The Northern Sparsely Populated Areas (NSPA) of Finland, Sweden, and Norway – Europe’s gateway to the Arctic – comprise 14 regions located in northern Sweden, northern Norway as well as northern and eastern Finland. Strategically positioned, the NSPA is gaining prominence on national and EU agendas, driven by emerging opportunities in natural resources, green technologies, Arctic shipping routes, and climate change adaptation, while its shared border with Russia further reinforces its geopolitical importance.
The OECD’s 2017 Territorial Review of the NSPA identified priorities to improve connectivity, foster innovation, and strengthen urban-rural linkages. Since then, the regions have made significant progress in implementing many of the recommendations while enhancing their co-operation framework. However, due to their geographical remoteness and small, dispersed populations, challenges persist, including limited economies of scale and distance from large markets. Addressing these issues requires stronger collaboration in infrastructure networks, workforce mobility, digital connectivity, and supply chain integration to enhance the region’s global competitiveness.
The socio-economic landscape has been further complicated by two major shocks – the COVID-19 pandemic and Russia’s unjustified aggression against Ukraine – alongside broader megatrends such as demographic imbalances and the digital and green transitions. These dynamics call for more strategic territorial responses to anticipate future opportunities and challenges. A deeper and more co-ordinated approach among the 14 NSPA regions can lead to more effective solutions to common challenges while maximising available resources.
This new report is part of the project “Support to the implementation capacity of sustainable green development in the European Arctic Northern Sparsely Populated Areas (NSPA)” supported by the EU Technical Support Instrument (TSI) and Norway’s Arctic 2030 grant scheme. Its goal is to enhance multi-level co‑ordination in NSPA regions for green and digital transitions, while strengthening the capacity to design and manage policies and projects that support socio-economic development and citizen well-being. The project undertook study missions to all 14 regions, delivered specific reports to each NSPA region and cross-thematic reports on demographic challenges, labour market dynamics, competitiveness, innovation, green and digital transitions, multi-level governance, and policy foresight each providing recommendations and action plans. This report summarises the main findings and recommendation emerging from all these elements.
The analysis examines the structural challenges faced by the NSPA, including low population density, an ageing population, workforce shortages, and limited connectivity. Addressing these, requires targeted investments in skills, infrastructure, and governance, alongside innovative policymaking to unlock the region's potential and align with broader sustainability goals.
Despite these challenges, NSPA regions show a strong performance in innovation when compared to similar types of regions – implementing smart specialisation strategies to leverage their unique strengths, driving innovation-led growth, developing solutions through green technologies and resource management, and enhancing regional attractiveness. Strengthening regional and cross-border collaboration remains essential, particularly in sectors where market size limitations necessitate collective action.
The OECD remains committed to supporting these efforts, helping the NSPA overcome geographic, demographic, and geopolitical challenges while fostering inclusive, sustainable communities. By reinforcing co-operation and scaling up successful strategies, the NSPA can serve as a model for other rural and sparsely populated regions worldwide.