Tue, 01 Jun 2004

Sweden: Leading the wireless revolution

For decades Sweden has been synonymous with cutting-edge wireless research and innovation. As the world's leading wireless cluster, it offers exciting opportunities to capitalize on the next phase -- mobile data.

Swedes have always loved phones. Ever since the late 19th century Stockholm has been the most telephone-dense capital in the world.

Today, the wires are gone and wireless communications are booming around the world. Sweden remains at the forefront of this rapid development. With a solid track record in wireless innovation, Swedish companies and academic institutes continue to push the limits, bringing new wireless technologies to the global market.

Sweden has constantly been at the forefront of mobile telephony and has produced an attractive portfolio of wireless patents. The third-generation mobile technology, WCDMA, now being deployed was developed in large part by Swedish companies, just like preceding technologies.

Apart from well-known names such as Ericsson, TeliaSonera, LGP Allgon Powerwave and Teleca, the Swedish wireless landscape also embraces a swarm of smaller companies, nurtured by an advanced private equity market.

The rich supply of start-ups geared toward wireless technologies and applications is unmatched. At its core, Swedish wireless leadership is driven by research and development. Nowhere else do companies dedicate so many resources to R&D. Their effort is backed by a number of public institutes and universities that are leaders in wireless research and innovation. They provide abundant opportunities to tap into the wireless cluster through joint ventures and research programs.

Gone are the days when wireless just meant telephones. Now it is about cutting all kinds of wires and making the Internet mobile. Nor is communication confined to humans; a growing portion of the wireless traffic travels between machines. No matter what the technology -- GSM, CDMA, 3G, WLAN, GPRS, EDGE or Bluetooth -- it is all part of the Swedish wireless landscape.

Sweden is also a sophisticated wireless market. It has one of the highest mobile phone penetration rates and is a pioneer in public wireless LAN services. The early and extensive rollout of 3G networks, in combination with a demanding customer base, makes Sweden an ideal market to develop and test new mobile services and applications.

R&D: Investing in a wireless future

Research and development sits at the core of Swedish society. Wireless R&D is carried out in a large number of institutes and centers, many of them world leaders in their fields.

Research and development is at the top of the agenda in Sweden and that is particularly true for the wireless arena. Every year 3.6 percent of GDP is poured into R&D, which places Sweden at the very top of the world league. Naturally, a large part of this goes to the wireless sector. Of the SEK 76 billion (US$10.6 billion/8.3 billion euro) that goes into R&D every year, approximately two-thirds comes from the corporate sector where Ericsson and TeliaSonera are among the top R&D spenders.

Around a third of all people in higher education are enrolled in Information and Communications Technology (ICT)-related programs. Swedish universities churn out 1.24 new PhDs in science and technology per 1,000 inhabitants, placing Sweden well ahead of any other nation. Swedish universities and research institutes are undertaking a large number of ICT-related research efforts and are at the forefront in the areas of wireless systems, signal processing and microelectronics.

In addition, mobile services and understanding the consumer are quickly taking on a prominent role at universities and research institutes.

The four most important universities from a wireless perspective are the Royal Institute of Technology, together with Kista IT University in the Stockholm region, Chalmers University of Technology in Gvteborg, Lund University in the Vresund region and Linkvping University in central Sweden. Together they account for the bulk of wireless research, but there are 29 other schools throughout Sweden that are also engaged in wireless R&D to some extent. Alongside the universities there are a number of advanced research institutes with a focus on wireless research.

They often emphasize applied research and together with regional test facilities offer great opportunities for rapidly bringing new ideas and technologies to market.

Both the universities and research institutes provide excellent opportunities to participate in research programs through various forms of partnerships and many offer contract research. There is also a developed network of seed capital firms and science parks or incubators collaborating closely with the major ICT research centers, offering interesting opportunities for venture capital investments.

Published by Invest in Sweden Agency