Sweden’s perspective in the direction of innovation is maybe finest exemplified by the Swedish innovation company, Vinnova, a authorities company based in 2001 primarily based on a collection of predecessors going again to at the least 1968.
The innovation company features very like its counterparts in different nations, equally to the Finnish Funding Company for Know-how and Innovation (Tekes) in neighbouring Finland, and to the a part of the US Nationwide Science Basis (NSF) that does seed funding on the opposite aspect of the Atlantic.
The Swedish authorities offers Vinnova greater than €300m every year to speculate by means of grants to totally different sorts of actors, which is perhaps small firms, analysis institutes, giant competence centres, or consortia of firms working collectively on initiatives.
Vinnova invests this cash alongside 10 totally different themes, together with sustainable trade and digital transformation. To report on the social and financial results of its funding, the company produces two affect research yearly. It has additionally printed a doc that describes its method to monitoring the affect of investments.
Success tales in innovation
“It’s by no means the case that we’re alone within the duty for fulfillment or failure,” says Göran Marklund, head of strategic intelligence and deputy director-general at Vinnova. “We normally fund collaborative initiatives through which we require the actors to contribute 50%, or extra for big firms. This ensures they’ve a stake within the mission – and that they’ll do what they should be profitable. There are sometimes different exterior buyers.”
Vinnova runs a number of initiatives in collaboration with the Swedish Vitality Company. This consists of supporting a battery revolution at the moment underway within the north of Sweden – a mission that revolves round Northvolt, an organization whose founder, Peter Carlsson, was previously an govt at Tesla. Now Carlsson is pushing Northvolt in instructions which might be revolutionising battery know-how for a lot of industries. For instance, its batteries play an necessary position in reworking automobiles to electrical – and automotive is a key trade in Sweden.
Vinnova can be concerned in synthetic intelligence (AI), having written a report on the subject, and having helped begin AI Sweden, an umbrella initiative that promotes the adoption of AI within the nation. Vinnova appears to be like for alternatives to advertise using AI inside companies and public service companies and to extend AI abilities in Sweden.
One other space the place Vinnova has invested is quantum computing. Amongst different issues, the company ran a kick-start programme in 2021 to assist initiatives that result in commercialisation of quantum know-how. “The worldwide race is between China and the US, and with the EU [European Union] as a complete, notably France and Germany,” says Marklund. “Although there may be good utilized analysis in quantum computing in Sweden, it’s a problem for such a small nation to maintain up with the remainder of the world.”
One space the place Sweden has excelled for many years is in telecommunications – a key trade for Sweden, with Ericsson standing out as one of many world’s leaders. In an affect examine printed in 2008 referred to as Results of analysis on Swedish cell phone developments: The GSM story, Vinnova analysed the connection between analysis funded by Vinnova’s predecessors (Stu and Nutek) and the transformation of the Swedish telecommunications trade.
The Ericsson group was the massive winner from the transformation, and the corporate took an early lead within the international GSM market. In accordance with some estimates, Ericsson had a five-year benefit in contrast with opponents. Whereas it’s exhausting to measure how necessary any single contributor was to this success, strategic funding was definitely essential, particularly for innovation in digital radio applied sciences.
Sweden is collaborating within the digital transformation of mining
One other large trade in Sweden is mining – and a serious effort is underway to make mining absolutely sustainable. With assist from Ericsson, ABB and Volvo, Swedish mine operator Boliden arrange a take a look at mine in Kankberg (pictured above) that will likely be utterly automated as a part of a pilot mission overseen by Vinnova. The take a look at mine started operations two-and-a-half years in the past and can finally function autonomously, with no personnel within the mine itself.
The mission was kicked off in Sweden when Ericsson approached Vinnova with the goal of conducting digitisation initiatives. Vinnova prompt two pilots. The primary was automation of producing in Gothenburg; the second was the Kankberg mine within the county of Västerbotten that was a part of a European effort to make mining extra sustainable.
Ericsson put in a 5G community all through the Kankberg mine in early 2016, overlaying a path all the way down to the mine space. Even with blind alleys and caves with out line of sight to the antenna, Ericsson managed to supply excessive bandwidth (100mbps) and low latency all through the mine. The community additionally met stringent necessities for reliability – crucial necessities, since a lack of sign, even for a couple of seconds, may trigger large issues.
This ongoing demonstration mission suits into the EU Fee programme Subsequent Era Carbon Impartial Pilots for Sensible Innovation Mining Methods (or NexGen SIMS). One of many attention-grabbing elements of the mission is that it requires innovation in several industries – mining, telecommunications and equipment – which is useful to Sweden total.
Societal challenges drive funding
“Sweden doesn’t have clearly outlined nationwide methods for digital applied sciences that we will comply with,” says Marklund. “However all people is aware of what the recent subjects are. Quite than attempt to discover a wholly new matter that most people on the earth haven’t but considered, what’s necessary is execution – the way you make it occur on the bottom.”
“Having says that, Vinnova is unquestionably aligned with the place most of the investments are going, internationally and nationally. We’re all around the board. We’re in IT and digital applied sciences, as in well being, biotech and every kind of applied sciences.”
