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The Swedish Innovation Strategy
Produced by: the Swedish Ministry of Enterprise, Energy and Communications Illustrations: Johan Hallnäs/Svenska Grafikbyrån Photos: Elliot Elliot/Johnér, cover, Morgan Karlsson/Johnér, page 4, Kari Kohvakka/Johnér, page 8, Plattform/Johnér, page 12, Mats Hallgren/Johnér, page 18, Lina Karna Kippel/Johnér, page 20, Susanne Kronholm/Johnér, page 50 Printed by: Åtta 45 Art. no.: N2012.33
Foreword
Innovation begins with the human being. Human beings have ideas and develop know-
ledge. Human beings use their knowledge, skills and experience in new solutions in
their businesses, in their workplaces, in their spare time or as consumers. Sweden’s
innovation capacity is essential to meet the challenges and opportunities of the global
economy. Policy must therefore be based on a holistic view of how Sweden’s innova-
tion capacity can be maintained and strengthened over time. This is the starting point
for the Government’s national innovation strategy.
The world today is undergoing fundamental changes. Many countries in the EU and
the OECD, as well as emerging countries such as China, India, Russia and Brazil, have an
increased focus on developing the innovation climate of their countries. Sweden stands
relatively strong in most international comparisons of countries’ innovation capacities
and competitiveness. However, global competition is increasing between companies
and nations. The rising pressure on the earth’s resources also requires new solutions
that combine ecological, social and economic sustainability.
In Sweden, we need to be more innovative to meet the global societal challenges,
to increase the competitiveness and to renew the future welfare and public services.
This calls for an innovation climate that provides the best possible conditions for in-
dividuals, businesses, the public sector and civil society organisations to be innovative.
The strategy presents long-term guidelines for how the work within many policy areas
until 2020 can create better conditions for people in all parts of society to contribute to
a more innovative Sweden through their knowledge,
skills and creativity.
This innovation strategy has been developed in a
broad dialogue with many stakeholders. Now that
the government has adopted the strategy, I would like
to stress that this is the beginning of the real work to
strengthen the innovation climate in Sweden in the
long term, to empower us all to contribute to shaping
the future Sweden in the global knowledge society:
politicians, entrepreneurs, employees, citizens and
consumers. In the process of developing this stra-
tegy, many people with different backgrounds and
perspectives have shown a strong commitment and
a willingness to contribute. This feels good and in-
spiring for the long-term work that we now need to
continue together.
Annie Lööf
Minister for Enterprise
Photo Anna-Karin Nyman
1
2
Table of Contents
1. Why Sweden needs an innovation strategy 5
2. Starting points 9
3. Vision for increased innovation
in Sweden 2020 13
4. A good starting point –
but global pressure for change is increasing 15
5. Many have responsibility and ability
to influence Sweden’s innovation capacity 19
6. The road to a world-class innovation
climate in 2020 21
Innovative people 21
Research and higher education for innovation 27
Framework conditions and infrastructure for innovation 30
Innovative businesses and organisations 35
Innovative public services 41
Innovative regions and environments 46
7. Implementation of the innovation strategy 51
8. Glossary 55
3
4
1. Why Sweden needs an
innovation strategy
The purpose of this strategy is to contribute to further develop coordination between different
a climate with the best possible conditions for actors in order to create the best conditions pos-
innovation in Sweden with year 2020 in sight. sible for innovation.
People and organisations in industry, the public The development of this innovation strategy
sector and civil society will be able to develop and has taken place in broad consultation with sta-
more effectively contribute to new or improved keholders in different parts of society. The work
solutions meeting needs and demand. was conducted with a high degree of involvement
Societal challenges faced by Sweden, together from all ministries within the Government Of-
with the rest of the world, are big and complex in fices. This strategy constitutes a basis for a long
nature. Therefore, no single actor or area of socie- term way of working in order to enhance the Swe-
ty has sufficient knowledge or resources to meet dish innovation climate and innovation capacity.
these challenges on their own. It is important to
Urgent societal challenges in Europe 2020
Based on the growth and jobs strategy, Europe 2020, and later clarified by the EU
Council in the regulation of establishing Horizon 2020 – The Framework Pro-
gramme for Research and Innovation (2014–2020), the following societal challen-
ges has been highlighted as particularly important:
• Health, demographic change and wellbeing;
• Challenges for European bioeconomy: Food security, sustainable agriculture,
marine and maritime research;
• Secure, clean and efficient energy;
• Smart, green and integrated transport;
• Climate action, resource efficiency and raw materials.
• Secure societies: Protecting freedom and security of Europe and its citizens.
5
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6
An innovation strategy for Sweden is Deliver public services with increased quality
needed in order to: and efficiency
Healthcare, school, care, police services, built and
living environments, as well as systems for en-
Meet global societal challenges ergy, communications, water, sewage and waste
Together with other countries, Sweden needs to are examples of public services, i.e. welfare ser-
contribute to innovative and sustainable solu- vices, social security systems and other services
tions to global societal challenges. This in turn that are publicly financed or otherwise important
can contribute to increased quality of life for for a well-functioning society. As most European
people, a more sustainable development and also countries, Sweden is faced with a major demo-
to making Sweden more attractive as a country. graphic challenge to adapt to an ageing society,
Furthermore, since demand for new solutions also with more young and old people in relation to the
lays the ground for future markets, this can gen- number of people in the work force. By year 2030
erate growth and new jobs. it is estimated that more than one in five Swedish
people will be over 65. In order to adapt to these
Increase competitiveness and create more jobs changes, innovations are needed to deliver public
in a global knowledge economy services with increased quality and efficiency, but
Innovation is vital to long-term productivity also in work life in order to attain participation in
development, and thereby to growth and future the work force at a higher level and a longer wor-
prosperity. A good innovation climate is a con- king life. When Swedish authorities, businesses
dition for the competitiveness of companies. and organisations manage to create new solutions
Competing in increasingly global production and for areas in global demand, this can also entail
innovation networks requires constant renewal export opportunities.
of offers, processes and organisation.
