Sweden Leading the world in innovation Photo: Fredrik Broman/imagebank.sweden.se This presentation is produced by the Swedish Institute

Sweden – at the top 1/131 – Innovation Capacity Index 2011 2/125 – Global Innovation Index 2011 1/82 – Global Creativity Index 2011 Photo: Silvia Man/imagebank.sweden.se Today Sweden is ranked as the most innovative nation in various international indexes. Innovation Capacity Index – European Business School Global Innovation Index – INSEAD Global Creativity Index – Martin Prosperity Institute “Sweden has a rank of number one among 131 countries in transparency and judicial independence, corruption perceptions, gender equity, e-government readiness, personal computer penetration rates, receipts of royalties and license fees, as well as the “doing business” indicators for the time and number of procedures required to register property. It has a rank of 2 in scientific and technical journal articles per capita, environmental sustainability, and research and development expenditure in relation to GDP, where it is second only to Israel. There are 12 other indicators in which Sweden has a top 8 rank, including the quality of its public administration, the effectiveness of its government, rule of law, the more egalitarian distribution of national income, Internet penetration rates, as well as other indicators of good governance”. Top 4 in the Innovation Capacity Index: Sweden, Switzerland, Singapore, Finland. “Swedish research is, in relation to the size of its population, leading in the world in terms of scientific output, measured by the number of publications in internationally acknowledged scientific journals.” OECD Sweden – at the top

Always connected A leading country in cell phone, internet and broadband penetration Photo: Alex James Bramwell, Shutterstock One of the reasons that Sweden ranks high in these indexes, is the fact that we have a modern and well-used infrastructure for communication. Today, Sweden has the most computer and internet users per capita in the world.47 According to the CIA World Factbook, Sweden is ranked among the leading countries for cell phone, internet and broadband penetration.   Footnotes 46) Sweden.se, www.sweden.se/eng/Home/Quick-facts/Sweden-in-Brief/Technology-Infrastructure/ 47) IMD World Competitiveness yearbook 2009

Among the highest R&D spending in the world Photo: Melker Dahlstrand/imagebank.sweden.se Further more we invest 3,3% of GDP (2010) annually on R&D. This is on the same level as Japan (3,3%). Only one country in the world invests more (Israel 4,2%). Among the highest R&D spending in the world

Some areas in which Swedish research excels Photo: Ulf Lundin/imagebank.sweden.se Let’s take a look at some of the research areas in which Sweden excels. (Click och the arrow to enter YouTube) Some areas in which Swedish research excels

Largest number of global companies per capita - Sweden is not only the home of some of the world’s most famous brands, such as Ericsson, H&M, Volvo and Ikea, but also serves as the base for tomorrow’s emerging industries, such as environmental technology, life sciences and telecom.   With strong economic stability and high levels of technological innovation, Sweden is one of the most competitive nations in the world, according to the World Economic Forum.4 Today, Sweden has the best climate for new innovation in Europe, according to the European Innovation Scoreboard.5 World-leading export companies6 ABB – The world’s biggest supplier of power grids Ikea – The world’s biggest home furnishings retailer Sandvik – The world’s largest maker of metal-cutting tools Ericsson – The world’s leading cell phone network provider SSAB – The world’s largest supplier of high-tensile steel AstraZeneca – One of the world’s leading pharmaceutical companies AB Volvo – The world’s second biggest truck maker Footnotes: 4) World Economic Forum. (The Global Competitiveness Report 2009-2010) http://www.swedishwire.com/business/907-sweden-among-most-competitive-nations http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm 5) European Innovation Scoreboard 2010; European Commission 2010

Innovated in Sweden… Dialysis machine Mobile telephony Ball bearing Pacemaker Tetra Pak Bluetooth Color screen Graphics for computers 3-point safety belt Zipper Dynamite Safety match Dialysis machine Mobile telephony Vacuum cleaner Losec Celsius thermometer Screw propeller Welding helmet AGA Lighthouse Ball bearing Computer mouse Skype Hasselblad camera AXE switch Ultrasound Spotify Metro Plastic plug Millions of hearts around the world beat with the help of a pacemaker. Candles are lit with the help of safety matches. Innumerable lives have been saved with the help of the three-point seatbelt. The world’s largest social media application – Skype – (with close to 700 million users globally) has changed the way we communicate. And Metro – one of the world’s most read newspapers – gives millions of people news for free on their way to work everyday. These are just a few examples of Swedish innovations that have made a difference. Here are some more Swedish innovations used worldwide … Blowtorch Modern refrigerator Xylocain Tooth implants Adjustable wrench Rear-facing child safety seat

All this while less than 0 All this while less than 0.15% of the world’s population is actually Swedish. 0.14% Photo: Tonis Pan, Shutterstock So, Sweden ranks at the top of innovation indexes, has generated many innovations and global brands and has leading research in many areas… All this with less than 0.15% of the world’s population. There are some 20 cities in the world with a larger population than Sweden.

