Advantage Sweden
Advantage Sweden Reasons for Sweden International companies are attracted to Sweden for numerous reasons. The country is a global leader of innovation with a highly skilled labor force, sophisticated consumers, smooth business procedures, openness to international ownership and a stable economy. The practice of tailoring the nation’s numerous strengths secures the decision for international companies to expand their businesses in Sweden. It is so simple, so secure.
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Contents
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Advantage Sweden
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Cleantech
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Life Sciences
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ICT
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Materials Science
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Services Industry
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Swedish Economy
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Invest Sweden
Solid commitment to R&D
Strong bonds of collaboration
Research and development is a strong priority. Sweden’s substantial R&D expenditure places it 3rd in the world in terms of R&D spending as related to GDP. Sweden is home to a number of internationally recognized research facilities and universities distributed across the country. Its most notable is Karolinska Institutet. The Nobel Assembly at Karolinska has selected the Nobel laureates in Physiology or Medicine since 1901.
Sweden thrives on its competitive advantage thanks to a national capability to work together providing a dynamic environment where the government, industry and academia collaborate closely. Linking these three spheres forms the triple helix model that is grounded in a widespread distribution of R&D facilities across the nation. This ability to cooperate provides many new opportunities which combine and cross disciplines. Technologies, competence and innovation often overlap and join forces to result in products and applications taken from several business areas and academic institutions. Sweden has an easy and open business climate backed by government policies in favor of enterprise and industrial disputes are rare. There are no restrictions on foreign ownership. International investment is facilitated by easy business procedures, transparency and efficiency. Sweden is one of the least corrupt societies across the globe.
Long tradition of innovation Sweden consistently ranks as one of the most competitive, productive and globalized countries in the world. Its business community continues to demonstrate the valuable ability to take on new ideas and innovation, adapt to changing business conditions and thrive in an international setting. Sweden is the birthplace of Alfred Nobel, one of history’s most successful industrialists and entrepreneurs, and the curator of the Nobel Prize. The long list of world renowned companies and brands of Swedish origin such as IKEA, H&M, Ericsson and Volvo is a testimony to Sweden’s industrial tradition, know-how and innovativeness. The inspiration to innovate continues to advance new products and procedures in Sweden. Among the most iconic examples of Swedish innovation are the pacemaker, the interlocking zipper and the three-point seatbelt. Sweden has also given the world Bluetooth, dental implants and the computer mouse and is the birthplace of the smartphone.
Empowered workforce High productivity in Sweden is commonly attributed to a creative work atmosphere, the application of new technology and a high quality of life with time for personal development and family. Corporate structures are decentralized, encourage an empowered workforce and conduct business in an open, straight-forward management style. Gender equality is prominent and the labor force at large pursues lifelong learning.
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Advantage Sweden Sweden embraces newness
A hub for business
The pioneering spirit and openness of the business climate match the openness of the Swedish landscape and the value Swedes place on it. The country’s consumers have a high disposable income and are eager to sample and adopt new technologies and products. Sweden has the greatest number of computers per capita and is ranked as the most networked economy in the world. Swedes are also recognized as trendsetters, widely travelled and demanding consumers.
Sweden commands a central position in northern Europe and is the largest market in the Nordic region made up of nearly 25 million people. The Nordic countries constitute the 12th largest economy in the world. Sweden is an optimal geographical location as a central hub and for regional headquarters which explains why most of the world’s largest multinational companies operating in the Nordics have established their regional headquarters here. Sweden has the largest population of the region and a diverse representation of native speakers from the entire region. English is widely spoken at near fluent levels and the Swedish population competes only with the Netherlands for the top spot in Europe for English proficiency.
Political system Constitutional monarchy, with parliamentary government Head of State King Carl XVI Gustaf
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Time zone GMT +1
Population 9.5 million (85% live in urban areas)
Area 450,000 sq. km., the third largest country in Western Europe after France and Spain
Largest cities Stockholm (2,019,200) Gothenburg (918,000) MalmĂś (647,300)
Kiruna
Luleå
Stable economy. And green. Skellefteå
Sweden’s economy is one of the best performing in Europe. It has remained resilient to the financial and economic volatility affecting large parts of the continent. The country’s public finances are solid with a balanced budget showing a surplus and low interest rates. In fact, Sweden is one of the few countries in the world to show stable GDP growth while succeeding at reducing carbon emissions. This land of the north has abundant open spaces, protected and valued wilderness and natural beauty. This long-term union with nature underscores the Swedish commitment to sustainable practices and green technology.
