EU Research and Innovation Strategies: Lessons for Thailand and Emerging Economies Choosing national research priorities in Sweden EU Research and Innovation Strategies: Lessons for Thailand and Emerging Economies April 2007 Bangkok Choosing national research priorities in Sweden VINNOVA - Swedish Governmental Agency for Innovation Systems Lena Gustasson Deputy Director General

R&D as part of GDP Statistics – SCB, Sweden

Choosing national research priorities in Sweden:  How are research priorities selected ( specific characteristics at national, regional, local levels )?  What factors are taken into account?  How are these research priorities managed in practice?

R&D expenditure in relation to GDP Source: OECD MSTI, 2004 Per cent of GDP  How does the Swedish R&D system look?

Characteristics Swedish National Innovation System Characteristics: The big international companies dominates the R&D- system The big international companies dominates the R&D- system The economy is strongly internationally linked The economy is strongly internationally linked SME invest very little in R&D SME invest very little in R&D Universities dominates the public R&D-system and they have a third task, to cooperate with companies and society Universities dominates the public R&D-system and they have a third task, to cooperate with companies and society Small sector of Research-institutes Small sector of Research-institutes Government invests very little R&D-money in companies outside the military sector Government invests very little R&D-money in companies outside the military sector

 How are research priorities selected? – who are involved in the process? 13 ministriesinfluence the direction At the national level the Swedish government is organized within the Government Office - a politically controlled entity. Sweden is currently organized according to 13 ministries that influence the direction of the Swedish research and innovation policy. All ministries support research activities in their sector of responsibility POLICYFORMING MINISTRIES = POLICYFORMING MINISTRIES This implies that functions held by ministries in other countries fall under the responsibility of government agencies in Sweden The Swedish institutional system is characterised by relatively small ministries. This implies that functions held by ministries in other countries fall under the responsibility of government agencies in Sweden IMPLEMENTING AGENICIES = IMPLEMENTING AGENICIES

NATIONAL LEVEL! Major public actors in Swedish research and innovation policy formulation 2006 – NATIONAL LEVEL! Two policy councils for innovation governance: The Research policy council (RPC) and the Globalization policy council (GPC): RPC was established in 1962 and plays a significant role in the preparation of the R&D bill every fourth year. GPC on the other hand is a brand new constellation with a competitiveness focus. Research councils – Sector Agencies – Foundations R&D – R&I Performers

Major R&D flows in the Swedish system 2003 (MSEK) A heavy concentration to business and universitites Large companies dominates R&D

R&D in Swedish industry 2003 by product field Källa: SCB A few industries (no more than 20 companies perform nearly 70% of total business R&D in Sweden) dominates R&D and thereby their focus influences R&D – but it is not that simple!

Actual priority process for Swedish research and innovation policy, 2007 EC Commission, Trend Chart - Annual Innovation Policy Trends and Appraisal Report. P.Sandgren, VINNOVA, 2006

Research priorities in the latest national research bill for Sweden, 2005 = National Innovation Strategy = Policy Framework for R&I Policy

MC2 - Chalmers Nanotechnology Systems Biology CARS Microscopy Sweden has and is focussing on hightechnology

Major public R&D-funding organizations in Sweden and their budgets 2006 Ministry of Enterprise, Energy and Communications Research Council for Environment Spatial Planning and Agricultural Sciences (FORMAS) 60 M€ 2 % of Gov. Ministry of the Environ- ment Swedish Agency for Innovation Systems VINNOVA 150 M€ 5 % of Gov. Other civilian agencies 390 M€ 14 % of Gov. Swedish Energy Agency (STEM) 85 M€ 3 % of Gov. Research Council for Working Life and Social Sciences (FAS) 30 M€ 1 % of Gov. Ministry of Health and Social Affairs Swedish Research Council (Vetenskaps- rådet) 300 M€ 10 % of Gov. Ministry of Education and Research Swedish National Space Board 55 M€ 2 % of Gov. VINNOVA, Division for Strategy Development, 2007 Gross Domestic Product: 2826 GSEK (304 G€) Government R&D-funding: 0.94% of GDP = 26,4 GSEK (2,8 G€) Mainly curiosity driven/ free research Mainly needs-driven/ mission oriented research Universities 1160 M€ 41 % of Gov. Public research found. 165 M€ 6 % of Gov. Defence agencies 445 M€ 16 % of Gov. Ministry of Defence

The Research and Innovation cycle: Research: Money transformation to Knowledge & Competence Innovation: Knowledge & Competence transformation to Money innovation system Developing innovation system is to make above efficient, i.e. to make investment in R&D profitable. Identify bottlenecks and possibilities.

Choosing national research priorities in Sweden:  What factors are taken into account? - Sustainable growth of the country in a global perspective (innovation and growth)! perspective (innovation and growth)! - The scientist’s individual driving force to solve scientific questions (scientific curiosity)! solve scientific questions (scientific curiosity)!

Curiosity driven Basic research (Bohr) Eg. VINNOVA - Mission orientied – -40% Needs-driven Basic research (Pasteur) Applied not Scientifically basic research (Edison) YesNo Yes No Goal Economic or social use Goal Scientific progress Curiosity driven and needs-driven research Eg. VR – Curiosity driven - 60%

There is a clear trend for national R&D programmes to focus on a number of STRONG R&I ENVIRONMENTS! 1) Financial support - in competition – from different R&I financiers! - this results in selected profiles! 2) In addition, R&D focuses are selected at different levels (ministries etc.) – after national/global etc. “analyses”! Eg. medicine Eg. wood Eg. Nano materials Eg. ICT Eg. Biotech tools Eg. Social science

Type of Centre and financier: 1) Different types of R(&I) Excellence Centres 2)Regional “WIN-Growth Centres Experience and research shows that geographic proximity and density brings competitive advantages as regards collaboration, learning, access to competence in collaboration and business exploitation. WIN-GROWTH

Effective innovation systems Triple Helix Interaction Business University Government/Public Sector Sustainable growth requires interaction between business, university and government/public sector The interaction results in new products, services, and processes.

ROBOTICS VALLEY VINNVÄXT (WIN-Growth) – Implementing “Triple Helix” on the regional level “Controlled” development ?

Källa: Göteborgs-Posten Universities/University colleges in Sweden Nanotechnology - Companies c c c “Spontaneous” development?

Funding structure for Swedish universities Source: Högskoleverket Årsrapport 2006XX X

Choosing national research priorities in Sweden:  What factors are taken into account? - Quality– overall principle! (research/competence) - Renewal - Collaborations – different Actors! - Composition of Teams (female/male, age …., international recruitment….) - Geographic proximity - Competence density - Equipment …….

Is Sweden at all seen??? Above all – GLOBAL competition, challenge and possibilities! Regional, national, European, bilateral collaborations!

Choosing national research priorities in Sweden:  How are research priorities selected (specific characteristics at national, regional, local levels)?  What factors are taken into account?  How are these research priorities managed in practice?  I said something ….  Evaluation:  Before project start: Peer review …  During and after..: - Evalutation (international…) - “Follow-research” - CAUSE FEED-BACK LOOPS!

Thank you for your attention!