsforhighvaluecreationwithminimallabourinputs,whichisvitallyimportantinacountrywithhighlabourcosts,lowunemploymentratesandasmallpopulation.Opendataprovidesopportuni-tiesfor individualstoinnovateinwaysthatwerepreviouslyonlypossiblewithaccesstosubstantialresources.Thinkingatamorelocalscale,digitali-sationcanbeusedto improvequalityof life.Forexample,arecentcollaborationbetweenReykjavíkMunicipality and a local startup has resulted inthe development of a sensor-based solution tosupport independent living for elderly residents.Sensorsarefittedstrategicallyaroundthehomeandgraduallylearnthebehaviouroftheresident,alerting someone if the routine changes (e.g.,medicine cabinet not opened at the usual time).Importantly,althoughthesolutionitselfistechni-cal,itwouldnothavecomeaboutwithouttheshiftin thinkingthatallowedfor thisstyleofcollabo-rationbetweenthemunicipalityandapreviouslyunlikelypartner.ContinuingtochallengeoldwaysofworkingandtryingnewwayswillbekeytotheongoingsuccessofdigitalisationworkinReykjavík.


About the case study areaLocatedbytheBarentsSea,andborderingRussiaandFinland,FinnmarkisthenorthernmostregioninNorwayandsitsinageographicallyimportantand interesting position, particularly froman in-ternational security and military perspective. Itis simultaneously the largest Nordic region, ingeographicalscope,andthesmallest,bypopula-tion(SSB,2018a).TheregionispartofthelargerSápmiarea,whichstretchesacrossnorthernNor-way, Sweden and Finland, to Murmansk OblastinRussia.Thehistoricalimportanceofthefishingindustryintheregionhasresultedinthemajorityofsettlementsoccurringalongitscoastline.Fish-ing remainsan important industryalongside themilitaryandtheoilandgassites inHammerfest(SNL,2018).Finnmarkcontinuestobedominatedbysmalland‘verysmall’enterpriseswithasteadyincreaseofstartupsintheyearsbetween2011and2015(SSB,2018a).Thesurvivalrateofnewenter-prisesafterthefirst5years is32.6%,oneofthehighestinthecountry(SSB,2018b).

Aswellasaharshclimate,periodicaldifficul-ties in local industries have contributed to a netoutmigrationfromFinnmarksincethe1980s,whichhasaddedtoagrowingrangeofsocietal issues.The largest group ofmigrants leaving Finnmarkare young students or recent graduates. Tradi-tionally,thisgrouphasbeendominatedbyyoungwomen,butan increasingnumberofyoungmenhavebeenleavingthecountyinrecentyears(Finn-markCountyMunicipality,2015).

Finnmark’s locationandpopulationstructureprovideagreatopportunitytoexploredigitalisa-tioninthecontextofremoteandsparselypopu-latedareas.Todothiseffectively,thiscasestudy

Finnmark County Population:76228(2017)Area:48637km2Density:1.55/km2Municipalities: 19Administrative centre:VadsøLargest city: Alta(20635inhabitants)Regional focus areas:Fisheriesand aquaculture,culture,tourism,oilandgas,military,agriculture,energyandmining

3.4 FINNMARK/VARDØby Mari Wøien and Linda Randall

During the socio-economic crisis, Vardø municipality was aware that it had limited power to create more jobs as a response to the crisis. Instead, it chose to focus on what it could address, such as improving the standard of education, health care and cultural ac tivities. Source: shutterstock.com


takes a dual focus—considering the region as awhole (policies, co-operation and overall innova-tionenvironment)aswellasfocusinginmorede-tailonaspecificlocalcontext—themunicipalityofVardø.VardøMunicipalityhasbeenselectedasapointofinterestwithintheregionfortworeasons.First,themunicipalityprovidesanextremeexam-pleofthechallengesfacedbymanyNordicruralmunicipalities.From2000to2010,afisheriescri-sisandthelossofalocalarmybasesawVardø’spopulationshrinkfrom3200tojust2200,are-actionthatsignificantlyexceededeventhedirestpredictionsofStatisticsNorway.Unemploymentroseto30%,Vardø’sschoolwasrankedoneofthe40worstinthecountryandthenationalgovern-mentwasforcedtotakeoverthecity’sfinances.Second, theworkofVardøMunicipality to staveoff this crisis is instructive in demonstrating therolethatdigitalisationcanplay inturningsuchasituationaround.

Digitalisation approachVardøMunicipality’sdigitaltransformationbeganinthecontextofitsneedtorespondtothesocio-economiccrisisdescribedabove.Importantly,theimplementation of digital technology was nota goal, but rather a strategy through which toachieve thebroadergoalof improvingqualityoflife and creating opportunities for the people ofVardø.

The municipal administration was awarethat ithad limitedpowertocreatemore jobsasaresponsetothecrisis.Instead,itchosetofocusonwhat it could address, such as improving thestandardofeducation,healthcareandculturalac-tivities.ThetheorywasthatiftheadministrationcouldmakeVardøabetterplacetolive,economicprosperity would follow. Improvements includedrenovations of municipal buildings, developing anewschool,anewkindergarten,anewhealth-carecentre with modern facilities, a new retirementhomeandamunicipalpool.Moreover,fibre-opticcables were provided to all households. At thesametime,toughdecisionshadtobemade.Anewschoolwasmadepossiblethroughtheamalgama-tionofthreeexistingschoolsintoone,asinglekin-dergarten replaced four and themunicipal staffwasreducedfrom240to160.Thedebtsresultingfromtheseinvestmentshavebeenwellservedandthemunicipalbudgethasbeenstablesince2015.These improvementsweremade possible by therestructuringofthemunicipaleconomy,including

centralisingtheschoolsystemandthekindergar-tens,andtakinguploansintheperiod2005–2009.Theeconomysawanupturnin2009.

PerhapsthemostinterestingelementofVardø’sdigitalisationworkistheambitiontodeliverworld-classeducationthroughthe introductionof iPadsas a teaching tool. The initiative was inspired bysimilarworkinBærumMunicipalityinthesouthofNorwayand receivedbroadsupport fromparentsandschoolstafffromtheoutset.Importantly,theideawasproposedtoteachingstaffasapotentialsolutionandalternatives(e.g.,PCs)werediscussedpriortothedecisiontogoaheadwithiPads.Theideawasalsoapproved(enthusiastically)bythestudentcouncil.Onceeveryonewasonboard,Apple-certified

Box 3. Hallgeir Sørnes’s (Deputy of Vardø municipal administration) five tips for a digital transformation:n Choose standardised solutions:Itischeaperandeasiertogettherightcompetencieswhensettingthesystemup,anditfacilitatesaneasierrecruitmentprocesswhenmostpeoplealreadyhavesomepreviousknowledgeofthesoftwareandthetoolsn Capitalise on the positives:Definewhattheobjectivesshouldbebeforehand,andmakesureitisfollowedthrough.Ifacompanyhasdecidedtogo paperless,itmuststopbuyingprintersn Make sure all parties are on board early on:Makesurethateverybodyunderstands thatadigitaltransformationisonly20% technologyand80%organisational development.Managementandco-workersneedtobeonboardtodefinehowandinwhatwaytheworkplaceandtheteamstructuresshouldchange.Itneedstobedoneinadialoguen Learn from others:Establishagooddialoguewithother municipalitiesandensurethatyour municipalityhastherightcompetenciesonboardn Use e-learning:Havevideoconferencemeetingswhenneeded.Thismayincludeteachingthenewprogrammes


instructorswerebroughtintosupportteacherstomakethemostofthenewtoolsandeverystudentandteacherwasgivenan iPad.Studentssubmittheirworkonthe iPadandteachersrespondon-line, enabling an efficient and transparent feed-backprocess.Interestingly,althoughteachersaremoreavailabletotheirstudents,mostreportthattheyspendlessout-of-schoolhoursworkingthantheydidbefore.Studentscanmoreeasilyworkattheirownpaceandability levelwithoutcreatingadditionalworkforteachersorsinglingstudentsoutthatneedextrahelp—theysimplyworkondif-ferent applications simultaneously. This methodhasalsoencouragedmorecollaborationbetweenstudents(e.g.,providingfeedbackonassignmentspriortosubmission).Parentsareinabetterpositionto provide support as they have insight into thelearningprocessviaapps.

