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Oslo: State of the city
State of the city 2018
Contents
Executive Summary Part 2: The Benchmarking Report
Business Climate
Part 1: Oslo’s journey
Quality of Life
The innovation economy and the rise of Oslo
Hospitality
The 5 key features of Oslo’s cycle of
transformation Gouvernance
What does this all mean for Oslo? Oslo’s Visibility in City Benchmarks
Notes and References
State of the city 2018
Executive Summary The Oslo performance
spidergram in 2018
1. This 4th edition of the international ‘outside in’ review of the 6. Oslo’s magnetism is growing. Improved attraction to talent is
State of Oslo highlights the many important steps the City-Re- one important recent area of progress for Oslo. The region is
gion has taken forward in 2017. In particular the City-Region registering on the global radar as an exciting place to move to
has: and build a career and achieved 3rd place globally in one of the
most influential benchmarks on this topic. The gap between the
• Achieved impressive growth in its Innovation Eco-system region’s international reputation as a place to live and a place to
which continues to mature. work is now closing. High costs remain one of the main remain-
ing perception barriers.
• Been awarded Europe’s Green Capital and continues to
take the lead in terms of pioneering new solutions for sustain- 7. Oslo is now recognised as a cultural city. Oslo’s ongoing cycle
ability, including its Car Free and Low Emissions initiatives. of investment in cultural infrastructure has triggered further im-
provement in its reputation for leisure and lifestyle. The region is
• Completed more of its landmark Cultural Projects that are appearing in new benchmarks in this area for the first time and
establishing Oslo as a leading centre of culture in Northern its music and theatres already stand out. This is the product of
Europe. 10 years of investment and is having a big impact on citizen sat-
isfaction, the standard of public space, and Oslo’s international
2. Oslo is in a positive cycle. Its recent progress is the product of destination reputation. It is also supporting Oslo’s transition into
a successful phase of wider change and transformation. The a knowledge and experience-rich economy.
city-region is emerging with an identity as a hub for innovation
on the international stage, attracting more of the world’s atten- 8. Oslo’s improving cultural performance is a key ingredient for
tion and its talent. Its investment in urban restructuring, art and the city-region to successfully accommodate the innovation and
culture is changing the region’s profile and giving it more energy creative economy, while also communicating its core values in a
and edge. And the city-region is renewing its reputation as a me- time of rapid growth and change. More cultural investment will
tropolis at the forefront of the global agendas of the 21st centu- be needed to underpin its future narrative and identity, as well
ry – peace, technology, climate change, inclusion and cohesion. as shape the whole region’s spatial strategy, make specific loca-
Oslo’s new model is increasingly in demand, increasingly visible tions succeed and drive the economic transition.
globally, and increasingly benefits from an integrated region that
works together to add scale and capacity. 9. Oslo has a digital dividend. This is a time of rapid change for
city benchmarks – big data and online tools make it easier to
3. Oslo is becoming more visible globally. Its progress is being re- measure cities in more areas and canvas global opinion. So far
flected in more global measures of city and regional success. Oslo appears to be winning from this trend. On the one hand
This report has reviewed more than 400 global benchmarks, new forms of data reveal the quality of Oslo’s public systems and
rankings and comparative studies, which together shape a sub- sustainability policies, and the high rate of citizen participation.
stantial dimension of the global conversation about cities, and in On the other hand, new sources of expert opinion confirm Oslo’s
2017 and so far in 2018 Oslo has featured in more global bench- strong reputation among those who know it for smartness, tech-
marks than ever before. The city-region has made the grade in nology, professional expat lifestyle, tolerance and even gastron-
a number of exclusive rankings and surveys which indicate that omy. In global opinion surveys Oslo is now highly competitive in
among certain audiences it is reaching a new level of stature. the Scandinavian context.
International benchmarks show the city-region consolidating its
position and gaining more recognition for the strengths that are 10. The new generation of benchmarks focuses much more on
well established and its emerging areas of advantage. The last 12 personal factors such as happiness, stress and work-life balance,
months have seen Oslo consolidate its performance within the and on social factors such as gender and income equality. Oslo
longer growth cycle. The signs are that by global standards Oslo region generally tends to perform well in these new measures
is becoming more business and entrepreneur friendly, and that and this could be an emerging area of reputational strength in
demand to invest in the city-region remains high. future.
4. Oslo has generated real momentum. The expansion of its inno- 11. Success reveals challenges and new horizons. As Oslo reaches
vation eco-system continues to be reflected in the benchmark the full term of a strategic growth cycle, how it manages the
studies. More firms, more incubators, larger VC deals, and rising consequences of success and the reputational costs that may
employment in the ‘app’ economy all point to a region making a come with them becomes even more important. Digital connec-
leap forward. Given its size, Oslo now is consistently one of the tivity, congestion, affordability, and crime are all areas where re-
most innovation-intense city-regions in Europe. This is under- corded performance or perception currently disadvantage Oslo
pinned by exceptional and nimble talent. The pattern provides in some measures, and cloud the nature of its overall offer.