Umeå Östersund
Sundsvall
Sweden Gävle Uppsala Västerås
Karlstad
Örebro
Stockholm Eskilstuna
Norrköping Linköping Borås Jönköping
Göteborg
Växjö Halmstad
Kalmar
Helsingborg Kristianstad Lund
Karlskrona
Malmö
Currency 1 krona = 100 öre
GDP/capita 40,267 US$
GDP growth (average annual change 2006-2011) 2.0%
European Union Member of EU
Key facts on Sweden
Cleantech
Pioneering green solutions Sweden’s many cleantech firms have earned worldwide recognition for their bold approaches to environmental issues. Initiatives within biofuels, wind power and green buildings attract both local and international venture capitalists. Sweden is ideally suited to develop, test and launch innovative programs because Swedish legislators aim to empower cleantech innovation and because Swedish consumers are demanding yet eager to adopt new technology, especially when it is based on sustainable resources and solutions. In Sweden, society embraces green technologies. Government regulations and incentives help transform clean technologies from concept to implemented practice. This collective effort throughout the society has led to renewable energy sourcing 47 percent of Sweden’s current energy consumption. That places Sweden first in Europe, well ahead of the EU average of 8.5 percent and well in reach of the 2020 target of 50 percent.
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A leader in biogas and biofuels Several hundred biogas plants processing biodegradable waste from sewage plants and municipal waste provide heat and fuel in Sweden. This includes a widespread use of biogas in transportation. Sweden’s large forest resources, good processing capabilities and expertise in the field contribute to and promote the extensive development of biofuel technologies. The world’s largest biogas plant based on gasification of wood waste, GoBiGas (Gothenburg Biomass Gasification), is under development in the city of Gothenburg.
Rapid wind power expansion Sweden’s sparse population, long coastline and favorable wind conditions offer some of Europe’s best potential for wind farming. The sector offers turbine manufacturers and suppliers both market and technology potential and presence in a cluster with ABB and SKF.
Smart grids, green buildings Sweden’s Nordic climate demands high heating capacity for residential and commercial structures. Combined with the requirement to reach an ambitious goal of reducing fossil fuel consumption, this business segment has seen great progress in products and skilled knowledge. Today, 90 percent of all new single family homes install heat pumps. Sweden is also a frontrunner in using district heating and energy-efficient structures. Consequently, fossil fuels have nearly been phased out of new Swedish buildings.
At Stockholm Royal Seaport, Stockholm’s newest urban district and one of Europe’s largest urban development projects, the development takes a step further. Its smart grid system uses new technical solutions to allow the district and its residents to optimize energy consumption. Sweden has an extensive partnership with InnoEnergy involving Sweden’s Royal Institute of Technology (KTH) Uppsala University, ABB and Vattenfall to develop smart grids.
A battery of energy The future of the electric-powered vehicle is directly linked to the continued development of storage capacity in the electric battery and vehicle drive train technology. Sweden’s long automotive history and strong position in today’s commercial vehicle industry (e.g. Volvo, Scania) present attractive opportunities for battery and electric motor development. This is in line with a “well-to-wheel” vision of 100 percent clean energy solutions. Also, the drive to reduce fossil fuel consumption for commercial and other traditional transport vehicles is well positioned to develop alongside existing and future smart grid solutions which take into account transport in addition to energy needs.
Collective effort has led to renewable energy sourcing of 47 percent of Sweden’s current energy consumption. That places Sweden first in Europe, well ahead of the EU average.
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Life Sciences
A future alive with opportunities With world-class companies, internationally acclaimed science and a proven commitment to the innovations of tomorrow, Sweden sets the optimal scene for life sciences. Home to some of Europe’s most distinguished biotech clusters and a comprehensive public registry, Sweden has one of Europe’s strongest drug development pipelines. Together with its forefront position in ICT, Sweden has emerged as a leader in the field of m-health and e-health applications. Sweden’s strong position is built on world-class R&D and drug discovery. Per capita spending on life science research is the highest in Europe, which leads to a steady stream of innovative projects.
