Choosing national priorities in Sweden

					 EU Research and Innovation Strategies:
   Lessons for Thailand and Emerging
               Economies

             25-26 April 2007 Bangkok


Choosing national research priorities
            in Sweden
      VINNOVA - Swedish Governmental Agency for
                 Innovation Systems

                   Lena Gustasson
                 Deputy Director General
R&D as part of GDP




         Statistics – SCB, Sweden
    Choosing national research
       priorities in Sweden:

    How are research priorities
selected (specific characteristics at national,
          regional, local levels)?
   What factors are taken into
               account?
    How are these research
 priorities managed in practice?
                        R&D expenditure in relation to GDP

              Ireland
       New Zealand
             Norway
     Canada (2002)                                                    Universities & colleges
    United Kingdom                                                    Government organisations
        Netherlands                                                   Business sector



                                                                     How does the
            Belgium
      France (2002)
           Denmark                                                    Swedish R&D
    Germany (2002)
                                                                      system look?
        Switzerland
United States (2003)
              Korea
              Japan
             Finland
            Sweden
        Israel (2002)

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

                                                                                        Per cent of GDP

                                                                     Source: OECD MSTI, 2004
Swedish National Innovation System Characteristics:

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

•   The economy is strongly internationally linked

•   SME invest very little in R&D

•   Universities dominates the public R&D-system and they
    have a third task, to cooperate with companies and society

•   Small sector of Research-institutes

•   Government invests very little R&D-money in companies
    outside the military sector
                        How are research priorities selected?
                                  – who are involved in the process?

•   At the national level the Swedish government is organized within the
    Government Office - a politically controlled entity. Sweden is
    currently organized according to 13 ministries that influence the
    direction of the Swedish research and innovation policy. All
    ministries support research activities in their sector of
    responsibility
    = POLICYFORMING MINISTRIES




•   The Swedish institutional system is characterised by relatively
    small ministries. This implies that functions held by ministries
    in other countries fall under the responsibility of government
    agencies in Sweden
    = IMPLEMENTING AGENICIES
                                      Major public actors in Swedish research and
                                    innovation policy formulation 2006 – NATIONAL
          General policy                                 LEVEL!     Selected Groups of National Key Actors
                                                                                                               Policy intelligence (Budget: MSEK 75 )
                                                                                                               ITPS = The Institute for Growth Policy Studies
                            The Government                                       Municipalities and                policyCouncil
                                                                                                           Two==Globalization Policycouncils
                                                                                                             IPC                     Council

                                                                                 County councils             RPC Research Policy

                                                   Policy Intelligence           (R&D)*                        for innovation
                                                                                                             Research Councils (Budget: MSEK 3 634)
                                                                                                             VR = The Swedish Research Council
                                                   (ITPS, GPC, RPC)                                              governance:
                                                                                                             FAS = The Swedish Council for Working Life
           R&D financing                                                                                       and Social Research
                                                                                                               FORMAS = Swedish Research Council for
                                                                                                               Environment etc.
                                                                                             The Research policy
Research councils – Sector Agencies – Foundations                                                 Defence oriented agencies (Budget:

                                                                                                                (RPC) and
                                                                                            councilori. R&D agencies (Budget: the
                                                                                                  MSEK 4 183)
                                                                                                  Civ mission
     Research councils        Defence oriented  Civil mission oriented R&D                    Globalization Agency for
                                                                                                  MSEK 2 716)
                                                                                                  VINNOVA = The Swedish Gov.
                                                                                                                                  policy
     (VR, FAS, FORMAS)        R&D agencies      agencies (VINNOVA,
                                                STEM, SNSB)                                   council (GPC): RPC
                                                                                                  Innovation Systems
                                                                                                  STEM = The Swedish Energy Agency
     R&D performers                                                                               SNSB = established in
                                                                             Semi Public R&D was The Swedish National Space Board
                                                                             Foundations
                                                                                                  Universities
                                                                                                 1962(Budget: MSEK 10 794) a
                                                                                                                 and plays
                                                                                                  Institutes (Budget: MSEK 339)

                                                                                               significant role(Budget:the
                                                                                                  Business Development Agencies
                                                                                                  MSEK 2 200)
                                                                                                                                   in
                             Universities          Institutes                               preparation of the R&D
                                                                                                  NUTEK = The Swedish Agency for Economic
                                                                                                  and Regional Growth