evidence of an ecosystem that is able to support an increasing
number of growth-stage companies. The innovation momentum
has registered in some global circles but communicating the 12. Data is key to continued recognition. Among the more than
current rate of change remains an important imperative moving 400 indexes produced globally, many of the indicators used
forwards. are still blunt tools that do not always properly convey Oslo’s
assets. Measures of crime, governance, tax and public services
5. Oslo is acquiring ‘soft power’ and influence. Oslo is making im- in particular are not fully fit for purpose and can mean that glob-
portant steps to promote sustainability and this is gradually be- al audiences make incomplete assumptions. Making accessible
coming more reflected in the global measures. The city-region’s as much up-to-date and relevant data on the Oslo ‘model’ (eco-
sound sustainability practices, low pollution and bicycle adoption nomic, social, cultural, infrastructural) as possible will help the
are all now recognised and are adding to Oslo’s brand and appeal. region be more accurately evaluated and recognised in global
The data has still to ‘catch up’ with initiatives to reduce carbon benchmarks. Oslo’s leadership in responding to the UN Sus-
emissions, and this will likely have an impact in the years to come. tainability Goals may also include contributing actively to those
organisations promoting an improved ‘science’ of cities. At the
same time, Oslo should be at the forefront of the new genera-
tion of digital technologies to communicate the region’s special
assets and values.1
State of the city 2018
Oslo's
journeyState of the city 2018 The innovation economy and the rise of Oslo. It is 5 years since Oslo decided to re-shape the city-region’s international identity, visibility, reputation and positioning and to frame the Oslo brand. In those 5 years Oslo has emerged as a new and distinctive player on the European and global stage. The Region has taken responsibility to bring into being an additional economic model for 21st century Norway, during a cycle of great change for both the country and the world. Oslo provides Norway with a metropolitan innovation economy that it needs to complement other national strengths. Over the last five years, we have been tracking Oslo’s performance in the widest possible set of global benchmarks, rankings and comparative studies. The latest ‘outside in’ assessment, which draws on a database of more than 400 global benchmarks and 20,000 data points, forms Part 2 of this report. Taking a longer view, however, we can see that Oslo’s evolution in these global measures is the outcome of a whole cycle of important changes and initiatives coming to fruition in the city-region.
State of the city 2018
What is the
innovation
economy?
‘Innovation’ conveys the ways that workers, “New ideas that turn into
companies that change the
“The period in the early 21st
century marked by radical
“The synergistic relationship between people,
firms, and place that facilitates idea generation
entrepreneurs, companies and industries embrace fresh world in ways large and small.” changes brought about by
(1) globalized commerce, (2)
and advances commercialization.”
Prof Enrico Moretti Bruce Katz and Julie Wagner, Brookings
knowledge, utilise new technologies, and promote democratized information, (3)
exponential entrepreneurship
change. In doing so innovation may foster new business growth, and (4) accelerated
new knowledge creation.”
processes and create new products, stimulating and/ Nortech, USA
or serving demand in novel ways. Such developments “Innovation is more than a “Many regions and workers “In reality, our innovation economy is not a Roman
can increase the overall performance of workers, firms, single ‘tech sector’ or ‘start-up
scene’ – it’s a way of describing
still have untapped capacity
to be part of the innovation
aqueduct but a “muddy pond”. Rich but obscure.
Innovation requires of all actors, corporate, academic,
sectors, or whole economies, and in doing so they may how whole portions of an econ-
omy embrace technologies and
economy… Innovation is the
process of creating new things
civic and political, the instinct of the hunter-gatherer,
not the farmer; a longer and broader view of needs
make them more productive. This can increase demand, change.” that people care about –
business is the way we
and opportunities”
Prof Greg Clark and Dr Tim Robert Madelin and David Ringrose, for European
give it to them.”
improve supply, and enhance trade. Even for an already Moonen, The Business of Commission
CIties Jonathan Aberman, University
successful city-region such as Oslo, innovation can of Maryland’s Robert H. Smith
School of Business
create jobs, raise skills, increase rates of enterprise
and investment, and improve business efficiency and
Although sometimes equated with a single sector or cluster of start ups, innovation refers to changes that can
competitiveness, boosting wages, profitability, and tax span multiple industries and many different kinds of company. The ‘Innovation Economy’ describes what hap-
pens when such changes emerge at large scale and come to dominate or disrupt pre-existing sectors, and com-
revenues. merce or trade, to foster advanced and high-growth industries. This process is unfolding very rapidly in Oslo,
and is driving wider changes in the development and perception of the Region.
Source: Professor Greg Clark, Dr Tim Moonen, Jake Nunley (2018), The Innovation Economy: Implications and Imperatives for States and Regions,
New South Wales Innovation and Productivity Council, Sydney, Australia.State of the city State of the city
A new economy and a new Oslo
In this cycle the changed commodities outlook and an aging population means that Norway As a proud and optimistic capital city region of a young nation, and realising that its special
has to shift decisively from an oil/gas and corporate economy towards a more diversified assets were hardly known by the rest of the world, Oslo has been pivoting confidently to
set of sectors powered by knowledge systems, small and medium sized companies, and these new megatrends, and telling the world a new story. While the city itself benefits
a new generation of exponential technologies that will create the next generation of jobs. from more appetite and demand from investors, entrepreneurs, students and talent, the
This means a new talent system and a city life style that supports it. assets and amenities of the whole region provide the scale and the choice to underpin
Oslo’s growth.
The winds of change are global in scale. Urbanisation, globalisation, digitisation and cross-
border capital flows are all tending to concentrate opportunities in the most competitive, In our work around the world we observe that the cities that align the way their region
innovative and adaptive city regions. The global contests between cities and regions are develops with what mobile activity needs, while also actively managing the side effects
shifting away from attracting banks and corporate HQs to a focus on science, technology, of growth to maintain and improve quality of life, increasingly are the ones that perform
entrepreneurship, talent, lifestyle, institutions and soft power. well in the world’s indexes and benchmarks. The changes underway in Oslo reflect this
commitment to ‘good growth’, and they explain why Oslo is making important gains in
many of the measures that really matter, as the benchmarking later in this report shows.State of the city 2018
The 5 key features of
Oslo’s cycle of transformation
Oslo’s growth in medicine and renewables really stands out. Several clusters have expanded dra-
matically with the leadership of key knowledge institutions, which are fostering technology transfer
Waterfront Re- Economic Diver- Consolidation of and knowledge exchange across the region. Three of the major clusters are:
Rapid Popula-
development and sification and the Major Investment Global Leader-
tion Growth and
Major Urban Re- Rise of the Inno- in Cultural Fabric ship on Sustain- · The Oslo Cancer Cluster which is establishing the region’s reputation as a world class location for
Change
structuring vation Economy ability oncology research and industry innovation. The Cluster is an example of leadership from the Univer-
sity of Oslo and the Radium Hospital Research Foundation and is now a recognised centre of excel-
lence attracting international talent and investment.