Asnotedabove,VardøMunicipality’ssuccessisunderpinnedbyitsfocusontechnologyasameanstoachieve its broader social and financial goals,ratherthanseeingthetechnologysolutionsasanendinthemselves.Intheexampleabove,theiPadsweresimplyatoolthroughwhichtoenableanewculture of teaching and learning that would im-provethequalityofeducation.Goalswereclearlydefinedfromtheoutsetand,intermsofefficiency-enhancinggoals,therewasaconcertedefforttoensurethesavingswererealised—forinstance,asoneintervieweeemphasised,onecannotinvestinthetechnologytogopaperlessandthenkeeptheprinters;realisingthesavingsiswhatmakesitpos-sibletojustifyandfundthenexttransformation.

Settingcleargoalsfortheimplementationofdigital tools inVardøMunicipalitydidnotneces-sarilyrequirethedevelopmentofadetailed,long-termplan.Theauthoritiesemphasisedintheinter-viewforthisprojectthatthereisalsoaneedforanagileandflexibleapproach.Forexample,althoughtheaimmaybetoimprovequalityoflifeforresi-dents,thespecificactionsthroughwhichthisgoalwill be achieved will constantly change. This isdemonstratedbya recentsurveyof theelderlyresidentsofVardø,whichrevealedthatmanyfeltinsecureaboutbeinghomealone.Inresponse,themunicipalityistriallingsmartwatchesthatallowtheusertomakedirectcontactwithacareproviderintheeventofanaccident.

Whereverpossible,themunicipalityusesfreeservicestosupportitswork(e.g.,Facebook’sau-thenticationplatformforpublicWi-Fiaccess)and,even when purchasing solutions, the preference

isalwaystogowithanexisting(generallycloud-based)solution.Themunicipalitydoesnotdevelopany customisedplatformsor systems.Thereareseveralbenefitstothis.First,therearecostsavings,bothintheinitialpurchaseandinmaintainingthesystem. Second, this approach substantially re-ducesthetimeittakestorealiseaproject,asthetoolisreadytogo.Third,whenrecruitingandtrain-ingnewstaff,thereisabetterchancethatpeoplewill alreadybe familiarwith the tools.Access toe-learning is also an important pre-requisite forintroducing any new tool. This approach ensuresthat themunicipality has access to high-qualitytrainingforitsstaffinaflexibleway,withouttheexpenseofbringinginanexpertfromOsloforlongtrainingseminars.

The regional context and collaborationAtaregionallevel,therearethreekeycomponentsto digitalisation work: provision of digital infra-structure, digitalisation of county services andbusiness development. In the context of such asparselypopulatedregion,theprovisionofdigitalinfrastructureisbothvitallyimportantandincrediblychallenging.Whenworkbeganontheaugmenta-tionof the Internet infrastructure in2002, therewas only one link to Finnmark through TromsCountyandimportantlinkstohospitalsandoth-erpublic servicesweremissing.Thispromptedacollaborative project called IT Finnmark, whichwas a collaboration between the municipalities,the university college in Finnmark and industries,toensurebetterInternetaccessinthecounty.Asaresult,several initiatives leadingtotheexpansionof the fibre-optic cablesanda coastal linewerebuiltandmerged.Aftersuccessful lobbyingfromFinnmarkCounty,thenationalgovernmentcreateda common funding source through the nationalprogramme‘Broadbandforall’.Thisfundingsourceallowedmunicipalitiesandregionstoaccessupto60%ofthenecessaryfundsfordigital infrastruc-ture.Between10and12municipalitiesinFinnmarkparticipatedinthisinitiative.

FinnmarkCountyisalsoworkingtodigitaliseitsinternalstructuresandprocesses.ThisworkisguidedbyitsDigitalisation Strategy for 2015–2018 (På vei inn i Fremtiden)andseekstoincreasetheefficiencyanduser-friendliness(‘smartonthein-side,simpleontheoutside’)ofpublicservices,andtopublicisethestrategicopportunitiesthatdigi-talisationhasforbusinesses(FFK,2015).Thestrat-egyhasledtotherecentestablishmentofaDigi-


talisation Council, composed of representativesfromeachdepartment. The council hasmappedthecurrentworkingprocessesacross thecountyadministration, implementedprojectmethodstoalignwiththenationalstandardsandusedtrain-ingtochangemindsetsandattitudestowardsdig-italsolutionsamongitsemployeestospeedupandco-ordinate the county’s digital strategy. Actionplansforthedigitalagendaarepublishedannuallyandaretiedtotheregionalbudget.Fundingisalsoallocatedonanannualbasistoaccommodatethefluid nature of digital goals andpriorities,whicharedeterminedinconsultationwithbusiness.Thefinancialplanfor2015–2018hasproposedsettingasidefivemillionNorwegianKronertoimplementprocessesfordigitalisation.FinnmarkCountyalsotakespart intheCountyAdministrativeOptimalServices (Fylkeskommunale Optimale Tjenester)collaborationwithfiveorsixothercountyadmin-istrations. This collaboration has resulted in thedevelopmentofseveralITsystems,includingRett i Mappa (‘straight into the folder’), a systemforstreamliningstudentdocumentationandtailoredlearningforteenagerswithspecialneedsorlearningdisabilities.

FinnmarkCountyCouncilplaysan importantrole in supporting industrial development withinthe region, largely through its engagementwithInnovation Norway, which helps funding entre-preneursandbusinesses. InnovationNorway isastate-owneddevelopmentbank,partlyownedbythe counties, with 13 regional offices across thecountry. The region is largely comprisedof smallbusinesses, with no companies over 100 employ-ees. As such, clusters and networks play an im-portant role anddigital connectivity is vital. Theintroduction of fibre-optic cables was crucial tothe sustainability of existing businesses and theestablishment of new companies in the region.In Sør-Varanger, e.g., several IT startups haveemerged in recent years, stemming from existingIT companies and the growing IT environmentin the region. There is another strong IT sectorontheothersideofthecountyinthecityofAlta,springingfromtheuniversitycampusandthecom-petencecentres inthecity,particularlywithinthearea of construction. In terms of funding instru-ments,InnovationNorwayhasthepowertodirectresources intopromisingbusinessesonbehalfofthecountycouncilandthestate.Theinclusionofsustainability goals and references to digitalisa-tiongenerallyreflectsfavourablyonapplications.

OneofInnovationNorway’sprimaryconcernsistourism,andInnovationNorway’sofficeinFinn-mark is no exception. Although still in its earlystages,InnovationNorwayinFinnmarkislookingintotheuseofdigitaltoolstopreparetouristsfortheoftenharshanddirearcticclimate.Thesedigi-taltoolsareprimarilyaimedatsafetyandrescueservices,andtherehavebeendialogueswithSval-bardregardingtheirapproachestodigitalisationintourism.

Althoughboththeregionalandthemunicipallevelsworkactivelywithdigitalisation,arelation-shipbetweenthelocalandregionallevelsisabsent.Intermsofdigitalstrategies,neitherthemunicipalnorthecounty’sstrategiescoincide.Thus,theclos-estlinkbetweenthetwolevelsisperhapsthroughtheestablishmentofbusinesses,oftenaidedbyIn-novationNorway.Atthemunicipallevel,oneofthekeyelementsofVardøMunicipality’sdigitalisationwork is its contemporaryapproach tocollabora-tion. When Vardø Municipality describes its keycollaborations, itbypasses theneighbouringmu-nicipalitiesand lookstocollaboratorsonawider,nationalscale,aswellastopartnersoutsidethecountry’sborders.

Challenges and opportunitiesForVardøMunicipality,getting‘everyoneonboard’wasbothanimportantchallengethatneededtobeovercomeinthebeginning,andacrucialenablerfor futurework.The crisis thatwas the startingpointfortheworkwasbothahelpandhindrance.On thepositive side, therewasageneralunder-standingthatdecisiveactionwasnecessaryifthesituationwastoimprove,giventhatthecommu-nityhadessentiallyhitrockbottom.Atthesametime,thedirenatureofthesituationmeantthatmanyofthedecisionswouldresult insubstantialchangeandmuchofitwasnotperceivedpositive-lyatthetime.Forexample,beforethe iPadpro-grammecouldbeimplemented,therewasafierceand passionate battle to save the two schoolsthatwerebeingclosedthroughtheconsolidationefforts.Ultimately,oncedecisionsreceivedenoughsupporttopass,theyweresupportedbythecom-munityand,nowthatthesituationhasbeguntoturn around, public confidence in new initiativeshasimproved.

Althoughitwasdifficultinitially,gainingsup-portfromeveryonewithintheaffectedorganisa-tionsforthenewapproach(e.g.,theschoolinthecaseoftheiPadprogramme)byprovidingencour-


agement and support andmaking time for dis-cussions,wasthetruekeytosuccessintheVardøcase.Building confidenceandanassociationbe-tweenchangeandgoodoutcomeswasvital.Thisemphasises Vardø’s mantra that technology isonly20%ofdigitalisation,withorganisationsandpeoplebeingthetrueenablersofchange.