Clear and highly prioritised innovation policy
work is particularly important for Sweden as a
trade-oriented country with no major market of
its own. Investments, operations and expertise are
ever more internationally mobile. This increases
competitiveness between countries and regions
in terms of attracting individuals, organisations,
head offices and other strategic operations.
7
8
2. Starting points
Innovation is about new or better ways of crea- Productivity development is an important fac-
ting value for society, businesses and individu- tor that in the long term creates growth and the-
als. Innovations are new solutions that serve the reby lays the foundations for prosperity. Produc-
needs and demands in daily life and in the world tivity is a measure of how much value is produced
around us. The value arises in the utilisation and per unit of various input factors and is often
implementation of an idea. The value created measured in GDP or GVA (Gross Value Added)
may be economic, social or environmental. Inno- per hour worked. New studies, from the OECD
vation can occur in a step-by-step process or in among others, reveal that up to three quarters of
disruptive leaps. OECD tends to differentiate productivity development in industry can be att-
innovation by degree of novelty: it may be new ributed to innovation. OECD believes that inno-
for an organisation, new for a market (or area of vation in the public sector can decrease costs and
application) or new for the world. The substantial increase efficiency and quality, with better use of
impact on value creation for society as a whole resources and improved target fulfilment.
arises as new solutions are adopted and spread th- An innovation can take the form of new pro-
roughout society. The word innovation refers to ducts or technological solutions. It may also be
both the process of developing new solutions and new ways of planning and developing urban or
the result of the process, i.e. the new solutions. rural areas and built environments. It can be com-
binations of goods, systems and services for the
global telecommunications market or smart trans-
port solutions. Innovation can also take the form
Innovation: of new ways of designing or organising healthcare
services for the elderly, new ways of submitting
”Events through which new ideas, beha- tax returns, new methods of involving customers
viours and procedures are introduced into a or users in developing services or goods and new
society and then spread” ways of taking advantage of and distributing art
(translated from Nationalencyklopedin) and artistic achievements. Innovation can also be
new ways of using old, naturally occurring con-
ditions, e.g., cooling energy-intensive data servers
”The implementation of a new or signifi- through localisation in cold climates or new ways
cantly improved product (good or service), or of using land, ecosystem services, raw materials
process, a new marketing method, or a new from nature and biologically/ecologically based
organisational method in business practices, technologies and methods.
workplace organisation or external relations.”
(OECD, Oslo Manual – Guidelines for How does innovation arise?
Collecting and Interpreting Innovation Data) Innovation begins in the creativity and power of
initiative possessed by the individual. This stra-
tegy therefore has its starting point in people
9who can and want to bring about improvement, nomy activities such as design, business model and
whether individually or together. organisational development or marketing are be-
In order for ideas to become innovations, se- coming increasingly important. Innovation increa-
veral roles are required: visionaries, inventors or singly takes place in open processes of co-creation
creators who have ideas, users and customers who between diverse people and actors. Within organi-
have demands and who to an increasing extent sations (whether businesses or others) innovation
participate in the creation of new products, ser- processes tend to involve collaborators from all
vices and processes, entrepreneurs who run and functions instead of, as in the past, being regarded
organise the realisation of ideas, salespersons who as the responsibility of a separate R&D department.
communicate ideas and financiers who believe in New ways of creating and sharing knowledge
the potential value of ideas and provide capital and other resources changes the innovation pro-
and often business competence as well. cesses and investments in intellectual property.
Power of innovation is being able to turn know- The digital revolution is creating entirely new
ledge, expertise and ideas into new solutions in possibilities for involving users and customers in
order to meet needs and demands. Factors that innovations and creating new services, e.g., based
affect power of innovation have been defined by on 'open data'. This concerns everything from
innovation researchers as: transport solutions to culture and public services.
• the knowledge and competence base for There is also an increased awareness of the
innovation that is developed through re- importance of norms. Subconscious and unspo-
search, education or independent learning ken notions such as innovators being men and
innovations being technological solutions mean
• incentives for investments in knowledge that there is a risk of overlooking the innovation
and entrepreneurial activity potential among large groups of individuals and
• demand and markets entire sectors.
An innovation policy based on current know-
• rules and regulations, organisational forms
ledge combines initiatives geared towards stimu-
and communication between actors in
lating both the supply of and demand for new
innovation processes: businesses, the public
solutions. The supply perspective is a matter of
sector, academia, civil society and individuals
different forms of support for the development
• specialised resources for the development of new knowledge or other innovation activities,
of technology, methods, organisation or such as protection for intellectual property. The
processes. intention is for businesses and other organisa-
The innovation processes are developed in rela- tions to have a good capacity for innovation. The
tionships and through the exchange of informa- demand perspective is intended to stimulate the
tion between individuals, businesses and other demand for new solutions, e.g., via innovation
organisations. Central to these relationships is re- procurement, standardisation and legislation.
ciprocal learning about needs and demands, pos- Both OECD and the EU emphasise the need to
sible solutions and how these can be developed integrate these perspectives and start from a ho-
and improved on. Learning occurs when people listic view. This means, for example, that inno-
and actors from different areas of knowledge, vation policy initiatives in order to meet global
organisations, disciplines or sectors of society societal challenges in the areas of climate and the
meet and collaborate. Physical or electronic mee- environment must include measures for genera-
ting places and good incentives and processes for ting new knowledge or technology as well as mea-
learning both within and between organisations sures to stimulate markets for new solutions.
are therefore a prerequisite for innovation.
