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Innovation activity in enterprises in Sweden 2018–2020

Process innovation – the most common type of innovation

Statistical news from Statistics Sweden 2021-11-11 9.30

Between 2018 and 2020, 55 percent of enterprises in Sweden carried out innovation activities, which is similar to the percentage in the previous survey round, concerning 2016-2018.

Process innovation – the most common type of innovation

Between 2018 and 2020, 30 percent of enterprises engaged in product innovation, while 45 percent introduced business process innovation during the reference period. Large enterprises carried out innovation activities to the largest extent, at 79 percent. A product innovation is a new or considerably improved good or service introduced by the enterprise. A business process innovation, in turn, refers to a new or improved business process for one or more business functions at the enterprise. It can be a matter of new delivery methods, production methods, or management-related activities.

Percentage of enterprises with different types of innovation activities, by type of innovation and by size class, 2018-2020

Diagram: Percentage of enterprises with different types of innovation activities, by type of innovation and by size class, 2018-2020

Competitive substitutes and a changing market are common conditions for enterprises

During the reference period, Competitive substitutes and Changes in demand are difficult to predict were the two most common factors that enterprises felt corresponded to their situation in some form, at 80 percent and 78 percent, respectively. Goods and services become quickly outdated was the factor most enterprises felt did not correspond with their situation, at 33 percent.

Percentage of enterprises that felt they met the following conditions on the market, by type of condition and degree of significance, 2018-2020

Diagram: Percentage of enterprises that felt they met the following conditions on the market, by type of condition and degree of significance, 2018-2020

Increased awareness among clients – the most significant consequence of climate change for enterprises

The effect of climate change on enterprises as well as innovations with environmental benefits have been the focus of the survey concerning 2018-2020. An innovation with environmental benefits is a product or business process innovation that generates positive or lower negative environmental impacts, compared to the enterprise’s previous products or processes, and that has been made available to potential users or brought into use, either for the enterprise itself or for the end user.

The most common consequence of climate change for the enterprise was increased awareness among clients; 62 percent of enterprises felt that this was of high, medium or low significance. The consequence of climate change with the least significance for enterprises was the effect of extreme weather conditions, at 40 percent. One in five enterprises did not know whether Government regulations or measures related to climate change had a significant impact on climate change for the enterprise.

Percentage of enterprises that experienced the consequences of climate change, by type of consequence and degree of significance, 2018-2020

Diagram: Percentage of enterprises that experienced the consequences of climate change, by type of consequence and degree of significance, 2018-2020

Innovations that contributed environmental benefits to the enterprise

Among enterprises, 8 percent stated that they had introduced an innovation that had significantly contributed to the environmental protection with regard to reduced energy use or CO2 ‘footprint’. The corresponding percentage for innovations with an insignificant contribution to the environmental production was 16 percent.

Percentage of enterprises that introduced innovations with environmental benefits for the enterprise, by type of environmental benefit and degree of significance, 2018-2020
Environmental benifits Significant contribution to environmental protection Insignificant contribution to environmental protection
Reduced material or water use per unit of output 4% 12%
Reduced energy use or CO2 ‘footprint’ 8% 16%
Reduced soil, noise, water or air pollution 4% 11%
Replaced a share of materials with less polluting or hazardous substitutes 5% 13%
Replaced a share of fossil energy with renewable energy sources 6% 11%
Recycled waste, water, or materials for own use or sale 5% 13%

Innovations that contributed environmental benefits to the end user

For the end user, reduced energy use or CO2 ‘footprint’ was also the most common environmental benefit of innovation. The percentage of enterprises stating that they introduced an innovation that significantly contributed to environmental protection was 9 percent. The corresponding percentage for insignificant contributions was 25 percent.

Percentage of enterprises that introduced innovations with environmental benefits for the end user, by type of environmental benefit and degree of significance, 2018-2020
Environmental benefits Significant contribution to environmental protection Insignificant contribution to environmental protection
Reduced energy use or CO2 ‘footprint’   9% 25%
Reduced air, water, soil or noise pollution 4% 15%
Facilitated recycling of product after use 6% 19%
Extended product life through longer-lasting, more durable products 7% 20%

Definitions and explanations

Enterprises with innovation activities include:

  1. Enterprises that introduced a new product and/or process innovation in the period 2018-2020.
  2. Enterprises that, in the period 2018-2020, have abandoned or postponed the development of new products or processes before completion.
  3. Enterprises that had ongoing development activities of new products or processes at the end of 2020 that are not yet completed.

Statistical Database

More information is available in the Statistical Database

Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.

Statistical agency

Statistics Sweden

ICT, Business cycle and R&D unit

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fou-statistik@scb.se

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Agnes Norberg

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Alicja Markiewicz

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