When itcametomakingthemostofoppor-tunities, Vardø’s small size was among the keyenablers.Putsimply,gainingwidespreadsupportis much more achievable when there are fewermindstochange.Beingsmallalsomakes it rela-tivelyeasyto implementchangesquickly.Forex-ample,ifthetrialofthesmartwatchesforseniorsdiscussedaboveissuccessful,themunicipalitycangoaheadandorderoneforeveryelderlyresidentin itscaretomorrow.Thesmall scaleof thepur-chaseremovestheneedforlengthyapprovalandprocurementprocessesthatwouldbeunavoidablefora largermunicipality.Thisalsoapplies toop-portunitiesfore-learning.

Aconcertedsteeringeffortfromthemunicipalside was important for making tough decisionsandalsosomeboldchoices:e.g.,theaugmentationoftheschool,theswimmingpool,theiPadsandsoon.Departmentheads,thechiefexecutiveofficerand the municipal administration’s deputy werethekeydriversof thework.Suchchangeagentswere vital in an environment going from bad toworseandtheywereinvaluableinturningreactiveorganisationsintoproactiveones.

By2016,thesocio-economicsituationinVardøhadcompletelyturnedaround.Therewerefewerearlyschoolleaversandnearlyallstudenthascon-tinuedtheireducation,eitherthroughapprentice-ships, at universities or throughmilitary service,ortheyhadjobs.Theunemploymentrate(5%)isin linewiththenationalaverage,thenumberofpeopleon socialbenefitshasdecreasedand themunicipalbudgetisundercontrol.Finally,althoughit isfarfromareturntopre-crisis levels,Vardø’spopulation(approx.2130persons)hasremainedstablesince2009.

Examining the bigger picture, co-operationremainsasubstantialchallengeinFinnmark.Thisincludesaweakco-operationculturebetweenmu-nicipalitiesandalsoappearstoreflectadistrustintheabilityofnationalpolicytofullyunderstandand cater to the needs of remote communities.Thissituationisnothelpedbythepoliticallycon-tentiousmerger pending betweenFinnmark andTromsCounty(seeBox4).Withrespecttothemu-

nicipal–regional relationship, thenon-hierarchicalstructure and weakly aligned policy frameworkshave tended to limit conversation between thetwo administrative levels. This limits opportuni-tiesforinnovationatthelocallevelto‘trickleup’to regional policy in, e.g., education.18 Moreover,regionalservicesandmunicipalpublicservicesareadministeredthroughdifferentonlineportals.

18 InNorway,primaryeducationismanagedatthemunicipallevel,whereassecondaryeducationisthepurviewofthe counties.

Box 4. Troms and Finnmark: A politically contentious regional mergerIn2017,theNorwegiangovernmentdecidedtostarttheworkonmergingtheFinnmarkandTromscounties.Themergerispartofareformbasedontwoparliamentaryresolutionstodecreasethenumberofcounties.Contrarytodevelop-mentinNorthandSouthTrøndelag,whereavoluntarymergerisoccurring,FinnmarkandTromswillbemergedwithoutconsentfromthecountycouncils.Althoughloyaltothegovernment’sdecisionandhavingfol-lowedtheirrecommendationstoappointrepresentativestotheinterimnewcountycouncil,Tromsstatedthatitwouldnotvol-untarilymergewithFinnmarkifFinnmarkopposedthemerger.ItbecameevidentthatFinnmarkdidopposethemergerwhen,despitetheparliamentarydecisiononthematter,ithostedareferendumonthemergerinApril2018.Theresponseratewasoverwhelminglynegative,with87%ofrespondentsopposingtheimpendingmerger.Althoughmanyoftheprocesseswereunderway,thereferendumresultedinahaltofallworkinrelationtothemerger.Theinternalprocessesandprocurementeffortsforthemergermustbeinplacebythe1January2020.Althoughtheworkcontinuesinternallyinthetwocounties,progresssofarhasbeenlimitedandmayaffectthelong-termoutcomes.


About the case study areaSkåneisthesouthernmostandthesecondlargestcountyinSwedenbypopulation.SkåneisaleadingagriculturalandfoodproducingregioninSweden,withagriculturallandcoveringalmosthalfoftheregion’sterritory(48%)(OECD,2012).As inotherindustrialised countries, Skåne is undergoing astructural transformation resulting in increasingimportanceof theservicesector in theeconomyanddecliningimportanceofagricultureandmanu-facturing(intermsofemployment).

Skåne’s tertiary sector is the largest of theeconomic sectors, generating 66% of the valueadded in the region and accounting for 80% oftheemployment.Intheaftermathofthefinancialcrisis,largecompaniessuchasSony,EricssonandAstraZenecawithdrewordownsized,leadingtoariseinSMEcapacityandhighlyqualifiedlabourinIT andmobile technologies were then dedicatedtowards newdevelopmentareas, suchas healthtechandgamedevelopmentindustries(Nilssonetal.,2017).

Skåne has an advanced regional innovationenvironmentsupportedbylargeandvariedclusterinitiativesinSkånewithinlifescience,ICT,newme-dia,creative industries,maritimetechnologyandcleantech,withthesupportofleadinguniversitiesand research centres (e.g., European SpallationSource).

Tothewest,SkånesharesaborderwithDen-mark,which canbe reachedacross theÖresundBridge betweenMalmö and Copenhagen in lessthan an hour, or by ferry between Helsingborgand Helsingør (Regionfakta, 2018). The close-ness between the two countries provides uniqueopportunities for regional co-operationandeco-nomicgrowth,whicharepromotedbytheGreaterCopenhagenandSkåneCommittee.GreaterCo-penhagenishometoScandinavia’slargestrecruit-mentbaseofhigh-skilledemployeesandisoneoftheworld’smost innovativecross-border regions(BusinessRegionSkåne,2015;Nilssonetal.,2017).

The Helsingborg and Malmö municipalitiesstandoutfortheirdigitalisationworkinSkåneandactasrolemodelsfortheregionasawhole.Forthis reason, this case study focuses on the localexampleofHelsingborgMunicipality.Helsingborg

hasa long-termfocusondigitalisationforwhichit received several awards, including ‘the best ITmunicipalityinSweden’in2015and‘theleadinge-commercecityinsouthernSweden’in2016.

HelsingborgisthesecondlargestmunicipalityintheSkåneregionbypopulation(140000inhab-itants). It is locatedatSweden’sclosestpointtoDenmark,only4kmawayfromtheDanishcityofHelsingør,whichcanbereachedbyferry.Itsloca-tionindicatesthehistoricalimportanceofharbourandtradeactivities.Today,thestrongesteconom-ic sectors in Helsingborg are retail, logistics andtransport,lifescience,tourism,cleantechanddigi-talcommerce(BusinessHelsingborg,2018).

Digitalisation approachThe digitalisation journey in Helsingborg beganwith theoutbreakof the financial crisis aboutadecadeago,whenPalleLundbergtookhispositionasthenewHeadoftheCity.Underhisleadership,themunicipaladministrationhasputagreatdealofemphasisoncuriosity,change,theInternetanddigitalisation asmeans to foster innovation anddevelopment in the municipality. Helsingborg’staskwasformulatedbyLundbergas‘lookingintohowwecanusethepossibilitiesoftheInternettosolveourproblems’.

Perhaps the most interesting element ofHelsingborg’s digitalisationwork is its ambitiousattempttogainsupportfromallmunicipalemploy-ees(andcitizens)inunleashingtheopportunitiesofdigitalisationbyencouraginga cultureof change,testing,failingandcontinuouslearningandtakingarather fluid and unstructured (decentralised) ap-proach to digitalisation. The overarching aim ofdigitalisationinitiativesinthemunicipalityistoim-provethequalityoflifeforthecitizensandachieveorganisational change in themunicipaladminis-trationanditsdepartments.

3.5 REGION SKÅNE/ HELSINGBORGby Anna Berlina and Laura Fagerlund

Skåne CountyPopulation:1340415(Sept2017)Area:11035km²Density:120/km²Municipalities: 33Administrative centre: Malmö(280415inhabitants)Regional strengths:lifesciences,foodsector,telecommunications.Newareas:healthtechandgamedevelopment(Nilssonetal.,2017;Regionfakta,2018)


The City of Helsingborg has focused heavilyon internal and external branding,marketing it-selfasa creative, vibrant,digitalised,globalandforward-thinkingcitytoattractinvestors,touristsandworkersandtoimprovethequalityof lifeofitscitizens.ThesegoalsareapparentintheVision2035 for Helsingborg, which acts as a commonpolicyforemployeesandleadershipinthemunici-pality.Aspartof thevision,digitalisationshouldprovideacoherent,flexibleand individualservicetoeverycitizen.Digitalisationisviewedasacross-cuttingdevelopmentprocessinthelocaladministra-tionacrossninedepartments,witharound10000employees in total, and it is not addressed as aseparatetheme.

