karin hallerby tillväxtverket

SWEDISH AGENCY FOR ECONOMICAND REGIONAL GROWTH

POLICY FOR ENABLING GROWTHPOLICY FOR ENABLING GROWTH

Karin HallerbyHead of Division International AffairsHead of Division International Affairs

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Growth in ChinaGrowth in China

i k b t not sustainable• quick but not sustainable• 7 % per year is the target 2011-2015 (7-8%

i )previous)• 25 million/year , growing work force

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Growth rate in other regionsGrowth rate in other regions comparison 2010

• 2,9 % Baltic Sea Region

2 8 % EU8• 2,8 % EU8

• 1,5 % EU-15 and within it, the British Isles 1,5

• -1,0 % Portugal,Ireland, Greece, Spain

7 2 % A Ti• 7,2 % Asean Tigers

• 6,8 % ASEAN

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Growth in the Baltic Sea RegionGrowth in the Baltic Sea Region

• The Baltic Sea Region remains a solidly prosperous region. Its GDP per Capita level nowprosperous region. Its GDP per Capita level now reaches 94% of the EU-27 average, compared to 90% in 2005 and 85% in 2000.

• Heterogeneity across the Region is large

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Northern Europe rather smallNorthern Europe – rather small economy

• home to 57.4 million people

GDP i i il t b t 11% f th EU 27• GDP is similar to about 11% of the EU-27

• roughly the size of the Italian economy

• the Nordic countries account for 62 % av GDP

N• Norway

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Growth in Northern EuropeGrowth in Northern Europe

N th E h f t iti t• Northern Europe has fewer opportunities to quick growth and danger of moving into an accelerating recessionary cycle prepare for anaccelerating recessionary cycle - prepare for an extended period of low growth !

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BALTIC Sea regionBALTIC Sea region Strategy and action plan

• Clean Baltic Sea

I d it• Increased prosperity

• Better accessibility

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Clusters of interest in theClusters of interest in the Baltic Sea Region

• energyC• ICT

• life science / biotechnology • maritime idustries

l i ti• logistics• tourism, • real estate• automotive industries• automotive industries.

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EU 2020EU 2020

• Smart

S t i bl• Sustainable

• Inclusive

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Swedish perspective- lessons learnedSwedish perspective- lessons learnedAccess to finance - needs

• SME:s in early stages

G f SME / t• Groups of SME owners/entreprenuers

• Nontraditional industries like healthcare, creativeindustries, service industries, as examples

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Swedish perspective lessons learnedSwedish perspective – lessons learned

• Innovative SME:s in early stages having…

t it l• access to capital ….

• being supported with entrepreneurship skills…

• show success

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Swedish perspectiveSwedish perspective –lessons learned

• R&D –extended international cooperation

I f i li ti• In focus : commercialisation

• Innovations to products and services in marketplace

• SME:s need longterm access to R&D for S s eed o g e access o & ocommercial activities

• SME profit from commercial international• SME profit from commercial international networks

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An SME perspective

GROWTH IN SWEDEN 2011p p

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SME:s contribute approximately to 60 %SME:s contribute approximately to 60 % of total value added

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SME:s in SwedenSME:s in Sweden

• 60 % value added

Th l th t ill t• The larger the greater will to grow

• ”Green growth” products – expect to grow

• Exporting SME.s – expect to grow

A t fi• Acces to finance

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Larger SME:s have a greater will to growLarger SME:s have a greater will to grow

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SME:s offering ”green growth” productsSME:s offering green growth productsexpect to grow compared to other SME:s

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Exporting SME:s expect to growExporting SME:s expect to grow

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Most SME have access to financeMost SME have access to finance

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Issues reducing growth from SME perspectiveIssues reducing growth from SME perspective

• Competition (49- 250 SME:s )

R l ti (10 49 SME )• Regulations (10-49 SME:s )

• Finance (industries, foreign background)

• Skilled labour

10 49 SME i d t ti l t• 10-49 SME:s exprience good potential to grow but many difficulties to grow

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Implications for public supportImplications for public support

