Business in Sweden

Aired March 2005

Sweden, located in the heart of Scandinavia and with a population of just nine million people, has been the starting point for a number of outstanding achievements in a variety of fields. Alfred Nobel (who invented dynamite and established the peace prize in his name), Tetra-Pak packaging, Volvo, IKEA, clothing giant H&M, telecom leader Ericsson, and the hit pop music group ABBA all had their start in Sweden. With a small domestic market and an international outlook, Swedish companies and entrepreneurs have traditionally gone global -- with great success.

Sweden and the US have always enjoyed a strong relationship. Between 1840 and 1930, over one million Swedes emigrated to the US and these immigrants helped to build America, contributing their technical ingenuity and know-how. Today, the United States is Sweden’s largest export market, accounting for over 11% of total exports. US businesses have invested 25 billion USD in Swedish businesses in the past decade, making the US one of the largest foreign investors in Sweden and reflecting American confidence in the Swedish economy.

Swedish-American mergers and acquisitions have worked well for both parties, and during 2001 almost 20% of all Swedish M&A activities involved an American company. In April 2003, American Pfizer acquired the Swedish pharmaceuticals leader Pharmacia Corporation and this new Pfizer entity is now considered to be the world’s leading research-based pharmaceuticals company. Other successful US forays into the Swedish economy include the GM acquisition of Saab and Ford’s purchase of Volvo.

FINANCE

Hub for Nordic financial markets:
Stockholm, the country’s capital city, is known as the Baltic region’s services hub. Home to major banking institutions, the region’s largest stock exchange and a wide variety of legal and consulting companies, Stockholm has the expertise to service the needs of investors looking into opportunities anywhere in the region. Goldman Sachs, GE Capital and Citigroup, among many other international leaders, have chosen Stockholm as their headquarters for operations in northern Europe and the Baltic.

The Swedish financial sector, known for its cutting-edge technologies, is particularly strong in technology-based financial services. Stockholm’s stock exchange is the seventh-largest in Europe, and the city also has Europe’s third largest derivatives exchange and is northern Europe’s major center for venture capital activity.

IT

The Silicon valley of Europe:
The International Data Corporation has ranked Sweden, birthplace of telecom giant Ericsson, as the world’s leading IT nation for the past four years. Kista, north of Stockholm, is a thriving base for wireless communications and other IT activities, and strong R&D links have been forged between Kista’s IT univeristy and Stanford University in the US. One of the most advanced IT countries in the world, Sweden is an excellent market for companies seeking to develop and test new technologies, concepts, devices and applications before launching them on a global scale. Many American companies have already invested in R&D centers in Sweden, including Sun Microsystems Wireless Center of Excellence, IBM’s Wireless Internet Center and Accenture’s Global Center for WAP Applications and Services.

GOTHENBURG

Gothenburg, on Sweden’s west coast, is the home of globally renowned Volvo, Saab and SKF, and has been chosen by Ford as its global base for telematics. Very different from its big brother Stockholm, Gothenburg has carved a niche for itself as an automotive center, logistics hub for Scandinavia and the epicenter of traditional Swedish engineering and industry. Today, Gothenburg is widening its sphere of activities to include new industries like biomaterials and IT. Hit hard in the late 1970s by the closure of much of its shipyard industry, the region of Gothenburg has rebounded to become the base for almost 1,500 foreign-owned companies in the automotive, IT, pharmaceuticals and medical products sectors. The region’s tradition of strong collaboration between the public, private and academic sectors has helped it become a magnet for foreign investors.

Gothenburg is strategically located half way between Oslo, Norway and Copenhagen, Denmark, with easy access to the Oresund Bridge linking Sweden and Copenhagen. Gothenburg also boasts Scandinavia’s largest port.

TOURISM

In addition to its many attractions as a business base, Sweden is also an increasingly popular tourism destination. It has spectacular scenery, a lively and sophisticated cultural scene, excellent shopping, delicious culinary specialties, and a wide range of activities for sports lovers, from bicycling on Stockholm’s many bike trails to skiing, fishing, sailing, hiking and much more. In addition, safety-conscious international travelers are drawn to Sweden’s reputation for security. Whether visitors are looking for outdoor adventure, relaxation, vibrant nightlife or European cultural experiences, Sweden has it all.