Sweden is situated on the Scandinavian peninsula in Northern Europe and wedged between Norway, Finland, and the Baltic Sea.  Its land area of 174,000 square miles is about the size of California, although its population of approximately 8.8 million inhabitants (52 inhabitants/square mile) makes it one of the most sparsely populated countries in Europe.  As a result, the population of the country tends to be more dispersed than other developed nations, this is augmented by the extreme temperatures and isolation of the sub-artic northern portion of the country.  Most  major urban and industrial centers are therfore located in the southern part of the country. 
 

Sweden is among the world’s biggest spenders on industrial research and development in relation to national output.  However a large portion of this funding is for non-IT high technology and manufacturing R&D.  Approximately 80% of R&D expenditures are related to transportation and telecommunications equipment, pharmaceuticals and machinery. 

The major R&D companies in Sweden are: 

• Ericsson – Telecommunications 
• Telia - Telecommunications 
• Volvo - Transportation 
• Saab - Transportation 
• Scania Transportation 
• Astra - Pharmaceuticals 

R & D in the IT area in the company sector accounted for almost 12 billion SEK in 1993. This corresponded to just over a third of the total R & D costs in the sector. In addition to major industry R&D universities, colleges and technical institutes have conducted the majority of IT R&D. As a result, a large number of new companies have been spun off from university research.  

Science Parks 

In Sweden, there is a long tradition of cooperation between academic research and business.  The government encourages the establishment of science parks, created in the vacinity of local universities. 

Since the early 1980s, Swedish science parks have grown both in number and size, supported and often initiated by local and regional authorities. Swedepark, the umbrella organization, today has 24 park members. They range over a broad field, both as regards expertise and size - from Kista Science Park in Stockholm with 350 companies and over 20,000 employees, to smaller parks with some 10 companies and fewer than 100 employees. 

The Swedish science parks are unique assets for Sweden, and they spawn research and innovations from the country's colleges and universities in areas ranging from telecom, IT, and forest technology to medicine, biomedicine and biotechnology. That is one reason why increasing numbers of world-leading companies locate research and development departments in Swedish science parks. 

Science parks facilitate contact between industry and colleges and universities. Often there are well-established networks between the schools and the parks, where spontaneous meetings take place. The Swedish science parks offer a variety of services to the companies that choose to locate in them.  Assistance is given in helping the companies establish contact with researchers and students, local and regional authorities, as well as networking with other hi-tech companies in the park and in other parks.  Administrative services, such as expatriate services and back-office services are also at hand. On the financial side, the parks can help the companies with access to the venture capital market.