Business and career opportunities with Norwegian companies

Tiina Link, Commercial Manager

Innovation Norway

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Innovation Norway

•Official Norway’s commercial representation abroad

•Similar organisation to Enterprise Estonia

•Ca 8000 million EEK for the reinforcement of Norwegian industry

•750 employees. Offices in all Norwegian counties and 30 countries abroad. The head office is located in Oslo

• Innovation Norway office in Tallinn co-ordinates activities in the Baltic states

•Co-operates with Norwegian embassies abroad

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’Impressions of Norway’ video

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Business in Norway

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Key business fields in Norway

• By tradition a fishing nation. 90% of all the caught fish is exported. Aquaculture a growth sector

• Long tradition as a seafaring nation. 5th largest shipping nation in the world

• Oil & gas of the North Sea is a corner stone of the economy. Norway is 3rd largest oil exporter in the world

• Many newly established high-tech companies

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A well off nation• Per capita income amongst highest in the world

• No 1 in United Nations quality of life index

• Average salary ca 60 000 EEK (2007)

• Unemployment rate: 2.5% (2007)

• Over 300 000 companies in Norway. 40 000 new companies created every year

• 80% of Norwegian companies have less than 20 employees

• 40% companies in Norway have difficulties finding competent employees (2007)

• www.careerinnorway.no

Source:Statistics Norway, Manpower, Norwegian Ministry of Trade and Industry

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Norway purchases considerable amount of production services from abroad

Services (outsourcing)

21,0%

Industrial goods (cars, computers)

47,0%

Raw materials10,0%

Food6,0%

Other5,0%

Tourism11,0%

Source: Statistics Norway

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Norway is among 10 most important trade partners for Estonia

Source: Estonia’s Statistic Department

Lithuania4,6%

Denmark3,2%

UK3,5%

Germany6,2%

Russia6,5%

USA3,1%

Norway2,9% Others

23,6%

Latvia8,7%

Sweden13,1%

Finland26,7%

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The trade between Estonia and Norway is in the fast growth

981

801

855

855

812

996

1580

1374

100

1267

1617

1925

2245

2426

2715

5016

16

637

521912

913

3848

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

1992

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Import %Eksport%

Source: Norway’s Statistic department. Mil.EEK

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The Baltics are a substantial outsourcing destination for Norway

Export to Import from

Poland 9.417 9.752

Czech Republic 5.726 4.379

Baltic States 2.612 7.107

Hungary 439 2.574

Romania 714 2.017

Bulgaria 105 206

Source: Statistics Norway 2007. Million NOK

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The reasons behind popularity of the Baltics

• Attractive cost/quality ratio

• Many small and medium size companies

• Relevant business sectors for Norway (wood and metal production)

• Good logistics

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What is being exported from Estonia to Norway?

Source: Statistics Norway

Timber18,6%

Prefabricated houses19,7%

Clothes10,8%

Furniture7,9%

Wooden products7,7%

Other17,6%

Half-fabricates (textile)3,7%

Machines, equipment

13,9%

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Construction sector in Norway

• High purchasing power

• Home + vacation home

• Most houses of wood

• No 1 spenders on housing and maintenance in Europe

• 1/3 of construction sector turnover is from public sector

• Large construction companies + numerous small companies

• Many Estonian companies are active in the market

Source: Norwegian Ministry of Trade and Industry, Innovation Norway

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Information & communication technologies and business services in Norway

Information communication technologies

• Very high user level

• Mobile solutions, niche software to certain industries

• High cost base - need for many automatised and self servicing solutions

• Small Estonian suppliers present in the market

Business services

• High growth for the last decade

• Replacement of in-house resources with external service providers

• Due to new ICT technologies servicing becoming more international

Source: Norwegian Ministry of Trade and Industry

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Norwegian business in Estonia

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Norway - 5th largest foreign investor in Estonia

UK2,0%

Denmark1,5%

Netherlands3,0%

Russia1,4%

Norway2,5%

others13,4%

USA2,3%

Finland20,8%

Sweden53,1%

Source: Bank of Estonia

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Over 400 Norwegian owned companies in Estonia

Source:Innovation Norway, Commercial Register

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Norway has a potential to increase business with the Baltic states

• Norway’s activities abroad have been in good increase over the last decade

• Largest part of Norway’s trade is with Western Europe, regulatory side the same in Eastern Europe

• 75% of Norwegian establishments in Baltic states and Poland are pleased or extremely pleased with the results achieved

• 75% expect increased investments, increased sales and distribution activities in Eastern Europe in the time to come

• Many expect increased research & development activities in Eastern Europe

Source: Deloitte, Innovation Norway

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Baltic base for developing business towards the Nordic-Baltic region and Russia

• Most Norwegian companies in Estonia use their capacities to smaller or larger extent towards Nordic-Baltic markets