Thereareseveralkeyactorsspurringtheworkondigitalisationinthemunicipality,includingtheHeadoftheCity,theDirectorforDigitalisation,theHeadofFutureandtheProgrammeDirectorforSmartHelsingborg.However,anoverallco-ordinatingbodyis non-existent. There is nooverarching organisa-

tionordepartmentresponsibleforstrategicplan-ning,co-ordinatingorevaluatingthedigitalisationinitiatives.Thisapproachwasdeliberatelychosenbythemunicipalitytoavoidcreatingnewsystemsandtostimulateworkinginamoreagileandde-centralisedway.

Theapproach to digitalisation in themunici-pality isbasedonthreemainprinciples.Thefirstprincipleisturningawayfromstrategiesandplansandturningtotestingandlearning.Theaimistochallengethetraditionalwaysofworkingandpro-moteorganisationalchangewithinthemunicipal-ityanditsadministration. ‘Thinkbig,startsmall,then fail or scale fast’ is thephilosophyofHels-ingborg. Helsingborg does not have a digitalisa-tionstrategy,asthemunicipalityhasputitstimeandresourcesintotakingconcreteactions,whichitfindsmorevaluable.

The second principle implies shifting awayfrom thinking about IT and systems to thinkingaboutpeopleandneeds.Thisapproachpromotes

In the aftermath of the financial crisis, large companies in Skåne region withdrew or downsized, leading to a rise in SME capacity and highly qualified labour in IT and mobile technologies were then dedicated towards new development areas, such as health tech and game development industries. Source: unsplash.com


amoveawayfromthecreationofheavysystemsandhighlightsthesignificanceofthesocietalas-pectsofdigitalisationforHelsingborg,inadditionto the technological change. The citizens play acrucialroleintheprocessastheoverarchinggoalistodevelopuser-friendlyservicesfortheindividualsthatimprovethequalityoflifeinthemunicipality.

Finally,thethirdprinciplepromotesdigitalisa-tion ‘shiftingfromsomebodyelse’s responsibilitytoeverybody's responsibility’.Thisapproachem-phasisestheimportanceoftheactiveparticipationandengagementofallemployeesof themunici-palityandcitizensinthedigitalisationprocess. ItalignswellwithHelsingborg’saimtobecomethemunicipalitywiththeworld’smostengagedcitizens.

Theseprincipleshelptoreframedigitalisationso that it is not regarded as something compli-cated,bigandexpensive,butassomethingthatisnaturalineverybody’severydaylife.Morespecifi-cally,thedigitalisationworkinHelsingborgisan-choredinfivefocusareas,whichmainlydealwithdigitalisation as a tool for improving leadership,collaboration,transparency,servicesandlearning,asdescribedbelow:

1. ‘My Helsingborg’ platform: aims at providingbetterservicestothecitizens2. ‘SmartHelsingborg’ platform: allows individu-alsandactorstocreateservicesandvalueinthecity3.Mobilisation:fosteringinteraction,learningandcollaborationamongdifferentactors,arenasandchannels4.Abilities:introducingnewmethodsfordevelop-mentandexploration.Aimstoraisingthedigitalcompetence throughout the whole organisationanddifferentdepartments.Forinstance,digidelisaphysicalplatformthatwascreatedtoraisedigi-talawarenessandcompetenceinthecity,whereeverybodycantry,borrowandbecomeacquaintedwiththelatesttechnologies5. Information:developingacommondefinitionofandmanagementprocessforkeydataaboutcus-tomersand individuals.OpenData Initiative isalong-termprojectaimedatmakingdatafromthecityfreelyaccessibletoallresidents

Perhaps the key success factors inHelsingborg’sworkwithdigitalisationweretheenablingleader-shipthatencouragestesting,failingandlearning,andthelong-termcommitmentandsupportfromthepoliticallevel.AstheDirectorforDigitalisation

inHelsingborgstated,‘Donotstartwithtechnol-ogyorthesolution,startwiththeleadershipandthecommunication’;thisencapsulatesthe lessonforsuccessfuldigitalisationworkarisingfromtheHelsingborgcase.

The regional context and collaborationThedigitalisationinitiativesaremostpronouncedat the city level in Helsingborg. The ‘city’ is de-scribed as a collaborative platform/test bed inwhicheveryoneisinvitedtoparticipate,bothindi-viduals,organisationsandcompanies,bycontrib-utingtheirownresourcesanddevelopingservicesandcreatingvalueforothers(Helsingborg,2017).

Currently, there are weak interactions andsynergies between the municipal and regionallevels inworkingwithdigitalisation issues.More-over,Helsingborg’sdigitalisationprioritiesarenotinspired by or aligned with the national Digital Agenda.Thecollaborationondigital initiativesatthecity-to-city level (e.g., theEU Urban Agenda)and in the frameworkofaGreaterCopenhagenwasdescribedasmoreimportantandrelevantforHelsingborg.

Since2016,theSwedish–Danishborderregion,whichconsistsof22Swedishand46Danishmu-nicipalities, has been marketed as ‘Greater Co-penhagen’toincreaseitsinternationalrecognitionand attract investments and startups (GreaterCopenhagen, 2018). Improving digital infrastruc-ture and strengthening digital competencies areamong the priorities foreseen in the action planforGreaterCopenhagen2018–2019(TheGreaterCopenhagenandSkåneCommittee,2017).

Region Skåne is among the few counties inSweden thathavenotdrawnupa regionaldigi-tal agenda yet. Instead, the Region has focusedon increasing connectivity and broadband infra-structure in its 33 municipalities and, in recentyears, digital health care. To compensate for thelackofthedigitalagenda,RegionSkåneiscurrentlyundertakinganoverarchinganalysisofthestatusofdigitalisationinits33municipalities,aswellasmappingtheactivitiesofthebusinesssectorandacademia.Theintentionistoidentifythespecifictasksandareas forRegionSkånethatwouldberelevantforpromotingdigitalisationintheregionalcontext.

Although itsmore pronouncedwork on digi-talisation commenced relatively recently, RegionSkånehas indirectly supportedthedigital trans-formation.Forexample,since2011,ithasprovided


financialsupporttoclusterorganisationsandin-cubatorsthrougharegionalclusterdevelopmentprogramme.TheRegionalsostronglyencouragescross-clustercollaboration.

TheclusterorganisationMobileHeightsbringstogetherrepresentativesfromthepublicandpri-vate sectors and academia to encourage newsynergiesandcollaborations.Thekeyfocusareasarefuturedigitalhealth,smartdigitalsocietyandsmart materials, as well as facilitating talentssupplytoSkåne.Amongtheconcreteexamplesofitswork,MobileHeightsassistsmembercompa-niestosellsmartcitysolutionstothemunicipali-ties,aswellasfacilitatingco-operationamongthelocaluniversitiesandthemunicipalityinthesmartcitycontext.

Innovation Skåneworks under Region Skåneby supporting innovation, startups and regionaldevelopment,actingasbothincubatorandaccel-erator.Onefocusareaisfacilitatingthedevelop-mentofhealth-techcompanies(‘health-careen-trepreneurship’)withtheaimofimprovinghealthcare and solving societal problems in the regionandglobally.

Challenges and opportunitiesTalentsupplyistheoverallchallengeforsupport-inginnovationecosystemsintheregion,asStock-holmremainsthemain‘pull’centreinSwedenforstartups and venture capital. At the same time,there are good opportunities for building on theexisting expertise, knowledge and competen-cies in the telecombusiness inSkåne tobecomeapowerhousefortheIoT,health-techinnovationsandstartups.Fortunately,theworkforcefromthemobileindustriesinSkåneishighlycapableinap-plying itscompetenciesandskillstootherdigitalbusinesses. TheMobileHeights cluster company,mentionedabove,actsasa facilitatorof thispro-cess,workingactivelytobridgethegapbyacceler-atingeducationandattractingtalentsandstartups.

Being part of theGreaterCopenhagen areaassists Skåne in attracting venture capital andstartups. However, the passport control intro-ducedintheÖresundareain2015resultedinde-cliningcross-borderlabourmobility,whichaffectedlabourmarket integration and co-operation andthebusinessenvironment.

