Research and Innovation Bill lays the foundations for long-term growth and economic recovery after the COVID-19 crisis
A long-term investment in research and innovation is necessary to meet current and future societal challenges. It creates the conditions to be able to get out of the crisis and at the same time contribute to the transition regarding digitalization and sustainability that is required in our society.
Today's reality is increasingly characterized by rapid change, uncertainty and fierce competition. World-class knowledge and skills contribute to sustainable competitiveness and increased prosperity. The Government's policy direction for research and innovation over the next four years contains a number of proposals for improvement. An increase in the level of government funding for research and innovation is positive. Especially in the crisis we are in, where business investment is slowing down in many areas.
The analysis and situation picture are well linked to the five societal challenges that the bill focuses on. Climate and the environment, health and welfare, digitization, skills supply and working life, and a democratic and strong society. Some of the merits of the bill are the amendment to the Higher Education Act, which, among other things, strengthens the university's responsibility for lifelong learning. This is in demand from the perspective of the service sector, in order to meet the fast-moving labour market and accelerating digitization. It is also positive that the bill highlights the need for stronger collaboration between academia and the surrounding society. This is done by clarifying the collaboration task in the Higher Education Act and by allocating funds to Vinnova, which will distribute funds to higher education institutions to develop their collaboration with, among others, the business sector. Increased collaboration between different parts of society, such as businesses, academia and research institutes, is important for finding solutions to the challenges of the future.
Almega, Innovationsföretagen and IT&Telecomföretagen welcome the establishment of a national research programme on the societal consequences of digitalization. "We must ensure that we take advantage of the opportunities offered by digitalization - it gives us an opportunity for new thinking and innovation. The digital transformation will be a key driver of Sweden's economic recovery and green growth. We have previously highlighted the need for knowledge investments in AI and funds are now being allocated for cross-sectoral research and innovation environments focused on the data-driven economy and AI.
It is also gratifying that an arena for innovation procurement is being set up and that test and demonstration environments are being rewarded to stimulate innovation. It is also positive that the R&D deduction is being strengthened and that the terms of the expert tax are being improved, which is something we have also been pushing for. Swedish companies need to be able to compete internationally for top researchers and leading experts. But the conditions for both the expert tax and the R&D tax credit must be simplified and improved so that it reaches more companies and thus strengthens Swedish R&D work and Swedish competitiveness.
Challenges and needs of the services sector are not adequately addressed
Something that is missing, and which should be reflected more specifically in the proposal, is that the service sector is developing and becoming increasingly knowledge-intensive, innovative and internationally competitive. Many service companies employ research graduates who work on advanced development projects for industry and others. However, service companies rarely have their own R&D departments, which means that they are excluded from the rules on innovation procurement. Consulting service companies also face competition from research institutes, which often deliver similar services but with government support. This can be rectified and improved by also allowing consultancy services companies to perform tasks with government research support, tasks that are currently only outsourced to research institutes. There is enormous development potential here in strengthening Swedish R&D work.
Many service companies are also small and have limited administrative resources that can be used to establish good collaborative relationships with colleges and universities. At the same time, it is important to include smaller companies in the collaborative efforts that are made. To enable smaller companies to collaborate with universities, we propose the introduction of collaboration checks, which can be used, for example, to offer internships to students in higher education. Linking small businesses with academia also provides an opportunity to transfer expertise in entrepreneurship to the academic sphere.
We also call for a new view of innovation as the basis for the innovation-promoting activities funded through the research and innovation bill. We believe that the current view of innovation places too little focus on value creation that takes place close to customers and does not always involve the development of new products. For example, business model innovations, regulatory innovations and various types of consumer and market-related innovations. In short, service innovation.
Several of the proposals presented by the Government are reforms in the right direction, but a more holistic perspective is needed in which the service sector and the potential of knowledge-intensive service companies to contribute are taken into account to a greater extent. The bill contains visionary descriptions that in some parts lack concrete proposals and means that can act as a catalyst to drive development. The outcome will ultimately depend on how the initiatives are formulated in more detail and how the business community can be genuinely involved in strengthening Swedish research and innovation so that we are better equipped to face the next crisis and future challenges.
Almega's, Innovation Companies' and IT&Telecom Companies' input to research, education and innovation policy 2019
In October 2019, Almega, Innovation companies and IT&Telecom companies jointly submitted comments to the Ministry of Education and the Ministry of Enterprise and Innovation. These are some of the unions' proposals in brief:
- Improving collaboration between academia and business
- Invest more in needs-driven and challenge-oriented research
- Create more knowledge dissemination from research institutes in cooperation with technology consultancies
- Developing procurement to make it more innovation-friendly
- Change the limitation rules in the R&D tax credit and in the regulations on innovation partnerships to better include service companies
- Addressing skills shortages through resizing and collaboration
- Win the international tug-of-war for skills
- Businesses must be able to invest in their staff through a skills tax credit
- Professionals, both women and men, who want and need to develop their digital skills need to have the conditions to do so - introducing tech checks
- Promoting knowledge investment in AI and digital transformation
If the government's initiatives are to make a difference and really contribute to increased research and innovation, the details of the proposals must be designed correctly. And that greater consideration is given to the terms and conditions of service companies. Only then will the conditions be created to build on Sweden as a nation of knowledge, with innovation, digitalization and business as the driving force.
For Almega, Innovation companies and IT&Telecom companies:
Andreas Åström, Head of Industrial Policy at Almega
Magnus Höij, Director of Innovation Business Sweden
Åsa Zetterberg, Director of IT&Telecom Confederation