What’s the secret, Sweden?

Political focus Education Infrastructure Research and innovation Photo: Ulf Huett Nilsson/imagebank.sweden.se The answer to that question is not simple, nor is it one single factor. I will however try to show some of the factors that have played an essential role in the development of Sweden. Strong focus on education In 1842 compulsory elementary schooling was introduced in Sweden. Swedish law states that all children should have the same access to education, regardless of gender, location or socioeconomic factors. The introduction of compulsory school gave Sweden an educated population quite early. Already in 1477 the first Swedish University was established in Uppsala, north of Stockholm. Today approximately a third of Sweden’s workforce has tertiary education (from universities or other post-secondary education institutions). This highly skilled workforce has made the country adapt rapidly to a changing environment and has laid the ground for high levels of technological adoption and innovation (The Global Competitiveness Report 2009-2010). Strong focus on infrastructure – transportation and modern communication technology in focus In 1853 the Swedish Parliament decided that the state would build main line railways. This became of major importance for the development of the Swedish industry. The construction of the early main lines provided a fast and safe connection from the mines in the north to the rest of Sweden, and opened the doors for international exports. The focus on infrastructure for modern communication has played an essential role in the development of Sweden. In the late 1800’s the Swedish capital of Stockholm had the world’s highest density of telephones (both in terms of the number of telephones and telephones per inhabitants). Ever since communication has been a key focus area. ”Harpsundsandan” – The government and the leading industry families agreement. The government placed an order forcing the telecomsupplier (Ericsson) and the publicly owned operator to cooperate in the development of a modern telecom network. Today, as mentioned earlier, Sweden has the most computer and internet users per capita in the world (IMD World Competitiveness yearbook 2009). According to the CIA World Factbook, Sweden is ranked among the leading countries for cell phone, internet and broadband penetration. The Home-PC reform in 1998 gave Swedes the possibility to rent a PC taxfree. This increased the PC-penetration heavily and increased the demand for broadband. Strong focus on research and innovation – Public agencies, Triple Helix Sweden has for a many years had a strong relationship between universities and academia. Many of the Swedish global companies would not be where they are today, without this close cooperation. Ex. Pharmacia – Uppsala (shared research), Ericsson – KTH, Volvo/SAAB – Gothenburg University/Chalmers, SAAB Jas – Linköping Further more there is a strong system of agensies and research financers (23 different ones) supporting areas in which Sweden is strong, but also targeting areas in which we are weaker and need to improve. (Ex. Vinnova, Tillväxtverket, Veteenskapsrådet etc) (“Triple Helix Model.” The objective is to create a systematic approach to encouraging and nurturing innovation, one that will ultimately result in economic growth. The model is based on strong interactions between Sweden’s universities, industries, and government. The idea is to move from being solely focused on the production of tangible goods to an economy that is based on the capitalization of knowledge). Education Infrastructure Research and innovation

Open borders Photo: Ericsson AB (The photo shows a historical moment for the Swedish telephone company Ericsson. Lars Magnus Ericsson is hosting a delegation from China in 1906. Swedish company LM Ericsson initiated business relations with China more than a hundred years ago. The first 2,000 telephones were delivered to Shanghai in 1894. Today Ericsson is the world’s leading cell phone network provider.) Ever since the industrial revolution in the 18th and 19th centuries, Swedish economy and welfare have been based on international trade. (Swedish exports are equivalent to nearly half of Sweden’s gross domestic product).   - Therefore, Sweden has a strong tradition of supporting international free trade and fighting protectionism. As a result, Sweden has a natural open-mindedness toward global business opportunities and foreign investments. Sweden has had an open approach to immigration over the years. Competence and labor from around the world has moved to Sweden contributing to the development of the country. (People with foreign backgrounds often have a good knowledge of the business culture, politics, religion and language of their former home countries. They are in a particularly good position both to conduct trade themselves and to guide other Swedish companies. This, in turn, leads to market access for Swedish companies and better trade relations between Sweden and other countries). In Sweden, researchers own their own research and patents, helping to attract top researchers to our universities. Open borders

A culture nurturing innovation Cooperation Open and international climate Critical thinking Non-hierarchical organizations Photo: Erik Leonsson/imagebank.sweden.se The Swedish culture offers: An open and international climate where influences and competences come together, creating new ideas and solutions. A non-hierarchical culture where the distance between management and staff/professorer and student, is small and the relations are informal. A strong belief in the individual and the individuals will and capacity to take responsibility A strong belief in the importance of childrens play. We believe that play is a key to creativity. A climate encouraging independant thinking and individual initiatives A strong focus on cooperation, diversity and equality in all aspects of society. Together this has created a culture nurturing innovation. Diversity Delegated responsibilty Equality Encourage children’s play

Sweden Spirit of innovation Photo: Fredrik Broman/imagebank.sweden.se Together, the political focus on innovation, our openess and values, create a culture nurturing innovation. This together creates the Swedish Spirit of innovation.