2.1 Rapid population growth way Oslo treats its public spaces, cultural assets and land
· The Life Sciences Cluster has boosted the interaction between universities, businesses and other
Oslo region has been the fastest growing capital city in organisations, and is producing more interdisciplinary collaboration. Supported by the University of
Europe. Since 2000, the Region’s population has grown by management. And it has re-established Oslo at the cutting Oslo, Inven2 and Oslo Tech, it benefits from large scale strategic initiatives such as UiO Life sciences
more than 25%, and many of the key dynamics are in place edge of urban design excellence. to connect and house the different actors in the sector.
for growth to continue up to 2050. Oslo’s high standard of
To make all this possible, Oslo has developed a more coor- · The Oslo Renewable Energy and Environment Cluster (OREEC), based principally in Lillestrom, has
living, buoyant labour market and increased recognition of
dinated regional approach to land use and transport plan- improved the interaction between businesses, research, education and public bodies to grow Oslo’s
the region’s standard of public services has seen it become
ning, and a clearer shared approach to creating a polycen-
more attractive to young people within Europe and also be- competitiveness in renewables.
tric region that benefits everyone.
yond. In 2018, for the first time, 25% of the Oslo population
is born overseas. The improved organisation of these growth industries has been an important part of Oslo’s story in
2.3 Economic Diversification and the rise of in-
this recent cycle.
novation eco-system
High levels of in-migration of young people have trans-
formed the demographic profile of Oslo and created the Oslo’s economy has been undergoing a radical shift in the
conditions to expand the city’s innovation and cultural last decade. Oslo is not only a city of finance and business
scene. As demand has grown in Oslo, more new arrivals serving its national commodities and maritime economy –
are settling outside in the wider Region (e.g Ullensaker, it is a diversified city of knowledge, culture, medicine and This process of diversification is happening at a time when numerous entrepreneur-accelerator programmes appear,
Nannestad and Sorum). Oslo has therefore evolved from a advanced technology. Since 2010, many of its emerging more people than ever are working in small nimble busi- along with dozens of co-working areas, maker spaces and
domestically oriented city into an internationally ambitious sectors have grown rapidly, including telecoms and IT (4% nesses than in large traditional companies. Oslo has seen other hubs that allow small innovative firms to thrive.
Region. jobs growth per year), technical advisory (4%), and arts,
culture and entertainment (3%).1 Oslo region has been ac-
2.2 Successful waterfront redevelopment and
counting for nearly 9 out of 10 additional private sector jobs
urban restructuring
throughout Eastern Norway. Civic institutions have been stepping up their leader- Health Tech, and is a major cluster for innova-
Oslo’s rapid regional growth has seen local governments ship to promote Oslo’s transition to the new economy. tion, anchored by the University’s core research
Oslo now can boast many new competitive sector ad-
and national government recognise that to accommodate These include the University of Oslo, Norwegian Busi- excellence.
vantages in the global marketplace. These are typically
this growth the capital has to develop a regional approach ness School, Norwegian University of Life Sciences and
in high-expertise and high-technology fields with a strong · The maritime and technology hub in Kongs-
that involves intelligent use of regional infrastructure and Oslo Metropolitan University. Leading cultural institu-
knowledge quotient. These include IT, software, biotech, berg.
assets, and large scale urban restructuring. This has not tions have also actively fostered the development of
life sciences, energy technology, maritime, culture, cre-
only seen Oslo grow its successful new airport into an in- art, design, architecture, fashion, literature and music
ative industries and specialised components. · Oslo Cancer Innovation Park in Ullern.
ternationally connected hub. It has also involved a process in Oslo, such that Oslo now accounts for about 60% of
or urban densification and redevelopment to connect its Solar energy, educational technology, fashion and smart cultural industries’ total value creation in Norway. · The creative industries cluster growing in Ny-
harbour to the city centre. urban technology are all strongly emerging clusters in Oslo dalen.
that benefit from national funding and effective local ca- Innovation needs somewhere to live. The diversification
The revival and regeneration of Oslo’s waterfront is cre- of Oslo’s economy is being accommodated by multiple Oslo’s economy is full of optimistic new players, fuelled
pacity building. The renewable energy and circular econ-
ating many lasting effects for the region. Not only has it new ‘hub’ locations across the region. These include: by a movement of makers and innovators, and benefits
omy community has also become much larger and more
provided a high quality and attractive set of new spaces from numerous public efforts to build fresh confidence
dynamic in the last 5 years. The Ocean Industry Forum is · The large startup networking hubs in the city
for businesses, offices, art centres, museums and public and capacity in the future.
helping to build the Oslo region’s status and reputation for centre, including Mesh and OHIO.
parks. It has reconnected the city to the water, successfully
maritime and offshore activities. And the future food net-
preserving heritage and re-affirming the city’s shared iden-
work is bringing together the leading players in food, nu- · The UiO research park in Blindern, which hous-
tity in a time of change. It has promoted innovation in the
trition and health and fostering new innovative products. es Inven2, Oslo Tech, Startuplab and NorwayState of the city 2018
2.4 Major investment in cultural fabric 2.5 Soft Power through global leadership for city’s pioneering role in addressing one of the biggest
sustainability challenges of the 21st century.
For the new wave of fast-growing and rapidly globalis-
ing city regions, culture is an essential ingredient if the
«It took a long time Oslo has always been something of a pioneer in adopt- Oslo is adopting innovative approaches to reduce its
region is to successfully accommodate the innovation for Oslo to develop ing green and sustainable models, but this has really ac- emissions, such as the Climate Budget, introduced
and creative economy. This is very true in Oslo. As the celerated in the last 5 years. in 2017. This puts climate goals at the centre of finan-
region competes at the global cutting edge, cultural the must-visit reputation cial budgeting and allocation process for the city, and
Oslo has become renowned globally for implementing makes Oslo’s achievements of its ambitious goals even
investment is helping to cement Oslo’s reputation for
quality of life, boost its destination appeal, meet the
its Scandinavian sisters some of the most ambitious greenhouse gas reduction more realistic. The world is becoming inspired by the
preferences of the innovation economy, and communi- Stockholm and Copen- targets anywhere in the world. The City plans on re-
ducing greenhouse gas emissions by 50% compared to
programmes Oslo is financing, including to deliver a
cate its core values in a time of change. zero-emission public transport fleet by 2020, phase out
hagen have been enjoying 1990 levels by 2020, and by 95% by 2030. If successful, oil-fired heating systems, and making public transport
In the current period Oslo’s cultural development has this will make Oslo faster at reducing emissions than any cost-competitive with car travel.
