Facts & references: Swedish innovation (source:
http://fakta.swedinvent.se)
In
2015, the Swedish government allocated € 1.66 billion in R&D support,
directly to universities, plus another € 0.99 billion to research
funding institutions.
[SCB:
state budget analysis 2015, page10]
The corresponding government support to independent innovators/inventors
amounts to approximately € 21 million per year or 0.78 per cent of €
2.65.
The thesis 'Triple
Helix'*
launched in the mid-1990s by Etzkowitz and Leydesdorff from Stanford
University argues that innovation occurs when universities are
coordinated with companies under state funding. Sweden's national
innovation strategy is largely based on this thesis, which is also
confirmed in the allocation of the government's financial efforts as
described above.
The Stockholm
Innovators Association, STIK, has produced the report "Where
did Swedens Top 100 innovations originate?", through Stefan Fölster
/ The Reform Institute and
Christian Sandström, Innovation Researcher at Chalmers and Ratio.
The study funded by the Swedish Inventors
Association shows that only 20% of the innovations originate from
universities and research institutions. If you exclude medicine (which
by nature requires academic research), the figure is down to 10%, as
opposed to 90% of the innovations, outside the academy.
Innovations, according to the report,
in other words originate mainly from innovators / inventors, in
employment or in their own business.
"If an overwhelming majority of Sweden's groundbreaking innovations were
created by individual inventors / entrepreneurs and individuals employed
by companies, then the Swedish innovation policy should focus on these
actors primarily."
Christian Sandströms
cited conclusion in the report.
An innovation strategy excluding them is likely to give very low
innovative growth.
It is therefore remarkable that none of Sweden's research clusters on
innovation since 2004;
CESIS - Center of Excellence for Science and Innovation Studies,
CIIR - Center for Inter-Organizational Innovation Research
CIND - Center for Research on Innovation and Industrial Dynamics,
CIRCLE - Center for Innovation, Research & Competence in the Learning
Economy,
RIDE - R & D and Innovation & Dynamics of Economics,
so far, have reported how and where innovations mainly emerge, which is
considered to be absolutely central in the design of a national
innovation strategy.
* The thesis 'Triple Helix' was initiated in the 1990s at Stanford
University by Etzkowitz (1993) and Etzkowitz and Leydesdorff (1995). The
thesis expresses a vision that the three institutional spheres of
universities, industry and government should generate innovation. The
vision not only encompasses the creative destruction shown as a natural
innovation dynamism (Schumpeter, 1942), but also the creative renewal
that occurs within the three institutional spheres of universities,
industry and government, as well as at their intersections. The Triple
Helix concept thus builds on three ideas: (1) a more prominent role for
the university in innovation, in line with industry and government in a
knowledge society; (2) a movement towards cooperative relations between
the three major institutional spheres, where innovation policy is the
result of interaction rather than a government recipe; (3) In addition
to fulfilling their traditional functions, each institutional sphere
also takes "the roles of others" in that way, performing new roles in
addition to their traditional functions.
***
Perception versus facts: A possible explanation to the Swedish
innovation paradox?
Sweden scores very high in terms of innovation in several international
surveys. But the top rankings deal primarily with Sweden's innovative
conditions, e.g. input. The parameter is mainly based on how much
education the Swedes generally have and how large R&D investments we
make. Not the country's output in terms of actual turnover or the
number of new innovations. (See page
10 i Innovation
Union Scoreboard)
Instead Sweden has
Europe's lowest innovative growth, contrasting to the top positions we
have due to high R&D investmenta, high prosperity, high equality, high
research density, etc. (P.
23, IUS). Not until page 69, it is shown how Sweden has backed from its lead ahead
the EU average, from 148% to 135% between 2006-2013.
This despite the fact that, since 2006, the government gradually
increased its financial support of innovation (to universities) (page
69)
The parameters
that determine Sweden's list placement refers, as mentioned, very little
to actually realized innovations. The indicators are mainly the
country's academic height, the number of companies and the country's
investments in R & D and innovation. (Page
10)
In the OECD
analysis of Sweden as an innovation country, it is concluded that Sweden
lacks a "vital and well-functioning innovation system" (page 8)
We also have a "lack of overall innovation policy", "funding problems
for innovation projects", "an unclear regional innovation policy" and
"lack of evaluation" (page 9)
The OECD also
notes that "the research and innovation proposition presented by the
government every four years has a research perspective on innovation".
