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Swedish research for growth
A VINNOVA MAGAZINE
A NEW GENERATION CARS • STRONGER SWEDISH STEEL • MEET PROFESSOR MATHIAS UHLÉN
VINNOVA INFORMATION VI 2005:08

Facts and figures about Sweden. Did you know that...?
Sweden is recognized as one of the world’s most knowledgebased
and innovative economies. Around 4 per cent of GDP
is spent on R&D, of which the government accounts for 1
per cent and industry the remaining 3 per cent.
The Nobel Prize, which was founded by Alfred Nobel, the
inventor of dynamite, is awarded every year for innovations
and discoveries that have conferred “the greatest benefit
on mankind” in physics, chemistry, medicine, literature and
peace.
ABB, AstraZeneca, Autoliv, Electrolux, Ericsson, Saab, Scania,
Securitas, Sandvik, Tetra Pak, Volvo, IKEA and H&M are all
wholly or partly owned Swedish multinational corporations.
In 1959 Volvo introduced the 3-point safety belt, which is
now saving a life every six minutes and is regarded as one of
the most important road safety innovations ever. The curtain
airbag and the Autoliv’s anti-whiplash system are other Swedish
inventions.
Swedish medical inventions include improvements in local
anaesthesia, improvements in intravenous nutrition, the
pacemaker, ultrasound, the gamma knife, beta blockers and
Losec, the anti-ulcer drug. In recent years Losec has been
the world’s best-selling pharmaceutical product.
85 per cent of the population of Sweden had access to 3G
services in January 2005, the highest figure in Europe. The
NMT, GSM, GPRS, WCDMA and Bluetooth wireless standards
all originated in Sweden.
Sweden came third (after the US and Finland) in the World
Economic Forum’s 2004 world ranking, both in terms of
international competitiveness and growth prospects.
The Swedish corporate tax rate, 28 per cent, is low by international
comparison and significantly lower than the rates in
most other European countries.
Sweden is one of the world’s largest recipients of foreign direct
investment. In the last ten years the number of foreignowned
companies has risen from 2,500 to 10,000. The
largest foreign investors during the last five years were the
UK, Germany, the US, Finland, the Netherlands and Norway.
Swedish exports account for nearly 50 per cent of GDP.
Traditional industries such as forest products, mining and
engineering (including the automotive industry, electrical
goods and telecom) account for a substantial proportion of
export revenues.
Håkan Lans is a Swedish inventor. His inventions include the
computer colour graphics and the GP & C satellite navigation
system, which is the international standard in shipping and
civilian aviation today.
VINNOVA, the Swedish Governmental Agency
for Innovation Systems, integrates research,
development and innovation.
VINNOVA’s mission is to promote sustainable
growth by funding needs-driven research
and developing effective innovation systems.
Through its activities in this field, VINNOVA
aims to make a significant contribution to
Sweden’s development into a leading knowledge
based economy.
Postal address:
VINNOVA, SE-101 58 Stockholm, Sweden
Street address:
Mäster Samuelsgatan 56
Phone: +46 8473 3000
Fax:+46 8473 3005
E-mail: VINNOVA@VINNOVA.se
www.VINNOVA.se
Publisher: Per Eriksson, GD
Editor-in-chief: Ylva Sjönell
Editor: Sanna Berg
Copy: Håkan Borgström, Andreas Nilsson,
Per Westergård
Form & Layout: Mårten Pien
Production: Capito AB
Printed by: EO print
Printed on environment-friendly paper
Cover: Advanced production of nanothreads
in semiconductor materials could
generate new Swedish export successes.
Mikael Björk and Ann Persson have
made path-breaking discoveries that may
result in new electronic components and
medical sensors.
Cover photograph and page 23: Marcus Erixson
Other photographs: Pressens bild: page 5, 14, 24.
Anette Andersson: page 6, 7, 10, 11, 12, 13, 14.
Niclas Kindahl, Acreo AB: page 21. Per Westergård:
page 8, 15, 16, 26, 27, 28. Diamorph Magnetic:
page 15. Martinson Group AB: page 17. Scandlines:
page 20. Gunnar Ledfelt, KTH: page 21.
Håkan Lindgren, KTH: page 22.