become much more competitive and is helping the re- for years. But cutting- other city or country. In global eyes, this confirms the
gion hit many of its other targets (see Benchmarking).
edge architecture, art,
Oslo’s growing cultural reputation is the product of a 10
year cycle of investment which began with the Opera
and restaurants have
A number of initiatives stand out and are paving the way for
House.2 The largest cultural building constructed in Os- finally put the city others around the world to follow in Oslo’s footsteps:
lo’s modern history, the Opera House has sparked mul-
tiple cultural investments and initiatives. The current in the spotlight».7 · Eliminating private cars from the city centre. Oslo’s efforts to prevent people from
cycle has successfully combined flagship infrastructure driving into the city centre are capturing the global imagination. They include im-
with large-scale urban renewal. The National Museum3, Malay Mail Online, Malaysia, 2018 plementing a no-car zone within the city’s central ring road, removing all on-street
the Astrup Fearnley Museum of Modern Art, the new parking, closing several streets to private traffic, and introducing rush hour charges
- Increases in tourist arrivals and in the number of
Public Library and the Munch Museum, provide a major in a certain zone on top of existing congestion fees. This is happening alongside
tourists visiting Oslo for culture. Over the last 5 years
boost to the competitiveness of Oslo’s cultural ameni- improvements to the pedestrian and bicycle network, as well as new and innova-
the number of guest bed-nights in Oslo has increased
ties while also improving public services, public space tive solutions to goods transport and delivery (e.g. Aker Brygge). Oslo’s incentive
by 35%, much of it due to improved cultural offer. Na-
and public access.4 program to purchase electric bicycles is introducing a new demographic to urban
tional surveys show that more international tourists en-
Cultural development is also happening throughout joy and experience interesting culture, history and city cycling. This comprehensive approach sets a global standard and re-positions Oslo
the region, such as the new Kongsberg Knowledge and life on holiday in Norway compared to just a few years at the forefront of trendsetting cities.
Cultural Square, which is an example of the successful ago.8
· Ultra-efficient district heating – the world’s largest heat pump provides 13MW of
repurposing of buildings into new cultural hubs. electricity for Drammen- Oslo and is showing how to raise the temperature of water
- A growing reputation for innovative and inclusive
The implications of this recent cycle of cultural invest- cultural projects. Oslo’s recent cultural investment circulating in the city’s heat network.
ment, both for how Oslo’s cultural scene is perceived is revealing to the world the city’s ability to transform
· The first capital city in the world to join the fossil fuel divestment movement. The
internationally and how its visitor economy performs, relationships between citizens and culture. The use of
move means that $7 million of coal investments in Oslo council’s pension fund will
are already very positive: culture to reconfigure public spaces, and activate tem-
be moved out of the sector.
porary exhibitions and workshops for a wide range of
- Consistently high citizen satisfaction with cultural people, is more and more visible and exciting. Recent · The “Business for Climate Network” is fostering cooperation between the business
facilities. One international survey identifies 92% of cultural projects that focus on creating a vibrant so- community, citizens and NGOs in addressing the impact business operations have
Oslo residents are quite or very satisfied with cultural cial atmosphere have attracted talent and are helping on climate.
facilities in the city, such as concert halls, theatres, mu- to build the appeal and status of locations across the
seums and libraries.5 Region.9
- Stronger destination reputation for Oslo. Both the
New York Times and Lonely Planet have recently list-
Oslo’s award as the European Green Capital Award for and civil society. Oslo is not just leading in one area of
ed Oslo as one of the top places to visit worldwide, in
2019, beating 13 other cities to the title, reflects inter- sustainability – it is showing the world how to deliver a
recognition of the city’s ever-improving offering of ex-
national recognition for its pioneering efforts and ded- holistic approach that spans biodiversity, public trans-
citing architecture, cultural and art experiences.6 Oslo
icated commitment of actors in government, business port, social integration and public health.
is becoming more visible as a cultural destination in in-
ternational media:State of the city 2018
What does this all
mean for Oslo?
As a result, it is fair to say that Oslo’s new business mod- are known by the world: its urban quality and vibrancy is
Observing Oslo from the ‘outside-in’, it appears that Shown the world its credentials as a region of culture,
el (innovation, science, culture) is increasingly in de- being recognised, its work-life balance is feted, and its
there are three core dimensions to the way the re- energy and edge. Until recently Oslo was not widely per-
mand. It also increasingly benefits from an integrated diversity, innovation and ambition is widely perceived by
gion has evolved in this latest cycle. Oslo has: ceived internationally as a region whose cultural offer was
region that adds scale and capacity to help Oslo absorb external observers. Oslo is becoming a leader.
a motive to visit, study or relocate. A cycle of investment
demand in a well-managed way.
Emerged as an innovation region on the international in cultural infrastructure and neighbourhood redevelop-
stage. Relative to other small regions around the world, ment is capturing the imagination of prospective talent. The result is that the world is gradually catching up
Oslo region continues to grow more firms, create more with what Oslo really is and what the city really stands
co-working spaces, incubators, accelerators and start- Taken a lead to respond to the important global agen- for. The ‘wordclouds’ below capture the adjectives used
ups. Oslo’s start-up scene has become more visible at das of our time. Oslo is not only a leader in terms of by international media and commentators to describe
international events and gatherings, and more of the sustainability and technology adoption, with ambitious Oslo in 2011 vs 2017/18. In 2011, Oslo was known for being
world comes to Oslo to sample its innovation culture. climate policies, proactive and openness to innovative a small, pleasant, safe, domestically oriented city that
planning and technology solutions. It is also a region was on the cusp of change. Today, more of Oslo’s edges
promoting new approaches to social cohesion and in-
clusion, family-friendly urban living, and healthy lifestyle
at all stages of life.
