Investment in Stockholm Europes hotspot for ICT Innovation

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Investment inStockholm - Europes hotspot
forICT Innovation

• Stockholm, March 8, 2006
• Torbjörn BengtssonStockholm Business
  RegionInvestment Promotion, ICT

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• 1. Attractive for Foreign Direct Investment

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A Successful Software VC Investment Region

• City/Admin Region Total Number of Deals
  2000-2004
• London 206
• Paris 150
• Dublin 123
• Stockholm 83
• Helsinki 63
• Munich 45
• Cambridge 41
• Amsterdam 39
• Berlin 27
• Copenhagen 28

Source Oxford Intelligence based on Tornado
Insider Data
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(No Transcript)
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• 2. Access to the expanding Baltic Sea Region

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• GDP in the Region
• Sweden 346,404
• Denmark 243,043
• Norway 250,168
• Finland 186,597
• Poland 241,832
• Lithuania 22,262
• Latvia 13,628
• Estonia 10,807

Million US
Source World Development Indicators, 2005
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Location of Consumer Electronics Companies
Scandinavian HQ (defined by Forbes 2000)
Source Øresundsinstituttet 2004
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Regional and National HQ for Scandinavia,
IT-hardware Companies
Source Øresundsinstituttet 2004
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Swedish multinationals driving applied ICT
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• 3. The Swedish/Stockholm ICT industry

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ICT Industry strengths

• Wireless Technology Services
• Broadband
• Applied ICT
• Financial
• Industry automation
• Media related
• Life Sciences

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The largest ICT companies (turnover in MEUR)

• 1. Ericsson
• 2. TeliaSonera
• 3. Tele2
• 4. Tietoenator
• 5. Scribona
• 6. Hewlett-Packard
• 7. IBM
• 8. WM-Data
• 9. Atea
• 10. Ingram Micro

Uppsala
Västerås
Stockholm
Eskilstuna
Source Veckans Affärer, Sept 2005
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ICT expenditure 2003 in of GDP
Source Eurostat 2004
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• 4. Capital of the Wireless World

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We chose to headquarter Scandinavian operations
in Sweden Stockholm because of its strategic
location, advanced technology industry and
society, and highly skilled workforce.
Robert Auci, Director of International Business
Development, Linksys
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World-leader in wireless systems

• Wireless Valley in Sweden is the most important
  hub for wireless technologies
• 420 wireless companies
• Home to Ericsson, SonyEricsson, TeliaSonera and
  other wireless innovators
• Birthplace of NMT, GSM, EDGE, WCDMA and Bluetooth
• Sweden is the source of more than 1/3 of all
  important 3G patents
• Ericsson has about 35 market share in 3G/WCDMA
  and GSM/GPRS/Edge
• Ericsson has the industrys strongest RD
  commitment with over 10,000 granted patents
  worldwide

Source Wireless Sweden study, Northstream
October 2003
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The Swedish wireless ecosystem

• Wireless technology systems
• Terminals Accessories 38
• Infrastructure systems 160
• Mobile applications services
• Applications content 86
• Service Providers NW operators 21
• Professional services other 125

No. of companies
Source Wireless Sweden study, Northstream
October 2003
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Wireless Stockholm

• 72 of all wireless companies located in the
  Stockholm/Kista area
• 37 of all wireless companies are start-ups, of
  which 65 are located in the Stockholm/Kista area

Uppsala
Västerås
Stockholm
Eskilstuna
Source Wireless Sweden study, Northstream
October 2003
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Join the Market Leaders

• Ericsson (Sweden)
• Infineon (Germany)
• Intrinsic Semiconductor (USA)
• Huawei (China)
• Hutchison Whampoa (Hong Kong)
• IBM (USA)
• Intel (USA)
• Motorola (USA)
• Nexthaus (USA/Taiwan)
• Nortel Networks (Canada)
• ZTE (China)
• Siemens (Germany)
• SonyEricsson (Sweden/Japan)
• Sun Microsystems (USA)
• TeliaSonera (Sweden/Finland)
• Shyam Telecom (India)
• Yokogawa (Japan)

Stockholm
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• 5. A leading position in Broadband Technologies

Source World Development Indicators, 2005
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The Swedish broadband industry

• Equipment makers (41) Examples Ericsson,
  Lumentis, Transmode
• Network integration (25) Examples Telesys,
  Prevas, Datametrix
• Software (11) Examples Operax, PacketFront,
  Gatespace, QBrick, Thalamus

Source The Swedish Broadband Market Industry,
Bredbandsutveckling 2004
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Fibre-to-the-Home Connections in EU 2004
Source Computer Sweden/FTTH Council Euorpe
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Stockholm ICT Penetration

• Internet at home 76
• Bought goods on Internet 52
• Uses Internet Bank 59
• Uses Computer 85
• Uses Mobile Phone 94

Source FSI (1879 years, 2004)
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Stockholm Access Technologies at home

• Modem (dial-up) 35
• ISDN 2
• ADSL 31
• Cable TV 14
• LAN 13
• Other 5

Source FSI (1879 years, 2004)
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• 6. Competitive Costs Levels

Source World Development Indicators, 2005
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Competitive business costs
Source EIU 2001
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Competitive corporate taxationEffective tax
rates on capital,
Statutory corporate tax rate,
24.0
34.3
39.2
38.4
41.9
30.0
28,0
17.5
20.0
for large and medium sized companies
Source The Economist C.D Howard Institute, 2005
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Competitive labor costs technical engineer
2001, USD (including social charges) high vs low
Source Mercer Sweden AB and ISA, 2004
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International experienceExperience in
international business and postings abroad
Source IMD, The World Competitiveness Yearbook
2005