SwedenBUS 750 - National System of Innovation Summary

Facts and FiguresSize: <½ the size of BC (4% the size of Canada)

Population: 9.6 Million (2x BC)1. 85% in urban centers2. 89% speak English3. Average salary approx. 40,818 USD

GDP: 570b USD (~ 32% of Canada’s)● Agriculture: 2%● Industry: 31.3%● Services: 66.8%

Exports: 164b USD (2014)

Swedish Inventions

Influential Businesses

Quality of Life● 1% of employees work long hours - 4% in Canada● Disposable income - similar to Canada● Housing - similar to Canada● 82 years life expectancy - similar to Canada● Have an extra hour per day to themselves● 86% voter turnout - 69% 2015 Canadian Federal Election● Tax revenues 40.6% of GDP - 32.6% in Canada

OECD Better Life Index. Sweden. Retrieved from http://www.oecdbetterlifeindex.org/countries/sweden/OECD Better Life Index. Canada. Retrieved from http://www.oecdbetterlifeindex.org/countries/canada/OECD. Revenue Statistics Comparative Table, 2015. Retrieved from https://stats.oecd.org/Index.aspx?DataSetCode=REVThe Huffington Post Canada, 2015, Canada Voter Turnout In This Election Was The Highest In 2 Decades. Retrieved from http://www.huffingtonpost.ca/2015/10/20/canada-voter-turnout_n_8335662.html

Education Statistics● 88% of 24 to 65 year olds are high school grads - same as Canada● 44% of 25 to 34 year olds are post-secondary grads - 57% in Canada● 87% of post-secondary grads are employed● Higher Education ranking: Sweden - #5, Canada - #6● Average reading/math/science proficiency

○ Ranked 27th of 34 OECD countries○ Canada ranked ~10% higher in basic proficiency

U21 Ranking of National Higher Education Systems 2015. Retreived from http://www.universitas21.com/RelatedFile/Download/664Education at a Glance 2014. OECD 2014. Retreived from http://dx.doi.org/10.1787/888933114989 Improving Schools in Sweden:An OECD Perspective. Retreived from http://www.oecd.org/sweden/sweden-should-urgently-reform-its-school-system-to-improve-quality-and-equity.htmOECD Better Life Index. Sweden. Retrieved from http://www.oecdbetterlifeindex.org/countries/sweden/OECD Better Life Index. Canada. Retrieved from http://www.oecdbetterlifeindex.org/countries/canada/

Capacity for Innovation● 2nd in # of scientists/engineers per capita (US - 6th, Canada - 12th)● 8th in innovation capacity (US- 1st, Canada-10th)● 21st in innovation policy (US - 1st, Canada - 5th)

○ IP protection, tax incentives, competition, accepting economy

National Innovative Capacity. Retrieved from http://www.hbs.edu/faculty/Publication%20Files/Innov_9211_610334c1-4b37-497d-a51a-ce18bbcfd435.pdf

Wage Gap

Statistics Sweden, 2013. Average monthly salary and salary dispersion by occupation (SSYK) and sex. Retrieved from http://www.scb.seCEO to Worker Pay Ratios Around the World, 2013. Retreived from http://www.aflcio.org/Corporate-Watch/Paywatch-Archive/CEO-Pay-and-You/CEO-to-Worker-Pay-Gap-in-the-United-States/Pay-Gaps-in-the-World

354x

206x

89x

CEO/Av. Employee Wage

Insanely Fast Internet● #4 in world ranking of internet speed ● 100/100 Mbps in most households (30/8 Mbps in Canada)

○ Only available to businesses in the US○ Base level connectivity is higher - infrastructure implemented after US

● Free Wi-Fi almost everywhere

PC.net, 2013. High Speed Scandinavia. Retrieved from http://pc.net/news/2013-12-12/high_speed_scandinaviaCybera, 2015. What is Canada's average internet speed?. Retrieved from http://www.cybera.ca/news-and-events/tech-radar/canada-average-internet-speed/

Swedish Innovation Strategy1. Well functioning framework conditions

○ Stable environment conducive to innovation (state finances, labour market, IP protection, laws and tax structures)

○ Education and research systems and infrastructure

2. Innovation in public services and the public sector○ Public sector must be innovative to contribute to the demand for innovation in society at

large○ e.g. transportation procurement, 6h workweek

3. Direct measures targeting innovation processes○ Financing of innovation activities○ Entrepreneurship and advocacy○ Incubators & clusters

The Swedish Innovation Strategy, 2012. Retreived from: http://www.government.se/contentassets/cbc9485d5a344672963225858118273b/the-swedish-innovation-strategy

VINNOVA Strategically Important Knowledge Areas, Retreived from: http://www.vinnova.se/en/Our-acitivities/Strategically-important-knowledge-areas/ERAWATCH Sweden Research Policy Focus. Retreived from: http://erawatch.jrc.ec.europa.eu/erawatch/opencms/information/country_pages/se/

