Research and development (R&D;) in Sweden 2006:

R&D; increases but fell slightly as a percentage of GDP

In 2006 SEK 108.2 billion was invested in R&D; in Sweden. This amount was SEK 4.4 billion more than in 2005, in current prices. As a percentage of GDP, R&D; expenses fell slightly from 3.89 percent in 2005 to 3.83 percent in 2006. In comparison, the corresponding figure in 2001 was 4.3 percent. As R&D; expenditure during the last five years has not increased in line with the strong GDP growth seen in Sweden, R&D; expenditure as a share of GDP has fallen.

R&D expenses in Sweden in 2006 increased according to a forecast from Statistics Sweden.[1]

The forecast is based on previously submitted forecast information in the 2005 R&D survey in combination with information from among other things R&D expenses of large enterprises collected during spring of 2007. [2] 

Enterprises account for the increase of R&D expenses from 2005 to 2006. The sharpest increase occurred within the electronics industry where R&D costs have been falling over a number of years. Only a few industries reduced their investments in R&D in 2006. R&D investments of enterprises have increased by 5 percent compared to 2005. Within the higher education sector, R&D expenses have increased somewhat, while they have decreased slightly within government agencies, county councils and municipalities. The defence authorities are among the government agencies which account for the decrease of R&D expenses. The enterprise sector accounted for 75 percent of total R&D expenses in 2006, followed by the higher education sector, which accounted to 20 percent of R&D expenses in Sweden.

In analysing the forecast of R&D expenses in the enterprise sector according to size, it is apparent that R&D expenses increased a total of just over 5 percent compared to 2005. Expenses of small enterprises (10-49 employees) increased by nearly 9 percent compared to 2005. R&D expenses of middle-size enterprises (50-249 employees) increased by close to 2 percent and large enterprises (over 250 employees) increased by nearly 5 percent.

According to the forecast, the number of R&D person-years increased from 77 700 in 2005 to roughly 78 700 in 2006. Most of the increase has occurred within the enterprise sector.

R&D internationally

For a long time Sweden has made significant R&D investments as a proportion of GDP. Despite the decrease in 2006, Sweden has invested considerably more in R&D in relation to GDP than all other OECD countries. In an international comparison, only Israel invests more in R&D as a percentage of GDP than Sweden.

R&D expenses in relation to GDP is a relative measure and GDP percentage is dependent on the development of R&D expenses and GDP over time. From 1997 to 2001, R&D expenses rose in terms of percent more than GDP; this was especially true in 2001. After 2001 this trend changes and GDP increases in terms of percent more than R&D expenses. These variations must be considered when comparisons are made over time. R&D expenses in relation to the number of inhabitants in a country give a somewhat different picture than when expenses are related to GDP. According to that measure, Sweden has the highest R&D expenses in the world. 

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Statistics Sweden Investments, R&D; and IT Unit Box 24300 SE-104 51 Stockholm, Sweden Fax + 46 8-50 69 48 12	Enquiries Roger Björkbacka Tel. +46 8 506 946 06 E-mail roger.bjorkbacka@scb.se Ingrid Pettersson Tel. +46 8 509 947 21 E-mail ingrid.pettersson@scb.se
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