Norway's modern manufacturing and welfare system rely on a financial reserve produced by exploitation of natural resources, particularly North Sea oil.

Except for certain fertile areas in Hedemarken and Østfold, crops were limited to hardy grains, such as oats, rye, and barley; and livestock to sheep, goats, cattle, pigs, and some poultry; in places this was complemented with hunting.

The introduction of the potato to Norway, promoted by practical priests and the king in Copenhagen in the 18th century, provided considerable relief and became common food for Norwegians.

All around the coast, the harvesting of fish (including cod, herring, halibut, and other cold water species) was an important supplement to farming and was in many areas in the north and west the primary household subsistence.

The economic conditions in Norway did not lend themselves to the formation of feudal system, though several kings did reward land to loyal subjects who became knights.

As wages from industry exceeded those from agriculture, the shift started a long-term trend of reduction in cultivated land and rural population patterns.

After World War II, the Norwegian Labour Party, with Einar Gerhardsen as prime minister, embarked on a number of social democratic reforms aimed at flattening the income distribution, eliminating poverty, ensuring social services such as retirement, medical care, and disability benefits to all, and putting more of the capital into the public trust.

Norway decided to stay out of OPEC, keep its own energy prices in line with world markets, and spend the revenue – known as the "currency gift" – wisely.

The Norwegian government established its own oil company, Statoil (now known as Equinor), and awarded drilling and production rights to Norsk Hydro and the newly formed Saga Petroleum.

A number of engineering and construction companies emerged from the remnants of the largely lost shipbuilding industry, creating centers of competence in Stavanger and the western suburbs of Oslo.

Although much of the highly divisive public debate about EU membership turned on political rather than economic issues, it formed economic policy in several important ways: Norwegians have sought accommodations on a range of specific issues, such as products from fish farms, agricultural products, emission standards, etc., but these do not appear to differ substantially from those sought by bona fide EU members.

Several issues have dominated the debate on Norway's economy since the 1970s: The Norwegian state maintains large ownership positions in key industrial sectors concentrated in natural resources and strategic industries such as the strategic petroleum sector (Equinor), hydroelectric energy production (Statkraft), aluminum production (Norsk Hydro), the largest Norwegian bank (DNB) and telecommunication provider (Telenor).

Norway's state-owned enterprises comprise 9.6% of all non-agricultural employment, a number that rises to almost 13% when companies with minority state ownership stakes are included, the highest among OECD countries.

The SDFI was established in 1985 and represents state-owned holdings in a number of oil and gas fields, pipelines and onshore facilities as well as 67% of the shares in Equinor.

[32] The high levels of state ownership have been motivated for a variety of reasons, but most importantly by a desire for national control of the utilization of natural resources.

Direct state involvement began prior to the 20th century with the provision of public infrastructure, and expanded greatly into industry and commercial enterprises after the Second World War through the acquisition of German assets in several manufacturing companies.

Because of the oil boom since the 1970s, there has been little government incentive to help develop and encourage new industries in the private sector, in contrast to other Nordic countries like Sweden and particularly Finland.