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Public-private cooperation/funding model for Business Gardens-creating ecosystems.
Published on 15 May 2020
Norway
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
The Business Garden program is a national/regional Gov. program established in 1998 to enhance business development in the rural areas. The program is run by SIVA, a public enterprise, and co-owned by the County Councils in Norway (total of 50% public ownership). Business gardens (BG) is an important regional development tool for the County Councils. SIVA also organize a national Incubation Program. The County Council cooperate with SIVA in both programs. The Business gardens are organized as shareholder companies with min 51% private ownership, and min 34% public shares. A Business garden co-locates development-oriented companies in order to promote growth, cooperation and development. It provides access to expertise, networks and an academic and social community. Trøndelag County Council has closely worked with the regional BGs (5) and Incubators (3) in several projects, and they are as such considered an important tool. The coop with the Business gardens enables the County Council to reach out to small- and micro businesses. Public part-ownership and grants gives the BGs legitimacy, and possibility to do subsidized work for their SMEs.
Expert opinion
The Norwegian business gardens provide an original tool for economic development in rural areas. Similarly to the well-known business innovation centers (BIC) or business parks, they provide co-location for businesses willing to expand and contribute to create a local ecosystem of businesses with contacts to business support providers, higher education / research and the local community.
However, differently from the classical models, business gardens are real public-private partnerships with a minimum of 51% private ownership and a minimum of 34% public ownership. Public and private do really share ownership and risks.
The approach presents some similarities with the English local enterprises partnerships (LEPs) and their Growth Hubs, which propose a one stop shop model building on formalized partnerships – not institutional mergers – and physical places where SMEs get access to a broad range of business support services. LEPs are voluntary partnerships between local authorities and businesses. Two examples of successful Growth Hubs are displayed by Interreg Europe projects:
- Coventry & Warwickshire Growth Hub (INTRA project, https://www.interregeurope.eu/policylearning/good-practices/item/489/coventry-warwickshire-growth-hub/)
- Greater Birmingham & Solihull Growth Hub (PURE COSMOS project, https://www.interregeurope.eu/policylearning/good-practices/item/1608/growth-hub-one-stop-shop-for-business/)
However, differently from the classical models, business gardens are real public-private partnerships with a minimum of 51% private ownership and a minimum of 34% public ownership. Public and private do really share ownership and risks.
The approach presents some similarities with the English local enterprises partnerships (LEPs) and their Growth Hubs, which propose a one stop shop model building on formalized partnerships – not institutional mergers – and physical places where SMEs get access to a broad range of business support services. LEPs are voluntary partnerships between local authorities and businesses. Two examples of successful Growth Hubs are displayed by Interreg Europe projects:
- Coventry & Warwickshire Growth Hub (INTRA project, https://www.interregeurope.eu/policylearning/good-practices/item/489/coventry-warwickshire-growth-hub/)
- Greater Birmingham & Solihull Growth Hub (PURE COSMOS project, https://www.interregeurope.eu/policylearning/good-practices/item/1608/growth-hub-one-stop-shop-for-business/)
Works at
Interreg Europe Policy Learning Platform
Resources needed
Program: 16,4 mln EUR of annual governmental contribution is allocated to 40 Business gardens and 35 Incubators in Norway. A Local, regional Business garden have 3-15 employees, and it can be established without a national program. Public funding is critical.
Evidence of success
In 2017, around 4000 SME’s received help from both the programs. SIVA will grant about 16,4 mln EUR in annual contribution to 35 Incubators and 40 Business gardens in the next years. Business gardens have proven to be stabilizing environments in rural municipalities where they are located, and have contributed to reduce competence drain, and even increased inflow of people. Regional projects like the partnership btw. BGs, Incubators and County Council.
Potential for learning or transfer
The established private-public model gives Business gardens more legitimacy in doing a development work with businesses. Less questions on potential upselling. The locally based Business gardens play a key role as intermediaries in the County Councils regional development program and makes it possible to also reach the smallest and most vulnerable businesses. Working with the County Council, and together with each other, Business gardens in turn, increases their competence in infrastructural,- and policy matters. Business Gardens can be established local/regional withouth the large national program behind them, but with some part of public ownership to preserve legitimacy, and public funding for spesific projects.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
SIVA
Norway
Trøndelag
Contact
Senior adviser Digital transformation