FAMILY OWNERSHIP AND MODES OF INNOVATION: THE CASE OF SOUTHERN NORWAY

Our focus is on innovation and development in traditional industries in Agder, a region in the southern part of Norway; one of the most heavily burdened labor-cost countries in the world. Despite the cost challenges, the firms in the region have maintained their international competitiveness in heavy and other traditional industries over a prolonged period of time, through good and bad economic climates, and have avoided the exodus experienced by other superficially similar regions. A substantial portion of these firms are family owned. More specifically, the paper will present a case study from the Agder region, including empirical data from 220 of the region's firms, in six separate industrial branches encompassing the extreme shock period of 2006-2012. The study also includes 20 in-depth interviews focusing on the effect of family ownership on the modes of operation and innovation, as well as economic development. Our main research question is whether family ownership affects the modes of operation and innovation and hence, enhances competitiveness in certain industries.