In 2023, micro enterprises conducted R&D amounting to SEK 3.4 billion in Sweden. In total, 3 480 people worked in R&D in micro enterprises and their work corresponded to 2 880 full-time equivalents. This was 2 percent of the Business enterprise sector’s total R&D expenditure and almost 4 percent of all R&D personnel in the sector measured in full-time equivalents. Service-producing enterprises (SNI 45–99) accounted for the majority of R&D expenditure among micro enterprises in 2023, at almost SEK 3 billion. Of the service industries, research and development institutes (SNI 72) was the largest contributor followed by enterprises in ICT industries (SNI 58–63) and architectural offices, technical or engineering consultancy forms and technical testing and analysis (SNI 71).

The fact that most micro enterprises performing R&D are found in service industries does not necessarily mean that their R&D activities are directed towards these same industries. Both among enterprises in service industries and manufacturing industries a majority of R&D expenditure was directed towards goods (SPIN 01-43), 82 percent of expenditure among manufacturing industries and 52 percent among service industries. Looking at the product groups towards which most R&D expenditure was directed, basic pharmaceutical products and pharmaceutical preparations (SPIN 21) accounted for the largest share in 2023. It was primarily research and development institutes (SNI 72) that performed R&D directed towards this product group. Many of these institutes are biotech companies or enterprises specialising in medical engineering or in clinical research, and thus they primarily provide R&D services for the pharmaceutical industry.

The population of micro enterprises is highly changeable with both significant in- and out-flow. Out of all micro enterprises receiving a tax deduction for R&D personnel in 2019, 7 percent had grown to 10 or more employees by 2020, and the share continued to increase annually to 11 percent in 2023. Among micro enterprises that increased their number of employees between 2019-2020, the average growth rate was 3.5 employees. Another three years later, the same enterprises had increased their number of employees by 6.5 employees on average which explains why many enterprises outgrow the population of micro enterprises. Strong employment growth in the group also indicates that R&D can lead to new ideas and innovations creating opportunities for businesses to grow.

More about research and development (R&D) in Micro Enterprises during 2023 is presented in the report Research and Development in Micro Enterprises (available in Swedish only)