Leading Europe into the future Sweden has six medical universities, each with its own distinctive profile and particular expertise ranging from cancer and diabetes research to medical devices and stem cell therapies. Located next to Karolinska Institutet, the New Karolinska Solna University Hospital, set for completion in 2016, is one of the largest and most innovative healthcare projects worldwide. The new hospital will create a hub for national university medical education and will secure the Stockholm-Uppsala region as a leading biomedical center. Other centers of regional excellence include the BIOMATCELL Center of biomaterials and SuMo Biomaterials in Gothenburg. The Antidiabetic Food Center at Lund University and the Umeå Center for Microbial Research in northern Sweden also achieve international prominence in their fields. The European Spallation Source (ESS), currently under construction in Lund, will become a major European materials research facility, and will attract top scientists, experts and enterprises from around the globe.
Exceptional environment
the quality of the outcome of a lengthy clinical trial. Studies of how genetic and environment factors affect health probably have better accuracy in Sweden thanks to an extensive network of national health registers and databanks. Clinical research is furthermore supported by The Medical Products Agency (MPA), Sweden’s regulatory authority, which encourages all inquiries connected to the development of medical products. It is one of the EU’s most frequently consulted authorities and a key facilitator for new drugs to reach needy patients. The stem cell regulatory framework is one of the most research-friendly around the globe. All of the world’s bestselling drugs, both traditional chemical substances and biopharmaceutical drugs, have been tested on Swedish patients.
Medicine on the move An aging population, a need for increased efficiency in the healthcare sector and an increased urge to stay mobile are among the key drivers for the development of eHealth and mHealth in Sweden. This is the convergence point where innovative electronic and mobile medtech solutions supplement traditional healthcare. Sweden is an optimal setting for development of applications in these areas. There is a great diversity in research spread among the ICT, telecom, materials science and life science sectors which will directly contribute to next generation solutions and cutting-edge mHealth and eHealth.
The reliability of data and trial participants directly affects
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ICT
Global innovation central Sweden consistently places at the top of performance indexes and rankings that feature innovation. As of 2012, Sweden has been number one for three years in a row on the Networked Readiness Index (NRI) published by the World Economic Forum. The report measures the extent to which of 142 economies take advantage of ICT and other new technologies to increase their growth and well-being.
Sweden is not only a dynamic environment in developing and establishing information and communication technologies but a world leader in converting technology into commercially viable products and applications. Decades of experience within the areas of telecoms, wireless, electronics, computer game development and web applications/design make Sweden an ideal place for ICT related R&D. Apple, Google, Electronic Arts, RIM, Huawei, Sony, Intel, ARM, Motorola, Opera, IBM, Ericsson and Windriver as well as many others are in Sweden to develop their technology. Many other companies are following in their footsteps as Sweden offers multiple investment opportunities in wireless technologies, mobile applications, industrial IT, positioning and GIS, big data, imaging and mHealth.
First in your phone Sweden is the birthplace of the features we associate
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with the modern smartphone. The first cellular phone with a touch screen and installed with a mobile web browser, mobile email, an mp3 player, HD video recording and a megapixel camera was developed in Sweden.
Development and commercialization Clusters for ICT development are found throughout the country. Highly skilled engineers, the presence of the world’s leading technology companies, demanding corporate clients and strong technology adoption position Sweden favorably with regard to development work and early commercialization of new products and services. The Nordic region, led by Sweden, has one of the world’s most interesting environments for tech investments. Industrial investors like Google, Apple, RIM, Intel, and prominent venture capital firms are active in early tech companies. The Nordics have an impressive track record of successful exits and a constant flow of new deals.
Disruptive innovation Swedish innovation continues to break new ground and supply products and services that effectively disrupt existing markets. Swedish companies, especially a growing number of newcomers, challenge entrenched norms in industries and markets including music, film, credit card payments and gift cards.
