IT Landcape of Sweden

IT Landscape of Sweden IT Financing
HOME IT Market IT Policy Telecommunications Computer and Internet Diffusion E-Commerce/E-Business Domestic Production IT Workforce IT Geographics Financing eGovernment Legal Environment Analysis: IT Strengths and Weaknesses Sources/Links About the Author	Overview As a European country with one of the highest investments in information technology in relation to its GDP, according to a study by EITO, Sweden has developed an extensive range of research and educational institutes dedicated to IT. (16) Sweden is very active in R&D in both the University setting as well as on the industry side. There is not a huge amount of venture capital (VC) funding in Sweden , however, the government makes up for this with many IT R&D funding programs. For example, VINNOVA is a Swedish agency that finances and initiates a large amount of R&D related to technology and transport. R&D The statistics below were provided by Magnus Karlsson, Attaché, Office of Science and Technology, Embassy of Sweden. The source of these numbers is the Swedish Institute for Growth Policy Studies (ITPS) (24) *Total R&D expenditures:* 97 BSEK (12 BUSD) 2001 • Self-financed industrial R&D (78%) - large companies, i.e. Ericsson - D focus • Universities key in performing publicly funded R&D (19%) - 14 research universities - R focus *University sector R&D:* R&D performed in 2001: 18.8 BSEK / 2.4 BUSD • Public funds - 77% (Direct allocations to universities and collages, Research councils, Mission oriented bodies, Research foundations) • Private, non-profit sector - 11% • Industry, domestic & foreign - 7% • European Union - 2% *Public funding for R&D* Public funding in 2001: 22.4 BSEK / 2.8 BUSD • To Universities - 64% • To Industry - 20% Major distributing institutions • Swedish Research Council (basic research) • Swedish Agency for Innovation Systems (mission oriented) • Swedish Foundation for Strategic Research (life science, microelectronics, materials) Holding companies and link funds • University Holding Companies - manage R&D start-up firms • Technology Link Foundations - early-stage capital funding • Patent & Licensing Offices - make agreements with researchers Financial Market After a number of mergers to transform the Stockholm Stock Exchange to the OM Stockholm exchange in 1995, and then to the Stockholmsborgen in 2001, the current market is open to foreign and domestic firms. In the late 1990s, the telecommunications stocks, mainly driven by Ericsson and Nokia, raised the domestic firms SX All-Share Index by 44%. (25) The SX All-Share Index is a measure of the performance of domestic firms. During the technology crash of 2000, this Index sank by 12% in 2000, 17% in 2001, and 37% in 2002. The number of IPOs decreased dramatically as well, falling from 65 in 2000, 27 in 2001, and finally only 10 companies in 2002. However, in 2002, Ericsson was still the most widely traded stock on the exchange, with approximately 2.3 million trades, followed by Nokia. (25)

IT Landscape of Sweden

IT Financing

HOME

IT Market

IT Policy

Telecommunications

Computer and Internet Diffusion

E-Commerce/E-Business

Analysis: IT Strengths and Weaknesses

Sources/Links

About the Author

Overview

As a European country with one of the highest investments in information technology in relation to its GDP, according to a study by EITO, Sweden has developed an extensive range of research and educational institutes dedicated to IT. (16) Sweden is very active in R&D in both the University setting as well as on the industry side. There is not a huge amount of venture capital (VC) funding in Sweden , however, the government makes up for this with many IT R&D funding programs. For example, VINNOVA is a Swedish agency that finances and initiates a large amount of R&D related to technology and transport.

R&D

The statistics below were provided by Magnus Karlsson, Attaché, Office of Science and Technology, Embassy of Sweden. The source of these numbers is the Swedish Institute for Growth Policy Studies (ITPS) (24)

Total R&D expenditures: 97 BSEK (12 BUSD) 2001

• Self-financed industrial R&D (78%) - large companies, i.e. Ericsson - D focus

• Universities key in performing publicly funded R&D (19%) - 14 research universities - R focus

University sector R&D: R&D performed in 2001: 18.8 BSEK / 2.4 BUSD

• Public funds - 77% (Direct allocations to universities and collages, Research councils, Mission oriented bodies, Research foundations)

• Private, non-profit sector - 11%

• Industry, domestic & foreign - 7%

• European Union - 2%

Public funding for R&D

Public funding in 2001: 22.4 BSEK / 2.8 BUSD

• To Universities - 64%

• To Industry - 20%

Major distributing institutions

• Swedish Research Council (basic research)

• Swedish Agency for Innovation Systems (mission oriented)

• Swedish Foundation for Strategic Research
(life science, microelectronics, materials)

Holding companies and link funds

• University Holding Companies
- manage R&D start-up firms

• Technology Link Foundations
- early-stage capital funding

• Patent & Licensing Offices
- make agreements with researchers

Financial Market

After a number of mergers to transform the Stockholm Stock Exchange to the OM Stockholm exchange in 1995, and then to the Stockholmsborgen in 2001, the current market is open to foreign and domestic firms. In the late 1990s, the telecommunications stocks, mainly driven by Ericsson and Nokia, raised the domestic firms SX All-Share Index by 44%. (25) The SX All-Share Index is a measure of the performance of domestic firms. During the technology crash of 2000, this Index sank by 12% in 2000, 17% in 2001, and 37% in 2002. The number of IPOs decreased dramatically as well, falling from 65 in 2000, 27 in 2001, and finally only 10 companies in 2002. However, in 2002, Ericsson was still the most widely traded stock on the exchange, with approximately 2.3 million trades, followed by Nokia. (25)