Starting point in international
A broad view of innovation policy development
Today, innovation is seen as broader than the crea- This innovation strategy is in line with internatio-
tion of value based on research and technological nal discussions and policy documents in the area.
development (R&D). In the knowledge based eco- The broad view of innovation is a cornerstone
10in both OECD's innovation strategy (The OECD 2020 includes, among other things, the Innova-
Innovation Strategy: Getting a Head Start on tion Union (Europe 2020 Flagship Initiative Inn-
Tomorrow, OECD 2010) and the strategy for jobs ovation Union, European Commission 2010), the
and growth in the EU (Europe 2020 – A strategy Single Market Act (Single Market Act – Twelve
for smart, sustainable and inclusive growth, Euro- levers to boost growth and strengthen confidence
pean Commission 2010). These strategies are per- "Working together to create new growth", Euro-
meated by the need for innovated goods, services, pean Commission 2011) and others, which serve as
businesses and social solutions in order to facili- important bases for the innovation strategy.
tate the preservation and development of today's OECD stresses that an innovation policy with
welfare and living standard and to meet future a challenge-led perspective requires a system per-
challenges. OECD's innovation strategy is based spective. Climate changes and sustainability issues
on the need for an holistic innovation policy that will continue to create new market opportunities.
integrates a number of different policy areas in The ambitious Swedish targets for e.g., reduced
order to meet societal challenges. carbon emissions may, according to OECD, work
In Europe 2020, the targets for smart, sustaina- as a facilitator, together with targets for renewable
ble and inclusive growth have been set, and inno- energy and sustainable development.
vation is key in large parts of this work. Europe
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1112
3. Vision for increased
innovation in Sweden 2020
A good innovation climate lays the foundations for more jobs, a
more sustainable society with better quality of life for all inhabi-
tants and growth throughout the country. The following vision for
the innovation climate in Sweden 2020 serves as guidance for the
national innovation strategy:
Sweden is a creative country characterised by pioneering
ideas and new ways of thinking and doing in order to shape
our future in a global community. People in all parts of
Sweden can and want to contribute to creating value for
people, the economy and the environment through new or
improved solutions.
A strong innovation climate by 2020 will enable:
People and actors, by being more innovative, to contribute
solutions to big societal challenges, in Sweden as well as
globally.
Businesses and environments, by being more innovative, to
create value, increase their competitiveness and attract exper-
tise, investments and cooperation partners from around the
world.
Actors in the public sector and their partnership with private
and civil society organisations, by being more innovative, to
supply public services of a high quality and efficiency.
1314
4. A good starting point – but global
pressure for change is increasing
Sweden is a small, trade- and globally orientated with university education and the proportion of
country. The domestic market amounts to around young people with high school education) and
nine million people, corresponding to Chicago in investments in innovation (private and public).
the USA or Nagoya in Japan. In a ranking made Areas in which Sweden appears relatively weaker
by the World Bank, the Swedish economy was are the result of innovation activities, e.g., in the
number 32 by size in the world in 2011. The total form of the share of business’ revenues origina-
investments in research and development in Swe- ting from new or significantly improved products
den – an important input for innovation – con- (goods and services), especially for small and me-
stitutes roughly one per cent of the world’s total dium-sized enterprises.
R&D investments. Sweden’s R&D intensity (proportion of
Sweden has a strong standing in internatio- Sweden’s GDP constituted by private and public
nal comparisons of national innovation cli- investments in R&D) has decreased somewhat
mate and competitiveness. On the Innovation over the last decade. The statistics for internatio-
Union Scoreboard 2011, Sweden is ranked as the nal businesses reveal that the large international
leading country of the EU’s 27 member states. In concerns dominate the investments in R&D in
INSEAD’s Global Innovation Index 2011, Sweden Swedish industry. They have increased their in-
is in second place, and holds fourth place in the vestments in R&D, but primarily outside of Swe-
World Economic Forum’s 2012 ranking of global den, which represents a considerable challenge.
competitiveness. In EU and OECD countries, just as in develo-
The strong position is based on Swedish indu- ping countries such as China, India, Russia and
stry being successful on international markets for Brazil, the development of the innovation cli-
a long time. The open economy of Sweden, with mate has a high political priority. This increases
competition from outside, has led to a pressure the pressure on the corresponding policy deve-
for change that promotes innovation in Swedish lopment, on both national and regional levels, for
businesses. Our strong position builds on what Sweden’s attractiveness in the long-term.
are, in comparison with other countries, big in- China’s investments in R&D are increasing
vestments in education, ICT, research and deve- rapidly; in 2010 they accounted for 60 per cent
lopment. Similarly, Sweden’s position in terms of of the combined investments of EU27. India
institutional framework is also good, with a high has proclaimed a decade of innovation and is in
level of trust, good political stability and effective its innovation policy focusing on addressing the
laws and regulations. needs of the poor people of the world and plan-
The Innovation Union Scoreboard 2011 compa- ning to establish 14 ”innovation universities”. In
res EU countries regarding conditions for inno- many developing countries, innovations create
vation. Here, Sweden stands out as particularly new possibilities for poor people to improve their
strong in terms of human capital (proportion of living conditions. Within information and com-
graduates, proportion of population aged 30–34 munications technology, for example, the deve-
15lopment of certain new functions and areas of dom, Australia and others are also making big
application is moving quicker than in other more investments in increasing the pace of innovation
wealthy countries. in the public sector. The area of social innovation
The President of the United States returned is receiving an increasing amount of attention in
to the need for increased innovation in his an- several countries. In Europe, a large number of
nual “State of the Union” speech in February of countries have formulated national innovation
both 2011 and 2012. The USA, the United King- strategies.