        R&D – R&I Performers                                                                   bill every fourth year.
                                                                                                  ALMI = ALMI Business Partner
                                                                                                  FDI promotion (Budget: MSEK 101)
                                                                                                  ISA Invest Sweden other
                                                                                            GPC =on inthe Agency hand
                                                                                                  Venture capital bodies (Budget: MSEK 700)
     Business development & financing
                                                                                = R&D financing
                                                                                                    is a brand new
                                                                                                  The Innovation Bridge
                                               FDI promotion
                                               (ISA)                                            constellation with a
                                                                                                  The Industrial Fund
                                                                                      Based on data from
                                                                                                  Municipalities & County councils (R&D)
                                                                                      Statistics Sweden
                    Business development        Venture capital bodies ( The                competitiveness focus.
                                                                                                  (Estimated Budget: MSEK 7 000)
                                                                                      and the agencies.
                                                                                      Modified by
                           agencies (NUTEK &           Innovation Bridge & The        P.Sandgren,              Semi Public R&D Foundations (Budget:
                                                                                      VINNOVA, 2006            MSEK 1678)
                           ALMI)                       Industrial Fund
                     Major R&D flows in the Swedish system 2003 (MSEK)

                                          Swedish financers                       Large
                                                                                companies
                                                Business                        dominates
                                                financing
                                                    63
                                                                                  R&D
      A heavy                                                       Public
                                                                                 PNP Org.
                                                                                 financing
                                                                  financing
  concentration to                                                    24             2


    business and
    universitites
                                                Business
                                                 Sector
                                                    72
        Financing from Abroad
                   7

                                                                 Universities   Gov. Agencies
                                                                     21               3




                                         Performing sectors
Statistics Sweden, 2005. Modified by P.Sandgren VINNOVA, 2006.
R&D in Swedish industry 2003 by product field




                  A few industries (no more
                 than 20 companies perform
                 nearly 70% of total business
                 R&D in Sweden) dominates
                 R&D and thereby their focus
                       influences R&D
                   – but it is not that simple!
                                          Källa: SCB
 Actual priority process for Swedish research and
 innovation policy, 2007




EC Commission, Trend Chart - Annual Innovation Policy Trends and Appraisal Report. P.Sandgren, VINNOVA, 2006
                     Research priorities in the latest national research
                     bill for Sweden, 2005                              = National Innovation Strategy
                                                                     Improved possibilities
      International Competitive
                                                                      for the Universities
      Research Environments
                                                                          to work with
                                                                       commercialization
    R
    e                                                                                                     M
    s                        Prioritized research areas:                             Improved supply of   a
                                                                                       seed financing
    e                               •Life Sciences                                                        r
                                    •Engineering
    a                                                                                                     k
                                    •Sustainable Development
    r                                                                                                     e
    c                                                                                                     t
    h                                                            Improved transfer of knowledge
                                                                   between the universities, the
           Graduate Schools                                         industrial institutes and the
                                                                       business community
Source: Prop 2004/2005:80, p.147                  = Policy Framework for R&I Policy
Note: The figure has been slightly modified by Patrik Sandgren, VINNOVA, 2005
                    Systems Biology
   Nanotechnology   CARS Microscopy




                    Sweden has and is
                      focussing on
                     hightechnology

MC2 - Chalmers
                          Major public R&D-funding organizations in
                          Sweden and their budgets 2006

 Gross Domestic Product: 2826 GSEK (304 G€) Government R&D-funding: 0.94% of GDP = 26,4 GSEK (2,8 G€)

   Ministry of            Ministry        Ministry        Ministry of Enterprise,                                  Ministry
  Education and            of the            of                Energy and                                             of
    Research              Environ         Health                 Communications                                    Defence
                           -ment            and
                                           Social
                                          Affairs

Universitie   Swedish      Research       Research      Swedish      Swedish     Swedish      Other      Public     Defence
s             Research     Council for    Council for   Agency       Energy      National    civilian   researc     agencies
1160 M€                    Environmen     Working                                                                   445 M€
              Council      tSpatial       Life and      for          Agency      Space       agencies   h found.
              (Vetenska    Planning       Social        Innovation   (STEM)      Board       390 M€     165 M€
41 % of       ps-rådet)    and            Sciences      Systems      85 M€       55 M€                              16 % of
Gov.          300 M€       Agricultural   (FAS)                                              14 % of     6 % of      Gov.
                           Sciences       30 M€
                           (FORMAS)                     VINNOVA      3 % of      2 % of       Gov.        Gov.
              10 % of      60 M€          1 % of        150 M€       Gov.        Gov.
              Gov.                        Gov.
                           2 % of Gov.                  5 % of
                                                        Gov.