Forthepublicsector inparticular,attractingpeoplewiththespecificcompetences required isamongthekeychallengesinsupportingdigitalisa-tion.Peoplewithsocio-technologicalskills,whocanworkinaninterdisciplinarymanner,willbeinhighdemand infuture.To increasetheattractivenessofjobsinthepublicsectorandtoattracttalent,theCityofHelsingborghasputsignificanteffortsintoemployeebranding.ItlaunchedanInnovationHub‘HbgWorks’,whichisaco-workingspaceforthemunicipalemployees.InnovationHubaimsatfostering creativity and collaborationwithin andacross differentmunicipal departments and theprivatesector.

Regarding other consequences of the trans-formationofthelabourmarket,theauthoritiesinHelsingborgandRegionSkåneprefertotalkaboutthe ‘change of tasks’ in the public sector ratherthanalossofjobs.Here,thechallengeistochangetheemployees’mindset,sothatratherthanfeelingthreatenedbydigitalisation,theyregarditasade-velopmentopportunityintheiroccupation.

When considering the specific challenges forHelsingborg, the municipal authorities considerthatfearoffailureandalackofcouragetotryandlearnarethemainobstaclestothedigitalisationprocessinthemunicipality.

DespiteSwedenscoringhighattheEUlevelforconnectivity, the digital infrastructure in remoteareasofSkåneremainsachallenge,witharound30%of rural areas leftwithout fibre infrastruc-ture.Intheseareas,thecostofinfrastructurede-velopmentishigherthantherevenues.DevelopinginfrastructureinremoteareasisamongthefocusareasforRegionSkåneinthefollowingyears.Ac-cordingtotheregionalbroadbandstrategy,95%ofthe regionshouldhaveaccesstoat least 100megabits/secondby2020(RegionSkåne,2018).

The lackofstandardisation inthepublicsec-torisanotherroadblocktodigitalisationinRegionSkåneandachallengeforSwedenasawhole.Cre-atingclearstandardsratherthandevelopingonecentralisedsystemforeveryonewouldensurethatthe digital tools and solutions developed by themunicipalitiesandregionsarecompatible(e.g.,inthehealth-caresector),areabletocommunicatewitheachotherandcanbeusedacrossdifferentauthoritiesandmunicipalities.


ThisreporthasprovidedaconceptualoverviewofThisreporthasprovidedaconceptualoverviewofdigitalisationinthecontextofsustainableNordicregionaldevelopment,aswellashighlightingthenationalprioritiesandfocusingonseveralregionalcasestudies.Thisfourthandfinalsectionpresentsthekeyfindingsofthisworkasitrelatestodiffer-entactorswithintheNordicregionaldevelopmentlandscape;andprovidesanswerstotheresearchquestionsthatwereintroducedintheintroduction.

4.1 What are the focus areas of digitalisation strategies in Nordic regions?National levelDigitalisation has become a prominent issue onthe agenda of the national governments in theNordic Region in recent years. It is a horizontalpriority that cuts across different policy areas,ministriesandlevelsofgovernment.Althoughthespecificprioritiesofdigitalisationstrategiesdifferbetween countries, some similarities across thethemescanbeobserved.

Digitalisation of public serviceswiththepur-poseof enhancingefficiency in thepublic sectorandimprovingqualityofservices,aswellaspro-moting business development, is themost com-monfocusareaacrossthenationaldigitalisationstrategies in the Nordic Region. This is followedbyacceleratingthedigital transformation of the business sector,SMEsinparticular.Inconnectiontothis,digitalisationisreferredtoasadriverforthegrowthandcompetitivenessoftheindustriesandbusinesses.Bothprioritiesareincludedinthethree key objectives of the Nordic co-operationon digitalisation, set out in the declaration fordigitalisation TheNordic–Baltic Region: A Digital Front-Runner.ThethirdmostcommonfocusareathathasgainedsignificantattentionintheNordicnational digitalisation strategies is facilitatingdevelopmentofdigital competencies and skills.

Digital infrastructure,morespecifically,devel-oping a centralised IT architecture and ensuringinteroperabilitybetweenITsystemsishighonthe

agenda in Iceland, the Faroe Islands andGreen-land.Thesecountriesandindependentterritorieshavechosen touse theEstonianX-Roadsystemforthepublicdigitalarchitecture.

Local/regional levelAt the local/regional level, digital technologies were primarily seen as tools to fulfil existing re-sponsibilities and realise local and regional goals. As such, specific priorities varied, based on theissues that were most pressing in each specificplace,andmirroredthetasksandresponsibilitiesof theauthority inquestion. In linewith this, in-formants consistentlydescribeddigitalisation as a cross-cutting policy themeasopposedtoaspe-cificpolicyarea.Atthesametime,itwaspossibleto identify several digital focus areas thatwereconsistentacrossthecases,including:

n Digitising government services.Thebeneficiariesoftheseprogrammesaregenerallyresidentsandotherserviceusers,althoughactionstendedtobeinternal. Emphasis was put on service improve-ment and increased quality of life for residents,ratherthanonreducingcost.However,costsavingthroughincreasedefficiencywasclearlyacatalystattimes.n Digital infrastructure.Ensuringequalaccesstodigitalinfrastructurewasmostrelevantatthere-gional levelandwasaparticularconcern inruralandremoteareas.Connectivitywasanimportantpre-condition for increased competitiveness, ac-cessibilityandattractivenessoftheruralandre-moteareasandafirststeptobridgingtheurban–ruraldigitaldivide.n e-health (health tech and telemedicine). Digi-talisation is a key tool in developing the health-care sector, as it is seen asmeans of increasingproductivityandimprovingpatients’experiences.There are unlimited opportunities for developinghealth-care entrepreneurship with both regionalandglobalmarkets.n Creating ‘smart’ cities.Thiswasacommonno-tion, particularly at themunicipal level. Interest-ingly,the‘smartness’wasthoughttobelessabout

4. Findings


technologyandmoreaboutco-operationbetweenactorstooptimisecity functionsandrespondtolocal challenges. A desire to utilise the city as atestbedandadriveroflocalinnovationwasalsocommon.n Promoting public participation.Theuseofdigi-taltoolstoencouragenewformsofexchangeanddialoguewiththeresidents,aswellastheirpar-ticipationindecision-makingandcommunity life,wascommon,particularlyatthecitylevel.n Growing local business and startup culture.Thiswaslargelythepurviewofregionalbusinessasso-ciations and generally included hosting differenttypes of networking and problem-solving events(e.g.,hackathons),providingseedfundingorsup-portingbusinessestonavigatepublic institutionsandlegislation.

'I think we're talking about the new generation of smart cities that are smart in mindset [...] I think we need to be smarter in the way we do things, not in the different solutions; how to involve others to do things better together.' (BjörnLahti,Helsingborg)

4.2 How is digitalisation approached in Nordic regions?Perhaps the most consistent finding across theregionalcasestudieswastheideathatdigitalisa-tion is more a human process than a technical one. Acommonanalogywas thatdigitalisationdeals20%withtechnologyand80%withpeople,withthepeoplecomponentlargelyinvolvingaprocessof change management. Although this processlookeddifferentineachcase,thefollowingelementsarose in various combinations in most cases andcouldbe considered important success factors forworkingwithdigitalisationinapublicsectorcontext:

n A specific internal team to support digitalisation work, supported by a trusted and visionary leader. Thisteam’srolewastosupportotherpartsoftheorganisation to adapt their work for the digitalage, without taking on decision-making respon-sibility or ongoing tasks themselves (e.g., brain-storming potential solutions, creating mutuallybeneficial links between departments or recom-mending contractors for the technical compo-nents). Importantly, care should be taken whencreating such a team that it does not create aperceptionthatdigitalisationissomeoneelse’sre-sponsibility.Strongleadershipdrivingdigitalisationworkisamongthemainprerequisitesforsuccess.

'Imagine we have a pop band which has its own in-struments and we’re trying to make it into a sym-phony orchestra. We buy them new instruments and then we think that “there we have a symphony orchestra”. But it requires a lot of work in change management. Some roles, competences, even peo-ple need to be reconsidered so that the new instru-ments are played well, and the band turns into a symphony orchestra. This is exactly the same here. Some might think that the new instruments mark a finished project even though the journey is only about to begin.' (JarkkoOksala,ChiefInformationOfficeratCityofTampere)

n A whole-organisation approach. Buy-in fromdepartment heads and front-line staff was im-portantinovercominginertiaandfearofchangeand gainingwidespread support.Wherever pos-sible, leadershipshouldcomefromthoserespon-sible for the long-termsuccessofnew initiatives(e.g.,departmentheads)andthoseresponsibleforimplementingchange(e.g.,front-linestaff)shouldalways be included in decision-making. It is vitalthat sufficient resources (particularly time) arededicated to this work across the organisation.