How Sweden’s economic prosperity is created
The economic value of the goods and services produ- ees has decreased over the past 20 years, from 34
ced in Sweden, in GDP, amounted to SEK 3 492m in per cent in 1993 to 28 per cent in 2011.
2011, corresponding to SEK 369 600 per inhabitant. In 2012, 40 per cent of the employees in the
Just under 80 per cent of GDP is generated in the private sector worked in small and medium sized
private sector, whilst the public sector accounts for 20 enterprises (10 – 249 employees). Evidence points to
per cent. much of future growth in employment being created
Nearly two thirds, 65 per cent, of GDP in the private in these companies, which is why the capacity of
sector is generated in service industries. A fifth is these companies to engage in systematic innovation
created in the manufacturing industry, whilst the con- activities is an important dimension in this strategy.
struction industry and electricity, heating and waste Sweden’s international trade has increased consi-
account for nearly 12 per cent. Agriculture, forestry, derably in the last 20 years. The value of the export of
fisheries and mineral extraction have a 3 per cent goods and services corresponded to less than 50 per
contribution to the private sector’s GDP. cent of GDP in 2011; SEK 1 703m. The importance
In 2011, 69 per cent of all employees worked in the of knowledge-intensive goods and services in export
private sector. The proportion of public sector employ- is increasing.
Table 1: Number of employees by enterprise size, out of those with at least one employee
1993
1993 2010
2010
Micro-enterprises
(1-9 employees)
Small enterprises
(10-49 employees) Mikroföretag (1 – 9
28% sysselsatta) 26%
Medium-sized enterpri-
ses (50-249 employees) 36% Små34%
företag (10 – 49
Large enterprise sysselsatta)
(250+ employees) Medelstora företag (50
– 249 sysselsatta)
19% Stora företag (250 – 21%
17% sysselsatta)
18%
Source: SCB, LISA and self-assessments.
1618
5. Many have responsibility and
ability to influence Sweden’s
innovation capacity
The Government has now adopted this stra- tive competition, functioning trade, regulations
tegy by Government decision. The State has an and structures for taxation, labour market, fi-
important role to play in continuing to provide nancial markets, education and research systems,
good conditions for innovations in Sweden – a and infrastructure. Other examples are laws and
good innovation climate – but it is individu- regulations pertaining to contracts and procure-
als in collaboration that ensure Sweden retains ment. Suitable systems for intellectual property
and strengthens its position as global leader in protection are of considerable importance. Not
creativity and innovation capacity. Many public only public rules and regulations are relevant –
actors such as universities, public agencies, coun- standardisation, for example, is handled to a great
ty councils, regions and municipalities have a role extent by private actors. Norms and attitudes to
in the public commitment to a strong innovation creativity, the capacity for innovation and general
climate in Sweden. Success also depends on com- entrepreneurship in society are other examples of
mitment to the strategy’s alignment from indu- framework conditions for innovation.
stry and civil society.
2. Innovation in public services and the public
Public commitment, public action in society
sector generating demand for innovation
to strengthen the innovation climate and inno-
vation capacity, can be motivated by market fai- This concerns first of all the capability of public
lures, system weaknesses or international policy services to be innovative. Secondly, it is about
development. Public initiatives should be desig- the public sector contributing to the demand for
ned to achieve the highest possible efficiency in innovation in society at large. This includes set-
the use of public funds. The conception of the ting political goals, influencing the formulation of
public commitment to a strong innovation cli- standards, designing procurement processes so that
mate and innovation capacity is developed in line they are open for new solutions, carrying out inno-
with the decision-makers’ knowledge of how po- vation procurements or designing processes for so-
litical decisions can affect innovation processes in cial planning in ways that promote new solutions.
businesses, public sector or civil sector organisa-
3. Direct measures targeting innovation processes
tions. Ultimately, it is the political position on the
significance of public initiatives in economy and Direct measures targeting innovation processes
society that sets the framework. can take the form of financing of innovation ac-
tivities and entrepreneurship, and advocacy – e.g.,
The public commitment to a strong innovation
providing advice or support to collaborative pro-
climate on a governmental, regional or municipal
jects for research and innovation. They may also
level translates into practical politics within three
be a matter of financing knowledge and innova-
areas:
tion infrastructures such as incubators, the for-
1. Well-functioning framework conditions mation of clusters or networks, and test and de-
Well-functioning, appropriate and stable frame- monstration facilities.
work conditions, incentives and means of control The main point is that the guidelines presented in
form the basis of a good innovation climate. Ex- the section The road to a world-class innovation cli-
amples of such framework conditions are stable mate in 2020 can primarily be implemented through
state finances, free and open markets with effec- prioritisation within existing financial boundaries.
