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Facts & Figures 100% FACTS & FIGURES ABOUT DOING BUSINESS IN THE GOTHENBURG REGION 2018 SCANDINAVIA'S MOST E XPANSIVE REGION Why interest in Gothenburg is rocketing In the summer of 2017, China’s Geely announced plans for a new 120,000 square metre innovation centre in Gothenburg, with space for more than 3,500 people. The new centre, which is set to become one of the most advanced hubs in Europe, is an example of the major investments being made in the Gothenburg region’s business environment. Three reasons why interest in Gothenburg is increasing so quickly In recent years, Gothenburg-based companies have invested heavily in developing new products and services. Behind these large sums are global brands like Ericsson, AB Volvo, AstraZeneca, Saab and Volvo Cars, as well as multiple other companies of various sizes. A quarter of the country's private R&D investments are made in the Gothenburg region. This has made the region a world leader within for example areas of automotive, life science, logistics, ICT and urban development. Construction plans worth a total of 100 billion euros are attracting investors at a scope never previously seen in Gothenburg. Gothenburg is expanding in the ideal city location and offers unique testing possibilities for innovative products and services. The rapid pace of digitalisation opens up opportunities for companies and people with the ability to think creatively. The Gothenburg-based company Football Addicts, whose app brings together millions of football fans from all over the world, is a good example. 2 Photo: Per Pixel Petersson billion 100 euros will be invested by 2035 A valuable domestic market In Gothenburg, large construction projects are located right in the middle of the city, and the ethos is that this represents a fantastic opportunity to test something new. A domestic market with this attitude is of immense value for companies putting significant investments into R&D. The full chain is in place in Gothenburg – from the analysis of people's needs and society's challenges to in-demand products and international trade. What begins as concept development continues with the design of products and services, testing in an urban environment and large-scale production. In addition, the city boasts global marketing and established trade routes direct to the large export markets. Challenges that call for new partnerships But the city is also facing some substantial challenges. Within the business environment, certain competence is scarce – not least in the construction sector. The consequences of segregation and a housing shortage are serious. These are putting Gothenburg's capacity for cooperation to the test. The business sector, the city/region and the universities need to work together to take on these challenges. The approach to collaboration has made Lindholmen one of Sweden's most knowledge-rich areas. Another example is AstraZeneca, which has opened up its research facilities to small, promising companies working in its networks. These collaboration models are new even from an international perspective. They contribute both to finding answers to major societal issues and to making Gothenburg an interesting option for investments and establishments. BUSINESS REGION GÖTEBORG is responsible for business development in the City of Gothenburg and represents thirteen municipalities in the region. 3 1. A REGION MOVING FORWARD 2. HIGH LEVEL OF GLOBAL INTERACTION 3. GROWTH & LABOUR MARKET 4. BUSINESS POPULATION, LIFESTYLE 5. & EDUCATION 6. COSTS & TAXES CLIMATE, ENVIRONMENT 7. & SUSTAINABLE DEVELOPMENT 4 Gothenburg's labour market International and national competitiveness Page 7 – 13 Import and export Foreign-owned companies International visitors Page 14 – 18 Emerging industries Largest employment growth Employment rate Page 19 – 23 Largest employers Value creation in different sectors Corporate climate and entrepreneurship Page 24 – 27 Demographics Level of education Seats of learning Page 28 – 30 Salary and rent levels Tax regulations Tax reductions Page 31 – 34 Waste management Air quality Green Gothenburg Page 35 – 38 5 1. Photo: Per Pixel Petersson / Göteborg & Co 6 Photo: Liseberg / Göteborg & Co 1. A REGION MOVING FORWARD The Gothenburg region is an attractive part of the country which is experiencing growth through a number of exciting developments. This transformation is illustrated in both national and international comparisons. Photo: Per Pixel Petersson / Göteborg & Co Photo: Liseberg / Göteborg & Co 7 A REGION MOVING FORWARD Growth strategy – to expand in terms of both population and area The Gothenburg region is growing more rapidly than anyone could have predicted. In addition, major investments are being made in infrastructure and urban develop- ment, which in turn