The Swedish innovation system VINNOVAs SME Strategy Research

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The Swedish innovation system VINNOVAs SME
StrategyResearch GrowGothenburg 19th of
OctoberAnne Löfquist
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Knowledge Based Economy and Global
Competitiveness

• The economy is becoming more and more knowledge
  based and global
• The European Union has set the goal to become the
  world's most dynamic knowledge based economy
• The Swedish governments report Innovative
  Sweden Sweden should intend to become the most
  innovative and competitive country in Europe
• Innovation is the foundation of growth
• This makes RD very important, specially RD
  which is strongly linked to business needs need
  driven research

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Swedish National Innovation System Characteristics

• The economy strongly internationally linked
• The big international companies dominates the
  RD-system
• SME invest very little in RD
• Universities dominate the public RD-system and
  they have a third task, to cooperate with
  companies and society
• Small sector of Research institutes
• Government invests very little RD-money in
  companies outside the military sector

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Total RD expenditure in relation to GDP, 2005
Source OECD MSTI
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Public annual RD-funding in Sweden
VINNOVA Swedish Agency for Innovation Systems
200 M
Vetenskaps-rådet Swedish Research Council
300 M
VINNOVA, Division for Innovation System Analysis
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Government financed RD to industry in Sweden
1995-2005, percent of business RD
Source Statistics Sweden
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Government RD funding to industry, percent of GDP
Source OECD STI Outlook
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Governmental Funding AgenciesResearch Councils
(SRC, FAS, FORMAS)Science driven
researchVINNOVA - The Swedish Governmental
Agency for Innovation SystemsNeeds-driven
research and developmentNutek - The Swedish
Agency for Economic and Regional GrowthRegional
Business development (incl. SF-objective
2)ALMIBusiness developmentISA Invest in
Sweden AgencyForeign Inward Investmentsbut
also the Innovation Bridge, SSF, KKS and
Wallenberg Foundation
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VINNOVA Resources

• Towards accomplishing our mission
• 180 employees
• an annual budget of approximately SEK 1.8
  billion (appr. M 200)
• promote increased collaboration between the
  research community, business, and policy/public
  sector (Triple Helix)

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Three concepts

• Sustainable growth
• Long-term economic growth which is also socially
  and ecologically sustainable
• Innovation systems
• Actors in business, research and politics who
  generateand use new technology and new knowledge
  in collaboration, for sustainable growth
• Triple Helix
• Collaboration and coordination betweenbusiness,
  research and politicians/society

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More effective commersialization and use of RD
results

• The key actors programme establish an
  entrepreneurial culture, an effective
  infrastructure and a more professional way to
  commercialize research results from Universities
• Verification programme funding projects in the
  most early stage of the commersialization process
  (co-operation with the Innovation Bridge)
• ResearchGrow strengthen and stimulate RD in
  SMEs
• VINN NU is a competition for new companies that
  base their operations on RD results
• The national incubator program (run by the
  Innovation Bridge, funded by VINNOVA)
• and EUREKA, SMINT etcetera

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International Collaboration Networks

• European Union RD Programmes
• EUREKA
• COST
• Bilateral cooperation
• - Japan
• - China
• - USA
• - Finland/Norway
• - India
• Sida/Sarec
• and some other.........

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VINNOVAs Organisation
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Innovative small and medium sized enterprises
the future ofSweden A strategy from VINNOVA
for increased innovation capacity
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Why is an SME strategy needed?

• Sweden needs more and growing enterprises
• Large need for investments in innovations
• Focus is needed to meet international competition
• Long term investment views are needed in national
  SME programs
• International evaluations show that governmental
  investments in innovative SMEs pay off

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The SME strategy in short
Vision Sweden has a world class, innovation
focused business climate for
growth Goal Internationally competitive
SMEs Strategy Increase the governmental
financial support for innovative SMEs, to
international levels
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Target group
All innovative small and medium sized enterprises
with the ambition and capacity to grow Micro
enterprises 1-9 employees Small enterprises 10-49
employees Medium sized enterprises 50-250
employees
Investigation Have your company introduced a new
(for your company) product, process or service?
1/3 of all SMEs approx. 100 000 companies
answered yes.
(SEB/VINNOVA)
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SMEs need

• Access to competence in intellectual property IP
• Access to financial support / capital
• Help to solve problems with lack of time
• Bridges to academic research
• Increased competence in networking and in
  utilizing research results
• Support for internationalization
• Easier access to, and a clearer picture of,
  governmental programs for SMEs

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Governmental support is needed