1920
6. The road to a world-class
innovation climate in 2020
This strategy lays out the alignment of the work
to develop a world-class innovation climate in
Sweden with 2020 in sight. The work is about
2People, businesses and organisations that
work systematically with innovation:
• Innovative businesses and organisations
• identifying and rectifying areas where today
there are obstacles to innovation, or where • Innovation in the public sector
Sweden reveals weaknesses in international • Innovative regions and environments
comparisons
• protecting and developing areas in which
Sweden is currently strong in comparison
with other countries
3Implementation of the strategy
based on a holistic view:
• improving coordination between policy are- • in developed coordination between policy
as, between different levels and social sectors areas and policy levels
in order to make public initiatives more ef- • in dialogue with actors in industry, the public
fective and have the biggest possible impact sector and civil society
on renewal, sustainable growth and social de-
velopment in Sweden. • in a process of continuous learning
The strategy will be implemented in concrete
initiatives from the Government’s side, but will
also contribute to other actors’ initiatives to Innovative people
strengthen innovation capacity in Sweden with
2020 in sight. Goal: People have the capacity, willingness
and conditions to contribute to innovation
People’s ability and willingness to contribute to
innovation is central. In order for the innovation Innovation is reliant on people’s capacity and
strategy to have a big impact, contributing to inn- conditions to develop new ideas and implement
ovation must be of importance to many people. these in new solutions that change society, both
on smaller and larger scales. It is people that seek
The strategy is based on three main principles: out and develop knowledge, that are active in bu-
sinesses, research environments, public organi-
1The best possible conditions
for innovation:
sations and civil society. People make consumer
decisions, decide what is valuable and form regu-
lations and attitudes. When people meet, ideas,
• Innovative people
knowledge and expertise from different sources
• High quality research and higher education and areas are pitted against each other, resulting
for innovation in renewal. To utilise the capacity and power of
initiative of the entire population is therefore the
• Framework conditions and infrastructures
starting point for a powerful innovation strategy.
for innovation
21The road to a world-class
innovation climate in 2020
Research and higher Framework conditions
Innovative people education for and infrastructure for
innovation innovation
Goal: Goal: Goal:
People have the capacity, Research and higher Framework conditions and
willingness and conditions education in Sweden is infrastructure that lays the
to contribute to innovation of a high quality by inter- foundation for a strong
national standards and innovation climate
contributes to innovation in
many ways
Sub target: Sub target: Sub target:
People have the knowled- Education and research Regulations, market
ge, skills and expertise to at universities with world- conditions and norms that
contribute to innovation class quality and relevance promote innovation
contribute to innovation
Sub target: Sub target: Sub target:
People have the courage World-class research Functioning access to
and willingness to contri- institutes meet knowledge competent capital that
bute to innovation as an and development needs in promoted businesses’
entrepreneur, manager, businesses and society capacity for innovation and
employee, user and citizen growth
Sub target: Sub target: Sub target:
r
Sweden’s working life is Strong Swedish research an
inga Sustainable physical and
tm
attractive on an interna- nodes have strong posi- su
digital communication that
äll
tional level and welcomes tions in global knowledge promote innovation
mh
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diversity and mobility networks
jobb i Sverige
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kapa koVision
Sweden is a creative country characterised by pioneering ideas
and new ways of thinking and doing in order to shape our future in
a global community. People in all parts of Sweden can and want
to contribute to creating value for people, the economy and the
environment through new or improved solutions.
Innovative businesses Innovative public Innovative regions
and organisations services and environments
Goal: Goal: Goal:
Businesses and organi- Innovative and collaborative Sweden’s regional innova-
sations in Sweden have public service organisa- tion environments have
world-class innovation tions that are legally secure international appeal
capacity and effective, and has a
high degree of quality, ser-
vice and availability
Sub target: Sub target: Sub target:
Businesses in Sweden Public sector organisa- Sweden’s regions are
grow by offering innovative tions works systematically increasing their innovation
solutions on global markets with innovation in order capacity based on their
to increase efficiency and unique conditions
quality
Sub target: Sub target: Sub target:
Businesses in Sweden Public sector organisations Regional strategies for
grow by offering innovative contribute in developing innovation are grounded in
solutions on global markets innovative ways of meeting combined regional leader-
societal challenges ship
ga r
Sub target: Sub target:
nin
ma Using the potential in Efficient public sector sup-
social innovation and social port for innovation with a
entrepreneurship to con- focus on customer benefit
tribute in meeting societal
challenges
ge
era samhällstjän
ver 23
Le kvalitet och effe ste
kti
r m tet
vi
edSub target: People have the knowledge, skills learn and re-learn in order to adapt their exper-
and expertise to contribute to innovation tise in a changeable working life.
Innovative capacity is influenced by a broad range Sweden’s population has a level of education
of knowledge, skills and expertise, not least crea- that in international comparisons is relatively
tivity and the capacity for lifelong learning and high. Sweden’s position in terms of school pupils’
re-learning, as well as the capacity to interact ability to read and skills in maths and scientific
with others. subjects has however come out weaker in interna-
tional comparisons. The Government’s education
The education system has a crucial role in or- policy is designed to turn this development on its
der for young people to develop knowledge, skills head, in order for Sweden to be a competitive na-
and approaches needed to be able, together with tion and retain its level of expertise.
others or individually, to translate ideas to reality
in work life as well as in other contexts in socie- The main role of the education system is to
ty. The capacity of the education system – from convey subject knowledge, but it also has a role
preschool to vocational training and university in developing social skills and entrepreneurship.
