Knowledge is becoming increasingly important for companies, particularly in regards to the provision and use of research and development (R&D). Small and medium size enterprises (SMEs) in rural areas in particularly face a number of problems when it comes to knowledge and of R&D. Many of such problems are contributed by the geographical location of the SMEs. For instance, one problem is that geographically dispersed settlements may make it difficult to create networks and clusters due to the long distance between similar companies. A long distance to research institutions with relevant knowledge can be another challenge. In addition, the research institutions presented in rural regions, such as university colleges, do not necessarily teach topics relevant to the companies. A lower level of education in rural areas in general may be also a mental barrier to the use of research. Distance to business support firms may be another disadvantage. How to stimulate the use of R&D in SMEs in rural areas is therefore a vital challenge. The problems mentioned add to the general problems for use of R&D in SMEs. For example, in SMEs a few people are responsible for many functions and tasks. Time and efforts for long-term thinking and inclusion of research into the company's' activities may therefore have low priority. Other barriers, particularly in the case of foreign provision R&D, may be barriers in terms of the language, culture, distances, currency, trade barriers and legal differences. Development in telecommunication, as the Internet, has certainly reduced some of the potential problems mentioned. Nevertheless, the challenges faced by SMEs are recognized and acknowledged by the government and the public support system in Norway as it has introduced a number of schemes. Hence, a model for technology transfer to SMEs evolved into "Competence Brokering" which is a scheme established in 2004 to widen the focus from technology and traditional industry to a broader selection of industries. The core of this scheme is that a company in collaboration with a researcher and the "broker", define a minor research project aimed to solve a problem for the company. Another important aspect is that most of the expenses of hiring a researcher are paid by the public authorities. Evaluations have documented that Competence Brokering has been a success. Some conclusions are that simplicity in regard to organization and decision-making are important, as well as the provision of public funding. Still, last but not least, the R&D questions have to be developed on the premise of the real needs of the company.
