Fact sheet
Running a business
1/3 Photo: Photolibrary/NordicPhotos, www.imagebank.sweden.se©Biovitrum, www.imagebank.sweden.se©Neuronova
RDD&D - National grants and loans Sweden has numerous government agencies and publicly run foundations, research councils and organizations that offer funding support. This fact sheet explains where in the business process these organizations can offer assistance. FINANCIAL SUPPORT
Funding consists mainly of grants and loans and is targeted primarily at business areas where Sweden is a leader and at sustainability-related sectors. Grants, loans and other support can be applied for in the Research, Development, Demonstration and Deployment (RDD&D) phases. In addition to financial support, some of the organizations offer advice on how to convert an idea into a marketable product or service. Research & development
Sweden spends 3.75 percent of its GDP on R&D – one of the highest rates in the world. Much of this spending is channeled through government agencies and public foundations, research councils and other bodies. The government and parliament allocate budget resources and provide general guidelines on how these funds are to be used to promote R&D. A major part of the applied research performed in Sweden is conducted at universities and other institutes of higher education. Relatively few research institutions exist outside the academic world. There are, however, a number of industrial institutes where Swedish industrial partners work together on R&D ventures of common interest. Research Institutes of Sweden
Published in January 2011
in brief
Funding primarily targeted at strong sectors in Sweden Focus on small and medium sized companies Funding for demonstration projects available Mix of grants and loans available throughout the process
(RISE) is the primary industrial research institute network. The structure of Sweden’s environment for applied research means that much of the available support for research projects is geared towards universities and other higher education bodies. But funding opportunities do exist for small and medium sized enterprises. The government agencies, foundations and research councils that offer support to applied research are: • The Swedish Agency for Economic and Regional Growth (Tillväxtverket) • The Knowledge Foundation (KK-Stiftelsen) • The Swedish Governmental Agency for Innovation Systems (Vinnova) • The Swedish Foundation for Strategic Research (Stiftelsen för Strategisk Forskning) • The Swedish Transport Administration (Trafikverket) • The Foundation for Strategic Environmental Research (Mistra) • The Swedish Energy Agency (Energimyndigheten) Funding applications for projects related to sustainability and renewable energy can be submitted to Mistra and Energi myndigheten. Trafikverket supports research in transport systems.
Fact sheet
Running a business
The Swedish innovation system is founded on highly effective triple helix cooperation between business, government bodies and academia. Vinnova
The government agency Vinnova plays an integral part in driving this collaboration, actively promoting needs-driven R&D to support sustainable growth in the Swedish market. Vinnova also has national responsibilities for many European R&D programs and can therefore be a good source of information on obtaining EU funding in the development phase of the business cycle. Innovationsbron
Innovationsbron plays a key part in the Swedish innovation landscape, providing support in developing ideas into marketable products and services. By supplying seed funding for pre-commercial ideas, Innovationsbron can help turn research into sustainable businesses. Innovationsbron also has an important role in providing an attractive environment for innovations as they turn into commercial ventures. Innovationsbron runs the national incubator program, aimed at strengthening the inflow of ideas to incubator environments. Incubator program members and standalone incubators have good relationships with the government agencies, foundations and councils that provide early stage funding. The incubators are also a good gateway to private funding. Alternative sources
Other sources of public funding at the development stage of the business cycle are: Energimyndigheten, Industrifonden, Tillväxtverket, ALMI Företagspartner and KK-stiftelsen. spirit of innovation Innovation and a flair for scientific and technological discovery have long been Swedish strengths. Swedish minds are behind a host of modern inventions we take for granted in everyday life - the automated cash machine, GSM cell phone technology, the pacemaker, the computer mouse and Skype - to name just a few. Long ago, the safety match and the adjustable wrench were created by Swedish innovative thinking. An open-minded approach to knowledge and learning along with a proactive approach to stimulating creative mindsets underpin a national ability to produce first-class engineers, scientists and innovators. Swedes’ natural curiosity for innovation and a strong research environment are among the reasons why the country often ranks among the world’s most innovative nations.