Vinnova can be the Swedish hub for the EU framework programme Horizon Europe. On this capability, it facilitates the participation of Swedish actors in that EU framework programme, the largest analysis and improvement programme on the earth, with clearly specified areas for funding. Digital mining is an instance of how Vinnova helps fund Swedish initiatives that match into EU methods.
“Applied sciences alone don’t lead. We additionally take into account the market across the innovation” Göran Marklund, Vinnova
“Our method at Vinnova is extra than simply technological,” Marklund tells Pc Weekly. “We begin by recognizing societal challenges. That is what’s going to drive competitiveness sooner or later. In case you’re good at driving options to societal challenges, you then’re most likely going to be very aggressive, as a result of these markets will develop.”
As soon as a societal problem is recognized, the following step is to consider what it could take to beat the problem. The answer might have a technological part, however that needs to be designed to work in particular contexts, like sustainable cities, which is among the 10 themes the place Vinnova invests. Sustainable trade is one other – trade wants to remodel into extra sustainable options, to guard the setting in fact, but additionally as a result of the market calls for sustainability.
“In case you’re not reworking your complete enterprise, then you’ll most likely be out of the market someplace down the road,” explains Marklund. “We attempt to put know-how in a wider, systemic context. For instance, we have a look at know-how as one thing that allows a change that brings about aggressive sustainability.”
As a lot as potential, the philosophy is to put money into know-how that meets the wants of society. Vinnova appears to be like at how AI will be employed within the context of social change, and the way 5G signalling will be propagated deep beneath the floor of the earth to assist automate mining, which can lead to sustainable mining.
Within the case of battery know-how, placing the know-how right into a wider context means answering a collection of questions. How do you get the batteries working with the effectivity you want? Then you will have questions on how a lot vitality is required, and whether or not that vitality is inexperienced. If it’s not inexperienced, the answer can’t be sustainable, so the market worth of the innovation in query could be very low.
The road of questions additionally results in the supplies wanted for the batteries and the place they are often obtained. It seems that the supplies at the moment used for batteries are scarce, and China dominates the market. This results in questions on what various Sweden has for getting these supplies. The minerals do exist in Sweden (and elsewhere in Europe) however have been in abundance and low cost in China for therefore lengthy that these companies by no means developed in Sweden.
“Sweden has to develop these sources now as a result of it can’t be depending on China for such important issues,” says Marklund. “Then that turns into a really important focus and identifies a set of applied sciences which might be wanted.”
“That is how we go about discovering locations to speculate. Applied sciences alone don’t lead. We additionally take into account the market across the innovation.”
Swedish nationwide benefits
The areas of funding additionally are likely to cluster round a rustic’s nationwide benefits – what a rustic is already good at, or the place trade is already developed.
Considered one of Sweden’s nationwide benefits is the prevailing automotive trade, which is denser in Sweden than in Germany – that’s, the quantity of income generated per particular person is increased. This consists of vehicles and vans.
By making use of know-how to beat the challenges throughout the nation, Sweden typically will get so good at it that it turns into a web exporter of sure options
Whereas the Chinese language holding firm Geely now owns each Volvo and Polestar, many of the work nonetheless takes place in Sweden, utilizing Swedish employees. Automotive additionally has a huge impact on many different sectors that generate options for the automotive trade.
One other nationwide benefit is the telecommunications trade, with Ericsson standing out internationally and really a lot linked to digital transformation. Mining and metal are additionally necessary industries and are dominant throughout Europe in sure components of those industries.
One other large trade is forestry. All these industries have given rise to a robust equipment trade.
Sweden additionally has a really superior analysis group, with pure and utilized analysis in a a number of areas together with synthetic intelligence, quantum computing and the web of issues (IoT).
Sweden’s training system can be excellent, with a brand new deal with lifelong studying. Digitisation makes issues change extra quickly, so abilities should be developed within the labour drive extra quickly than earlier than. Moreover, an rising variety of jobs require digital abilities.
Difficult instances for Swedish startups
As for the longer term, Marklund expects some challenges forward, particularly for startups. Over time, Sweden has produced a really vibrant startup group, notably in Stockholm, producing a number of success circumstances, together with Spotify and Skype.
The startup group nonetheless has large potential, however with the financial disaster new challenges have arisen, particularly in attracting capital funding. With costs and rates of interest rising considerably, the enterprise fashions of most of the startups don’t look nearly as good as they used to.
“Many startups should not worthwhile in a direct sense,” says Marklund. “Enterprise ca bpital is put in primarily based on market share and expectations, fairly than profitability.
“This has already been seen right here with Klarna financial institution, which took an enormous hit. Klarna financial institution is a kind of startups which ran up in a short time. It’s a financial institution owned by a credit score market and has risen very quickly in phrases in contrast with giant Swedish banks. However now, with turbulence within the monetary sector, enterprise capitalists get scared. We’re in very unsure instances proper now. That is true not solely in Sweden, however in lots of locations on the earth.”
Vinnova tries to fill within the gaps by investing in improvements that present long-term options to societal issues. By making use of know-how to beat the challenges throughout the nation, Sweden typically will get so good at it that it turns into a web exporter of sure options. Whereas Sweden is simply too small to change into an total chief in digital transformation, its method to innovation permits the nation to maintain up – and even lead in sure niches.