Source: Google. Based on English-language adjectives used to describe Oslo in the phrase “Oslo is a [*] city”, in non-Norwegian sources.2
State of the city 201825
The
Benchmark
ReportState of the city 2018
The
Benchmark Report
Overview and methology. Spidergram of Oslo’s 2017-2018 performance and perception
This next section of this ‘outside-in’ review of the State of Oslo once again evaluates
Oslo’s performance across the ever-expanding universe of international indexes, bench-
marks, rankings and comparative measures, among which Oslo appears more and more
often.
From a database of more than 400 indexes and 20,000 data points, the report assesses
Oslo’s current performance and international reputation in 16 thematic areas within four over-
arching themes: Business, Liveability, Hospitality, and Governance. This year we also include
a deep dive into Oslo’s innovation system, its vibrant cultural scene, and the emerging oppor-
tunities of tech to shape city perception.
The 3rd ‘outside-in’ review, published in 2017, identified that:
• Oslo appeal to mobile capital in • Oslo had started to perform • The risks to Oslo came in the form
real estate, infrastructure and inno- more strongly in indexes that re- of higher congestion, unafford-
vation, and its improved business flect perceptions of urban lifestyle, ability, and the limited visibility of
eco-system, meant it had become aesthetics, ‘cool’ and the natural the city’s improved hospitality and
included in more rankings that track environment. The Region’s social openness. These highlight the im-
these trends. For a city of is size and environmental resilience also portance of patiently targeting key
Oslo had started to achieve more witnessed an uptick in recognition. audiences, revealing Oslo’s new
recognition, despite very intense edges, and strengthening its identi-
competition, although more had to ty as a city of peace, reconciliation,
be done to communicate the inno- tolerance and fairness.
vation story.
This report Explaining the 10-point scale
• Conducts a full review and update to Oslo’s index • Develops an Oslo region Performance Spidergram, In the following sections, we detail Oslo’s position across these 16 indicators, along a 10-point scale. Where there
performance since the end of 2016. and highlights where international Perception diverges are sufficient indicators in both the performance and perception categories, Oslo’s position will be shown twice to
from this. reflect how performance and perception compare. The scale is indicated by the horizontal colour scheme. This is
• Assesses whether Oslo’s international projection explained in more detail in the method note appendix.
and outreach in benchmarks is improving, declining
or stable. • Provides a headline analysis of Oslo’s evolving
position in the indexes, broken down into the key
areas of interest.State of the city 2018
1 Benchmarking Oslo
against peer cities
Benchmarking Oslo against peer cities
This assessment continues to bench- By measures of size, GDP per A second group of 22 cities has
mark Oslo among a peer group of capita, sector composition and similar qualities to Oslo but are
50 medium-sized, upper income, internationalisation, 12 of the 49 somewhat larger in terms of pop-
high quality cities with a global peer cities strongly correspond ulation and market size. A third
orientation, and with at least one to Oslo’s assets across multiple group of 15 cities resembles Oslo in
visible specialisation. dimensions (see left column). terms of metropolitan size but lacks
the breadth and depth of assets and
advantages that Oslo possesses.
Strongly comparable in many Comparable global assets or strate- Comparable size and wealth, fewer
areas gy, but different size and scale similar assets or strategic imperatives
Austin Abu Dhabi Adelaide
Basel Barcelona Bristol
Brisbane Berlin Cleveland
Calgary Boston Eindhoven
Dublin Copenhagen Gothenburg
Glasgow Detroit Las Vegas
Helsinki Frankfurt Lyon
Ottawa Hamburg Manchester
Perth Kuwait City Marseille
Portland Melbourne Minneapolis
Vancouver Montreal New Orleans
Zurich Munich Orlando
Rome Prague
San Diego Raleigh
San Francisco San Jose
Seattle
Stockholm
Stuttgart
Sydney
Tel Aviv
Vienna
Warsaw
Out of these 50 cities, Oslo is 14th than 250 cities – this reflects the broadly comparable to much bigger
highest in terms of its average growing sample size in city index- cities such as Melbourne and Los
position across all benchmarks es and rising competition between Angeles, as well as high profile
since December 2016. Its average cities. Berlin is the highest ranked smaller cities such as Dubai.
rank of 31st (among all cities in the peer city with an average rank of Oslo continues to record a strong
world) puts the city nearly among 21st. Looking globally, Oslo’s average position in international benchmarks
the top 10% globally out of more position across benchmarks is despite increasing competition.State of the city 2018
2 Business Climate
2.1 Business friendliness 2.2 Productivity and Efficiency
The 2017 review found that:
Business costs remain relatively high in Oslo. But the national measures show that the overall tax Oslo’s infrastructure and technolo- Oslo continues to boast one of the
gy assets continue to rate as world lowest unemployment rates of its
rate on profits has improved, and high levels of IT use and a mature and sophisticated set of clusters class, and the city is one of the only European peers – a sign of the con-
mean that Oslo is becoming more attractive than many of its high-income peers to capture business of its kind to have made progress on tinuing strength of its economy even
and entrepreneurship opportunities linked to the current cycle of digital transformation.15 both the technology and infrastruc- in the face of increasing global com-
ture pillars of productivity. petition.
