Invest in Sweden Report 2000
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Contents 2 The Prime Minister’s introduction 3 The Swedish advantage 28 Key economic indicators 29 The micro-competitiveness of Wireless Valley 34 Facts on foreign investments 35 Investment services General facts about Sweden INVEST IN SWEDEN – REPORT 2000 1 The Prime Minister’s introduction weden’s attractiveness to foreign com- Spanies has gained momentum in the last years. The economy is showing strong economic growth and the number of for- eign establishments is increasing steadily. On top of that, Sweden is rapidly becoming a truly knowledge-based information soci- ety. As a result, Sweden today offers a host of investment opportunities. The enlargement of the European mar- ket and the emerging information society affect all industries. In order to stay competitive, companies are restructuring and investing in regions that provide access to both markets and dynamic environments for creating new solutions. Sweden has many advantages. The membership in the EU and the central location in the Baltic Sea Region make Sweden an excellent base for capturing market shares in northern Europe. Meanwhile, new information technology and the Internet are penetrating our whole society, with a positive impact on productivity and thus profitabil- ity. However, despite Sweden’s present position as a leading IT nation, the government is fully committed to further strengthening Sweden’s competi- tive advantages. Major efforts are currently under way to expand education and training programs as well as to further improve the infrastructure. For example, investments in IT and telecommunications are higher in Sweden than else- where. New IT universities are being established in various parts of the country and the Öresund fixed link between Malmö and Copenhagen fur- ther enhances Sweden’s strategic position in northern Europe. Measures are also undertaken to facilitate a greater influx of competence from abroad. I recommend you to take a close look at how your company can benefit from investing in Sweden. I hope that reading this publication will be the first step to a close relationship between your company and Sweden. Welcome to Sweden! Göran Persson 2 INVEST IN SWEDEN – REPORT 2000 The Swedish advantage In this section of the Report you will find facts about Sweden’s research and technology, along with facts about opportunities, production and costs. The Swedish advantage is an environment that is international, innovative and profitable – increasingly important to foreign investors. 4 Attractive location for foreign investors 6 Source of international success 8 A profitable place 10 Global leader in research and innovation 12 Focus on human capital 14 Information society showcase 16 Sophisticated market place 18 Strategic base in the Baltic Sea Region 20 Logical logistics base 22 Prepared for the future 24 Competitive cost framework 26 Favorable macro-economic environment INVEST IN SWEDEN – REPORT 2000 3 The Swedish advantage Attractive location for foreign investors Selected companies who chose Sweden is the keenest investor in to invest in Sweden 1999 knowledge. It spends far more of Canada Finland its national output on R&D than • Nortel Networks • Nokia “other countries. • Tiivi • Hub of the North Economist US October 16, 1999 • Andersen Consulting • Cisco India • Compaq • Infosys • Esperion Norway Netherlands Technologies Pharmaceuticals • Gamo • HP Dispatch • Ford • Moelven Industrier Norden Japan ” • GM • Online Club • Hewlett-Packard • KSK Belgium Akzo Nobel benefits from • IBM • Matsushita • Image Solutions Denmark • Carestel Electric Works • Intel Corporation • Yaskawa Electric Swedish know-how • Intercell • Microsoft • Schulstad Gruppen Austria Sweden is an important market for Nether- • SimCorp Taiwan • Oracle • Reiser Malzer Team • CreTe Systems lands-based chemical giant Akzo Nobel • Sun Microsystems • Scandinavian • Sykes UK Health with 9 percent of the total group net sales • TekPak • Beenz.com Germany • Telecity of NLG 27.5 billion originating in Sweden, • Bertrand • Valtech • Edag Engineering capital investments of around NLG 1.5 bil- • Knoll France • Linde lion and some 5,000 employees. • Carauto • LSG Lufthansa Service • Net Value “Sweden has a good manufacturing tra- • Norddeutsche Landesbank dition of heavy products”, says Cees J.A. van Lede, Chairman of the Akzo Nobel Board of Management. “We benefit from the great Swedish know how, for example in the pulp and paper business. Akzo Nobel is carrying out R&D in Sweden in The number of foreign companies establishing in Sweden continues to cooperation with the Swedish forest indus- increase. During 1999, several international corporations decided to locate tries and with the University of Chalmers. new research