Solid performance Sweden retains its top ranking among comparable innovation-driven countries listed on the Connectivity Scorecard 2011 index citing, “Sweden is a consistently strong performer in all areas with few weaknesses.” Nearly all Swedes are connected to most of the diverse applications and products provided by telecommunication providers. The economy and business climate of Sweden has performed considerably better than most of its European counterparts. A significant amount of economic growth
and productivity growth is driven by information and communications technology (ICT).
Green data center location As the European leader in climate-friendly energy and sustainable technologies, Sweden is an excellent choice for large-scale data center operations. Facebook is soon to open Europe’s largest data center in Luleå, located in the north of Sweden. The region offers an attractive combination of low electricity prices, resilient energy infrastructure, secure locations, developable land and a skilled workforce. Additionally, the cool climate provides the possibility to use free cooling at least 8-10 months of the year. These factors contribute significantly to reduce data center energy consumption and keep it green.
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Materials Science
Engineering a sustainable future Materials found in everyday products already belong to the smart generation but there are always demands for newer materials. Materials science will continue to forge the functional, recyclable, energy-efficient materials of tomorrow. Sweden provides a dynamic environment to develop and test a wide range of new materials in an array of areas which include electronic and fiber-based materials and metals. Easy access to raw materials, groundbreaking research, industry focused collaboration and innovative inspiration characterize the Swedish setting.
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Sweden’s vitality in materials science builds on its diversified industrial base with globally-leading companies in sectors such as aerospace, automotive, white-goods, biomedical, tooling and packaging. The ability to create 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 Saab, Electrolux, Sandvik, Atlas Copco, SKF, Tetra Pak and SCA.
Green chemistry Climate change and rising oil prices continue to be motivational drivers to develop modern materials that come from natural and renewable resources. Sweden is alive with a spirit to find new applications for cellulose-based fibers. Less than a decade ago, a wood-based biorefinery would have been considered futuristic. Today, a number of R&D facilities are actively exploring the potential of biorefinery and have generated an assortment of advanced products, processes and technologies employing renewable raw materials or to use by-products from the forestry and food industries. Carbon fiber today can already be
produced from fiber pulp; tomorrow it could be from potato peels.
Enduring geo potential Sweden has a long history of metals and mining. Organized mining was initiated in the 9th century and Sweden saw the birth of the first public company in the world, during 13th century, when STORA Kopparberg was formed. Since then, the sector has been a backbone of the Swedish industry and is at present a vibrant and expanding industry. The mineralrich Fennoscandian shield extends through Sweden and provides an important resource for further exploration. Mining legislation is transparent and developed to encourage exploration in a sustainable manner. Through the years, Sweden has built up an extensive geological database and has the world’s largest drill core sampling available for research. In the EU, Sweden is the largest producer of iron ore, the second largest producer of silver, gold, lead and zinc and the third largest producer of copper. Sweden plays a leading role in metallurgical R&D as well as the development of advanced and ecological underground mining.
Research facilities for future material Extensive materials research capabilities are represented by both Sweden’s universities and technical institutes along with many dedicated industry research facilities which are distributed across the country. The European Spallation Source (ESS) that will be opened in Lund in 2019 will be Europe’s scientific frontline for future materials in areas such as energy, telecommunications, manufacturing, transportation, ICT and health. Together with the existing Max IV Lab research facility, the region will become a European research hub greatly weighted in materials science. The research and business climates in Sweden foster industry collaboration and technology transfer. Foreign companies have easy access to R&D and test environments including consumer research and end-user testing. This focus enables new technologies and new applications to rapidly gain a market foothold.
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Services Industry
Services account for 70 percent of the GDP and employment in most EU member states. In Sweden, services account for 80 percent of employment, mostly in knowledge intensive sectors. Sweden has established its strength and resiliency when faced with European and world economic setbacks. With an EU directive aiming at establishing a single market for services, Sweden offers to be the ideal gateway into the Nordics and Europe.