                   Mainly curiosity driven/               Mainly needs-driven/
                          free research                 mission oriented research
                                                                              VINNOVA, Division for Strategy Development, 2007
The Research and Innovation cycle:

Research:       Money transformation to
                Knowledge & Competence


Innovation: Knowledge & Competence
                transformation to Money


Developing innovation system is to make above efficient, i.e. to make
investment in R&D profitable. Identify bottlenecks and possibilities.
    Choosing national research priorities in
                  Sweden:

         What factors are taken into account?
- Sustainable growth of the country in a global
  perspective (innovation and growth)!



- The scientist’s individual driving force to
 solve scientific questions (scientific curiosity)!
                   Curiosity driven and needs-driven research

                                                                 Eg. VINNOVA
                                                                   - Mission
                                                                  orientied –
                                                                      -40%
                      Curiosity driven                  Needs-driven
             Yes      Basic research                   Basic research
                          (Bohr)                         (Pasteur)
                                    Eg. VR –
                                    Curiosity
                                  driven - 60%
  Goal
Scientific
progress

                                                          Applied not
             No                                  Scientifically basic research
                                                           (Edison)




                            No                              Yes
                                       Goal
                                  Economic or social
                                        use
                                    There is a clear trend for
                                   national R&D programmes
                        Eg. wood    to focus on a number of
           Eg. Social science             STRONG R&I
                                        ENVIRONMENTS!
                                    1) Financial support - in
                                       competition – from
                                    different R&I financiers!
          Eg. Biotech
                                    - this results in selected
             tools                           profiles!
          Eg. medicine                 2) In addition, R&D
Eg. Nano materials                  focuses are selected at
Eg. ICT                            different levels (ministries
                                            etc.) – after
                                       national/global etc.
                                           “analyses”!
                Type of Centre and
                     financier:
               1) Different types of
                  R(&I) Excellence
                       Centres
WIN-GROWTH
             2) Regional “WIN-Growth
                      Centres
             Experience and research
               shows that geographic
               proximity and density
               brings competitive
               advantages as regards
               collaboration, learning,
               access to competence
               in collaboration and
               business exploitation.
  Effective innovation systems
Sustainable growth requires interaction between
business, university and government/public sector

  The interaction results in new products, services,
  and processes.

                           Triple Helix Interaction
                           • Business
                           • University
                           • Government/Public Sector
                                                                                                                                                                                                      VINNVÄXT (WIN-Growth) –
                                                                                                                                                                                                      Implementing “Triple Helix”
                                                                                                                                                                                                      on the regional level
                                                                                                                                                                                                                                                                                                     Kiruna




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                                                                                                                                                                                                                                                                                                                                                                           development
                                                                                                                                                                                                                                                                                                                                                                                ?
                                                                      Kristianstad
                                                                                      “Spontaneous”
Universities/University                                                                development?
colleges in Sweden


                                              Områden:
                                                                                                     Nanotechnology i -
                                                                                                        Nanoteknikföretag                                          Typ av företag:
                                                                                                                                                                    Kursiv text: Företag som
                                                                                                             Sverige
                                              Elektronik
                                              Material- och Ytbehandling
                                                                                                       Companies                                                    Fet text:
                                                                                                                                                                                 använder sig
                                                                                                                                                                                 av nanoteknik
                                                                                                                                                                                 Nanoteknikföretag

                                              Bioteknik
                                              Instrument och Utrustning