– to develop subject knowledge is of fundamen- The importance of social skills and entrepreneur-
tal importance to innovation capacity. The edu- ship is increasing as society is becoming more and
cation system also plays an important role in the more complex and the pace of change is growing.
development of people’s creativity, entrepreneur- The OECD among others have drawn attention
ship as well as an understanding of sustainable to the need for developing entrepreneurial skills,
development in society, etc. In the global know- also in the education system.
ledge economy, which is changing at a rapid pace Life-long learning is increasingly important
and where ICT is an integral part of daily life, for innovation, including different forms of pro-
working life, entrepreneurship and relationships, fessional and adult training and digital learning
the importance increases of digital literacy, good services. The main part of lifelong learning takes
language skills, and the capacity to familiarise place as professional training of employees within
oneself with different cultures. It is becoming in- companies and other organisations.
creasingly important for people to continuously Part of the responsibility for a lifelong learning
process is found in labour market policies. Em-
ployment training is aimed at helping jobseekers
to find work and at counteracting labour shorta-
ges. The rate of employment in Sweden is high
in an international perspective, a contributing
factor of which is that the proportion of women
gainfully employed in Sweden is higher than in
most other countries. Among young men and wo-
men and foreign nationals, however, the rate of
employment is relatively low.
During the course of developing this strategy,
the supply of people with appropriate skills has
been emphasised repeatedly as one of the biggest
challenges for Sweden’s innovation capacity. It is
both a matter of having a sufficient quantitative
supply of people for all parts of the labour mar-
ket in different parts of Sweden, and about the
supply of people with the required knowledge,
expertise and skills. As the pace of change is high
in economy, people and organisations are increa-
singly required to renew in order to adapt to the
changing demand for knowledge and skills.
24Sweden therefore needs to: The population’s willingness to change and capa-
city to quickly adopt new solutions are factors that
• Continue the work to improve the know- benefit businesses’ innovation capacity, just as in
ledge output of the educational system. the public sector and civil society. Sweden is at the
• Continue to develop an educational sys- forefront in international comparisons that measu-
tem that supports individuals – irre- re these factors. Internationally, Sweden is regarded
spective of gender, age, social, ethnic or as a country well ahead in terms of global responsi-
cultural background or– in developing bility and social and environmental accountability,
knowledge, skills and expertise for inno- and also perceived as a creative country.
vation, creativity and entrepreneurship Sweden’s employment has for a long time de-
throughout their lives. pended heavily on large industrial businesses and
the public sector. Even if these structures are chan-
• Promote free choice of studies and profes-
ging somewhat, there is still a general perception
sion without stereotypical expectations
in Swedish society that completed studies lead
and limitations, e.g., in terms of gender,
to employment rather than to self-employment.
age social, ethnic or cultural background.
This can repress people’s innovation capacity.
• Develop methods and approaches in edu- The capacity for and interest in entrepreneurism
cation and working life that promote the is important for people’s attitude to innovation in
capacity to combine knowledge and skills their roles as entrepreneurs, managers, employees,
from different fields of knowledge and users and citizens. The educational system is an
spheres of activity. important arena in which to form attitudes, inte-
rests and skills related to entrepreneurship.
• Evolve the matching of supply and de-
mand on the labour market, with regard According to data from Panteia/EIM, Sweden
to both quantities and expertise, through has a lower proportion of entrepreneurs than the
closer cooperation between the educatio- EU average, though the development trends with
nal system and working life. regard to entrepreneurism are positive. Statistics
from Swedish Agency for Growth Policy Ana-
lysis show that the creation of new businesses in
Sub target: People have the courage and Sweden has increased in recent years and analy-
willingness to contribute to innovation as an ses from the Swedish Jobs and Society Founda-
entrepreneur, manager, employee, user and tion indicate that young people are increasingly
citizen. positive in their attitude to entrepreneurism. In
Sweden, businesses are primarily created on the
Entrepreneurship is about the capacity to identi- basis of new opportunities. A high level of oppor-
fy opportunities and create or coordinate resour- tunity-based entrepreneurism has proven to have
ces in order to implement these in activities that a positive connection with a country’s growth.
create value. An important element of entrepre- The proportion of people starting up a business
neurship is the willingness and driving force to as a result of unemployment or risk of unemploy-
change and improve. People can be entrepreneu- ment is very low in Sweden.
rial in both new and existing businesses, public
Leadership and organisation of work in order
services and other organisations.
to promote the capacity of employees to contri-
bute to innovation are fundamentally important
Entrepreneurship: factors in businesses and non-profit organisations
as well as in the public sector. A creative, involved
”… activities in economy that are intended working environment is not only a result of, but
to create value. This occurs when actors also to a great extent a prerequisite for managers
identify and realise new products and pro- and employees’ capacity and willingness to contri-
cesses, implement organisational changes or bute to development and renewal. Good relation-
reach new markets” ships between people in a workplace encourage
(OECD/Eurostat, 2007) certain constructive behaviour, which in turn
strengthens productivity and innovation capacity.
25Knowledgeable and well-informed citizens, Sub target: Sweden’s working life is attrac-
users and consumers are significant driving forces tive on an international level and welcomes
for innovation. The capacity to involve people in diversity and mobility
co-creation and open innovation is therefore ever
more important. In addition, the capacity of pe- Innovation thrives in difference and diversity.
ople being active and well informed consumers is When people move between workplaces, regions
increasing. This capacity is facilitated by well-de- and countries across the world, the opportunity
veloped consumer support. Active involvement of to develop and combine knowledge, skills and ex-
users and consumers in innovation processes is fa- perience increases. Innovation and creativity also
cilitated via new social tools and digital platforms, benefit from meetings and collaboration between
among other things. To an increasing degree, people of different genders, ages and ethnic origin.
