Sweden is the EU country that invests most in R&D relative to its GDP. In 2007, total R&D expenditure amounted to 3.64% of GDP compared to the Member State average of 1.83%. However, in contrast to many other countries, the volume of R&D investment has decreased in recent years from a peak of 4.25% in 2001. Industry is the main R&D performer investing 2.65% of GDP in 2007. This is a decrease in comparison to earlier years (2.79% in 2006 and 2.81% in 2005). The main explanation for this is increasing globalisation, with MNC (Multinational Companies) reallocating their R&D activities to other countries than Sweden. The financial crisis will most likely result in an even further decrease of industry R&D investments (Eurostat). The Government annually invests some €2.3b (SEK25b) (1EUR=10.81SEK) in R&D. In the research bill “A boost to research and innovation” (2008/2009:50), the government is allocating an additional €1.3b (SEK14.7b) to R&D over the period 2009-2012. This is by far the largest R&D investment ever, in terms of additional resources. Most of the government funds will go to universities and other higher education institutions.

This analytical country report is one of 33 reports for EU Member and Associated States prepared as part of ERAWATCH. ERAWATCH is a joint initiative of the European Commission's Directorates General for Research and Joint Research Centre. For further information on ERAWATCH see http://cordis.europa.eu/erawatch. Analysis of policy mixes to foster R&D investment and to contribute to the ERA. Comments on this report are welcome and should be addressed to Mariana Chioncel (Mariana.Chioncel@ec.europa.eu).