ISSN 1650-3120
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Small country – strong research
Mathias Uhlén
The art of commercializing research
Swedish research is the key to growth
Three examples
How to become a leader in the vehicle safety industry
Whiplash research has generated billions of euros in
socioeconomic benefits
Cooperation promotes high-tech primary industries
Sweden’s mines, steelworks and paper mills are among the most
technologically advanced in the world
Interdisciplinary collaboration produces sensitive sensors
Gas sensors will make diesel engines cleaner by measuring emissions
in the hot exhaust gases themselves
The branding of a nation
By Simon Anholt, regarded as a leading specialist in creating
brand strategies for countries, cities and regions
Smooth cooperation at ABB
Charlotte Brogren, Vice President of Technology at ABB Robotics
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contents
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Towards the future
Three examples of strategic areas
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Security research creates growth
Research in this area promotes Swedish exports of
security products
Wood – a high-tech sunrise industry
Wood is processed in order to produce higher-value
products
Knowledge-based biotechnology industry
Collaboration between central government, higher
education and trade unions
Good ideas receive support
Producing packaging from waste
A camera that sees through the skin
Air streams conquer the world
The cradle of Swedish growth
High-quality research – an essential condition
for growth
Global market for small enterprises
Encouraging SMEs’ research activites
Small country – large car industry
Building a new hybrid ethanol-electric car
Useful contacts
V I N N O V A M A G A Z I N E | 3

EDITORIAL
SMALL COUNTRY – STRONG RESEARCH
Sweden has developed a strong
research system over the years
which has played an important part
in our growth and prosperity. As a
small country we have to trade in
the international marketplace in order
to survive. Close public-private
partnership is a tradition in Sweden.
This is one of the reasons for
our high economic growth and our
ability to develop large companies
that play a major role in a globalized
world.
The last ten years have seen a
shift in Sweden from a public-private
partnership to a public-privateuniversity
partnership, i.e. “triple
helix cooperation”. This is also what
drives VINNOVA, the Swedish Governmental
Agency for Innovation
Systems. Our mission is to invest in
problem-oriented research and the
development of effective innovation
systems. We do this through a
systematic approach to research,
innovation and growth.
This magazine offers some examples
of the kind of research and
innovation being done in Sweden
with VINNOVA’s support and of how
these activities promote present
and future growth in Sweden. The
examples show that we are active
partners in various types of triple
helix projects whose aim is to
strengthen R&D based on effective
innovation systems.
Per Eriksson
Director-General
Karin Markides,
Vice Director-General
The art of
commercializing
research
He is one of Sweden’s leading researchers
and is making history by mapping human
proteins. At the same time Mathias Uhlén
is very keen on commercializing his
ideas – a recipe for exports and growth.
THERE IS OF COURSE nothing to say
that a person cannot be both an outstanding
researcher and a successful
entrepreneur. Nonetheless, very few
people make the grade in both fields.
In both cases you have to be among the
best if you are going to get anywhere.
Mathias Uhlén is the kind of citizen
that every country dreams about.
He has been engaged in world-class
research for two decades now and has
also started a number of successful
biotechnology companies. The project
he is leading at the moment comprises
both these activities: he is carrying out a
comprehensive mapping of human proteins.
The project is being carried out
at the Royal Institute of Technology,
Stockholm. He has himself developed
and commercialized many of the tools
that make this gigantic task possible.
Several groups of young researchers
are working on different stages of the
mapping process in Mathias Uhlén’s
well-lit laboratory. They manage about
10 proteins a day.
– Within the space of a few fleeting
years we will be revealing
some of the most basic
information about human
beings. Being involved in
this is absolutely fascinating
and to us medical researchers
it is like landing
on the moon.
Sweden has a long
tradition of successful
protein research. Swedish
technology is used for about half the
protein analysis done all over the world.
Mathias Uhlén has contributed to this.
He took out his first patent as a young
research student over 20 years ago and
has created protein analysis tools that
generate Swedish export earnings worth
tens of millions of euros every year.
Mathias Uhlén often has the pleasant
task of trying to explain to admiring
colleagues or research funders why Sweden
has so many successful companies.
– There is a high level of knowhow
here and we are receptive to new
technologies. This sets its stamp on
both research and industry. For several
decades, moreover, Sweden has had
political leaders who have realized the
importance of serious investment in
research and education generally.
There is keen international competition,
however. Mathias Uhlén says that
he is eagerly following the world’s two
strongest economies: the USA, which
is becoming increasingly cautious when
it comes to publishing biotechnology
research findings, and China, which
is driven by
boundless
confidence in
the future. The
The mapping of the
body’s building blocks
is based on small antibodies
that can capture
and identify specific
proteins in tissue samples.
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Swedish protein research proved to be a great commercial success. Mathias Uhlén regards collaboration between industry and academia as an
essential condition for growth. Here Mathias demonstrates a detail to Swedish Minister for Education, Research and Culture Leif Pagrotsky.
recipe for Europe is to develop an effective
research funding system that can
meet a variety of requirements.
– We need to go in for breadth, so as
to have a broad scientific base, and for
excellence, so that we can support largescale
projects that require a concentration
of resources. No country can afford
not to support applied research today. All
investment in this sector pays off handsomely
in our export earnings.