• Innovation

• Stimulate networking and cooperation between SME:s

• Stimulate Green Growth in SME:s and sustainability focus

• Internationalisation

• Skilled labour

• Focus on SME:s (10-49)

• Better regulation focus on irritating procedures access to information• Better regulation, focus on irritating procedures, access to information

• Access to finance (groups and industries)

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Swedish midterm evaluation – lessons learned

REGIONAL VENTURE CAPITALFUNDS AN ERDF INITIATIVEFUNDS – AN ERDF INITIATIVE

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Partnerskapsfond Mittsverige AB(Saminvest II)

Partnerinvest i Norr AB(Almi/Norrlands fund + regional actors) (RA)Ola Rönnqvist, Fund Manager

(Saminvest II)Eva Nordlander, MD

Mittkapital i Jämtland/Västernorrland AB(Sjätte AP-fonden)Susanne Olofsson, MD

Almi Invest Västsverige, Värmland AB (RA)Håkan Krook, Fund Manager

Almi Invest Norra Mellansverige AB (RA)Christer Navjord, Fund Manager

Almi Invest Stockholm AB andAlmi Invest Östra Mellansverige AB (RA)

Svensk Entreprenörskapsfond I-II-III(Innovationsbron) (RA)

Almi Invest Östra Mellansverige AB (RA)Mikael Karlsson, Fund Manager

Almi Invest Västsverige AB (RA)Håkan Krook, Fund Manager

Almi Invest Småland & Öarna AB (RA)(Innovationsbron) (RA)Per Heander, Investment Manager SEF IPer Aspemar, MD SEF II-III

Almi Invest Småland & Öarna AB (RA)Tarja zu dem Berge, Fund Manager

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Private co-investorsPrivate co-investors

• 50% of private co-investors would not have done the investment without the co-investmentthe investment without the co investment

• 10% would probably have made an investment, but the amount would have been lowerbut the amount would have been lower.

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Indications of meeting market needIndications of meeting market need

• 20% did not have any alternative financialpossibilitypossibility

• 25% had other investment sources, but not toequivalent conditionsequivalent conditions

• Portfolio of investments are balanced, early stage

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Has the capital market improved?Has the capital market improved?

• Has the financial supply situation for businesses improved?improved?

• There are indications that the initiative has helped to address the equity gaphelped to address the equity gap.

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CompaniesCompanies

…are in general satisfied and have experienced great value

• Faster growthFaster growth

• 30% have received additional investments

I d biti• Increased ambitions

• Professionalization

• Board – more professional

• Markets, product development, new competence

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Private investorsPrivate investors- added value

• Procedures

C t d f i lit• Competence and professionality

• Extended networks

• Shared risk appreciated

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Summary of the evaluation resultsSummary of the evaluation results

• indicates that the initiative has resulted in an increased volume of private capital investment.increased volume of private capital investment.

• consequently, there is at present no evidence that the investment has crowded out the privatethat the investment has crowded out the private capital.

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Enabling growth policy suggestionsEnabling growth – policy suggestionsFinance

• early stage SME:s and• Finance for entrepreneurs different ”groups”• Finance for entrepreneurs different groups

• Certain industries : Health care, Green growth, Creative industries, service sectorservice sector

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Enabling growthpolicy suggestions-Enabling growthpolicy suggestions-commercialisation and i t ti li tiinternationalisation

• Internationalisation -Innovation /R&D investmentsinvestments

• Internationalisation –SME t kSME network

• Commercialisation is

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key


Enabling growth policy suggestions-Enabling growth – policy suggestions-better regulations

B tt l ti ( l• Better regulation, ( less irritating and costly)D b i t• Decrease barriers totrade – explore EU i t l k tinternal market possibilitiesA t i f ti d• Access to information and public services

(ICT l ti )33

(ICT solutions), Focus on SME.s (10-49)


Thank you for your attentionThank you for your attention

Karin HallerbyHead of Division International AffairsHead of Division International Affairs

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karin hallerby tillväxtverket

Economy & Finance