Advantage Sweden 2010/2011
Welcome to Sweden
Official name The Kingdom of Sweden
Population 9.3 million
Political system Constitutional Monarchy
Population density 22 per sq. km
Head of State King Carl XVI Gustaf
Area 450,000 sq. km
Central government Center-right majority govern ment, ruling since the election in 2006. General elections are held every four years.
Largest cities (population1) Stockholm (1,958,884) Göteborg (915,062) Malmö (584,734) 1)
Greater metropolitan area
1 Investing in the future Business Sectors
4 Cleantech
6 Automotive
Key Facts Sweden
Foreword
8 Information and Communication Tedchnologies
10 Life sciences
12 Materials science
15 Travel & tourism
14 Retail
16 Logistic centers and transportation
17 Regional headquarters
Contact centers Real estate
Business Framework
18 The Swedish economy
21 Invest Sweden regional network
An innovative climate is a fertile ground for building megabrands Sweden is one of the world’s most globalized and competitive nations. Here are some examples of companies that originate in Sweden. The fact that they have grown to become global corporations, many of them technology leaders in their fields, is a testimony to Sweden’s industrial tradition, know-how and innovativeness.
Foreword from the Director-General of Invest Sweden
Welcome to invest in the future In the past year, we have all been reminded of how closely we are interconnected in the world of today. Our prosperity, our climate and our health may be determined by our ability to act swiftly and intelligently for a common good. As a large part of the world is struggling to recover from the deepest economic recession in a generation, it is now more important than ever to support free trade and investment and renounce economic protectionism. While taking further steps to facilitate an economic recovery, we must also take giant strides towards solving the global challenges which threaten to cloud our common future. But rule-making alone cannot solve our problems. We must reform, adapt and modernize by strengthening our innovation capacity and moving towards a low carbon economy. Meeting the global challenges requires the ideas, skills and innovation that spring from individuals and companies in a dynamic and competitive market place. Sweden has a long tradition of openness and free flows of trade, investment and people. The country is very attractive to invest in, and stands out as one of the largest recipients of foreign investments in the world, compared to its size. Sweden’s strategic geographical position provides investors with triple market access to Scandinavia, Northern Europe and the enlarged European Union. This has fostered one of the most competitive business communities in the world, where capacity for change and innovation are key features. The heavy investments in higher education and basic research have propelled Sweden to a prime position among OECD nations in terms of university enrolment, skilled workforce and R&D. The dynamic Swedish university-industry collaboration is top ranked by the World Economic Forum. Together with the government they form a socalled triple helix model which has created excellent conditions for first rate research, with an ambition for commercialization and future international growth. The ability of offering cutting edge technologies and high added-value operations, as well as the world’s
highest company productivity has given Sweden a position as a leading supplier of innovative solutions and products. Sweden is home to world-leading operators and clusters in areas such as cleantech, ICT, life sciences, automotive and materials science, as well as investment opportunities within the services industry. This makes a good platform for sustainable business today and tomorrow. I invite you to have a look at what we can offer. Invest Sweden will support you in finding the best investment opportunities that fit with your strategy for development and growth. Welcome to Sweden!
Per-Erik Sandlund Director General Invest Sweden
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Innovative Sweden
Invest Sweden – seven steps to success Invest Sweden act on behalf of the Swedish government to support international companies doing business with Sweden. Starting out in 1995 we offer you specialist insight to Swedish technology and business service sectors to companies worldwide. Our staff has a solid background in the corporate sector and expertise in the investment process. Our services are free of c harge. We provide you with information and support through a stepwise process for your future business with Sweden. Our working process consists of the following seven steps:
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Information sharing Discuss Swedish business sec-
tors and technology Learn about your future business development investment areas
Business area P resent the Swedish offerings within your business areas Discuss your next investment step
2
Innovative Sweden
3
Business opportunities Suggest 3–4 suitable invest-
ment or business proposals Customize your options and narrow the choices
Market visit Arrange visits to Swe-
den and assist in partner meetings
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4
Select your opportunities to proceed with
Deal making Support with local knowledge
in business and technology
Assist as broker to facilitate your negotiation
Establishment
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S upport your establishment and assist with information services Facilitate access to authorities, organizations and institutions
Aftercare Feedback on your satisfaction
Continued contact
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Cleantech
Paving the ground for green solutions A leader in renewable energy and sustainable development l Home to innovative cleantech companies l Ideal base for test and launch of new products and technologies
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lations and incentives work in tandem to facilitate and speed implementation of clean technologies in all parts of Swedish society. Forty percent of Sweden’s energy consumption is currently sourced from renewable energy resources, placing Sweden first in a European comparison and well ahead of the EU average of 8.5 percent. The target for 2020 is 50 percent.
wind conditions and a long coastline. Large-scale expansion of wind power manufacturing output is planned. For example, construction of Europe’s largest wind farm with up to 1,101 turbines began in 2008. The sector offers turbine manufacturers and suppliers both market and technology potential and presence in a cluster that includes ABB and SKF.
Sweden’s innovative cleantech firms have gained worldwide recognition for their novel approach to solving pressing environmental issues. Promising companies and technologies are found in most cleantech fields. To support developments, there is a presence of both local and international venture capitalists. International syndication is frequent. An innovative business climate, demanding users and rapid technology adoption make Sweden ideally suited for development, testing and launch.
A leader in biogas and biofuels Several hundred biogas plants provide electricity, heat and fuel to Swedish cities and there is widespread use of biogas in transportation systems. The world’s largest biogas plant, GoBiGas (Göteborg Biomass Gasification) is under development in Sweden. A full scale plant for production of dimethyl ether (DME) from black liquor is being planned. Further to these, a multitude of technologies are being developed and implemented based on Sweden’s large forest resources, good processing capabilities and expertise in engine development.