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Demonstration
Sweden is a good test market and Swedes tend to be early adopters of new ideas and technology. Sweden also offers state-of-the-art testing facilities in the automotive and ICT sectors. Members of the RISE network, such as Swerea IVF and SP Technical Research Institute of Sweden (SP Sveriges Tekniska Forskningsinstitut), provide leading platforms for trial and demonstration of new concepts. They can help clients to test and show newly developed products and can carry out larger scale testing projects. Such projects may also qualify for additional EU funding. Alongside access to a beneficial environment for testing products and services, opportunities exist to obtain financial support and funding at this stage of the business cycle. Vinnova is the main government agency that funds demonstration projects, but agencies such as Energimyndigheten and Trafik verket also offer funding in their various fields of expertise. Deployment
Sweden offers an excellent success platform for ideas that have been developed into a marketable product or service. The Swedish market is quick to adapt to new ideas and products, both at the business and consumer end of the market, making the country an ideal location to roll out new concepts. Sweden also offers the additional benefit of easy access to the rest of the European market. The launch phase usually involves added costs for marketing, logistics and other sales oriented activities. At this stage, funding to help strengthen liquidity can be sought from a variety of agencies, institutes and government-owned organizations. Industrifonden, Fourier Transform, ALMI Invest and the Swedish Export Credit Corporation (Svensk Exportkredit) all contribute funding to support Swedish businesses in launching their products and services on the Swedish and international markets. These organizations not only offer financial support but also consulting and advisory services in the deployment phase. Businesses can obtain advice on market plans, marketing activities, profitability management and much else.
Fact sheet
Running a business
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ALMI Företagspartner AB www.almi.se
ALMI promotes the development of competitive small and medium sized businesses. It stimulates new enterprise in order to create growth and innovation in Swedish business life.
ALMI Invest www.almiinvest.se
ALMI Invest is ALMI Företagspartner AB’s venture capital company. It invests in Swedish companies with exciting, scalable business models and committed entrepreneurs.
Fouriertransform www.fouriertransform.se
Fouriertransform is a government-owned venture capital company working to vitalize and strengthen the Swedish automotive cluster.
Industrifonden www.industrifonden.se
Industrifonden invests in small and medium sized Swedish companies with the potential to grow in an international market
Innovationsbron www.innovationsbron.se
Innovationsbron focuses on turning research and innovation into business. Its vision is for Sweden to become an international leader in commercializing research-related business ideas.
The Knowledge Foundation www.kks.se
The Knowledge Foundation finances university research, aiming to improve Sweden's competitiveness and ability to create value. Research funding is provided on the basis that industry contributes an equivalent amount.
Mistra www.mistra.se
Mistra funds and organizes research targeted at solving strategic environmental problems. A Mistra program is considered a success when scientifically advanced research has been put to practical use in companies, public authorities or other organizations.
RISE Research Institutes of Sweden www.ri.se
RISE Research Institutes of Sweden is a network of research bodies that cooperate with universities, industry and society to create value, economic growth and competitiveness through superior R&D and Innovation.
SP Technical Research Institute of Sweden www.sp.se
SP applies its internationally leading competence to the development and evaluation of technologies, materials, products and processes to meet its customers’ needs and provide an effective link between research and commercialization.
Swedish Agency for Economic and Regional Growth www.tillvaxtverket.se
The Swedish Agency for Economic and Regional Growth promotes enterprise growth and the development of sustainable, competitive business and industry throughout Sweden.
Swedish Energy Agency www.energimyndigheten.se
The Swedish Energy Agency supports the development of ideas that can be commercialized and help to advance Sweden’s energy system.
Swedish Export Credit Corporation www.sek.se
The Swedish Export Credit Corporation promotes the development of trade and industry and international competitiveness by supplying long-term, sustainable financing based on sound commercial principles.
Swedish Foundation for Strategic Research www.stratresearch.se
SSF supports research in natural science, engineering and medicine that enhances Sweden’s competitiveness. It funds approximately 20 strategic research centers and more than 200 research projects.
Swedish Transport Administration www.trafikverket.se
Through research and innovation, the Swedish Transport Administration supports the development of Sweden's transport system so it meets the needs of individuals and businesses.
Swerea IVF www.swerea.se
Swerea IVF is a research institute that provides advanced research and consultancy services to core areas of manufacturing industry for prompt practical application of new technologies and methods.
Vinnova www.vinnova.se
Vinnova, is the Swedish government agency for innovation systems and is a catalyst for domestic growth and prosperiy. It has national responsibility for innovations linked to research and development.
further information
at www.investsweden.se Running a business in Sweden - an introduction
information based on Data from: Organizations listed in useful contacts
External experts have reviewed this fact sheet. However, the contents should not be viewed as legal or financial advice but only as an overview of current conditions in Sweden. These may change and thereby render descriptions of laws and other frameworks inaccurate. In all individual cases we request that advice always be sought with relevant organizations and businesses on specific issues.
DEPLOYMENT
DEMONSTRATION
Each offers a mix of loans, grants, venture capital and non-monetary support. Please visit the organization’s websites for detailed information on what they can offer.
RESEARCH
ORGANIZATIONS THAT OFFER FUNDING SUPPORT
DEVELOPMENT
useful contacts