Source: pexels.com


This may mean freeing staff from their regulartasksforaclearlydefinedperiod.n Find achievable goals and ‘just do it’.‘Thinkbig,startsmall,thenfailorscalefast’isthephilosophyofHelsingborgthatemphasisestheimportanceoftaking concrete actions (which may or may notbringpromisingresults)andpromotesa‘just-do-it’approach.n Create a shared sense of pride in the achieve-ments.Developinganassociationbetweenchangeandpositiveoutcomesisanimportantmotivator,inspiring bravery, overcoming negative attitudesand ensuring commitment to the process in thelongrun.n Avoid strategy documents, targets and action plans that are too detailed or long-term in their approach. Thefast-pacednatureofdigitalchangerequires agility, openness and flexibility, whichmaybestifledbytoorigidapolicyapproach.Set-tingcleargoalsbutbeingflexibleabouthowtheyshouldbeachievedisimportantincreatinganen-vironmentthat fosters innovationandcreativity.Anexceptiontothis istheprovisionofdigital in-frastructure,whichobviouslyrequiresadegreeoflong-termplanning.n Take a customer-centred approach. Engagingresidents in a dialogue and action as drivers ofchangeisacommontheme.InHelsingborg,oneofthedigitalisationprincipleswasdescribedasshift-ing ‘awayfromthinkingaboutITandsystemstothinkingaboutpeopleandneeds’,againemphasis-ingthesocialnatureofthedigitalisationprocess.

Overall, it is importanttoacknowledgethat,de-spitethefastpaceofdigitalisation,change man-agement is a slow process that requires long-term commitment, strong political and institutional support and investment of resources. Withoutthis,newinitiativesareunlikelytoresultinthecul-turalandmindsetchangethatisrequiredtofullyharnesstheopportunitiesassociatedwithdigitali-sation.Thischangeincludescreatingacultureofinnovation,experimentationandbraverythatcanbesustained inthe longterm. Italsomeanscre-atingnewwaysofworking,bothwithinthepublicsectoritselfandinthewaythatpublicinstitutionswork with other actors. As such, it is vital thatdecisionmakersunderstandthat,evenwhereim-provedefficiencyisadriverofdigitalisationwork,initial investmentsneedtobemadeandsavingsmaynotberealisedforsometime.

4.3 How are regions dealing with the challenges and opportunities related to digitalisation? (particularly with respect to the green transition and labour market impacts)All interview participants noted the current andfuturelabourmarketimpactsofdigitalisationandsawtheseaspresentingbothchallengesandop-portunities.Specific themesthatwerediscussedacrossmultiplecasesincluded:

n Embracing job change. Interview participantswere bothaware of and in agreementwith cur-rentestimatesaroundthepotentialforautoma-tionofexistinglabourmarketfunctions—includingtheirimpactonlow-,middle-andevenhigh-skilledprofessions.Thistrendwasviewedassomethingpolicymakers needed toworkwith and respondto,ratherthansomethingtobefoughtagainstorreversed. Part of this is about shiftingmindsetsfromacultureoffeartoanenthusiasmabouthowdifferentworkrolescanbeimprovedbytakingoutthemoremenialelements.n Exploring creative responses to unemployment. Finding newways to support thosewhose skillshavelostvalueinthelabourmarketwillbeimpor-tant increatingasocially inclusivedigital future.The universal basic income was suggested as apotentially useful tool to support people to takegreaterrisks,ormoretime,ingettingbackintothelabour market. Redundancy packages designedtoencourageentrepreneurshipmayalsobehelp-ful.Alongside this, there isaneed to reduce thestigmaaroundunemploymentandtoviewthesetransitionsasanacceptedpartofworkinglife.n Managing skills shortages.Skillsshortagesap-peartobeparticularlypronouncedinemergingin-dustriesassociatedwithdigitalisation,e.g.,AIandmachinelearning.Theywerealsoaprobleminmoregeneralareas,suchascomputerprogramming.Inthe regional cases, participantsweremore likelytodescribeskillsshortagesthanskillsmismatches.Thosewhocanworkwellattheintersectionofpeo-pleandtechnologyareinparticulardemand.Thispresentsagreatopportunitytomakemorespaceforwomenwhoareunderrepresented in the ICTindustrytodayandenhanceinclusiveness.n Attracting a younger and more dynamic work-force to the public sector.Someofthepublicau-thorities interviewedwerecriticalabouttherigidstructuresofthepublicsectorandtheyconsideredthelowattractivenessofpublicsectorjobstobea


significantbarriertoattractingthetalentsneededfordrivingdigitalisationwork.n New ways of thinking about education and training. Many participants suggested the needfor a shift to competence-based learning and agreater focus on developing transferable skills(e.g., critical thinking and creativity) as opposedto training for specific, fixed professions. Therewas also support for the introduction of moreflexible degree programmes that allow studentsto takeunique,multidisciplinary combinationsofcourses(includingindustry-basedlearning)withinasingledegreeprogram.Finally,therewerecallsforarenewedfocuson lifelong learning,withhighereducationinstitutesworkingmoreactivelywithabroadersubsetofthecommunity,aswellasfindingways to acknowledge competences learned out-sideofinstitutionalcontexts.n Retaining and reviving manufacturing indus-tries.Automationandmechanisationofferoppor-tunitiesforvaluecreationthathavethepotentialtobeinstrumentalinsupportingtheretentionofjobsinmanufacturingandheavyindustrieswithinNordic regions. Although automationmay resultinsome job losses, itmayalsoenablethereten-tionorrevivalof industriesthatotherwisewouldbeforcedtomoveproductionoffshoreduetohighlabourcosts.n Opportunities for new business models that encourage more diverse regional economies. Themost obvious example of finding new businessmodelswasTampere,aregiononceheavilyrelianton just twocompanies (NokiaandMicrosoft)asprovidersofhigh-skilled jobs,whichnowhostsadiverse array of different sized companies, bothhomegrownandinternational. InReykjavík,therewasalsoevidenceofmunicipaleffortstocollab-orate with smaller companies and startups (asopposedtothe‘bigtwo’)toencouragefreshap-proachesandnewideas.

'Today, we are training people for jobs that we don’t yet have names for. So, it is about training how to learn, it is about training capabilities, it is about training abilities, to take on different types of roles ... not saying, “I went through this training and now I’m only seeking this job”. Horrendous idea. We are still seeing this especially in Finland, we have an 8% unemployment rate right when everything is heat-ing up. It is not good, it has something to do with this mindset.'(JuhaLatvala,Intopalo,Tampere)

Whenitcametothegreentransition,mostinter-viewees were able to point at positive environ-mentaloutcomesasaresultofdigital initiatives.Forexample,digital serviceswere regardedasameanstoreducephysicaltravel,sensorsandLEDlightswereusedincombinationtodecreaseenergyuse,smarttransportsolutionswereprovidedandrubbish bins were emptied only when they werefull.Theunderlyingassumptioninmanycaseswasthat smart solutions were, by their nature, green solutions, and the city itself acts as a ‘living lab’fortestingnewideasandsolutions.Atthesametime,environmental sustainability appears to be an outcome of digitalisation rather than a driver. Interestingly, interviewees from Helsingborg Mu-nicipalitydescribedthecity’senvironmentalworkasoperating inasimilarwayto itsdigitalisationwork—as a cross-cutting theme across all cityfunctions.

Intervieweesalsoraisedthepotentialfordigi-talisation as a tool for socio-economic inclusion. Specificexamplesincluded:

n Online services equal more accessible services. In the context of the high penetration of digitaltechnology in Nordic societies, taking servicesonlinewasconsideredsynonymous,toanextent,withmakingthemmoreaccessible,particularlyinruralareasandinthecaseofhealthcare.Health-Tech isalsothoughttobean important industryfortheNordicregions,withanumberofhighpo-tentialstartupsinRegionSkåne(over155),offer-ingavarietyofempoweringsolutions(HealthTechNordic,2018).n The empowerment of youth and elderly residents. The iPad programme at Vardø School makes iteasierforteacherstoworkwithstudentsattheirownlevel,withouttheneedtosingleoutstudentsforspecialclasses.Attheotherendofthescale,most interviewees were resistant to the notionthatelderlypeoplearebeingleftbehindbydigital-isation,withseveralpointingtonewdevelopmentsthatallowfortheuseoftechnologywithouttheneed to learn new skills, e.g., voice recognitionsoftware and sensors, suggesting these as use-ful ways to increase autonomy and feelings ofsecurityamongolderresidents.Atthesametime,reducingtheamountofmanuallabourassociatedwithcaringhasthepotentialtosaveresourcesthatcouldbeinvestedinsocialcareinstead.n Increasing public participation and democracy. Digitaltoolshavegreatpotentialtoallowdecision


makerstoreachouttocitizensandvice-versaandhavebeenanintegralpartofsmartcityinitiatives.At the same time, the intervieweeswere criticalaboutthepotentialthreatsassociatedwithuseofpersonaldataandinformationinthedigitalsoci-ety.Theuseofopendata,e.g.,althoughopeningupmanyopportunities,alsoposesmanyuncertainties.