A society embracing green technologies A focus on energy efficiency and alternative energy resources is evident wherever you look. Government regu-
Rapid wind power expansion Sweden offers some of Europe’s best potential for wind farm expansion, due to vast sparsely populated areas, good
Green building hot spot Sweden is a world leader in the use of district heating and energy-efficient building. Extensive application of energy conservation measures combined with implementation of renewable energy resources has almost phased out the use of fossil fuels in Swedish buildings. A demanding Swedish climate combined with stringent requirements has developed the business segment to include a multitude of advanced technical products as well as highly skilled knowledge providers. Sweden has been developing heat pump technology for decades which has led to a 50 percent share of the total European market. Today, 90 percent of all new single family houses in Sweden install heat pumps.
Business and investment opportunities
Renewable energy
Sustainable technologies Green buildings Heating & cooling Waste & recycling Water & wastewater
Bioenergy
Biofuels for transportation Solar power Wind power
Investment examples VC/Financial investments Masdar Clean Tech Fund, Abu Dhabi Teknoinvest, Norway Utilsun, Spain Vantage Point Ventures, US Solar cell manufacturing Alfa Solar, Germany Naps, Finland
Innovative Swedish companies Examples Chemrec - black liquor gasification. www.chemrec.se ChromoGenics - electrochromic technology for smart windows www.chromogenics.com Seabased - wave power solutions www.seabased.se ClimateWell - unique heating and cooling technology www.climatewell.com Cleanergy - www.cleanergyindustries.com
n67 Solar, Denmark REC, Norway
Economic growth with emissions reductions
SolarWorld, Germany
150
GDP
120
CO2 emissions
Wind farm development and manufacturing GE, US Enercon, Germany
60
RES, UK
30
Vestas, Denmark
NOx emissions
90
0
VOC emissions SO2 emissions
90
92
94
96
98
00
02
04
06
07
Kenersys, India Source: Invest Sweden, 2010
Please contact: Sten Engström, sten.engstrom@investsweden.se
Source: Swedish Energy Agency, 2009
www.investsweden.se/cleantech
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Automotive
Source for innovation and technology Access to world-leading vehicle manufacturers and engineers l R & D opportunities for foreign investors l Ideal base to develop and test new concepts Sweden is one of the few countries offering a complete value chain for automotive innovation in one single location. The country is home to five vehicle manufacturers – Volvo Group, Volvo Cars, Scania, Saab Automobile and BAE Hägglunds. The five companies are surrounded by a strong cluster of innovative partners and suppliers. Leader in tomorrow's vehicle solutions Reduced fuel consumption, improved safety, better connectivity, advanced electronics – many of tomorrow’s vehicle solutions will likely be of Swedish origin. Volvo Trucks and Scania are world leaders in hybrid technology and second generation biofuels for commercial vehicles, for example. Volvo Cars is a pio-
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neer in car safety. Embedded systems, ITS (intelligent transport systems) and vehicle electronics are other areas where Sweden offers cutting-edge expertise. Know-how in systems development The next generation of premium passenger cars will be controlled and managed by numerous embedded systems. Sweden’s expertise in systems design, development and integration rests partly on its industrial heritage in aerospace, defense and telecommunications. The Swedish way of collaboration between many stakeholders yields better overall results, and creates benefits in flexibility, timeto-market and costs. Connected vehicles Connecting vehicles to the roadside and beyond via wireless communication opens up immense business opportunities for manufacturers, suppliers and solution providers. As the home of Ericsson, the telecommunications company, the Stockholm-Kista mobile communications cluster and the Telematics Valley industry association, Sweden is
an ideal base to develop and test new concepts. Access to test environments Sweden offers advanced environments for testing and demonstrating new vehicle technology, enabling vehicle manufacturers and suppliers to test on a shared-cost basis. Test Site Sweden, a government-sponsored initiative, offers testing in virtual, full-scale and real environments. Over 30 manufacturers and suppliers have chosen the Sweden Winter Test Region in Northern Sweden for winter testing and long-term road tests. A nationwide electric vehicle program with more than 20 demonstration projects is also up to full speed.