Innovation Priorities● Health and Healthcare

● Transportation and Environment

● Service and Information and Communications Technology (ICT)

● Manufacturing and Working Life

Swedish Science and Innovation System

Country Profile - Sweden, European Commission. Retreived from: http://ec.europa.eu/invest-in-research/pdf/download_en/psi_countryprofile_sweden.pdf

PUBLIC PRIVATE

R&D Funding by Sector

Government Business Abroad Higher Education Private NFPSource: ERAWATCH, Overview, Funding Flow. Retreived from: http://erawatch.jrc.ec.europa.eu/erawatch/opencms/information/country_pages/se/

Corporate Sector● Dominated by large multinationals● Not incentivized by the government through tax breaks● Only 4% of corporate R&D is government funded (mostly defence research)● Corporate tax scheme seems to favour reinvestment● Corporate tax rate is low and has been falling since the 80’s (60% to 22%)● The largest sectors of R&D expenditure are ICT (products), transport, drugs,

ICT (services).

Research and Innovation in Sweden - An International Comparison, The Royal Academy of Engineering Sciences, 2008http://www.skane.se/Public/Naringsliv/Dokument/Vinnova_rapport.pdfOECD Reviews of Innovation Policy - Sweden 2012. Retreived from: http://www.keepeek.com/Digital-Asset-Management/oecd/science-and-technology/oecd-reviews-of-innovation-policy-sweden-2012Source: ERAWATCH, Research Performers, Business Enterprise Sector. Retreived from: http://erawatch.jrc.ec.europa.eu/erawatch/opencms/information/country_pages/se/

● Heavily funded with an emphasis on fundamental research● 60% of higher education R&D funding goes to just 5 universities

Swedish Research Council● Funds fundamental research - exclusively● 50% of 6.4 billion SEK in funding goes towards public colleges and universities

VINNOVA - Swedish Innovation Agency● Funds fundamental and applied research ● At least one party in a funded project must be a university, college or research

institute

Universities and Colleges

Research and Innovation in Sweden - An International Comparison, The Royal Academy of Engineering Sciences, 2008http://www.skane.se/Public/Naringsliv/Dokument/Vinnova_rapport.pdfSwedish Research Council, Research Funding, Retrieved from: http://www.vr.se/inenglish/researchfunding.4.12fff4451215cbd83e4800021418.html

Minor InstitutionsOther minor institutions● e.g. Swedish Energy Agency - loans, expertise, and networking, National

Road and Transport Research Institute (VTI)● ...and others

Public institutes and authorities● Public research institutes only 3% of total R&D spending

Research and Innovation in Sweden - An International Comparison, The Royal Academy of Engineering Sciences, 2008http://www.skane.se/Public/Naringsliv/Dokument/Vinnova_rapport.pdf

Opportunities for Improvement (from OECD Library)

1) Global challenges: a) Increasing trend of foreign ownership among multinationals presents a risk

of offshoringb) Difficult for SME’s to scale up: Sweden is a small market - this means

Swedish companies must think about exports at an early stage of development

2) Monitor reported mismatches between supply & demand in the labour market for engineers and other skilled personnel required for innovation.

3) Enhance the strategic direction of innovation policy across government. 4) Provide a world class innovation environment in order to attract and retain

innovative firmsOECD Reviews of Innovation Policy - Sweden 2012. Retreived from: http://www.keepeek.com/Digital-Asset-Management/oecd/science-and-technology/oecd-reviews-of-innovation-policy-sweden-2012

Conclusion● Sweden – a small nation with great ideas. ● The country has been investing heavily in R&D & will continue to do so as

per it’s global innovation plans. ● Swedish economy is resilient but needs to focus on productivity and human

capital to keep its edge● 6 Hours work-day, how does it get better than that ???

The Swedish Innovation Strategy, 2012. Retreived from: http://www.government.se/contentassets/cbc9485d5a344672963225858118273b/the-swedish-innovation-strategy

ReferencesThe Swedish Innovation Strategy, Swedish Ministry of Enterprise, Energy and Communications, 2012http://www.government.se/contentassets/cbc9485d5a344672963225858118273b/the-swedish-innovation-strategy

OECD Reviews of Innovation Policy: Sweden 2012, OECD, 2012http://www.keepeek.com/Digital-Asset-Management/oecd/science-and-technology/oecd-reviews-of-innovation-policy-sweden-2012_9789264184893-en

Cornell University, INSEAD, and WIPO (2015): The Global Innovation Index 2015: Effective Innovation Policies for Development, Fontainebleau, Ithaca, and Geneva.https://www.globalinnovationindex.org/userfiles/file/reportpdf/gii-full-report-2015-v6.pdf