Wilderness wild to urban chic Tourism & Hospitality Tourism is Sweden’s fastest growing industry. Revenues are significant and expected to double in the next decade. Nature tourism draws visitors who enjoy the unspoiled wilderness and great outdoors. They also come for the rich cultural heritage and cosmopolitan cities gleaming with design, shopping and world-class culinary experiences. Sweden offers an active vacation at a safe and eco-friendly destination. As a result, Sweden is ranked 5th of the world’s countries with best potential for tourism, according to the World Economic Forum’s Travel and Tourism Competitiveness Report 2011. The increase in visitor volumes means a greater need for development of accommodations along with tourism related products and services to meet with growing demand. There are abundant opportunities for international property investors, developers and operators as well as activity companies, travel operators and other tourism entrepreneurs. Growth potential exists both in city-related tourism and Sweden’s ski resorts, outdoors and seaside offerings. There is a shortage of accommodation in locations and across segments, from holiday cabins and budget hotels to resorts with wellness facilities.
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Trend sensitive with strong purchasing power Retail The Swedish retail market has seen consistent growth over the past fifteen years, even during the recent world and European recessions. Retail sales per capita are well above EU average and for the coming years average retail sales in Sweden are forecasted to outperform most other strong European economies. Retail sales have been particularly strong in outlying shopping centers where new store concepts are being enthusiastically received. Many new shopping centers are in the planning stage. Swedish consumers are trend-sensitive and demanding buyers who value new international retail brands. They appreciate function and quality as much as design and brands when buying. Private consumption levels are well above EU average. Thanks to Sweden’s strong economic growth performance and future potential, Swedes enjoy a higher disposable income than most EU countries. Flagship retailers H&M and IKEA of Swedish origin promote a climate for world-class retail management while their central location in Northern Europe also provides an excellent logistics and warehousing base.
Services adding value to business Business processes outsourcing The Swedish business processes outsourcing (BPO) market has seen several years of healthy growth. The market for BPO in Sweden is in its infancy, but acceptance of the concept is growing rapidly. Finance, accounting and human resources are the most interesting BPO segments in Sweden. With International competition increasing, many companies are re-examining their business processes, thus offering an opportunity for BPO companies to start operations in Sweden for the Nordics. The size of the markets also works to the advantage of companies that would like to act and react to new technologies and innovations. Sweden has a diverse representation of native language speakers from the Nordic region. In addition to excellence in language skills, international businesses are drawn to Sweden for the low employee turnover, high computer literacy, technically advanced IT infrastructure and competitive operating costs. Sweden is the largest market in the region and is seen as a very developed, high-end market for BPO centers covering Scandinavia. Some 75 percent of business process outsourcing providers use Nordic languages in their daily business.
Expeditious service
Logistics & Transportation Sweden is the largest market and the ideal location for centralized operations in the Northern European region. Sweden’s highly ranked logistics market provides attractive business opportunities. These include competitive transport systems, the ability to streamline supply chain processes through innovative software solutions and strong growth potential in e-commerce. Fully integrated information flow solutions provide outstanding capacity to assure fast, frequent and timely logistics. Sweden’s “fast-track” customs system using the AEO certificate allows for cost-efficient and rapid customs handling. Sweden offers a dynamic environment to efficiently develop cutting-edge solutions in sustainable transport systems and high capacity transport across all modes of transport. Presently, Sweden is the home of major test sites for Green Corridors and Intelligent Transport Systems as well as similar innovative solutions.
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Swedish Economy
A platform for competitive business Sweden leads Europe and the world in providing world-class institutions, probusiness policies and an overall positive attitude for competitive business. Sweden’s long history of industrial success together with its openness to trading and investment has fostered a capacity for innovation and change. And while many countries are facing mounting public financial crisis with forced cuts in government spending, Sweden continues to build on its competitiveness hardware in terms of infrastructure, education and R&D.
Taxes on inheritance, capital transfer and personal wealth have been abolished. Income taxes have been lowered, which has helped boost consumer spending. These measures have been made possible thanks to Sweden’s solid public finances and healthy growth. Investor confidence in the Swedish economy remains strong and is reflected in low interest rates for government bonds.
EU member with financial autonomy Sweden’s convincing performance originates from the successful implementation of a number of important institutional reforms. Government spending is kept in check by parliamentary control. Sweden’s central bank, the Riksbank, independently manages Sweden’s monetary policy, a great strength during unstable and uncertain financial times in the Eurozone. The pension system is sustainable owing to broad political agreement. And as Sweden’s trade and investment is largely directed towards Europe, the importance of Sweden’s membership in the European Union cannot be underestimated.