“ We value the competency of Swedish engineers and the consensus-oriented approach to business that Sweden and Japan share, and appreciate the solid and stable economy.” Philip de Wolf, Managing Director, DENSO Sales Sweden
Business and investment opportunities
Safe vehicles Active safety Crashworthiness Driver aids and surveillance Road condition technology
Green vehicles Alternative powertrains for plugin hybrid electric vehicles and electric vehicles Advanced emissions reduction technology
Energy storage technology Hybrid systems/technology Materials technology
Intelligent vehicles Advanced system engineering Embedded software Electronic vehicle systems
Connected vehicles Car-to-car communications European emergency call
ITS, Intelligent transport systems Vehicle telematics
Test and validation Advanced crash test expertise for Euro NCAP project Driving simulators Test and demonstration arena for active safety, environmental impact and intelligent transport systems Winter testing
Sweden – global center for automotive innovation Brands/manufacturers
Swedish engineering services companies
Suppliers
Volvo Cars – R&D center for safety, electronics, telematics
Consat
Arvin Meritor, US
Ecore
Autoliv*, Sweden
olvo Trucks – R&D center for V Volvo Trucks, Renault Trucks and Mack Trucks
Mocean Labs
Bharat Forge, India
QRTech
Bosch, Germany
Saab Automobile – R&D center for safety, HMI, telematics, convertibles, chassis systems and turbo engines
Saab Engineering Services
Denso, Japan
Semcon
Haldex*, Sweden
Xdin
IAC, US
Scania – R&D center for all Scania technologies BAE Hägglunds – R&D and manufacturing of advanced military vehicle systems
Please contact: Stefan Östling, stefan.ostling@investsweden.se
Mitsubishi Electronics, Japan Yazaki, Japan *Global R&D headquarters in Sweden Source: Invest Sweden, 2010
www.investsweden.se/automotive
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Information and communication technologies (ict)
Global innovation center Abundance of innovative companies l Strong R&D capabilities l Advanced user of new technology Wealth of interesting technology and products Swedish people, businesses and public authorities are among the world’s most advanced users of new technology and among the quickest to adopt new applications and services. Sweden ranked number one in the Connectivity Scoreboard 2010 by London Business School, which measure deployment of ICT and to which extent governments, businesses and consumers make use of connectivity technologies to enhance social and economic prosperity. Strong R&D capabilities Sweden offers particular opportunities in communication systems, mobile terminal software, industrial IT, positioning and GIS, visualization and data centers. Sweden benefits from being the home of Ericsson, the world’s largest mobile communication systems provider. Web browsers, messaging systems, IPTV servers, computer games and navigation applications for companies such as EA, Google and Samsung are being developed here. Development and commercialization Highly skilled engineers, demanding multinational clients and strong tech-
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nology adoption make Sweden well placed to perform development work and early commercialization of new products and services. As a result, companies such as Huawei and Oracle have R&D centers in Sweden to develop, test and launch products and services. Green data center location As the European leader in climatefriendly energy and sustainable technologies, Sweden is also a good choice for large-scale data center operations. Sweden offers an attractive combination of low electricity prices, resilient energy infrastructure, secure locations, developable land and skilled workforce. The cool climate is in itself an advantage, since
the availability of free cooling during more than two thirds of the year contributes to reduced energy consumption. Sweden has an excellent communi cations infrastructure and is a major network hub for Internet traffic from Eastern Europe.
“ The Swedish people are innovative and on technology’s cutting edge. We highly recommend Sweden as a market for foreign investment.” Canning Fok, Managing Director, Hutchison-Whampoa Group (co-owner of mobile network operator 3 in Sweden)
Business and investment opportunities
Communication systems
Industrial IT
Visualization
Mobile terminal software
Positioning and GIS
Data centers
Establishments of R&D centers and data centers in Sweden A selection
Communication systems
Visualization
HP (acquisition Pipebeach), US
ARM (acquisition Logipard), UK
Huawei (greenfield), China
Dolby Laboratories (acquisition Coding Technologies), US
IBM (acquisition Telelogic), US
Electronic Arts (acquisition DICE), US
Netsocket (acquisition Operax), US
Google (acquisition Trendalyzer/Gapminder), US
Oracle (acquisition Hotsip), US
Intel (acquisition Swiftfoot Graphics), US
Radio IP Software (acquisition IPUnplugged), Canada
Micron (acquisition Edgeware), US
ZTE (greenfield), China
Motorola (acquisition Kreatel), US Tibco (acquisition Spotfire), US
Mobile terminal software
Ubisoft (acquisition Massive Entertainment), France
Check Point (acquisition Pointsec), Israel Huawei (greenfield), China Yahoo (acquisition Kenet Works), US
Data centers BM, US Interxion, Netherlands
Industrial IT Boeing (acquisition Carmen Systems), US Sun Microsystems (acquisition MySQL), US Positioning and GIS
Sungard, US Telecity, UK Verizon, US Source: Invest Sweden, 2010
Cambridge Silicon Radio (acquisition Nordnav), UK Vodafone (acquisition Wayfinder), UK
Please contact: Niklas Johnsson, niklas.johnsson@investsweden.se
www.investsweden.se/ict
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Life Sciences
Cutting edge medical research and an outstanding capacity for clinical trials ource of ground-breakS ing innovations l Globally recognized research institutes l Unique assets for modern research
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with drug candidates in cancer-related conditions, metabolic/cardiovascular disorders and neurological disorders, among others. Leading medtech firms are found in sectors such as biotech tools, diagnostics, medical devices, biomaterials and regenerative medicine.
European leader in life sciences Sweden is a great place to access cutting-edge research in the medical field. It is the source of a number of groundbreaking innovations and home to two of Europe’s most distinguished biotech clusters. Many companies capitalize on Sweden for in-licensing, clinical research or partnerships with academic research institutions.
World class research institutions Sweden has six medical universities, each with its own distinctive profile and particular expertise. Karolinska Institutet in Stockholm is one of the world’s leading biomedical universities. Major disorders in which Swedish academic researchers possess outstanding expertise include diabetes, obesity, insulin resistance, atherosclerosis, Alzheimer’s and Parkinson’s.
Excellence in several medical fields Astra, Elekta, Gambro and former Pharmacia bear witness to Sweden’s life sciences tradition. The drug development pipeline is one of Europe’s strongest,
Biobanks and registers assets for research Studies of how genetic and environment factors influence health can likely be conducted with better accuracy in Sweden than anywhere else, thanks to Swe-
den’s use of personal identity numbers and the existence of national population registers, health registers, disease-specific registers, drug registers and national quality registers. Several large biobanks have also been built up. An ideal location for clinical trials All of the world’s best-selling drugs, both traditional chemical substances and biopharmaceutical drugs, have been tested on Swedish patients. Sweden is distinguished by high scientific quality, rapid access to well-defined patient cohorts and an outstanding capacity to track patients. The Medical Products Agency (MPA), Sweden’s regulatory authority, is one of the EU’s most frequently consulted authorities under both centralized and mutual recognition procedures. The ability to deliver highly accurate data on efficacy and safety over long periods of time makes Sweden an ideal location for post-marketing safety surveillance studies (phase IV).