• Companies increasingly interested in using Baltic base for developing activities towards Russia:

- Limited capacity and relatively high project management cost in Norwegian companies

- Existing experience of similar development from smaller and faster developed Baltic markets (easier to make the right decisions)

- Knowledge of Russian language and business culture in the Baltics

- Nordic and Norwegian financing available to establish projects in Russia (50% co-financing of pre-feasibility costs (travels, salaries, external competence); Innovation Norway’s equity fond to invest 30% together with Norwegian companies into projects in Russia)

Source: Innovation Norway

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Doing business with Norway in practice

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Sample project– establisment of Webcat

Webcat AS- Established in 1999 in Arendal, Norway

- Webdesign and development

- Customers all over Norway, e.g. boat builders

Innovation Tallinn assistance establishing Webcat in Estonia in 2007:

- Recruitment of key persons

- Establishment of the company

- Finding premises

- Practical assistance and advisory during setup

Financing of the project: - Company

- Innovation Norway

Status: - 7 persons in Arendal office in Norway and 3 in Ülemiste City

- Doubling of development personell in Tallinn

- Company doubled turnover in 2007

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What is important when recruiting key persons?

• Relevant industrial experience

• Work experience from a Nordic/foreign company is strong plus

• Very good English skills

• Right personality (result-oriented, trustworthy, able to take initiative, good at communicating etc.)

• Foreign companies commonly offer higher salaries than local ones

• Sometimes % ownership in the Estonian company is offered

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Innovation Norway business development project in ICT in Eastern Europe

• Market scan to give Norwegian ICT companies association overview of sourcing and market access possibilities in Eastern Europe

• Project manager Innovation Norway Tallinn office

• Financing: hours covered 100% by Innovation Norway

• Delivery: market scan ready October 2008

• Further activities: workshops, study tours and matchmaking meetings for the association member companies in Eastern Europe

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How to create personal contacts in Norway:

• Nordic Council of Ministers financed Nordplus programme (‘Nordic-Baltic Erasmus’) for studying in Norway www.norden.ee. See also www.studyinnorway.no

• Nordic Council of Ministers Nordprolink programm for internships in Norwegian companies www.norden.ee

• World class innovation conference in Norway www.innotown.com

• International forums to matchmake young (technology) companies with risk investors www.seedforum.org. Forums also in Tallinn

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Search for a business partner from Norwaywww.eas.ee trade@eas.ee Enterprise Estonia; requests to abroad markets databases; free of charge

www.koda.ee Estonian Chamber of Commerce; www.etc.ee Estonian Trade Council; www.chamber.no Oslo Chamber of Commerce. Fee based partner searches

Search on your own:

www.nortrade.com Innovation Norway maintained more substantial companies in Norway database, possible to find companies by business fields and subfields

www.proff.no backround information on Norwegian companies (when established, turnover, profit, board members, owners); in Norwegian; free of charge

www.ee.mercell.com Norwegian electronic procurement information, on public and larger private companies procurements; fee based

www.messe.no Fairs in Norway

www.norske-aviser.com Norwegian newspapers and industrial magazines; in Norwegian

http://www.ey.com/Global/Assets.nsf/Norway/Establishing_a_Business_in_Norway/$file/EBIN%20web.pdf Ernst and Young compiled summary on establishment company, taxes etc in Norway; in English

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Business proposal

• Short English e-mail

- when established, managers/owners, results

- references partnering with other Nordic/foreign companies

- indicative price level

- reference to English website with product pictures, specifications, price list

• Proposal to be sent personally

• Follow-up in some weeks with a phone call

• Invite to visit your company in Estonia – best to see with own eyes

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Travelling to NorwayBy plane and car:

• www.estonian-air.ee, www.norwegian.no, www.flysas.com, www.finnair.fi, www.tallinksilja.com

In Norway:

• Unforgettable nature

• www.visitnorway.com (official Norway’s travel portal)

• Longer distances than one would expect

• Domestic flights in Norway www.sas.no, www.norwegian.no, train www.nsb.no, route-planner www.viamichelin.com

• www.use-it.no youngsters’ budget guide on Oslo

• www.met.no weather

• National Geographic elected in 2004 100 most attractive tourism magnets in the world – Norwegian fjords were no 1

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Norwegians- an Estonian view

• Honest• In-formal• Do not discuss prices• Differentiate between work and

free time (finish 16:00)• Children and family important• Creative• Take enterpreneurship risks• Equality important in society

(women=men, superiors>=subordinates)• Appreciate outdoor activites• Vikings and pathfinders • Proud of everything that is Norwegian

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Äitäh! Takk!

Tiina Link

Commercial Manager

Innovation Norway Tallinn

Norwegian Embassy

Harju 6, 15054 TallinnTel. +372 6313 466

tiina.link@innovationnorway.no

www.norra.ee / www.innovasjonnorge.no