VINNOVA - Swedish Governmental Agency for Innovation Systems Lena Gustasson

1. EU Research and Innovation Strategies: Lessons for Thailand and Emerging Economies25-26 April 2007 BangkokChoosing national research priorities in Sweden VINNOVA - Swedish Governmental Agency for Innovation Systems Lena Gustasson Deputy Director General

2. R&D as part of GDP Statistics – SCB, Sweden

3. 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?

4. R&D expenditure in relation to GDP • How does the Swedish R&D system look? Per cent of GDP Source: OECD MSTI, 2004

5. 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

6. 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

7. Two policy councilsfor innovation governance: TheResearch policy council (RPC)and theGlobalization policy council (GPC): RPC was established in 1962 and plays a significant role in the preparation of the R&D bill every fourth year. GPC on the other hand is a brand new constellation with a competitiveness focus. Major public actors in Swedish research and innovation policy formulation 2006 – NATIONAL LEVEL! Research councils – Sector Agencies – Foundations R&D – R&I Performers

8. Large companies dominates R&D Major R&D flows in the Swedish system 2003 (MSEK) A heavy concentration to business and universitites

9. 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

10. 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

11. = National Innovation Strategy Research priorities in the latest national research bill for Sweden, 2005 = Policy Framework for R&I Policy

12. Systems Biology CARS Microscopy Nanotechnology Sweden has and is focussing on hightechnology MC2 - Chalmers

13. 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 Education and Research Ministry of the Environ-ment Ministry of Health and Social Affairs Ministry of Enterprise, Energy and Communications Ministry ofDefence Universities 1160 M€ 41 % of Gov. Defence agencies 445 M€ 16 % of Gov. Swedish Research Council (Vetenskaps-rådet) 300 M€ 10 % of Gov. Research Council for EnvironmentSpatial Planning and Agricultural Sciences (FORMAS) 60 M€ 2 % of Gov. Research Council for Working Life and Social Sciences (FAS) 30M€ 1 % of Gov. Swedish Agency for Innovation Systems VINNOVA 150 M€ 5 % of Gov. Swedish Energy Agency (STEM) 85 M€ 3 % of Gov. Swedish National Space Board 55 M€ 2 % of Gov. Other civilian agencies 390 M€ 14 % of Gov. Public research found. 165 M€ 6 % of Gov. Mainly curiosity driven/ free research Mainly needs-driven/ mission oriented research VINNOVA, Division for Strategy Development, 2007

14. 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.

15. 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)!

16. Yes Goal Scientific progress No No Yes Goal Economic or social use Curiosity driven and needs-driven research • Eg. VINNOVA • Mission • orientied – • 40% Curiosity driven Basic research (Bohr) Needs-driven Basic research (Pasteur) Eg. VR – Curiosity driven - 60% Applied not Scientifically basic research (Edison)

17. Eg. wood Eg. Social science Eg. Biotech tools Eg. medicine Eg. Nano materials Eg. ICT There is a clear trend for national R&D programmes to focus on a number of STRONG R&I ENVIRONMENTS! 1) Financial support - in competition – from different R&I financiers! - this results in selected profiles! 2) In addition, R&D focuses are selected at different levels (ministries etc.) – after national/global etc. “analyses”!

18. WIN-GROWTH • Type of Centre and financier: • 1) Different types of R(&I) Excellence Centres • 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.

19. 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

20. ROBOTICS VALLEY Kiruna Pajala G ä llivare Jokkmokk Ö å vertorne Arjeplog verkalix Ö Kalix å Lule Sorsele Arvidsjaur Storuman Skellefte å Lycksele Vilhelmina Str ö msund Ume å Å re Ö rnsk ö ldsvik Kramfors Ö stersund Sundsvall H ä rjedalen Hudiksvall Ljusdal Bolln ä s Mora derhamn S ö Malung G ä vle Falun Vansbro Avesta Ludvika Uppsala Fagersta ster V ä å s K ö ping Eskilstuna Stockholm Ö rebro Katrineholm Nyk ö ping Lidk ping ö ö Norrk ping Link ö ping Sk vde ö Tran å s stervik V ä Bor å s nk ping J ö ö Vimmerby Gotland N ä ö ssj V ä rnamo Oskarshamn V ä ö xj Ljungby Kalmar Ä lmhult Karlshamn Karlskrona Kristianstad VINNVÄXT (WIN-Growth) – Implementing “Triple Helix” on the regional level “Controlled” development?

21. Nanotechnology - Companies c c c “Spontaneous” development? Universities/University colleges in Sweden Källa: Göteborgs-Posten 2004-02-29

22. X X X Funding structure for Swedish universities Source: Högskoleverket Årsrapport 2006

23. 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 …….

24. Is Sweden at all seen??? Regional, national, European, bilateral collaborations! Sweden The World Above all – GLOBAL competition, challenge and possibilities!

25. 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!

26. Thank you for your attention!