Business and investment opportunities
Medical technology Biomaterials Visualization Point of care Sensors
Unique resources for research A selection of Swedish registers and biobanks
Pharmaceutical development Chronic inflammation Metabolic diseases Neuroscience Oncology Regenerative medicine
Global licensing partners
A selection of companies that have in-licensed projects from Swedish firms
Causes of Death Register
Amgen, US
Karolinska Institutet Biobank
Boehringer Ingelheim, Germany
Multi-Generation Register
Bristol-Myers Squibb, US
Medical Biobank
Eisai, Japan
Swedish Hip Register
Genentech, US
Swedish Hospital Discharge Register
GlaxoSmithKline, UK
Swedish National Cataract Register
Guangdong Lantai Viewland, China
Twin Gene Biobank
Jiangsu Hengrui Medicine, China
Twin Register
Kyowa Hakko, Japan
Source: Invest Sweden, 2010
MediGene, Germany Merck, US Roche, Switzerland Teva Pharmaceutical Industries, Israel Tibotec, Belgium
Biopharmaceutical manufacturing Biotech tools Clinical trials Health care
Swedish drug development breakthroughs BricanylTM, selective beta 2 stimulator Dextran, MacrodexTM, blood plasma substitutes FragminTM, low-molecular-weight heparin GenotropinTM, human growth hormone HealonTM, ophthalmic device L-dopaTM, Parkinson’s disease medicine LosecTM/PrilosecTM, ulcer medicine NexiumTM, proton pump inhibitor PulmicortTM, asthma medicine RheomacrodexTM, blood plasma substitutes SalazopyrinTM, anti-inflammatory SelokenTM, selective beta 1 blocker XalatanTM, glaucoma drug XylocainTM, local anestethics Source: Invest Sweden, 2010
Wyeth, US Source: Invest Sweden, 2010
Please contact: Peter Bramberg, peter.bramberg@investsweden.se
www.investsweden.se/lifesciences
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Materials Science
Innovating the materials of the future Advanced materials know-how l Worldleading research facilities l Diversified industry clusters Materials science affects virtually every product sold. The material of tomorrow must be functional, secure, recyclable, energy efficient and have low environmental impact. Sweden offers a unique environment to develop and test such new materials, be it in functional electronic materials or more conventional areas such as metals and fiber-based materials. Large parts of Sweden’s countryside are covered by managed forest, and wood supply continues to increase steadily. Environmental initiatives have led to widespread eco-certification of forests and gives Swedish wood and paper a strong advantage on the international market. Vibrant exploration scene Sweden is the largest producer of iron
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ore in the EU, the second largest producer of silver, gold, lead and zinc and the third largest copper producer. The long tradition of metal mining industry has given a well developed infrastructure with highly advanced mining and metallurgy R&D. Sweden holds the world’s largest collection of drill core, available for research. A leader in materials technology Sweden’s strength in materials science lies in its diversified industrial base, with globally leading firms in the aerospace, automotive, biomedical, paper and pulp, and tooling industries, for example. The ability to create ever more advanced applications based on cutting-edge materials know-how has been key to the competitiveness of Sweden’s industry and the success of companies such as ABB, Sandvik, SKF, SSAB, Tetra Pak and LKAB. Strong materials research capabilites are found at both academic research centers and dedicated industry research facilities. Research facility of the future The major new European research facility for materials research and innovation,
European Spallation Source (ESS) will be located in Lund, southern Sweden, with excellent possibilities to develop tomorrow’s materials. Focus on industry collaboration The focus in Sweden on industry collaboration and technology transfer enables new technologies and new applications to rapidly gain a market foothold. The Ångström Laboratory at Uppsala University is the largest concentrated environment for academic materials research in Sweden and the source of numerous spin-off companies. Advanced packaging solutions Swedish materials know-how has paved the way for successful industry applications in packaging. As one of the world’s largest paper and pulp producing nations, Sweden offers particular expertise in packaging technologies based on cellulosic fiber. Foreign companies can access R&D and test environments both for development and test of new materials as well as for consumer research and end-user tests.
Business and investment opportunities
Cellulosic fiber
Polymers & petrochemicals
Mining, minerals, metals
Textiles
Composites
Glass & ceramics
Swedish materials research centers and institutes A selection
Acreo Research Institute (Stockholm, Norrköping, Hudiksvall) www.acreo.se Contract R&D in microelectronics, optics, communication technology FunMat (Linköping) www.liu.se/funmat Focus on nanostructured multifunctional ceramics Innventia (Stockholm) www.innventia.se Focus on cellulosic fiber applications (pulp, paper, graphic media, packaging and biorefining) MC2/Chalmers niversity of Technology U (Göteborg) www.chalmers.se/mc2 Cleanroom for microand nanofabrication
Luleå Piteå
Swerea IVF (Mölndal) www.ivf.se R&D within the manufacturing industry
Sweden Hudiksvall
Uppsala Stockholm Norrköping Linköping Borås Göteborg
SP Technical Research Institute (Borås) www.sp.se Lund Development and evaluation of technologies, material, products, and processes to meet customer needs and provide an effective link between research and commercialization
Swedish School of Textiles (Borås) www.hb.se/wps/portal/ ths/ Advanced higher education institute with complete textile manufacturing facilities
Swerea Mefos (Luleå) www.mefos.se Applied R&D and consulting in process metallurgy etc. for the ferrous and non-ferrous industries Swerea SICOMP (Piteå, Mölndal) www.swereasicomp.se Focus on the design and manufacturing of composite materials Wallenberg Wood Science Center (Stockholm) www.wwsc.se
Ångström Laboratory (Uppsala) www.angstrom.uu.se One of Europe’s most advanced laboratories for materials science
Please contact: Anders Eliasson, anders.eliasson@investsweden.se
Innovative Swedish materials companies A selection Applied Nano Surfaces www.appliednanosurfaces.com Industrial applications based on n ano- composite technology ChromoGenics www.chromogenics.se Products based on electrochromism, e.g. smart windows Diamorph www.diamorph.com Materials technology that provides ceramic materials and glasses with advanced properties Impact Coatings www.impactcoatings.se PVD (physical vapor d eposition) technology for electrical contacts OrganoClick www.organoclick.com Modification of bio-fibers Transic www.transic.com Power transistors in silicon carbide Xylophane www.xylophane.com Barrier material for packages based on x ylan
www.investsweden.se/materialsscience
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Retail
Steady growth in retail sales Openness to new concepts l Sweden welcomes international store concepts l Trendsensitive consumers
out-of-town shopping centers – retail destinations that are particularly keen to introduce new store concepts. Other retail concepts experiencing growth are franchising, e-shopping and cross border shopping with Denmark, Finland and Norway.