groups of users and consumers in Sweden actively An open, inclusive society that benefits
contribute to innovation by influencing e. g. met- people’s mobility and welcomes and utilises
hods of delivery, design or other characteristics. their differences is therefore of fundamental im-
People who have a lot of personal experience in portance to innovation. This is crucial in a global
business development and entrepreneurship, and and fast-paced society, in order to take advantage
who can support others who have business ideas, of all sources of creativity, innovative ideas and
are important to a good innovation climate. Dif- the capacity for change.
ferent forms of mentoring can provide access to In international comparisons, people living in
experienced entrepreneurs’ business knowledge Sweden are prominent in terms of both creati-
and networks. In cases involving ”business ang- vity and diversity. Here we find one of the hig-
els”, this is combined with financial resources. hest percentages of foreign nationals in Europe,
and a country in which nearly 200 languages are
Sweden therefore needs to: spoken. People who come to Sweden from other
countries contribute to a great extent to prospe-
• Continue to develop good conditions, in- rity. At the same time, Sweden has not taken full
centives and framework conditions for advantage of the expertise of certain groups of fo-
entrepreneurship reign nationals. Likewise, it is very important to
• Promote positive attitudes to entrepre- utilise the expertise and capacity for new lines of
neurship and innovation in society, by thinking of young people in particular.
e.g., highlighting good examples and role Sweden’s position as an attractive country for
models and developing forms of mento- people with international peak competence in
ring. different areas of society is becoming increasingly
• Continue long-term development of en- important. In addition, the demographic chal-
trepreneurship throughout the educatio- lenge presented by the ageing population means
nal system, based on the Government’s there is a growing need for labour. International
Strategy for entrepreneurship in the field mobility or migration, including the influx of
of education presented in 2009. foreign labour, is important factors for Sweden’s
innovation capacity.
• Continue developing knowledge and good It is therefore important to make efforts to uti-
practice in management and methods of lise the expertise of foreign nationals living and
work to promote innovative workplaces working in Sweden to a greater extent, in order to
and a work environment in which em- promote innovation capacity and growth. People,
ployees’ expertise, creativity and capacity who have come to Sweden to work, start a bu-
for cross-border work are utilised. siness, study or conduct research, are important
• Develop conditions for citizens, users and groups in this context.
consumers to contribute to innovation, Many foreign nationals come from countri-
by e.g., promoting innovation brought es with well-developed small-scale trade and a
about by users and appropriate, effective strong innovation climate. Creation of new busi-
consumer support that is equal for all of nesses is more common among certain groups of
the country’s consumers. immigrants than among people born in Sweden.
26Foreign nationals are also an important source of
knowledge about users, markets and contacts in
other countries, which can promote international
trade and other relations.
It is ever more common for people living in
Sweden to work, run a business, study or conduct
research in other parts of the world for shorter or
longer periods. A globalised labour market and in-
creased mobility has meant that the practice of mo-
ving back and forth between countries – circular
migration – has become more commonplace. This
helps to enlarge Sweden’s contact surface with the
rest of the world and can promote the transfer of
knowledge and experience that are contributing
factors in development and innovation capacity,
both in Sweden and in other countries.
The development towards equality has come a
long way in Sweden. At the same time, the Swe-
dish labour market is somewhat segregated in
terms of gender, and the mobility on the labour
market is relatively weak, especially among the directly and indirectly to problem solving and
elderly and people with a low level of education. learning in innovation processes throughout so-
ciety. This concerns not least the development
Sweden therefore needs to: of new knowledge with a view to meeting global
societal challenges. Research is of fundamental
• Facilitate men and women’s mobility bet- importance to the quality of higher education. A
ween businesses, organisations, sectors, high level of knowledge and expertise in the work
regions and countries, by different means force is therefore dependent on excellent research
among which good conditions for valida- in Sweden, as well as of the capacity to tap into
tion and valuation of merits and know- and make use of new knowledge originating from
ledge from different study and career other countries.
paths and other parts of the world. Sweden is among the countries who invest
• Develop knowledge and methods for most, in both the private and public sector, in
workplaces to take advantage of diversity research and development (R&D) in relation to
as a driving force for increased innovation. GDP. This activity is conducted in Sweden pri-
marily in large international business groups and
• Develop incentives and structures that universities.
attract foreign entrepreneurs, employees,
Investments in R&D and education in Sweden
students and researchers. Sweden’s appeal
contribute to high academic standards in research
for people with the kind of expertise that
and a well-educated work force. This has been of
is in particular demand requires some
fundamental importance for a high level of inno-
attention.
vation capacity and competitiveness in Swedish
industry. In the global knowledge economy, where
Research and higher education for innovation competition for investments and expertise is in-
Goal: Research and higher education in creasingly tough, it is crucial to be able to offer
Sweden is of a high quality by international attractive conditions in terms of the retention of
standards and contributes to innovation in expertise, research collaboration, and established
and functioning knowledge networks and research
many ways environments. Access to leading innovation and
Research is the systematic and methodical quest research infrastructure, including test and demon-
for new knowledge. Research contributes both stration facilities, is important in this context.
