The Swedish Experience

Brics-workshopAalborg 13th Feb 2006

Dr Per Eriksson,

Director General VINNOVA Swedish Governmental Agency for Innovation Systems

Knowledge Based Economy and Global Competitiveness

• The economy is becoming more and more knowledge based and global

• The European Union has set the goal to become the world's most dynamic knowledge based economy

• This makes R&D very important, but R&D has to be strongly linked to business need, need-driven R&D

• Socially sustainable growth is very important in Sweden

R&D expenditure in relation to GDP 2001

0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% 5,0%

Israel (2002)

Sweden

Finland

Japan

Korea

United States (2003)

Switzerland

Germany (2002)

Denmark

France (2002)

Belgium

Netherlands

United Kingdom

Canada (2002)

Norway

New Zealand

Ireland

Universities & colleges

Government organisations

Business sector

Source: OECD MSTI, 2004

Per cent of GDP

Governmental Funding Agencies

Research CouncilScience driven research

VINNOVA Governmental Agency for Innovation Systems

Need-driven research and development

NutekRegional development

Research and Innovation

Research: Money transformation toKnowledge & Competence

Innovation: Knowledge & Competence

transformation to Money

Developing innovation system is to make above efficient, i.e. to make investment in R&D profitable. Identify bottlenecks and possibilities.

An innovation system is the network and

interplay of public and private institutions

in which production, distribution and use of

new knowledge and technology take place.

Most innovations from interplay, up to 9 of 10!

Innovation system

Region B

Region C

Innovation System perspectives

Region A

SectorI

SectorII

SectorIII

National

GovernmentPublic sector

Business University

Depending Actor Groups

Knowledge based economy

From PPP, Public Private Partnership,To Public Private Univ. Partnership,

i.e. Triple Helix

Triple Helix

Different University Culture and History

Humboldt university (“old European way”)

Priests, Teachers, Lawyers, Civil Servants

Entrepreneurial university (“American way”)

Engineers, Agricultural, Medicine

Swedish National Innovation System Characteristics:

• The economy strongly internationally linked

• The big international companies dominates the R&D-system

• 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

• Small sector of Research-institutes

• Government invests very little R&D-money in companies outside the military sector

Innovations

- Process InnovationsOften big companies and no new jobs

- Product and Service InnovationOften SME and new jobs

Mission for VINNOVA

Promote sustainable growth

by financing need-driven R&D and developing innovation systems

VINNOVA’s challengeLong-term economic growth in Sweden is not strong, despite large investments in R&D

Increasing returns on Swedish R&D investments is one of VINNOVA’s challenges

Matching money from companies, co-operative research, need-driven R&D

A new SBIR-like program is needed and introduced

From S&T push to more market driven R&D

Sectorial Research & Innovation System Programs, matching money from companies

Information & Communication Technology

Biotech, Life science

Manufacturing and Materials

Transport system, Automotive

Working Life Science

Triple Helix Composed Decision Boards

National Research & Innovation System Programs

Center of Excellence in Research & InnovationCo-financed: VINNOVA – Industry – University

SBIR, Small Business Innovation Research

Incubators & seed financing, start-ups

Universities in Innovation Systems, Key Actors pr.

Programs for Regional Research & Innovation Systems

VINNVÄXT (WIN Growth) a new program

Competitive Regions (by letting the regions compete)

Cooperative, Triple Helix and regional based, R&D

The Swedish Experience

Brics-workshopAalborg 13th Feb 2006

Per Eriksson,

Director General VINNOVA Swedish Governmental Agency for Innovation Systems

The Fundament of Growth

Work places Work places with a with a market market outside of outside of the regionthe region Infrastructure

Local Local private private servicesservices

Local Local publicpublicservicesservices

Children, eldery people etc Children, eldery people etc

KarlskronaKarlskrona

Efficient innovation systems

Interaction between• Business• Research• Policy/Public Sector

Sustainable growth requires interaction between business, research, and policy/the public sector – Triple Helix. Entrepreneurs moves between these actor groups

The interactions result in new products, services, and processes.

GovernmentPublic sector

Business University

Depending Actor Groups

Knowledge based economy

From PPP, Public Private Partnership,To Public Private Univ. Partnership,

i.e. Triple Helix

Triple Helix

The Swedish Experience

Brics-workshopAalborg 13th Feb 2006

Per Eriksson,

Director General VINNOVA Swedish Governmental Agency for Innovation Systems