The Swedish retail market is expanding fuelled by steady population growth and rising disposable incomes – the turnover measured in current prices increased by 3,6 last year and is expected to grow by 30 percent until 2020 according to the Swedish Trade Federation. Retail sales growth has been particularly strong in
An ideal test market Swedish consumers are eager to try new concepts and shopping experiences. They are also demanding buyers, valuing function and quality as much as design and branding in buying decisions. As a result, Sweden is often used as a test market for global brands. Some 120
Please contact: Anna Hammarberg, anna.hammarberg@investsweden.se
Retail investments in Sweden
Retail sales growth
A selection of international retail brands
Total annual sales, SEK billion
Bauhaus, Germany - Home improvement
600
Deichmann, Denmark – Footware
500
New Yorker, Germany – Fashion
400
Media Markt, Germany – Home electronics
300
Plantagen, Norway – Gardening/plants
200
Redcats, France – Distance selling
100
Top Toy, Denmark – Toys Urban Outfitters, US – Fashion Source: Invest Sweden, 2010
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0
foreign retail chains are present with both large-store formats and flagship stores. More than 30 percent of the foreign retailers have at least 20 outlets in Sweden. Cost-efficient base for Scandinavia Competitive costs for personnel, operations and facilities imply that a retail operation in Sweden can be managed effectively. Flagship retailers H&M and Ikea have promoted good know-how in retail management. Sweden is also an excellent logistics and warehousing base for the whole Scandinavian region.
www.investsweden.se/retail
“ Our overall experiences from entering Sweden are very positive, not least because of the positive feedback we receive from our customers.” Erwin Rauh, chief operating officer, Media Markt Sweden
99 00 01 02 03 04 05 06 07 08
Source: Statistics Sweden, 2009
Travel & Tourism
Fastest-growing sector with potential Great potential in burgeoning tourism industry l Beautiful unexploited nature and clean environment l Increasing visitor volumes The travel and tourism industry is Sweden's fastest-growing sector – industry revenues are expected to double in the next decade. During 2009, the value of foreign tourism in Sweden exceeded the value of Swedish tourism abroad for the first time ever. The beautiful and unex-
ploited natural setting, with great potential for tourism development, is the principal reason for investments in Sweden. Cosmopolitan and eco-friendly Sweden satisfies all requirements for an active vacation and a safe destination. The combination of unique assets such as the natural and clean environment, the international cosmopolitan city life and a rich cultural heritage makes Sweden an attractive tourism destination all year round. Large prospects for developers The increasing demand from both international and Swedish travellers creates
great potential for international tourism enterprises in Sweden. New competence, new products and new services are needed in Sweden which is heading towards being a leading tourist destination. Sweden’s attractions as a destination lie in its mix of activities and experiences available to business and leisure travellers. Growth potential exists both in cityrelated hospitality and in tourism allied to Sweden’s ski, adventure/wilderness, golf and seaside offering. Large investments in accommodation and infrastructure are being made to meet the increase in demand, but there is room for international property developers and real estate investors.
Please contact: Anna Hammarberg, anna.hammarberg@investsweden.se
Best potential for travel & tourism
Tourism revenues in Sweden
2009, country rank
Growth forecast, SEK billion
www.investsweden.se/traveltourism
Examples of investments
1. Switzerland
500
BodaGDP Borg, US - Entertainment center
2. Austria
400
Choice 2Hotels, Norway - Hotel
3. Germany
300
CircleVOC Resort, Denmark - Resort emissions
4. France
200
Escape Norway - Travel Agency SO Travel, emissions
5. Canada
100
Expedia, US - Online travel provider
6. Spain 7. Sweden 8. US 9. Australia 10. Singapore
0
CO emissions
NOx emissions 2
Huddinge Resort, Finland - Resort/Hotel/Conf. 00
01
02
03
04
05
06
07
10
Total turnover Intl. visitor revenues
20
Marriott, US - Hotel Regenbogen, Germany - Camping sites Xianle Travel, China - Travel agency
Source: RTS, the Swedish Travel and Tourist Industry Federation, 2009
Source: World Economic Forum,“Travel & Tourism Competitiveness Report, 2009”
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Logistic Centers and Transportation
World class logistics Sweden offers 24-hour distribution to all major destinations in Northern Europe l Good access to third-party logistic providers with cutting-edge ICT solutions Sweden is the largest market in Northern Europe and the ideal location for centralized market operations in this region. Logistics providers and their Swedish customers are running solutions that fully integrate the flow of information with money and goods, including suppli-
ers, consumers, logistics providers and banks. Competitive infrastructure Existing warehouse infrastructure and competitive wage levels mean it is attractive to establish distribution centers or to start cooperation with third party logistics providers in Sweden. Sweden offers excellent infrastructure and you can reach all major destinations in Northern Europe in 24 hours by air, road, sea or rail. The World Bank ranks Sweden as the third most trade-friendly nation on the back of efficient logistics, moving goods and connecting manufacturers and consumers with international markets.