27An important requirement for Sweden’s ability tivity and capability for innovation and entrepre-
to successfully contribute to addressing societal neurship, e. g. in the Strategy for entrepreneur-
challenges is leading research within key enab- ship in the area of education presented by the
ling technologies, i.e. research with applications Government in 2009. Apart from being employed
in a variety of areas of society. or starting their own businesses, students have
Strong, government-funded research for inno- numerous areas of contact in many forms with
vation is promoted by and excellent level of re- businesses and other organisations during their
search results. It also benefits from a good connec- studies, such as placements and degree projects.
tion to research in education and a functioning Universities also work to ensure knowledge
collaboration between producers of research and gained from research is refined, transferred or
the surrounding society. Increased collaboration commercialised by means of patents, licensing
can contribute to higher scientific quality and and the creation of new businesses, through re-
have a positive impact on growth and societal search institutes and consultancies. The work at
development. universities aiming at valorisation of research
also include research collaboration with existing
Sub target: Education and research at uni- large and small enterprises or actors in other areas
versities with world-class quality and rele- of society.
vance contribute to innovation The knowledge economy is becoming more
and more complex, societal challenges tougher
Knowledge from universities has a fundamental and international competitive pressure greater.
value for society and constitutes a central pre- Businesses and other organisations therefore need
requisite for innovation. Universities are social to increase their interaction with universities in
forums for people who develop their knowledge, their innovation work. The capacity of these ac-
creativity, expertise and driving forces and who tors’ to collaborate with each other is crucial to
implement these in new solutions and the crea- development and renewal in society at large.
tion of value in new or existing businesses, as well
as in public and civil society organisations. Universities have an important role in making
global business groups see the appeal of investing
The results of university research constitute in their own and others’ R&D in Sweden. Glo-
an important source of innovation. The efforts to bal competitiveness between knowledge centres
increase the creation of value with a basis in such across the world for financing, research with peak
research has, in Sweden for a long time, focussed competence and students is intense. In order to
on developing incentives and expertise among remain competitive, Swedish universities must be
researchers in order to encourage them to start able to conduct research and provide education of
and develop their own businesses. This way of va- a high scientific and artistic excellence and of re-
lorising research is an important yet lesser part levance to society and industry.
of the ways in which research can contribute to
innovation. In fact, research at universities is con-
tributing to the development of new solutions in Sweden therefore needs to:
many different ways. The introduction of innova-
tion offices at many universities has contributed • Continue to develop excellence in re-
to broadening this view. search at universities.
Universities are actively interacting with the • Promote the development of leading re-
surrounding society including work with valo- search environments at universities by
risation of research based knowledge. Well-edu- means of the recruitment of internatio-
cated students, who apply knowledge and met- nally prominent researchers.
hods or implement ideas in their professional life • Continue to lay the foundations at uni-
including their own business, are important for versities to support the efforts of resear-
the valorisation of research. Students, from ba- chers and students’ in valorising research
sic to research level, contribute to innovation to based knowledge.
a large extent. Attention has been drawn to the
importance of their ability to develop their crea-
28• Continue to develop incentives and struc- tion capacity among businesses and in the public
tures for collaboration between universi- sector in Sweden. Such infrastructure can play in
ties and the surrounding society, inclu- important role in making regions and locations
ding long term collaboration with a view in Sweden an attractive prospect for internatio-
to develop knowledge and solutions to nal investors, businesses and people with peak
address societal challenges as well as key competence.
enabling technologies with wide applica- The Industrial Research Institutes are research
tions in many areas of society. institutes more focussed on the needs in different
• Continue to work on opportunities for parts of industry. The majority of these are gathe-
students to develop entrepreneurial skills red under RISE Holding AB. They have a have a
in line with the Strategy for entrepre- special task for supporting small and medium-
neurship in the area of education presen- sized enterprises that often have limited resour-
ted by the Government in 2009. ces of their own for research and development. In
recent years, the development of Industrial Re-
Sub target: World-class research institutes search Institutes in Sweden has led to larger and
fewer units with increased focus on this task, not
meet knowledge and development needs in least in collaboration with universities.
businesses and society
Research institutes are an important part of the Sweden therefore needs to:
infrastructure for knowledge development and
innovation in Sweden. In Sweden there are many • Enhance collaboration of research insti-
different forms of research institutes. Many work tutes with universities, industry and the
with research and development aimed at mee- public sector on national and regional le-
ting the needs of industry and society in general. vels.
Some are mostly focussed on the needs in diffe-
rent parts of industry. Others work primarily on • Develop the role of research institutes in
needs on areas of society with substantial natio- providing facilities for test and demon-
nal and international public stakeholders such as stration of new solutions, including col-
Swedish Environmental Research Institute (IVL), laboration with users.
Swedish National Road and Transport Research • Continue to develop the Industrial Re-
Institute (VTI) and Swedish Defence Research search Institutes’ work to support small
Agency (FOI). Advancement of scientific know- and medium-sized enterprises innovation
ledge development in different research areas is a capacity in collaboration with other ac-
prerequisite for the long term quality and compe- tors, including consultancy and financing
titiveness of research institutes. actors and universities.
Research institutes are often organised in order
to facilitate cooperation between industries, sec- Sub target: Strong Swedish research nodes
tors and fields of knowledge. They often have ex- have strong positions in global knowledge
tensive collaborations with universities and inter- networks
national research organisations. Therefore they
Many countries are investing intensely in in-
have an important role in developing knowledge
creased research for the development of their
and solutions addressing societal challenges.
knowledge base and innovation capacity. The
An important function of many research in- research in Sweden is in many respects of high in-
stitutes is to offer environments to certify, test, ternational standards, with good links to research
verify and demonstrate possible solutions. The in other countries. At the same time, research in
possibility to practically explore new ideas in real Sweden constitutes around one per cent of all
environments involving a dialogue with users is research in the world. The total volume of re-
important in order to understand needs and to search in the world is rapidly increasing. In order
evaluate and develop various potential solutions. to strengthen Swedish knowledge development
Access to and use of infrastructure for test and and competitiveness, it is therefore of increasing
demonstration is therefore important for innova- importance for Swedish universities, businesses,
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