Sweden's investments in R&D as a share of GDP have fallen slightly from 3.95 percent in 2003 to 3.89 percent in 2005. This is in spite of the fact that Statistics Sweden surveyed more units in 2005. The total expenditure on R&D amounted in 2005 to SEK 104 billion which is an increase from SEK 97.1 billion in 2003.
Small enterprises (10-49 employees) and county councils and municipalities are included in the regular R&D surveys from 2005 onwards, which means that they are included in the calculations of R&D expenditure as a share of GDP. Small enterprises and county councils and municipalities together account for the increase in R&D expenditure. If these sectors are excluded, R&D expenditure amounted to SEK 95.7 billion, or 3.58 percent of GDP, in 2005 which is a decrease of SEK 1.4 billion compared to 2003. As R&D expenditure during this period has not increased in line with the strong GDP growth seen in Sweden, R&D expenditure as a share of GDP has fallen. In Sweden, the business sector accounts for the largest share of R&D expenditure, with close to 74 percent of the total expenditure. Measured as a share of GDP, enterprises' R&D amounted to 2.9 percent in 2005.
R&D share of GDP in Sweden still top of the list internationally
Sweden is at the top of the list when R&D expenditure is compared internationally in relation to the country's size, economy and population; only Israel spends more on R&D than Sweden, seen as a share of GDP. When looking at Sweden's R&D investments in relation to the population, Sweden's R&D expenditure of close to SEK 11 500 per person is the highest in the world.