Please contact: SĂśren Pettersson, soren.pettersson@investsweden.se
World’s best countries for logistics 1. Germany
4,11
2. Singapore
4,09
3. Sweden
4,08
4. Netherlands
4,07
5. Luxembourg
3.98
6. Switzerland
3,97
7. Japan
3,97
8. UK
3,95
9. Belgium
3,94
10. Norway
3,93
12. FInland
3,89
16. Denmark
3,85
Source: Logistics Performance Indicators (LPI), 2010, World Bank
www.investsweden.se/logistics
Contact Centers
High-end market for contact centers Competitive operating costs l Sweden is the largest market in Scandinavia with native speakers from all the countries in the whole region
Most international businesses are drawn to Sweden by language skills, low employee turnover, high computer literacy, technically advanced infrastructure and competitive operating costs. From Sweden call centers can be run with high levels of quality and service. Sweden is the largest market in the region and is seen as a very developed,
Please contact: SĂśren Pettersson, soren.pettersson@investsweden.se 16
high-end market for contact centers covering Scandinavia. In 2009, the contact center industry employed 100,000 full-time equivalents. The number of outsourced full-time equivalents is 35,000. Seventy-five percent of all contact centers in Sweden provide services in several Scandinavian languages. www.investsweden.se/contactcenters
Regional Headquarters
Preferred location for regionalized activities Advanced IT and telecommunications infrastructure l The largest market in Northern Europe l Gateway to the European Union, EU
A natural hub with high quality resources A large number of companies have established regional headquarters for Northern Europe, using Sweden as their base. With an efficient outsourcing market for functions such as customer care, purchasing and logistics, Sweden has become a natural hub for the region.
Please contact: SĂśren Pettersson, soren.pettersson@investsweden.se
www.investsweden.se/regionalheadquarters
Real Estate
A prime European investment market Europe’s fourth-largest investment market l High transparency, low costs for transferring assets l A hot-spot for green building and leisure property Sweden has been a long time favorite for cross-border investment. An investorfriendly and efficient business environment, with professional participants in all
steps of the investment process, has contributed to making Sweden the fourthlargest investment market in a five year period to 2009. National institutional investors and private investors ensure high liquidity in the major markets even in difficult times of the cycle. The Swedish property market offers outstanding transparency, due to openness in public property record, a highlyevolved legal system and an abundance of market information. Market transparency, the reliability of the legal system and common use of standardized documentation concur to reducing transactions costs.
Please contact: Geetali Chhatwal Jonsson, geetali.chhatwal-jonsson@investsweden.se
Green buildings and leisure property Sweden has become a hot-spot for development of energy efficient buildings and sustainable city districts. Swedish cities have integrated the planning of transport and traffic, water and sewage treatment, waste collection, employment and housing to create increasingly sustainable cities with low carbon footprints. There is great diversity among investors, including property companies, institutional investors and property funds. Sweden’s hospitality and leisure industry offers a range of investment opportunities to international real estate investors and property developers. www.investsweden.se/realestate 17
Business Framework
l
The Swedish Economy
Taking important steps towards recovery As the world economy is recovering from the global financial and economic crisis, Sweden remains one of the safest havens. Although 2009 brought the worst economic backlash in decades, Sweden’s vigorous business community, strong institutions and public finance provide fundamentals for a solid recovery of the economy. The firm public finances, a healthy banking system and a well-performing economy cushioned Sweden through the first tremors of the financial crisis. As the turbulence spread from the U.S. to Europe, Sweden´s major trade partners, it was unavoidable to stay unaffected. Managing financial crisis A well balanced fiscal and monetary policy was applied. The Central Bank of Sweden (the Riksbank) acted in conjunction with other central banks and lowered the repo rate gradually from
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4.75 percent in October 2008 to 0.25 percent in July 2009. The Swedish government launched an extensive program to guarantee bank loans, injected liquidity in the market and raised the guarantee on bank deposits. In February 2009, the government introduced a bank recapitalization plan valued at SEK 50 billion (USD 7.6 billion) to increase bank lending. The plan was intended as a complement to private capital, with capital injections taking the form of either equity or hybrid capital.
Furthermore, the government took measures to counteract the economic downturn by additional public expenditures amounting to 1.3 percent of GDP, one of the most ambitious programs in Europe. Given Sweden’s vigorous public finances, the measures can be taken without abandoning the target of 1 percent government budget surplus over the economic cycle. Sweden’s fiscal and monetary policies have contributed to maintaining a macroeconomic environment conducive to growth. At the same time, the Riksbank
Business Framework
has maintained price stability with inflation target at 2 percent over the economic cycle. The low level of the repo rate combined with falling risk premiums mean that monetary policy will be strongly expansionary in the period to 2011. Strong signs of growth Many signals indicate that the global economy recovery has begun and the world economic growth is expected to about 4 percent in 2010. The recovery of the world economy has also a significant impact on the Swedish economy, since export stands for almost 50% of the GDP. Sweden’s GDP is expected to recover with a growth rate of 2.7 percent in
2010 and shift into even higher gear in 2011. The appreciation of the Swedish krona, may lead to slow growth of export and effect the GDP growth. Still, this is compensated by rising consumption in terms of governmental expenditure, low interest rates and tax cuts. The sign of optimism is also shown in the Swedish industry. Almost two third of the Swedish companies are expecting an increase in both turnover and profitability during 2010. The Swedish companies are more positive than the average European company. One of the reasons can be that the Swedish companies at an early stage quickly took measures to ad-
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The Swedish Economy
just their operation and activities to the global economic situation. A majority of the Swedish export companies, specially the large ones, expect an increase in their export the coming quarter. For instance, the manufacturing industry shows order growth from both the domestic and export markets since end of 2009. Output has also increased considerably, while employment has continued to decline. Industrial firms forecast continued strong output growth for the first half of 2010.