attracts more commuters and new inhabitants. By around 2030, it is likely that Uddevalla, Trollhättan and Borås will be a part of Gothenburg's labour market. For example, commuting from Trollhättan to Gothenburg has increased by just over 30 per cent in the last three years alone. This increase suggests that, in the near future, we will also be able to include Trollhättan and its surrounding municipalities in Gothenburg's labour market. For this reason, local politicians in the Gothenburg region have adopted a new, offensive growth strategy (Sustainable Growth). SOME OF THE KEY GOALS ARE: 120,000 new jobs. (2016–2035) 10,000 new inhabitants per year. Uddevalla The core of the region, central Gothenburg, Trollhättan will grow by 45,000 inhabitants and 60,000 jobs by 2030. (2012–2030) In 2030, the Gothenburg labour market will encompass 1.75 million inhabitants, compared Borås with 1.17 million inhabitants today. GOTHENBURG Varberg Current labour market region Labour market region by 2030 A local labour market is a division of Sweden based on commuting patterns. When commuting between municipalities reaches the extent that these municipalities can be seen to be dependent on one another, they form a labour market region. THE FOLLOWING 18 MUNICIPALITIES ARE INCLUDED IN GOTHENBURG'S LABOUR MARKET: Ale, Alingsås, Bollebygd, Falkenberg, Gothenburg, Härryda, Kungsbacka, Kungälv, Lerum, Lilla Edet, Mölndal, Orust, Partille, Stenungsund, Tjörn, Varberg, Vårgårda and Öckerö. 8 A REGION MOVING FORWARD Growth in the Gothenburg regional labour market since the year 2000 46,000 more establishments 74% increase in total wage sum 79% increase in GRP (Gross regional product) 53% 187,000 increase in productivity new inhabitants 134,000 more jobs 9 A REGION MOVING FORWARD The Gothenburg region – a leading research region which is highly competitive on the international stage R&D SHARE OF GDP 1, 2… 4 … 195, 196 SwedenOF SWEDEN'S TOTAL PRIVATE R&D INVESTMENTS IN EACH SECTOR RESPECTIVELY OUR LEADING INDUSTRIES ACCOUNT FOR: • Automotive – 61% • Chemicals, food and pharmaceuticals – 42% • Professional services – 27% of Sweden's total R&D investments within the 25% private sector are made in the Gothenburg region* * Refers to companies' R&D investments in Västra Götaland County. Source: Statistics Sweden TOP RANKED INCUBATORS Chalmers Ventures has been named the world's twelfth best university- associated business incubator. Business incubators that make it into UBI’s top rankings stand out from the crowd with greater return potential, good access to investment capital, and successes after the incubation stage. GU Ventures also ranks highly in place seventeen. Photo: Jonatan Fernström / BRG Source: UBI Index 2017/2018 10 ww A REGION MOVING FORWARD The Gothenburg region – a leading Innovations** research region which is highly REGIONAL INNOVATION SCOREBOARD 2017 competitive on the international stage INNOVATION LEADER AMONG 220 REGIONS Assesses the innovation performance of European regions. West Sweden is named in the report as a European innovation leader. Among other things, the region achieves distinctions for: • Increased employment within knowledge- based professions Connectivity** • Process and product innovations within SME EUROPEAN CITIES AND REGIONS • Highly educated population OF THE FUTURE 2017/2018 • Export of high-technology goods Source: European Commission 2ND OUT OF 55 MID-SIZED CITIES Ranks cities and regions in Europe with the best IT and logistics infrastructure. Among large European cities, Gothenburg is ranked second when it comes to the Growth potential* best IT and logistics infrastructure. PERFORMANCE INDEX 2014 Source: fDi 10TH OF 117 REGIONS Assesses large European city regions with the best future growth potential. The Gothenburg region scores highly in: Competitiveness* • Economic growth EUROPE 2020 • Employment REGIONAL INDEX Source: BAK Basel 27TH OUT OF 263 REGIONS Assesses how close EU regions are to their target strategies for achieving improved competitiveness. The Gothenburg region has achieved all of its established EU targets and is praised for, among other things: • Employment Competence** • Higher education level GLOBAL CITIES TALENT • R&D COMPETITIVENESS INDEX 2018 Source: European Commission 23RD OF 90 CITIES The index ranks cities on their capacity to attract, develop and retain competence. Gothenburg's ranking is motivated by: • High quality of life • Well-educated population Source: INSEAD and Adecco * Indicators refer to West Sweden. ** Indicators refer to City of Gothenburg. 11 A REGION MOVING FORWARD A strong growth engine Swedish regions show strong economic growth among selected benchmark regions in Europe. The Munich region had the highest annual growth rate at just under 5 per cent. The annual
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