Apart from breadth, excellence and
applied research there is, according to
Mathias Uhlén, a fourth component in
European growth – support for innovations.
Sweden has an advantage here
compared with many other countries,
MAPPING THE BODY’S BUILDING BLOCKS
since researchers in Sweden can take
out patents on their innovations. The
result is a very simple and unbureaucratic
system, says Mathias Uhlén.
HE HAS HIMSELF been involved in
about 70 patent applications and has set
up companies in fields as different as
DNA sequencing and research into the
biology and biochemistry of trees. One
thing about commercializing research
findings that he has learned over the
years is the vital importance of picking
the right product.
– The crucial thing is to position
yourself so that you are best in the
world. It is not enough for a Swedish
Human Protein Resource is a unique
scientific project that involves mapping
human proteins. The researchers
in Stockholm are investigating the
22,000 proteins that represent the
body’s building blocks and improving
our basic understanding of the biology
of the human body.
The objective of the project is to create
an atlas of all the proteins that are
active in human cells. This information
is published continuously on the Internet
and made available to researchers
all over the world. About 800 proteins
and half a million tissue images are
added to the database every six months.
All in all, the project is expected to
produce about three million images
company to be as good as an American
competitor, since the USA is an enormous
domestic market. You simply have
to find a niche where you are unique.
He considers Sweden a good country
for research-intensive companies.
– Swedes are good at teamwork, although
we are sometimes a little too dependent
on consensus, which can hold
up decisions. But we are loyal co-workers
and this is something that you really
need in research-intensive companies.
There is also a very laid-back relationship
between universities and companies,
just as there is in the USA. This is
a great advantage for knowledge-driven
growth.
covering over 700 different types of
body tissues. The proteins control
the life processes in the cells, and
knowledge about them can be used
to improve our understanding of the
progress of diseases and make the key
to the development of new drugs. The
project is funded by the Knut and Alice
Wallenberg Foundation.
V I N N O V A M A G A Z I N E | 5

SWEDISH RESEARCH IS THE KEY TO GROWTH
It is no longer merely a question of statistics.
More and more examples show
that funds allocated to research and
development stimulate growth in society
as a whole. Research is a growth factor
of strategic importance to industry. But
smooth cooperation between academia
and industry is also an important factor
for the development of society as a
whole.
The Whiplash research carried out
at Chalmers University of Technology
in Gothenburg is one example of how
basic research – conducted in cooperation
with industry and public actors
– saves many millions of euros in
public spending.
The shift towards sustainable development
is one of the great challenges
of our time. It could prove a powerful
driver of growth, either by boosting environmental
engineering or by encouraging
energy conservation. The ProcessIT
project is a good example of this. Better
process monitoring, integration of IT
systems and a number of other functions
create economic growth.
The project has built up a world-class research
and innovation environment that
is based on close interaction between
academia, industry and public actors.
The solutions it produces will be used in
a variety of sectors, such as the chemical
industry, paper manufacturing and
engineering industries. One successful
subproject is concerned with optimizing
mining infrastructure, which should
save millions of euros every year.
Innovation, entrepreneurship and
generation of new knowledge are important
factors for growth. Sweden is
among the biggest investors in research
and development and is also one of the
countries with the highest innovative
capacity. The aim of these investments is
to create new products and companies.
The road to success usually starts with
research strategies that focus on the
interaction between academia and industry.
One example is S-SENCE, the Swedish
Sensor Centre in Linköping. This
centre represents one of the first Swedish
efforts to establish a strong research environment
in which industry’s needs and
interests play an important part.
Here follows a more detailed presentation
of the above three examples
of how research stimulates growth in
Sweden.
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INNOVATIVE THINKING
Sweden became a world leader in neck
injury research after new theories were
presented in the mid-1980s about the way
whiplash injuries are caused. This research
is currently led by Professor Per Lövsund
at Chalmers University of Technology.
How to become a leader in
the vehicle safety industry
Whiplash research has generated billions of euros in
socioeconomic benefits. In addition, Swedish companies have
achieved great success in the export market for these products.
ONE COLD WINTER day in Stockholm
Gunilla Sogell was on her way home
from work as usual. Her car suddenly
skidded on Lidingö bridge outside
Stockholm and crashed into the bridge
railing at 70 kph. Her head flew backwards
and forwards like a whiplash. The
neck is exposed to enormous forces in
such a collision. It can be stretched by
as much as 5 centimetres. Vertebrae can
be dislocated, discs slipped and ligaments
stretched and ruptured. Most of
these injuries are more or less invisible.
The years following the accident were
a nightmare. At most, she was taking
23 painkillers a day, apart from sleeping
medicine and anti-inflammatory and
anti-depressive pills.
– Two years after the accident I didn’t
want to live any more. I was so frustrated
at not being able to work as usual.