Please contact: Anna Dadfar, anna.dadfar@investsweden.se, Magnus Runnbeck, magnus.runnbeck@investsweden.se
Key economic indicators
SEK bn 2007
2007
Annual change in percent 2009 2 2008 1
Supply and demand GDP at current prices 3,064 2.6 –0.2 –3.9 Household consumption 1,430 3.0 –0.2 –1.8 Public consumption 793 0.4 1.3 1.2 Gross investment 582 7.5 3.5 –10.2 Exports of goods and services 1,612 5.8 1.7 –10.5 Imports of goods and services 1,375 9.4 3.0 –10.4 Balance of payments Current account (% of GDP) 9.0 8.2 5.1 Production Goods and service industries 2,113 3.4 –0.6 –5.0 Employment Unemployment rate (% of workforce) 6.2 6.1 8.7 Labor market program (% of workforce) 1.9 1.8 2.5 Prices Inflation (CPI) 2.2 3.4 –0.3 Public finance Government expenditure (% of GDP) 49.8 50.3 54.0 Government net lending (% of GDP) 2.4 1.5 –2.7 Government debt (% of GDP) 40.7 34.8 43.0 Interest rates 4.00 0.50 0.25 Repo rate 3 (end of year %) Bond rate (10-year, end of year %) 4.3 2.7 3.0 Sovereign credit rating Standard & Poor’s AAA 1) Preliminary figures
2) Forecast
3) Set by the Central Bank of Sweden
2010 2 0.9 0.5 1.5 –5.4 2.7 1.9 5.0 0.6 10.7 3.0 0.8 55.0 –4.5 47.6 0.25 3.7
Source: National Institute of Economic Research; Central Bank of Sweden, May 2009
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Doing Business in Sweden
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International Competitiveness
e
Platform for competitive business
attractive business environment 2008 !
Easy to do business Sweden hosts a competitive business community. In international comparisons, Swedenenvironment stands out for its innovative capacity, scientific infrastructure An attractive “ If I was to recommend a marketand to aeducation. Sweden offers first class infrastructureis and integration in aalso in regard to soft factors for competitiveness, Sweden’s prominence noticeable good friend wishing to expand overseas, business community characterized by growth and innovation. suchin as quality life and reliability, and trans parency of public institutions. Investing Sweden meansof connecting with one of the best it would be Sweden. It is definitely one business environments in Europe.
of the easiest, and nicest, places to work for a foreign investor.”
Uncomplicated business framework Composed competitiveness index
International businesses 2009, country rank will find an environment that is Ed Williams, Founding Principal, NEP Partners modern, open and enterprise-friendly. Skilled professionals, ComWorld ComBusiness Global Knowledge smooth business procedures andGlobal receptivity to petitiveness international Overall petitiveness Inward FDI Environment Innovation Economy Opacity ranking CountrySweden an easy country Index to operate Scoreboard Rankings Index Index of local advisors Index1) partnerships make in. Potential Index companies in Sweden often praise the quality Sweden1.hasSweden a long tradition of information openness and and 4 6 8 business partners. 8 3 2 3 transparency. Starting a company in Sweden is quick and 2. US 1 1 1 12 1 9 13 straightforward. Information about the process and necessary Please contact: 3. Canada 10 8 4 3 11 6 12 forms are readily available online and in English. International Maria Söderberg, maria.soderberg@isa.se
Human Development Index
7 15 3
4.
Finland
6
9
14
1
13
3
1
12
5.
Denmark
3
5
23
6
8
1
6
13
6.
Switzerland
2
4
21
5
7
7
13
10
7.
Singapore
5
3
2
2
5
24
3
28
8.
Norway
15
11
9
9
14
5
n/a2)
2
doing business with isa assistance 9.
10.
Netherlands
8
10
13
10
10
4
16
6
Germany
7
13
6
13
2
14
9
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ISA helps your company connect with the best business opportunities
A country’s ability to attract investment relies on its environment for business, people and innovations. Above are listed the top ten countries in a composed competitiveness index, based on countries’ average ranking in eight authoritative and publicly available country performance indices. 1) The index may give the same ranking to two or more countries. 2) The country is not included in the index. Source: ISA compilation, 2009; World Economic Forum, 2008; IMD, 2009; Unctad, 2008; EIU, 2009; Insead, 2009; World Bank, 2008; Milken Institute, 2009; United Nations, 2008.