The 2017 review found that: Since 2017: - It has become apparent that Oslo’s
transition to a high-tech economy
Oslo’s business friendliness perfor- The city had solidified its posi- tently high market transparency. - Productivity performance has re- may require ongoing improvements
mance had improved due to eco- tion as one of the most investable Its reputation among financial pro- mained high. In an authoritative re- to the city’s digital connectivity. In
nomic diversification and fast popu- medium-sized cities worldwide fessionals also improved. Business view of the 300 largest metropolitan one well-established global bench-
lation growth. due to strong demand and consis- costs remained high. economies in the world, Oslo ranks mark, Oslo slipped 35 places global-
23rd for GDP per capita, and 8th ly, from 37th to 72nd, for the quality of
among its 50 global peers.10 its broadband and technology plat-
- Unemployment remains low. At a form.13 Meanwhile, in the EasyPark
Since 2017: Smart Cities Index, Oslo’s internet
regional scale, Oslo has the 8th low-
- There are continued signs that - Appeal to invest in Oslo’s business- - Oslo’s reputation among finan- est unemployment rate among 20 of speed is ranked 75th/100 cities glob-
Oslo is becoming more business es remains high – the city ranks 3rd cial services decision-makers has its European peers.11 This, combined ally (26th among 30 peers).14
and entrepreneur friendly. A major in fDi’s European Regions of the Fu- slipped as the city has become with Oslo’s large pools of productive
established benchmark, IESE Cities ture in its size bracket, up from 4th more economically diversified. In talent, makes the city highly eco-
in Motion, sees Oslo re-enter the in 2016. But the current cycle of the most recent Global Financial nomically competitive. In a recent - Congestion remains an important
global top 15% for entrepreneurial growth means real estate has be- Centres Index, Oslo slipped two global study of economic competi- competitive concern for Oslo. Tom-
dynamism and ease of starting a come more expensive and the mar- places compared to in 2017 and is tiveness, Oslo’s productive base was Tom’s Traffic Index ranks Oslo as the
business, climbing 8 places to 20th ket is more saturated. This, together the only one of the top 15 Western one reason it ranked 26th out of 200 109th most congested city globally,
out of 181 cities worldwide. with Oslo’s relatively small CBD in European financial centres to lose for its longer-run economic sustain- 25th among its 39 peers.15
comparison to other global leaders, position. Stockholm and Copen- ability (10th among peers).
- The city’s growth fundamentals re- has slightly quelled the city’s appeal hagen climbed by seven and nine
main highly attractive to business. La to some investors. In the most re- places respectively, and both over- - Internet penetration and usage re-
Salle’s most recent European index cent trend survey of European Real took Oslo. main extremely high. At a regional
of business growth potential saw Estate, Oslo ranks 16th out of 31, and scale, Oslo ranks joint 2nd among 12
Oslo climb two places since 2016, 11th out of 16 peers. This is one rea- of its European peers for the per-
overtaking Madrid and Stuttgart. son why overall commercial attrac- centage of households with broad-
Oslo is now 4th out of 23 peers for tion, as ranked by JLL, is now 76th band access (behind only Helsinki
this measure. Strong fundamentals out of 300+ cities, down from 70th and Eindhoven), and 1st for the per-
are underpinned by a very robust in 2015. centage of people regularly using
macroeconomic environment, for the internet (99%).12
which Norway now ranks 1st out of
137 economies globally.State of the city 2018
2.3 Extended Feature – Oslo’s Innovation Momentum No. of innovative tech firms and number of Top 10,000 global scale-ups, March 2018
60 400
350 London
300
50 Stockholm
250
Even in the last 12 months, the global race for innovation has heated up. City and national policy-
200
makers around the world are recognising that innovation is what will provide a very sizeable chunk
of future well paid jobs, and that innovation creates positive multiplier effects for the rest of their 150 Berlin
economy and 40society. Innovation has the added advantage of helping to re-use and restructure land 100 Paris
Number of scale-ups
uses and the built environment, improve productivity, and create future tax revenues that fund wid-
Innovation 50
Dublin
er city development. Oslo was one of the early movers in the current cycle, but others are trying to
Leaders Amsterdam
0
catch up and30
the outlook is very dynamic. 0 5 000 10 000 15 000
Barcelona
Copenhagen Munich
The 2017 review found that:
Zurich 60 400
20
Innovation in Oslo’s innovative Helsinki 350
Oslo is gaining recognition as an Strong growth Oslo strengths in banking/fintech, med-
Contenders
internationally significant innovation firm activity and venture capital tech, design and creative industries,
location, due primarily to its high investment meant the RegionVienna was and has a reputation for smart
300
Hamburg 50 Stockholm
digital technology adoption rates, a at the head of chasing pack of systems and open data. 250
growing culture
Gothenburg
10of entrepreneurship, competitive European Regions. The
Frankfurt
ease of doing business, and healthy Bristol was
ecosystem Manchester
perceived to have Istanbul 200
work-life balance.
Milan 150 Be
Lyon Lisbon 40
Marseille Valencia Cologne 100
0
Number of scale-ups
Since 2017: 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 Innovation 50
D
- Oslo’s innovative firm activi-
Number of start-ups
-sized European cities such as Leaders Amsterdam
0
30 0
ty continues to grow rapidly. The Prague, Rotterdam and Gothen-
city registered a 17% growth in the burg. Meanwhile, the number Barcelona
number of innovative techno- of top 10,000 innovative firms Copenhagen Munich
logy firms between March 2017 and has increased by 25%, to 15. This Zurich
February 2018, well ahead of leading represents a higher growth rate than
20
European innovators such as Dublin in other more established innovation Innovation Helsinki
Oslo
(11%), Amsterdam (8%), and Barcelo- ecosystems such as Dublin (16%) Contenders
na (4%). Oslo’s number of registered and Amsterdam (11%).16 Vienna
firms puts it clear of other medium Hamburg
Gothenburg
10
Frankfurt Bristol Manchester Istanbul
Milan
Lyon Lisbon
Marseille Valencia Cologne
0
0 200 400 600 800 1 000 1 200 1 400 1 600 1 800
Number of start-upsState of the city 2018
2.4 Competencies & Knowledge
The 2017 review found that:
Oslo continues to excel for its share Oslo’s position in some human students and a shift towards
of university-educated residents capital measures declined, due measuring absolute rather than per
and young people neither in employ- to weightings that favour the capita figures.
ment nor in education and training. number of international workers and
Since 2017:
- Oslo continues to excel global- potion of over 25s with a universi- measure and is a huge competitive
ly for its extremely high levels of ty degree among 21 of its Europe- advantage moving forward.
educational attainment. The Re- an peers.17 This puts Oslo ahead of
gion still has by far the highest pro- almost any other global region for this
Tertiary education attainment among 25-64-year olds in NUTS2 regions.