Market driven economy What may be more surprising to learn is that Sweden is on the forefront in reforming public management. Deregulation and privatization have renewed public utilities such as energy, water and waste management, telecom, transpor-
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Composed Competitiveness Index 2012, country rank Overall ranking
Country
Global Competitiveness Index
World Competitiveness Scoreboard1)
Inward FDI Potential Index
Ease of Doing Business Index
Global Innovation Index
Knowledge Economy Index
Corruption Perceptions Index1)
Human Development Index
1.
Sweden
3
4
13
14
2
1
4
10
2.
US
5
1
1
4
7
12
24
15
3.
Hong Kong
11
1
4
2
4
18
12
4
4.
Singapore
2
3
3
1
3
23
5
13
5.
Denmark
8
12
22
5
6
3
2
16
6.
Norway
16
13
9
6
18
5
6
1
7.
Canada
12
7
14
13
8
7
10
6
8.
Finland
4
15
17
11
5
2
2
22
9.
Switzerland
1
5
16
26
1
10
8
11
Germany
6
10
6
19
12
8
14
9
10.
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. Sources: World Economic Forum, IMD, UNCTAD, World Bank, INSEAD, Transparency International, United Nations: Invest Sweden Compilation (2012)
tation, healthcare and education. Sweden’s remaining publicly-held companies operate under ordinary business conditions. Certainly, Sweden’s positive performance is also attributable to other Sweden-specific conditions. The wealth of natural resources particularly connected to clean energy, mining and forestry lays a solid foundation for industry and exports. Swedish engineering and high-tech skills, clearly reflected in products and applications, are in strong demand in the rapidly expanding, emerging economies.
Competitive leader As shown above in Invest Sweden’s Composed Competitiveness Index, Sweden’s competitiveness rests on hardcore business environment indicators as well as more subtle indicators of competitiveness such as reliability, trust and quality of life. Sweden’s improved position in some of the individual indexes in recent years reflects the positive impact of the country’s institutional reforms and favorable macroeconomic situation.
One of the best-performing economies in Europe Sweden’s economy remains resilient to the financial and economic volatility affecting large parts of Europe. Sweden’s public finances are solid. The budget is balanced and showing a surplus over the economic cycle. Government debt is low and shrinking steadily. The interest rate on government bonds is correspondingly low. The strong confidence in Sweden’s economy shown by international investors rests on the country’s pro-market policies, a healthy banking system, a vibrant business community and a number of structural reforms that include limits for government spending and the creation of a sustainable pension system.
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Invest Sweden
Services for international companies Business opportunities and investment advice Whether interested in accessing leading technologies and innovations or a fruitful market, Invest Sweden – the investment promotion organization of Sweden – helps international companies find and connect with business opportunities in Sweden, free of charge. We offer professional investment services that are tailored according to your needs. These services cover every stage of setting up a business or investing in Sweden, from initial strategic advice, fact finding, business opportunity matchmaking and information on how to run a business in Sweden as well as business networking. Our strength lies in our experienced business professionals who are experts in leading industry areas. Since 1996, our team has supported international companies investing in Sweden. We work in teams of senior level industry experts in Sweden and abroad, as well as regional specialists.
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Our services for investors include: • Strategic investment advice throughout the investment process • Business information and facts – demographics, business climate, industry specific data, business costs, etc. • Introduction to business and investment opportunities • Meeting and visit arrangements in Sweden • Information about how to start and run a business in Sweden • Network access – introductions to public and private organizations
www.investsweden.se Contact information INVEST SWEDEN World Trade Center Klarabergsviadukten 70Â B6 P O Box 90 SE-101 21 Stockholm, Sweden Tel: +46 8 402 78 00 info@investsweden.se
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www.investsweden.se Responsible publisher: Invest Sweden, Printing: Elanders AB, Photos: iStockphoto Finalized in July 2012. Printed on environmentally approved, chlorine-free paper. ISBN 978-91-977933-7-7