The Swedish Innovation System April 20, 2012

Moscow State University

WELCOMELundavision Ldt.Dr. Sven-Thore Holm, CEO

Facts about Sweden

• Total population 9 million

• GDP 40.000 USD

• R&D 3.6% of GDP ( second in the World)

Department of Industry/Education

VINNOVA – R&D

Universities,Institutes, Industry

Innovationsbron AB – commercialisation

Investment Fund of Sweden – financing

ALMI – financing/business development SME

Private Venture Capital

Innovation/Commercialisation Structure of Sweden

Industrial activities

• Paper/pulp/wood• Metal/iron• Advanced metal engineering• Automotive• Telecom/Information technology• Advanced defense industry

Industrial activities cont.

• Pharma industry• Food industry (Functional Food )• Environment protection industry• Packageing industry• Service industry

In the following I will introduce a shortcut…

　How can innovations be turned into business and economic growth?

Step 1: Acknowledge that a full scale innovation system must be a vital part of modern infrastructure.

Step 2: There must be political commitments on central, regional and local level to create an “innovation chain”.

Step 3: A committed professional team must be created

Creation of a Working Innovation Chain

Coaching Soft financing Patent/licensing EquityFeedstream

FeedstreamSystems for increasing the entrepreneurial spirit

• Creative thinking on all levels

• National/regional competition in creating a business plan

•Supported by all Swedish Universities

•In collaboration with the public sector and Swedish Industry

The biggest Business

competition in the world

Göteborg

Nord

Väst

Öst

Syd

Venture Cup are the most important structure to deliver raw material to the Swedish innovation system

Vision

What is the offer ?

Education

FEEDBACK Coaching

INSPIRATION

MORE THAN A COMPETITION

Businessplan

Draft BusinessplanBusinessidea

National Final

Utveckling av antal bidrag

Over 12 000 contributions!

Over 12 000 contributions!

4o 000 people

4o 000 people

4000 Comp

4000 Comp

Feedstream

•.Entrepreneurial education on university level

•.Establishment of functional structures for scouting of

inventions in all universities and institutes.Technology Transfer Officies (TTO)

Coaching

•.Critical mass of professional business coaching

The 18 step programTECHNICAL MARKET BUSINESS

CONCEPT PHASE

Stage 1Investigation

TECHNICAL ANALYSIS

STEP 1 Define concept Confirm critical

assumptions Survey state of the art …

MARKET NEEDS ASSESSMENT

STEP 2 Conduct market

overview Id pricing structure Id market barriers …

VENTURE ASSESSMENTSTEP 3

Estimate profit potential Conduct self, enterprise

and commercialization assessments …

DEVELOPMENT PHASE

Stage 2Feasibility

TECHNICAL FEASIBILITYSTEP 4

Develop working model Test technical features …

MARKET STUDYSTEP 5

Id and quantify: Market size …

ECONOMIC FEASIBILITY

STEP 6 Formulate financial

assumptions Develop pro forma …

Stage 3Development

ENGINEERING PROTOTYPE

STEP 7 Develop prototype Id materials and

processes …

STRATEGIC MARKET PLAN STEP 8

Id marketing team Define target market …

STRATEGIC BUSINESS PLAN

STEP 9 Decide venture or license Finalize intellectual

property …

TECHNICAL MARKET BUSINESS

Stage 4Introduction

PRE-PRODUCTION PROTOTYPE

STEP 10 Develop production

prototype Determine production

process …

MARKET VALIDATION

STEP 11 Conduct market

overview Id pricing structure Id market barriers …

BUSINESS START-UP

STEP 12 Establish business function Hire staff Execute contracts …

COMMERCIAL PHASE

Stage 5Growth

PRODUCTION

STEP 13 Prepare commercial

design production prototype Establish quality control …

SALES AND DISTRIBUTION

STEP 14Expand distribution Analyze competitor

response …

ECONOMIC FEASIBILITY

STEP 15Monitor enterprise position Hire and train personnel Execute contracts …

Stage 6Maturity

PRODUCTION SUPPORT

STEP 16 Maximize production Establish after market

support, repairs and spares …

MARKET DIVERSIFICATION

STEP 17 Develop market

retention Establish market scan Id new markets …

STRATEGIC BUSINESS PLAN

STEP 18 Establish SWOT process Invest profits Monitor product life cycle …

Physical Structures

•.Incubators with professional business and educational

support

• .Science Parks

Ideon Science Park Hans Möller 2008-04-21

Sony Ericsson

Gambro

Active Biotech

Astra Zeneca

500 m

Лікарня при університетіUniversity Hospital

BMC

MAX-lab

Chemical CentreЦентр Хімії

LTH

Ecology CentreЦентр Екології

IdeonSciencePark

Школа Економіки

School of Economics

Patent/licensing

•.Professional structure for patenting and global licensing

Creation of a financial toolbox

•.Grants

• .Verification/Proof of Concept

• .Soft loans

• .Early stage equity

The Financial Toolbox• Grants 25.000 €• Verification 40.000 €• Public soft loans 40.000 €• Public pre-pre seed equity 50.000 €• Public/private equity 750.000 €• Private equity (institutions/angels)

Equity

•.Creation of professional early stage equity structures

• .Based on private and public money

– A System for Developing Brilliant Ideas to Commercial Success

Bridging the Financing Gap

Technology Transfer to SME:S

Technology Transfer to SME:S

Establishment of a Knowledge Bridge Structure providing SME (Small and Medium sized Enterprises) with new knowledge

Thank you for listening!