60
2016 2015
50
40
30
20
20
10
0
slo
Z i
ch
en m
G en
ow
Pr ol
ue
he sel
t
ch a
r
rc n
M na
W ich
H saw
nd rg
Fr ven
ut t
t
e
k
ur
St fur
ar
te
an nn
m
Ba rli
sin
ist
ol
Ei bu
o
St uri
g
ag
tg
G Ba
es
O
nb
un
sg
Ro
Be
ho
k
M ie
el
C ckh
ha
ar
Br
el
am
an
la
V
H
o
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op
- Oslo continues to boast by far - The relatively small number of top- - Overall, however, recognition is
the lowest percentage of young ranked universities and the small beginning to catch up with reality.
people neither in employment nor number of total students at these Oslo records big jump in education
in education and training among 19 institutions compared to some other and human capital performance
of its European peers (3.5%).18 Only regions, are a disadvantage to Oslo’s in the IESE Cities in Motion index,
Eindhoven comes close, at 4.2%. scores. In the EasyPark Smart Cities climbing an exceptional 90 places
This reflects both the capability of Index, Oslo only ranks 66th/100 for for its human capital, from 110th
talent and the strong relationships education (28th among 30 peers) for globally in 2016 to 20th in 2017.20
with business and education these reasons.19
providers.State of the city 2018
3 Quality of life
3.1 Leisure and Recreation 3.2 Personal Safety
The 2017 review found that: Since 2017: The 2017 review found that:
Oslo is increasingly recognised for - Oslo’s ongoing cycle of invest- - By some measures, in 2018 the Oslo’s crime rate remained low peers, from 17th among 43 peers in - Local perceptions of Oslo as a low
its urban lifestyle and amenity. This ment in cultural infrastructure such Oslo region has more high-end by global standards but was not 2017 to 27th in 2018.24 This is one of stress high safety city are beginning
is linked to the ongoing physical as museums, galleries and cultural facilities than any of its quite outstanding compared to the key reasons why Oslo’s quality to impact on global rankings. In a
transformation of areas such as the other facilities has triggered fur- most directly comparable mid-sized some other central European and of life is not always measured as study measuring 150 of the world’s
waterfront into vibrant mixed-use ther improvement in its reputa- city regions globally, including Dub- Canadian cities. outstanding in the most high profile largest cities by how stressful it is to
areas, and an improved reputa- tion for leisure and recreation. The lin, Copenhagen and Zurich. Oslo rankings: in another global review live there, Oslo ranks the 25th least
Since 2017: of quality of life, which weights stressful, or 8th among 32 peers.26
tion for public space, proximity to city appeared for the first time in emerges as particularly competitive
nature, and diverse architecture. a globally influential survey of for the range of its museums but - Oslo has slipped in terms of the crime and affordability highly, Oslo
the top 25 cities globally (coming also has a competitive range of oth- perceived level of crime. In an recently ranked 73rd out of 184 cities,
in at 25th) for quality of life, partly er cultural amenities. important crime index measuring or 33 among 41 peers.25
in recognition of this improvement. perceptions of crime, Oslo ranked as
the 163rd safest city of 327 globally,
down from 124th in 2017. The Region’s
Number of cultural facilities in Oslo and nine mid-sized global peers. position also slipped relative to its
Source: Trip Advisor
- Oslo is now increasingly appearing 36 peers.21 There is, however, room - Oslo’s nightlife has emerged as a
in benchmarks of leisure and for improvement in terms of Oslo’s key area for improved recognition.
recreation. Within these new child-friendly leisure and recreation The Nestpick Millennial Cities
studies, Oslo emerges as a city offer (e.g. adventure parks, child- Ranking positions Oslo as 105th out
renowned for its music festival friendly museums). In a recent of 110 cities globally for this measure,
scene. In a new globally influential global review of the best cities for or 35th among 36 peers.23 This is
study measuring the best cities for families, Oslo ranks 42nd out of 100 primarily due to the short opening
millennials, the city ranks 19th out of cities globally for this measure, or times and restrictive laws governing
110 cities globally for the number of 23rd among 31 peers.22 the city’s night-time establishments.
annual music festivals – 10th amongState of the city 2018
3.3 Sustainability and Resilience 3.4 Work-life Balance
The 2017 review found that: The 2017 review found that:
- Oslo continued tor rate as one of the low noise pollution that emerges Oslo’s high costs continues slightly - Cost of living and housing slightly first studies look at indicators where
least polluted and least ‘at-risk’ cities as outstanding this year. One overshadow its strong reputation for erode Oslo’s performance in this Oslo does not do so well. One
in the world. The city performed significant new index ranks Oslo 7th a positive work-life balance. area. In a recent global study by recent Index places Oslo 118th out
slightly less well in measures of out of 100 cities globally for its low Deutsche Bank, Oslo was rated as of 150 for mental health, due to a
the sustainability practices of city levels of light, noise and air pollution Since 2017: the city with the highest cost of living combination of high suicide rates,
industries and businesses. combined – or 3rd among 31 peers.29 except for Zurich.36 Meanwhile, low awareness of mental health
And in the globally influential
«Every year dishes - Oslo has appeared in a number
in Mercer’s latest Cost of Living issues, and a small number of
Since 2017: of indices that measure previously
Mimi World Hearing Index, which up a bicycle urbanism under explored aspects of work- Survey, Oslo emerged as the 8th most psychologists per capita.40 Whether
- As data is becoming more available, measures noise pollution, Oslo life balance. The Region generally expensive city among its peer group or not these figures fully correspond
Oslo is now gaining more recognition places 3rd.30 darling and this year it tends to perform well in these of 38, a slip of 3 places compared with the reality on the ground, it will
to 2016.37 Affordability of food for be important for Oslo to re-affirm its
for its sustainability successes, - CO₂ emissions in Oslo are measured is Oslo, roaring up the new measures and this could be
local residents is also an issue - Oslo credentials in this area.