More is also written about political incompetence here (page 14)
Unfortunately, the
OECD, as well as Horizon 2020 and other institutions, are of the opinion
- contrary to the Reform Institute's report - that universities deliver
most innovation, and therefore need to be strengthened. (page 20)
The Global
Innovation Index (Cornell University, INSEAD and WIPO) is another
international and recurring innovation surveyor.
Tabel 1
shows that Sweden holds a 2nd place after Switzerland (mainly in terms
of welfare, number of researchers, published reports, etc.) while tabel 2
shows our "efficiency score", that is, turnover of employment as a
result of the country's innovation input (investment in R & D, etc.)
Here is also a
link to the 2014
GII. The pdf is about 7mb and the report is 428 pages (!)
***
SWEDISH NATIONAL AUDIT OFFICE: GOVERNMENT MEASURES IN VENTURE CAPITAL
PROVISION 2014:1
The NAO's
conclusion is that government venture capital provision is difficult to
understand and does not reach the goals expressed by the government. (page 10)
Only 0.2 percent of the capital went to companies in seed phase. Over 40
percent of the state capital was invested in expanding and mature
companies. (Pages 11, 48, 49)
The government financiers Almi Företagspartner, Fourier Transform AB,
Inlandsinnovation AB, the Foundation for Industrial Funds, the Norrlands
Foundation and the 6th AP Fund have over 30 billion Swedish Crowns for
investments. However, the 6th AP Fund does not invest in early stages,
so approximately SEK 10 billion is the actual available amount. (Page 29)
NAO reaffirms the
OECD's criticism that the many national actors in many cases overlap;
40's institutions, funds and foundations that form the state's national
venture capital clusters. (Pages 30, 52)
Some interesting figures about operating expenses (i.e per employee) of
the 7 major players (page 55)
***
UNAVAILED RESEARCH GRANTS
For the
governmental support of innovation, the financing issue is important. As
reported above, SEK 16.6 billion annually is allocated to universities,
compared to SEK 208 million (1.25%) for innovators outside of these.
In this context
it is interesting to note in the
Universities Annual Report from 2015 that the 2014 unused research
grants have continued to increase to now accumulated SEK 17 billion,
which is almost as much as the higher education institutions received in
revenue from new research grants for 2014. According to the annual
report, the unused appropriations increased by approximately SEK 200
million in 2014. (page
127)
***
INNOVATION FACTUAL REPORT;
THE MINISTRY OF INDUSTRYS ORDERED INVESTIGATION FROM THE STATISTICAL
CENTRAL BUREAU
The SCB itself
expressed surprise at the Ministry of Industry's instruction not to
include micro enterprises (86.25% of all Swedish companies with
employees *), when commissioned to develope measurement tools for
innovation as a basis for the National Innovation Strategy's activity
agenda.
Besides, in
particular, micro companies from Sweden, such as Mojang, Kisel
Electronics, Tail-F, Pingdom, Bitsquid, Telepo, Comfort Audio,
ConnectBlue, Skype, MySQL, C3, Coding Technologies, Spotfire, Carmen
Systems, TAT, Kreatel, etc. have been sold for 56 billion over
the last 10 years, it is noteworthy that - as SCB's report refers to -
only base the commissioned survey on companies with more than 200
employees ('The R&D statistics') alternatively with more than 250
employees ('The CIS measurement'). Historically, very few
innovation-based companies have started with even as many as 10
employees. These include Google, Apple, 3M, Ericsson and others.
On behalf of
Dagens Industri magazine, Stefan Fölster in 2010 examined 696 so-called
unicorns, adequate examples of so-called Micro enterprises. Fölster's
report,
showed that only four of the 696 companies (5.7 per cent) came from an
academic environment.
The SCB's 2
sub-reports "Developing Innovation Statistics" show what other
statistical parameters the government has requested.
Sub report one in principle defines the assignment, while
Sub report 2
(from February 2015) summarizes what innovation indicators the
investigation actively assumes.
The linked
documents contain a number of extracted cited conclusions and key
formulations from the report. From this it is clear that there are major
knowledge and competence gaps that Sweden's innovation policy needs to
fill.