facilities, manufacturing operations, headquarter functions and In the coatings sector, our Malmö business other activities in Sweden. New research shows that the Swedish business unit has a close liaison with the University environment is very competitive. of Lund. We are also cooperating with the Swedish Academy of Engineering Sci- International companies have strong reasons to invest in Sweden. ences in the granting of prizes by Akzo Establishing in Sweden provides access to the EU’s Single Market, as well Nobel Science Award for multi-disciplinary as a strategic position in the Baltic Sea Region, state-of-the art technology, scientific achievements.” industrial clusters in fast-growing sectors and a competitive cost structure. “Good air communications with less frantic and time-consuming airports than in the crowded continental European hubs makes travelling to Sweden more agreeable”, says Mr. van Lede. www.akzonobel.com 4 INVEST IN SWEDEN – Attractive location for foreign investors Competitive business climate large individual transactions may Inward FDI to Sweden, 1993–99 SEK billion Several studies published during 1999 strongly affect statistics certain years. UK 336 show that Sweden represents a compet- This was the case in 1999, when the US itive alternative as a business location. inflows were influenced by e.g. the Finland In the 1999 Global Competitiveness merger between Astra and Zeneca Germany Netherlands Report, Professor Michael E. Porter (almost USD 37 billion) and by Ford’s Norway concluded that the Swedish micro-eco- acquisition of Volvo Cars (USD 6 billion). Denmark nomic competitiveness is among the top Belgium/Lux. Cyprus five in the world, and it continues to Geographical composition Austria improve. The Astra-Zeneca merger made the UK 0 50 100 150 200 Source: Central Bank of Sweden The Global Leaders of Tomorrow the largest source country of foreign (GLT), a network of young business exec- direct investment into Sweden during utives, working with the consultancy firm the 1993–99 period. The US and Fin- AT Kearney, have developed a “future land were in second and third place, Ten largest recipients index”. In its latest version, the index respectively. At the end of 1998, there of FDI, 1999 shows that Sweden is the EU country that were almost 670 American companies SEK billion US is best prepared to tackle the challenges in Sweden, employing more than 60,000 253 Sweden of the future. The index considers factors people. Due to a large number of new UK such as visionary leadership, level of entries in 1999, these figures will Netherlands education, electronic infrastructure and increase significantly. Major US China Brazil the use of Internet. investors last year include Ford, France Microsoft, Intel, General Motors, Oracle, Argentina Foreign expansion in Sweden Snap-On, Sykes, Genzyme Tissue Germany Norway Sweden’s increased competitiveness is Repairs and Esperion Pharmaceuticals. 0 20 40 60 80 100 reflected in the growing number of for- Source: Unctad eign-owned companies in the country. Reasons to choose Sweden Between 1990 and 1999, the number Executives in Sweden particularly increased by more than 50 percent, appreciate the low corporate taxation, Foreign direct investment from 2,600 to 3,950. the strong industrial tradition, the com- in Sweden, 1987–1999 In 1999, Sweden was the world’s petence of the work force as well as SEK billion 495 200 second largest recipient of inward Sweden’s advanced infrastructure, not investment after the US, according to least in the area of information and com- 150 preliminary figures from the United munications technology. As the Presi- 100 Nations. Sweden also reports among dent and CEO of Microsoft, Mr. Steve the highest outflows of foreign invest- Ballmer, said, after having entered an 50 ments relative to GDP. As in most OECD R&D joint venture with Sweden’s Erics- 0 countries, mergers and acquisitions son: “We are clearly in the heart of explain most of these capital flows. Mobile Valley. I know no better place to –50 87 89 91 93 95 97 99 Since 1990, inflows and outflows locate this company.” Outward FDI Inward FDI have basically been balanced. However, Source: Central Bank of Sweden INVEST IN SWEDEN – REPORT 2000 5 The Swedish advantage Source of international success Here, you will find a great many dynamic companies and highly competent people, which is vital if “you are trying to rapidly bring new products and services to market. Pier-Carlo Falotti European Head of Oracle Corp. Pressrelease February 18, 2000 Flextronics expands European” operations Contract manufacturer Flextronics Inter- national manages its West European oper- ations from the southeast Swedish port city of Karlskrona. With total sales of USD 6 billion and with 41,000 employees, the company is one of the largest global sup- pliers