Norway has one of the world’s highest incomes per capita, owing to its rich endowment and prudent management of natural resources. However, growth has recently decreased and unemployment has risen since 2014. Driven by low crude oil and gas prices, the energy sector has cut petroleum investments with spillovers on other sectors. Unemployment is low in terms of OECD standards but recently increased and is set to peak in 2016. Since the new government took office in October 2013 it has developed a new strategic framework and, following this guidance, increased public R&D funding and prepared major initiatives to improve research excellence and support the diversification of the industry away from oil and gas. The Long-Term Plan for Research and Higher Education 2015–24, adopted in 2014, has three overarching objectives: enhanced competitiveness and innovation, tackling major social challenges and developing research communities of outstanding quality. The plan also aims to increase public expenditures and private investment in six long-term priority areas. The plan also sets a target for government appropriations for R&D to one per cent of GDP