Interestingly, despite the fact that, as describedabove,thedigitalisationprocesswasconceptual-isedinthecasestudyregionsasbeinglargelyahu-manprocess,theworkstillappearedtobemale-dominated—at least at the upper levels. A shifttowardsahuman-centricviewofdigitalisation(asopposed to a technology-centred approach) hasthepotentialtobeusefulinopeningupmore op-portunities for womeninthedigitaltransformation.

'To me, those digital solutions that I see in the future using AI and everything, they will be safer, better, they will be the tools to develop better diagnosis,

improved prevention, etc. So, it's really beneficial to mankind and it's also solutions that will be distrib-uted throughout the world at low cost; it’s affordable to everyone. This is a development that is accessi-ble everywhere to everyone practically.'(MarianneLarsson,InnovationSkåne)

4.4 Where are the strongest potentials for knowledge-sharing/collaboration on digitalisation at the different governance levels?Digitalisationisclearlyanissuewithbroadpoliticalsupport and it presents substantial opportunityfor long-termcollaborationacross local, regionalandevennationalborders.Weneedastrongercol-laborationinalllevelsofgovernancebecausedigi-talizationworkisinsufficientlycoordinatedinthepublic sector.What is less clear, however, ishowthedifferentlevelsofgovernmentshouldinteractandwhichrolesarebestsuitedtoeachlevel.Thisresearchfoundthatthemosteffectiveattempts

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to harness digital opportunity appeared to takea bottom-up approach,embracingtechnologyasappropriatetorespondtolocalchallenges,needsandpriorities.Assuch,digital priorities should be defined in line with the specific responsibilities of the governance level in question. Thefollowingprovidesabriefsummaryofpotentialrolesforthedifferentlevelsofgovernmentbasedonthefindingsfromthecasestudyregions.Italsohighlightsthedifferentactorconstellationsthatmaybeadvan-tageousinthedigitalage.Itshouldbenotedthatintervieweesoftendescribedwhatwasdesirable,andnotallofthesesuggestionswerehappeninginpracticeineachcase.

At the local level:nDigitaltechnologiesareadoptedasappropriatetosupportthepursuitofgoalsthatarelocallyde-finedthoughengagementwithbusinessandcom-munity.nDifferenttypesofactorsworktogetherontan-gibleprojectsseekinginnovativesolutionstolocalchallenges,creatingnewnetworksandleadingtonewbusinessopportunities.nMunicipalitiesundertakingsimilartasksorfacingsimilarchallengesshare ideasand learning (evenacrossnationalborders).Byincreasingcollabora-tionandcoordination,municipalitiesmaypreventrepeatingmistakesandsaveresources.

At the regional level:nAconsistentlevelofdigitalinfrastructureisen-sured,particularlywithrespecttoruralareas.nSupport is provided to industry, new businessdevelopment and smart specialisation in thecontextofdigitalisation.Thisrequiresastrongerawarenessofwhatishappeningatthelocallevel(e.g., the most promising ‘smart’ solutions, thefastestgrowingstartups,promising‘smartvillage’-style initiatives), providing links betweenmunici-palities and feeding local and regional prioritiesupthroughthehigherlevelsofgovernance.Itmayalso includeworkingmore closelywith startups,enablinggrowthbysupportingthemtonavigatepublicsystems.nConnectionsarecreatedbetweenindustryandhigher education institutes and open dialogueaboutthechangingnatureofworkandlearningisfacilitatedinabroadrangeofcontexts.nDialogue between municipalities is promoted,encouraging collaboration on shared challengesandtheinteroperabilityofsystems.

At the national level:nFundingmechanismsareflexible,enablingdigi-talinvestmentthatcanbetailoredtolocalneeds.Thecapacityfordifferentregionsandmunicipali-tiestoharnessthebenefitsofdigitalisationshouldbecarefullyconsidered,withgreatersupportpro-videdinareaswithlowabsorptioncapacity.nPoliciesthatstiflethewaysofworkingoutlinedin this researchareexaminedandbroughtuptodateforthedigitalage.Forexample,severalinter-vieweesdescribedthewaythatcurrentpublicpro-curementlawshamperedtheirabilitytoworkwithyoungercompaniesorstartupsbybeinguninten-tionallybiastowardslargerandmoreestablishedcompanies.nStandards are developed to ensure electronicsystemsdeveloped/usedatotherlevelsarecom-patible and secure (there is potential for NordicorevenEUco-operationonthisinthefuture).En-suringthatsystemsarecompatibleimplieseasiercommunication across different authorities andmunicipalities, which will increase efficiency andreduce costs in the long term. Itmay also allowformoreinnovativeusesofbigdatainthefuture.Theintroductionofstandards,asopposedtothedevelopment of systems, was recommended byparticipantstoensureinteroperabilitywithinandbetweenthedifferentlevelsofgovernment,whilesimultaneouslymaintainingthefreedomandflex-ibilitytodeveloplocallyappropriatesolutions.ThisworkisparticularlyrelevantinthecontextoftheregionalandmunicipalreformscurrentlyongoinginseveralNordiccountries.

'In the private sector, the companies have managed to create standards. The standards are needed so that everybody knows how to create products for that. That means that you will get an innovation level, you will get investments, you will get the mon-ey flowing in ... I can't just figure out why this whole standardisation thing hasn't been happening in the public sector, that would be perfect. That would change the whole game.'(MartinGüll,DirectorforDigitalisationinHelsingborg)

At the Nordic level:n Connectionsaremadebetweencities,regionsandruralareasthatfacesimilarchallenges.Thereis great potential for sub-national knowledgetransfer, collaborationandpromotionof successstories,particularlyinthecaseofsmall-andme-dium-sizedcities.Accordingtomanyinterviewees,


these cities are ideally sized to act as test bedsfordigitalsolutions.Theycanexperimentwithoutmakinghugeinvestmentsandtheirsizeeasestheprocessofdevelopingandmaintainingcollabora-tiverelationships.n Collaborationwithnational-levelactors (suchas occurred through Digital North) should focuson ensuring that national standards (describedabove)arecompatiblebetweencountries,aswellaswithinthem.n Joint advocacyand knowledge-sharingaccel-eratesthedigitaltransitionattheEUlevel.

4.5 Concluding remarksDigitalisation is a fast-pace irreversible processandisattheheartoftheFourthIndustrialRevolu-tion(WorldEconomicForum,2016).DigitalisationisattheforefrontofthenationalagendasintheNordicRegionandishighontheNordicco-oper-

ation agenda. The opportunities and challengestodigitalisationaremanyandhavebeenwidelystudied.Theaddedvalueofthisstudywasthere-gional perspective on the digitalisation issues inNordicregions.Morespecifically,thediscussiononthekeyapproaches,challengesandopportunitiesrelated to digitalisation and identifying the col-laborationopportunitiesare intendedto improveknowledgeonhowtofosterthepositiveeffectsofdigitalisationinotherregionsandencouragingjointNordic learning based on this study. This studydemonstrated that there are a variety of ap-proachestodigitalisationattheregionalandlocallevels,andthatdigitalisationisacross-cuttingis-sueacrossthedepartmentsandpolicyareas.De-spitetherelevanceofnationalsteering,thisstudyrevealedtheimportanceoflocalembeddednessofdigitalisationtotrulybecomeadriverforchange.