Gaining access to cutting edge technologies? Finding a new “ Of all the investment promotion agencies business Expanding your business into Scandinavia Foreign-owned companies in Sweden Totalpartner? expenditure on R&D Corporate taxes that we’ve met, ISA is by2007, faremployed the most and 2007, Northern Europe? in thousands percent of GDP 2009, percent We invite you to contact us personally to see how we can p rofessional and forthcoming.” Israel France US 108 4.7 34.4 Sweden Italy UK 83 3.6 developed a strong 32.5 help. Invest in Sweden Agency (ISA) has Tata SonsFinland Inc. Finland Germany A. Vishwanath, Manager, 3.5 30 59 knowledge base in industries where Sweden enjoys specific Japan 3.4 30 Germany 54 competitive advantages. Our sector specialists will act as Spain Korea UK 3.0 28 Denmark 50 Matchmaking with Swedish companies in key sectors matchmakers and work closely with your company to help Switzerland Sweden Norway 48 2.9 26.3 Information on26business opportunities in Sweden identify potential opportunities in2.8Sweden that would Finland US France 44 Practical information on how to set up a business in strengthen your global business. Taiwan Netherlands Netherlands 43 2.7 25.5 Austria Denmark 2.6 you also gain introduc25 Switzerland 24 Sweden Through a single point of contact Denmark 2.5 12.5 with business service Luxembourg 21 Contacts firms and authorities tions to authorities and professional service companiesIreland to Other 78 Location advice get your business off the ground. By means of ISA’s extenTotal 612 sive regional network across Sweden, we will also suggest Contact us today! – www.investsweden.se the best business location for your company. ISA is a government agency and services are free of charge. Source: IMD, 2009
0,0000000,8333331,6666662,4999993,3333324,1666654,999998
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Source: PricewaterhouseCoopers, 2009
Source: Swedish Agency for Growth Policy Analysis, 2008
Doing Business in Sweden
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Regional Network
Invest Sweden - regional network The Invest Sweden network of regional partners provides extensive local assistance for the duration of an establishment or expansion process. More information about the regions is available on www.investsweden.se
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16 1 Business Region Skåne
Douglas Almquist +46 40 623 97 47 douglas.almquist@skane.com www.skane.com/invest 2 Kronoberg County
Per Schöldberg +46 470 79 48 72 scholdberg@sideum.se www.rffs.se 3 Invest in Kalmar County
Magnus Gustafson +46 480 44 83 91 magnus.gustafson@ kalmar.regionforbund.se www.investinkalmarcounty.se 4 Location Scandinavia
Anne-Marie Hagström Hirschberg +46 36 10 20 20 am.hh@locationscandinavia.se www.locationscandinavia.se Sjuhärad District 5 Christine Bjärkby
+46 33 435 79 57 christine.bjarkby@sjuharad.se www.sjuharad.se Business Region Göteborg (BRG) 6 Petra Sedelius
+46 31 61 24 22 petra.sedelius@businessregion.se www.businessregion.se Invest in Skaraborg 7 Ingemar Fredriksson
+46 500 49 72 02 ingemar@tsp-consultancy.com www.investinskaraborg.se
8 East Sweden Development Agency (ESDA)
Charlotte Magnusson +46 11 19 65 33 charlotte.magnusson@ostsam.se www.eastsweden.com
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14
9 Stockholm Business Region (SBR)
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Åsa Bergström +46 8 508 280 50 asa.bergstrom@sbr.stockholm.se www.stockholmbusinessregion.se
12 11
10 Business Region Örebro (BRO)
Mats Helgesson +46 19 21 26 15 mats.helgesson@orebro.se www.regionorebro.se
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6 6
Anna Damm +46 54 22 14 86 anna.damm@handelskammaren varmland.se www.investinvarmland.com
8
7 5
4
11 Invest in Värmland Agency (INVA)
9
3
2 1
12 Invest in Dalarna Agency (IDA)
Johan Holmberg +46 243 48 88 61 johan.holmberg@investindalarna.se www.investindalarna.se 13 Invest in Gävleborg Agency (IGA)
Carina Åkerberg +46 26 404 02 42 carina.akerberg@regiongavleborg.se www.iga-sweden.com 14 Midscand
Calle Suwe +46 70 680 62 45 calle.suwe@midscand.com www.jamtland.se
15 MidSweden Business Promotion
Robert Nordin +46 70 379 40 19 robert.nordin@midsweden.com www.midsweden.eu 16 Västerbotten Investment Agency (VIA)
Anders Wangby +46 910 71 26 80 anders.wangby@viavasterbotten.se 17 Invest in Norrbotten
Jörgen Eriksson +46 70 636 00 55 jorgen.eriksson@norrbotten.se
head office
Invest sweden World Trade Center Klarabergsviadukten 70 B6 P O Box 90 SE-101 21 Stockholm, Sweden Tel: +46 8 402 78 00 Fax: +46 8 402 78 78 info@investsweden.se
international operations – invest sweden offices
Invest sweden china
Invest sweden IndiA
Invest sweden Japan
Invest sweden north america
Eddie Chen Room 2102, South Building Hong Kong Plaza No.283 Huaihaizhong Road Shanghai 200021 P.R China Tel: +86 21 6390 6598 Fax: +86 21 6390 6592 china@investsweden.se
Srikant Illuri Embassy of Sweden Nyaya Marg Chanakyapuri New Delhi – 110 021 India Tel: +91 (11) 4606 7132 Fax: +91 (11) 4606 7130 india@investsweden.se
Hans G. Rhodiner Embassy of Sweden 1-10-3-300 Roppongi Minato-ku, Tokyo 106-0032 Japan Tel: +81 3 5562 5014 Fax: +81 3 5562 5130 japan@investsweden.se
Tony Svensson 570 Lexington Avenue, 20th Floor New York, NY 10022 USA Tel: +1 212 702 8780 Fax: +1 212 702 8783 usa@investsweden.se
Invest Sweden cooperates with Swedish embassies and consulates all over the world. www.swedenabroad.com
www.investsweden.se