particularly in the fields of industry as being somewhat higher than other an emerging area of reputational
and business. In a globally influential cities and prevent the Region from
index from mid-table strength in future. ranks 38th out of 100 globally for this
review of the sustainability practices measure, but 14th among 22 peers.38
of hotels, venues and convention
establishing clear leadership status and occupying 19th. - Oslo emerges as a low-stress and Although it is not clear how much
for its sustainability credentials. happy city with a healthy work- these affect work-life balance, these
bureau, it ranks 2nd out of 30 cities, In the environment section of the A city that shows what life balance. In a global review of scores tend to prevent Oslo entering
up significantly from 18th in 2016.27 IESE Cities in Motion Index, which
This is mostly due to improvement is substantially linked to greenhouse
political vision and the best cities for families, the city the top 10 of many of the new
ranked 1st globally for happiness, and generation of quality of life indexes.
in the performance of suppliers such
as hotels, caterers and venues and
gas emissions, the city has slipped investment can do».33 15th for the quality of its maternity
12 places, from 10th to 22nd, since and paternity laws (6th among 31 - Other factors holding back Oslo’s
improved certification of buildings 2016.31 Meanwhile, a recent review Mikael Colville-Andersen, CEO, work-life balance have emerged. A
and businesses in the industry. peers).34 Oslo was recently ranked
of 100 Smart Cities positions Oslo as Copenhagenize Design Co. new study ranks Oslo only 55th out
the 7th least stressful among 32
- Environmental quality remains 60th for its per capita emissions – 15th peers, due to its high quality public of 85 cities globally for the number
high compared to other leading among 30 peers.32 transport, high purchasing power, of vacation days, or 21st among 28
cities. Although others are and high levels of gender equality.35 peers.39 Ways to measure mental
- Meanwhile Oslo has gained more health are now appearing, and the
making big efforts, air pollution recognition as a bicycle-friendly
in Oslo is still relatively low: in city, entering the top 20 of a globally
one globally influential review, influential review of the field for the
Oslo emerges as the 13th least first time:
polluted among 43 peers.28 It is
Oslo’s excellence in terms of itsState of the city 2018
4 Hospitality
4.1 Attractiveness to Visitors (attractions, landmarks, shopping, food, events) 4.2 Attractiveness to Talent
The 2017 review found that: The 2017 review found that:
Oslo’s cycle of tourism growth Oslo also performs well in individual - The absolute size of the city’s visitor Oslo’s ability to attract talent has - Oslo is becoming more renowned - Ranking affordability and internet
relative to other cities had continued. measures: it ranks 9th (4th among economy has increased further. been improving all the time for its ability to attract professionals speed constrain Oslo’s performance
peers) for expert opinion and 22nd The number of international tourist with families. In a new global review in measures about attraction of
The city had begun to gain (7th among peers) for rating of high- arrivals in Oslo has increased by 47% Oslo was demonstrating a capacity of the best cities for families, millennial talent. In the most recent
recognition in formal and informal end restaurants. The city scores less since 2012, significantly more than to appeal to new kinds of talent, Oslo ranked 2nd globally, behind version of Nestpick’s Millennial
perception measures of visitor well, however, for the diversity of its in any other European peer city.43 including ultra-high net worth only Copenhagen, due to its high Cities Ranking, the city ranked 70th
attractiveness. However, visitor cuisine (54th, or 18th among peers).41 Meanwhile, in a globally influential individuals. Cost of relocation housing affordability, low pollution globally, down from 26th in 2017, or
appeal continued to be limited by measure of international outreach, was one of the most important levels, and strong maternity and 28th among 36 peers.52 The decline
real and perceived costliness. - Oslo also increasingly appears in the city has climbed three places deterrents for prospective talent. paternity laws. In the same review, is due to a change in methodology
more informal measures of the city’s since 201644, and a new global the city also performed fairly well which now weights more heavily
Since 2017: openness to tourists. In TravelBird’s Since 2017:
connectivity index that measures on measures of expert perception: the factors that millennials deem to
- Oslo has gained more recognition new Most Welcoming Cities index, the number of direct international - A number of new measures show 30th globally according to the be most important, such as housing
in more informal reviews of the city’s Oslo ranks 8th out of 100 cities flights to the city positions Oslo as Oslo registering on the global radar opinion of parents (17th among 31 affordability, internet speed and
culinary scene. In a new index of the globally, or 4th among 24 peers.42 the 31st most connected worldwide, as an exciting place to move to and peers), and 22nd globally according cost of food, areas where Oslo tends
world’s best food destinations, Oslo or 12th among 21 peers, a strong build a career. In INSEAD’s most to professionals (13th among peers).51 to perform less well.
ranks 16th of 100 cities globally, or 6th position given the region’s relative recent version of their globally As is common, perceptions of Oslo
among 22 peers overall. remoteness.45 influential Talent Competitiveness are higher for those who have - Cost of relocation also affects
Index, Oslo ranked 3rd out of 90 experienced the city. Oslo’s position in terms of appeal
Change in international tourist arrivals at tourist cities, behind only Zurich and to prospective talent. Oslo ranks
accommodation, 2012-2016, NUTS2 regions. Stockholm.49 Meanwhile, in a new - Oslo’s appeal to university students as the 5th most expensive among
perception-based review of the best has fallen slightly, due to a decline 10 peers, or the 14th most expensive
cities to visit and live and work in, of the city’s universities in major city globally, a slip of two places
the city ranked 6th among 17 peers university rankings. This has compared to in 2016.53 Another
in the ‘live’ category, and 9th in the affected the city’s position in some major study found it to be the 9th
‘work’ category. Across the three wider rankings. most expensive city for expats of
categories, Oslo placed just behind 340 cities globally, or the 3rd most
Stockholm but ahead of Helsinki expensive among its peer group.54
and Copenhagen.50 These factors continue to be
influential in global studies.
- Oslo performs well for the quality inclusion in this survey reflects is - Cost remains an important deterrent
of its key visitor institutions and growing status. However not all for potential visitors. In the most
attractions, and in a new perception- measures of Oslo’s visitor brand recent version of the Expatistan
based review of the best cities to have improved. In the latest version Backpacker Index, Oslo ranked the
visit, it ranks an improving 9th among of Resonance’s World’s Best Cities 11th most expensive city for visitors
17 peers.46 This is a positive result Index, Oslo ranks 29th among 43 to travel to globally, or the 4th most
in a competitive field – and Oslo’s peers, a fall from 2016.47 expensive among 25 peers.48You can also read