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nordregio report 2019:4 7 1

Appendix I. Digital technologies with high transformative potential

Summary of technologies enabling the digital revolution (developed based on Manyika et al, 2013)

Technology What is it? Transformative qualities/implications

Application examples

Mobile Internet IncreasinglyinexpensiveandcapablemobilecomputingdevicesandInternetconnectivity

IncreasinglyinexpensiveandcapablemobilecomputingdevicesandInternetconnectivity

Wearablesmartphones;healthandwellness applications;mobilitysolutions

Artificial intelligence/machine learning

Intelligentsoftwaresystemsthatcanperformknowledge-basedworktasksinvolvingunstructuredcommandsandsubtlejudgements

Intelligentsoftware systemsthatcanperformknowledge-basedworktasksinvolvingunstructuredcommandsandsubtlejudgements

Internet of Things Physicalobjects(e.g.,parkbenchesandlights)areconnectedbynetworksoflow-costsensorsthatallowthemtocollectdataandmonitorenvironments

Physicalobjects(e.g.,parkbenchesandlights)areconnectedbynetworksoflow-costsensorsthatallowthemtocollectdataandmonitorenvironments

‘Smart’cities,officesandhomes,andagriculture,foodproductionand resourceefficiency

Cloud technologies Supportsotherfunctionsbymakingthedigitalworldsimpler,fasterandmorepower-fulusingcomputerhardwareandsoftwareresourcesdeliveredoveranetworkortheInternet

Supportsotherfunctionsbymakingthedigitalworldsimpler,fasterandmorepowerfulusingcomputerhardwareandsoftwareresourcesdeliveredoveranetworkortheInternet

Low-cost,user-friendlystorageoflargeamountsofdatathoughplatformssuchasDropbox,GoogleDrive,OneDrive,andothers

The table below highlights the 12 technologieswith the greatest transformative power on aglobalscaleby2025,basedonareportfromtheMcKinseyGlobal Institute (Manyika et al., 2013).‘Transformativepower’isdefinedasthetechnolo-giesthatwillbethemostlikelytohaveasignifi-cantimpactonthewaypeopleliveandworkandonindustriesandeconomies(Manyikaetal.,2013).Inmanycases,the innovationswiththegreatest

transformativepotentialrelyoninteractionswithother technologies in the list. For example, ‘bigdata’,acommonlycitede-governancetool,reliesonmobileconnectivityandtheIoTforthecollec-tion of data, cloud technologies for its storageand,insomecases,artificialintelligence/machinelearning/advancedroboticstoactontheinforma-tiongathered.


Advanced robotics Increasinglycapablerobotswithenhancedsenses,dexterity,andintelligenceusedtoautomatetasksoraugmenthumans

Increasinglycapablerobotswithenhancedsenses,dexterity,andintelligenceusedtoautomatetasksoraugmenthumans

Robotstakeonjobsrequiringhighlevelsofprecision(e.g.,surgery)

Autonomous and near autonomous vehicles

Vehiclesthatcannavigateandoperatewithreducedornohumanintervention

Potentialtocompletelytransformgroundtransportation,withimplicationsforurbandesign(e.g.,parking,pedestrianvehicleinterface)aswellasservicedeliveryinruralareas

Next-generation genomics

Fast,low-costgenesequencing19,advancedbigdataanalyticsandsyntheticbiology(‘writing’DNA)

Potentialformedicaladvancesthatcoulddramaticallyincreasethequalityandlengthoflife

Canbeusedinagriculturetoproducehighvaluematerials(e.g.,biofuels)

3D printing Additivemanufacturingtechniquestocreateobjectsbyprintinglayersofmaterialbasedondigitalmodels

Potentialdisruptiontomanufacturing/supplychains.Medicaladvances(e.g.,printingorgans).Legalimplicationsaroundimportationofgoods(e.g.,printingweapons)

Advanced materials Materialsdesignedtohavesuperiorcharacteristics(e.g.,strength,weight,conductivity)orfunctionality

StillinR&Dstage.Implicationsunclear

Advanced oil and gas exploration recovery

Explorationandrecoverytechniquesthatmakeextraction ofunconventionaloilandgaseconomical

Potentialtohamperglobaleffortsonrenewableenergybyincreasingtheavailabilityoffossilfuels.Substantialenvironmentalrisks

Renewable energy Generationofelectricityfromrenewablesourceswithreducedharmfulclimateimpact

Increasedcosteffectivenessandperformanceofexistingsolutionsalongwithdevelopmentofnewsolutions

19 Humangenomesequencingtook13yearsandcost$2.7billiontoaccomplishundertheHumanGenomeProject.Today,itcanbedoneinunder3hoursfor$3,000.


Appendix II. List of interviewees

National policy context

Country Name Title / Organisation Date

Denmark TroelsJohansen DigitalGrowthPolicy,DanishBusinessAuthority

28August2018

Finland JussiNissilä DevelopmentDirector,MinistryofEconomicAffairsandEmployment

10July2018

Iceland EinarBirkir IcelandicGovernmentMinistryofFinance 8 May 2018

KristjanHalldorsson IcelandicAssociationofLocalAuthorities 25June2018

Norway Anne-LenaStraumdal DepartmentofITpolicyandPublicSectorReform,MinistryofLocalGovernmentandModernisation

15August2018

Sweden ErikJoachimsson DepartmentofRegionalGrowthandEUCohesionPolicy,MinistryofEnterpriseandInnovation

15June2018

GustafMolander DepartmentSecretary,DigitalisationUnitattheGovernmentOfficesofSweden,MinistryofEnterpriseandInnovation

15June2018

Greenland TomNørregaardAndersen

HeadofDepartment,TheGreenlandicAgencyforDigitalisation

6August2018

The FaroeIslands

NicolaiMohrBalle ProgrammeManager,TheNationalDigitalisationProgrammeoftheFaroeIslands,TalgilduFøroyar

11July2018

Åland Islands

RonnyLundström DepartmentofFinance,GovernmentofÅland

19June2018

TonyAsumaa MinisterofEducationandCulture,GovernmentofÅland

19June2018

AndersIngves SeniorAdvisoratPrimeandUnitedMinds 9August2018


Regional case studies

Country Name Title / Organisation Date

Denmark UllaVarnerskov ChiefResilienceOfficer,VejleMunicipality 13August2018

BjörnSnorriGudmundssonBøg

DevelopmentConsultant,TheRegionofSouthernDenmark

13August2018

MichaelSloth Technology&EnvironmentalDirector,VejleMunicipality

13August2018

Harald-ÅgeMortensen HeadofDigitalisationandAnalysis,VejleMunicipality

13August2018

JeanetteKristensen InnovationConsultant,VejleMunicipality 14August2018

MortenLundgaard IT-director,TheRegionofSouthernDenmark

14August2018

KatrineVedel SpecialConsultant,HealthInnovationCentreofSouthernDenmark

14August2018

SørenSkaarup SeniorConsultant,BusinessTechnology&Digitalisation,Ramboll

15August2018

Finland TeppoRantanen ExecutiveDirectorofEconomicPolicy,CompetitivenessandInnovation,CityofTampere(andSmartTampere)

22February2018

TeroBlomqvist SmartTampereProgrammeDirector,CityofTampere

21February2018

ReijaLinnamaa DirectorofStrategy,CityofTampere 22February2018

JarkkoOksala ChiefInformationOfficer,CityofTampere(andDigitalisationProgrammeatSmartTampere)

22February2018

PetriRäsänen Director,InnovationandForesight,theCouncilofTampereRegion

21February2018

KatjaKoponen SeniorBusinessAdvisoratRenewingIndustry,BusinessTampere

21February2018

Heini Wallander BusinessAdvisoratRenewingIndustry,BusinessTampere

21February2018

IlkkaHaukijärvi DirectorofProjectDevelopment,Tampere3Process

23February2018

JuhaLatvala CEO,IntopaloOy 21February2018


Iceland HalldórAuðarSvansson PirateParty 24April2018

AriKristinnJónsson ReykjavíkUniversity 25April2018

HreinnHreinsson&ÞrösturSigurðsson

ReykjavíkMunicipality 23April2018

EinarÞórarinsson Advania 23April2018

ÓskarSandholt ReykjavíkMunicipality 24April2018

Norway StineLoso ChiefofStaffOffice,TromsCounty Municipality

22 May 2018

ThomasLarsen ManagerofDigitalIntegrationandDevelopmentatTromsICTDepartment,TromsCountyMunicipality

22 May 2018

HermannWestlie ManagerofDepartment,Vadsø,Eltele 23 May 2018

NinaMartinsen HeadmistressatVardøSkole 23 May 2018

HallgeirSørnes DeputyChiefofAdministrationinVardøMunicipality

24 May 2018

MereteSusanAndersen DepartmentManagerandSeniorAdvisoronSustainability,InnovationNorway

31August2018

Sweden MiccoGrönholm HeadofFuture,HelsingborgMunicipality 22 May 2018

BjörnLahti HeadofSmartHelsingborgProgram 23 May 2018

MarianneLarsson DirectorofNewIndustriesandInnovationDirectorHealthTechNordic,InnovationSkåne

23 May 2018

LarsWinther-Hanson RegionalBroadbandCo-ordinator,RegionSkåne

24 May 2018

MartinGüll DirectorforDigitalisation,HelsingborgMunicipality

24 May 2018

AlineStudemund ProjectManagerInnovation&Communications,MobileHeights

26June2018

OlaSvedin CEO,MobileHeights 26June2018


ISBN: 978-91-87295-68-3ISSN: 1403-2503DOI: doi.org/10.30689/R2019:4.1403-2503

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