• OECD-studies show that governmental financed
• projects have higher quality and time
  performance
• Governmental capital is needed in early stages
• where the risk level is difficult to estimate
• Direct support / tax reductions enables parallel
• investments, shorter TTM and opportunities to
  act
• Several nations invest strategically in
  innovative SMEs
• - Intellectual property rights (Asien, USA, UK)
• - SBIR (USA)
• - Internationalisation (Finland, Irland)

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Politics in global competition

• The Lissabon agenda prioritize support to SMEs
• Several OECD countries have tax incentives for
  RD
• The Finnish governmental support to RD financing
  for SMEs is 4 times larges than in Sweden
• SkatteFUNN i Norway would in Sweden
• correspond to a 3 billion SEK level
• ten times higher than the present total
• SME support
• USA innovation procurement (SBIR), direct
• support and federal tax incentives for
• RD in SMEs adding up to the worlds
• highest governmental SME investment

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Strategic propositions
No wrong door

• Increase and expand the ResearchGrow program
• Investigate tax incentives for RD in SMEs
• Support IP-strategies in SMEs
• Introduce innovation procurement in public
  organisations
• Support SME participation strong RDI environments
• Improve networking and SME support at
  universities and research institutes
• Develop support for SMEs in international
  cooperation

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ResearchGrow (ForskaVäx)

• A program stimulating RD in small and
• medium-sized companies
• Budget 11 M per year (100 MSEK)

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Desired Effects for SMEs

• Increased knowledge and improved technology base
  in products and processes
• Increased global competitiveness
• Improved cooperation and networking
• (access to RD)
• Desired Effects for Effects for Sweden
• Increased economic growth
• Job growth

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Candidates for Participation

• Companies limited by shares
• (AB in Sweden)
• Companies with less than 250 employees
• All industries and sectors are welcome to apply
• Independent SME

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Program offers ResearchGrow

• Possibility A RD Implementation project
• maximum 460 000 (5 MSEK), 6-18 month project
• Possibility B Feasibility study
• maximum 46 000 (500 000 SEK), 3-6 month
  project
• Possibility C Identification and Analysis of
  problem
• maximum 8 000 (75 000 SEK), 1-3 month project
• The companies, in accordance with their own
  goals, determine which option is most relevant.
  Companies can apply for maximum one application
  per possibility and deadline.

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Evaluation criteria

• Relevance ability to grow/competitiveness,
  market potential, customers, risk analysis
• Quality increased knowledge, research
  quality,Relation to state of the art,
  innovation height, development potential
• Implementation ability team and IPR, business
  environment, budget and financing requirements
• Ability to exploit market, customers,
  competitiveness, management team, ability and
  commitment to utilise/commersialise the project
  results

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Process

• 55 persons, external experts and from VINNOVA are
  involved in the evaluating process
• 6 weeks from application to decision

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Electronic application

• www.VINNOVA.se

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ResearchGrow Results 2006

• 1200 companies applied for ResearchGrow
• Total sum applied for 183 M
• (1700 MSEK)
• 213 companies have received 22 M
• Job Growth! 50 companies employed 90 new people!
• Improved cooperation and networking

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Success Through Research
Impact Coatings is an example of a company that
has improved its international competitiveness
through RD. As we get closer to the market we
realize that new questions are constantly being
raised regarding the qualities of the material.
Therefore it is essential to be able to work
closely with universities and have access to
external funding. The product is a thin film
of MAX-material that replaces gold as a contact
material in electrical contacts. It is cheaper
than gold, but has far better characteristics.
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Success Through Research

• Carbon dioxide is an inexpensive and effective
  gas that is being used in an increasing number of
  areas. However, too high a content of the gas in
  the air can kill. SenseAir in Sweden is a
  world-leader in the development of better and
  less-expensive carbon dioxide sensors. Now the
  company is taking a further step forward with the
  help of the SEK 5 million it has received from
  ForskaVäx.
• These funds are being used for the research
  needed to develop a new unique component that
  will be part of a product. We will now be able to
  hire a researcher, says Hans Martin, research
  manager and founder of the company.
• The funds will enable us to continue to lead
  technical development. This is a precondition
  for growing into a new Swedish Ericsson
  company, which is our goal.

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Success through research

• Arbeskos working shoes are a wellknown product
  in the Swedish industry and military. The company
  is almost 100 years old. -As we want to survive
  as a Swedish producer the company has to add more
  value to their products. We have to improve
  ergonomi, material and technique says, CEO Peter
  Geisler.

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ResearchGrow Future

• Next call closes 14th of April
• Budget 5,5 M

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• Contacts
• Anne Löfquist 46 8 473 31 25
• Anne.lofquist_at_vinnova.se
• www.vinnova.se