                                         Grundad på forskningskompetens från:                                                                        Chromogenics Sweden U
                                                                                                                                                     Gyros
                                         C    Chalmers Tekniska Högskola                                                                             Nanologica S
                                                                                                                                                     Piezomotor Uppsala
                                         K    Kungliga Tekniska Högskolan                                                                            Vg Scienta U
                                                                                                                                                     Åmic U
                                         Li   Linköpings Universitet / Linköpings Tekniska Högskola                                                  Anderberg och Modéer Accelerator
                                                                                                                                                     Biacore
                                         L    Lunds Universitet / Lunds Tekniska Högskola                                                            Gammadata
                                         S    Stockholms Universitet                                                                                 Ge Healthcare Bio-Sciences

                                         U    Uppsala Universitet                     Sandvik
                                                                                                                                                     Accelerator
                                                                                                                                                     Bactiguard
                                                                                  Seco Tools                                                         Micronic Laser Systems K
                                                                                                                                                     Nanoradio
                                              Cellectricon C               Kvaerner Pulping                                                          Nanosep L
                                              Layerlab C                                                                                             Nanospace U
                                              Nanofactory Instruments C                                                                              Nm Spintronics K
                                                                           Uponor Innovation                                                         Replisaurus Technologies L
                                              Nanoxis C
                                              Promimic C                                                                                             Silex Microsystems
                                              Sindre C
                                              Smoltek C
                                              Q-Sense C
                                              Goceram
                                                                           Eka Chemicals
                                                                                                                           c                         Akzo Nobel
                                                                                                                                                     Alphabeta
                                                                                                                                                     Attana
                                                                                                                                                     Biosensor Applications
                                              Midorion                                                                                               Biovitrum
                                              Nobel Biocare
                                              Stormled
                                              VOLVO Technology             Pilkongton Floatglas           c                                          Carmeda
                                                                                                                                                     Emerson Network Power Energy Systems
                                                                                                                                                     Flir Systems
                                                                                                                                                     Infineon Technologies
                                                                                                                                       Astrazeneca   Lightlab Sweden
                                              Camurus L
                                              Epigress L
                                              Genovis L
                                              Nanofreeze Technologies L
                                                                            Höganäs

                                                                            Celanese Emulsions
                                                                                                              c                  ABB
                                                                                                                                                     Medivir
                                                                                                                                                     Micromy
                                                                                                                                                     Nilsson Intelligence Systems
                                              Nems L                                                                                                 Pfizer
                                                                                                                                 Saab Barracuda
                                              Nquip L                                                                                                Pondus Instruments
                                              Qumat Technologies L                                                                                   Syntune
                                                                                                  Pergo           Micromuscle Li
                                              Qunano L                       Obducat
                                                                                                                                                     Ericsson
                                                                                                                  Thin Film Electronics              Wallenius Marine
                                              Tetra Pak                      Aimpoint                             Appliedsensor                      Xcounter
                                              Active Biotech                 Air Liquide Gas                      Impact Coatings                    Zarlink Semiconductor
                                              Erysave                        Biora                Roxtec
                                                                                                                  Saab


    Källa: Göteborgs-Posten 2004-02-29
                                          Funding structure for
                                          Swedish universities

                        0            20            40            60           80    %   100



     All universities                                        X
   Royal Institute of
     Technology                                         X

Karolinska Institutet
                                               X

                            Basic government funding for education
                            Other income for education
                            Basic government funding for research and PhD-studies
                            Research councils and other government agencies
                            Local and regional governments
                            EU
                            Public and private foundations
                            Swedish and foreign firms
                            Other income


Source: Högskoleverket Årsrapport 2006
 Choosing national research priorities in
               Sweden:

       What factors are taken into account?

- Quality– overall principle!
   (research/competence)
- Renewal
- Collaborations – different Actors!
- Composition of Teams (female/male, age ….,
   international recruitment….)
- Geographic proximity
- Competence density
- Equipment …….
                     Regional, national,
                     European, bilateral
                      collaborations!




 Is Sweden at all
     seen???
Above all – GLOBAL
    competition,
   challenge and
    possibilities!
    Choosing national research priorities in
                  Sweden:
How are research priorities selected (specific characteristics
            at national, regional, local levels)?
           What factors are taken into account?
 How are these research priorities managed in practice?
                    I said something ….
                     Evaluation:
        Before project start: Peer review …
                During and after..:
           -Evalutation (international…)
               - “Follow-research”
          -CAUSE FEED-BACK LOOPS!
Thank you for your
    attention!

				
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