R&D investments in Sweden high on an international scale

Total expenditure on R&D amounted to SEK 103.8 billion in 2005, which is an increase from SEK 97.1 billion in 2003. Despite this increase, Sweden's investments in R&D as a share of GDP have fallen slightly from 3.95 percent in 2003 to 3.88 percent in 2005. This is in spite of the fact that Statistics Sweden surveyed more units in 2005. Small enterprises (10-49 employees) and county councils and municipalities are included in the regular R&D surveys from 2005 onwards and, together, they account for the increase. If these sectors are excluded, R&D expenditures amounted to SEK 95.7 billion or 3.58 percent of GDP in 2005. In comparison, the R&D to GDP ratio in Finland and Israel, which like Sweden have high R&D investments in relation to GDP, increased between 2003 and 2005.

Intramural R&D in Sweden differs from many of the EU countries, as it is predominantly performed in two sectors, the business enterprise sector and the higher education sector. The expenditure on enterprises´ intramural R&D in Sweden amounted to 74 percent of total expenditure on intramural R&D in Sweden in 2005. Expenditure in the higher education sector on intramural R&D amounted to 21 percent of the total expenditure on intramural R&D in Sweden in 2005. A total of 95 percent of the person-years were performed in these two sectors in 2005.

The structure of the business enterprise sector R&D 
R&D activities in Sweden are to a large extent concentrated to a small number of enterprises and to a few parts of the industry. Companies with more than 500 employees account for 74 percent of the total expenditure on R&D in the business enterprise sector, and the 20 most R&D intensive companies account for 62 percent of the total expenditure on R&D in the business enterprise sector. Small enterprises (10-49 employees) account for 8 percent of the total expenditure on R&D in the business enterprise sector. Small enterprises’ expenditure on R&D, as a share of the total expenditure on R&D in the business enterprise sector, is in a middle position when comparing to the other member countries of the EU.

The big city regions dominate the R&D activities
In Sweden, R&D activities are to a large extent concentrated to the counties where the biggest companies are localized, as well as to regions with universities and university colleges. Stockholm, Västra Götaland county and Skåne county together account for 77 percent of the total expenditure on R&D in the business enterprise sector and 74 percent of the total person-years performed in the business enterprise sector.  When regional expenditure in R&D is measured as a share of regional GDP, the big city regions in Sweden are among the top in the EU[1].

The impact of Swedish research
Expenditure on intramural R&D and the number of person-years devoted to R&D can be seen as an input measure of all R&D-related activities. Citation indices for scientific articles can be used as a measurement of the impact of research and its importance. In broad terms, the level of citations is a reflection of how Swedish research is noticed in the rest of the scientific world. Citation indices can thus be used to describe the quality of research. It should however be analysed with caution. Looking at citations of Swedish research, we can see that Swedish research is cited approximately 13 percent above the world average.

Patents are also used an indicator for research. Internationally, Sweden has a high number of patents measured per million inhabitants.

When the share of Swedish companies with innovative activity is compared internationally, Swedish companies are above the average of EU countries.

[1] Regional expenditure in intramural R&D as a share of regional GDP is measured on NUTS2 level (Nomenclature des Unités Territoriales Statistiques) which is a breakdown of a country in regions used by the EU for reporting on statistics on a regional level.