Digital Innovation for Sustainable Growth: Stability in Turbulent Times?

By Bram Timmermans

17 June 2022 09:46

Industry plays an important role in securing that DIG and NHH can deliver high quality research in times where government decides to drizzle the sector with more uncertainty than is necessary.

Professor Bram Timmermans, Head of DIG

Digital Innovation for Sustainable Growth: Stability in Turbulent Times?

The Norwegian government’s announcement of cuts will result in difficulties and uncertainty with long-term implications for the Norwegian research sector, writes head of DIG, Professor Bram Timmermans.

There has been considerable unrest in the Norwegian research landscape the last couple of weeks. The government decided to replace the entire board of the Norwegian research council and announced serious cuts that include an immediate scaling down of grants with 20 percent; remove support for open research proposals, also funds available for young talents; and postpone the start of center of excellence.

This all from a government that in October 2020 mentioned the following when they published their government platform, the Hurdal platform:

“Research, development and innovation plays a critical role if Norwegian industry wants to measure itself internationally, and to make sure we reach the ambitious climate goals we have set ourselves. The policies we implement must provide incentives for industry to explore and adopt new technologies, especially in low- and zero emotions solutions, artificial intelligence, big data, autonomous systems and Internet of Things.”

The cuts will result in difficulties for Norwegian research sector to train, attract and retain research talents. It weakens incentives for Norwegian industry to conduct research as well as interdisciplinary collaboration within and between industry and the research sector, which does not make it easier to reach the ambitious goals we have set.

All this will have long-term implications. Research is not a switch you turn off for a short while and then turn on again. Research is a cumulative process, involving years, even decades of specialization. The draconic measures will surely result in an immediate halt to research initiatives and loss of research talent.

Even if the measures are for a short period, it will not merely bounce back. Adjustment cost in the sector is high, starting research collaboration often takes years of preparation, and the loss of talent is not easily recouped. 

But some areas of research will be hit harder than others, and there will also be variation in how different research centers will be affected. While the Digital Innovation for Sustainable Growth has attracted funding from the research council in the past and plans to in the future, the commitment and funding received from industry partners makes it a more resilient compared to many of its counterparts.

For a business school such close connection with industry again shows it value. Strong ties between industry and NHH go a long time back; after all, it was industry that pushed for the establishment of NHH back in the days.

Now more than 100 years later, industry plays again an important role in securing that DIG and NHH can deliver high quality research in times where government decides to drizzle the sector with more uncertainty than is necessary.

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