You see, there are no visible signs that
you are injured, she says.
A MEDICAL MYSTERY
Per Lövsund, Professor of Traffic Safety
at Chalmers University of Technology,
has studied whiplash injuries for many
years. He says that about 2,000 people
are disabled every year in Sweden as a
result of neck injuries. These injuries are
on the increase and cost society several
million euros every year, mostly in compensation
for loss of income.
But there is hope. Today, Sweden is a
world leader in the field of neck injury
research, for which Per Lövsund is now
responsible.
– Rather modest public investment
has yielded a good return, he says.
According to Per Lövsund, this
success is largely due to cooperation
between industry, research and society.
His research team has already achieved
remarkable results. For example, not a
V I N N O V A M A G A Z I N E | 7

‘ The industry has even been enthusiastic about our
long-term research, which is not so common in a
world where everyone wants to see results fast.’
single car is produced today without
airbags, curtain airbags or specially
designed seats.
– The whiplash protection that has
been built into all Volvo and Saab cars
since 1997 has reduced the risk of neck
injuries by at least 50 per cent in connection
with serious accidents, he says. This
is the result of many years’ research.
– We have gone all the way from basic
to applied research. The industry has
even been enthusiastic about our longterm
research, which is not so common
in a world where everyone wants to see
results fast.
ADVANCED IMPACT DUMMY
The results of neck injury research
include the development of a very
advanced impact dummy that has been
used in many studies. It can measure
the stress on different joints in connection
with a collision.
The research team has also developed
a mathematical model corresponding
to the female anatomy. The reason for
this is that women are injured more
seriously than men in connection with
rear-end collisions.
– We do not know yet why this is.
There is a theory that it has something
to do with differences in muscle mass
and nerves. We hope that new studies
STUDY QUANTIFIES THE BENEFITS OF NECK INJURY RESEARCH
Vehicle safety research has generated
more than 500 million euro in socioeconomic
benefits in the form of lower
medical costs, reduced loss of income
and less suffering.
VINNOVA (the Swedish Governmental
Agency for Innovation Systems) and its
predecessor have supported neck injury
research at Chalmers University of
Technology ever since 1985. A vehicle
research programme has enabled
researchers to collaborate with Volvo
and Saab and other companies on ways
and means of making vehicles safer.
Needs-based research has given safety
developers in these companies the
knowledge they need to develop new
products. A study has now been made
of the achievements of this research.
– We ourselves were surprised at the
will point us in the right direction, says
Per Lövsund.
– Later on, a completely new dummy
will be built so that we can study angle
collisions from the rear and from the
front.
results. The studies of collisions and
injuries indicated without any doubt that
serious injuries can be reduced by 50
per cent. This is a direct result of measures
taken as a result of the research
done at Chalmers University of Technology,
says Knut Sandberg Eriksen of the
Institute of Transport Economy, Oslo,
one of the authors of the study.
The study, which was carried out in
cooperation with Møre Research in
Molde, Norway, found that this research
benefits society in two different
ways. First, it benefits ordinary citizens
by making vehicles safer in connection
with rear-end collisions. Second, it
benefits Swedish industry by increasing
exports of these products or vehicles
that include them.
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INNOVATIVE THINKING
SVENSK INDUSTRIS INNOVATIVA FRAMSTEG
Cooperation promotes hightech
primary industries
Sweden’s mines, steelworks and paper mills are among the most
technologically advanced in the world. But they must become
even more efficient if they are to be profitable in the future.
HERE IS A SUCCESSFUL example in the
north of Sweden of how primary industries
can collaborate with universities to
secure economic growth and create new
jobs in small technology-based companies.
Ore mining in the LKAB Group’s
mines in Kiruna and Malmberget is carried
out nowadays by means of remotecontrolled
machinery about 1 kilometre
underground. The cost per tonne of
ore mined has been reduced by 3 per
cent per year in the last few decades.
As a result, twice as much ore is now
mined by only half as many employees,
and LKAB is one of the country’s most
profitable groups with profits exceeding
1 billion euro and constantly increasing
turnover.
– If this trend is to continue, we will
have to develop our processes even further
so that we can extract more from
the raw materials while controlling production
so as to avoid bottlenecks. This
will require integration of IT systems,
better process monitoring and other
improvements, explains Lars-Eric Aaro,
Director of Research and Development.
LKAB’s head office is in the centre of
Luleå. The inhabitants of this prosperous
city are the wealthiest in Sweden
V I N N O V A M A G A Z I N E | 9

A winner of the VINNVÄXT award. Competitive companies and new jobs are the top priority for Anders OE Johansson of Luleå University
of Technology, Lars-Eric Aaro, Director of Research and Development at LKAB and Mayor Karl Petersen.
north of Stockholm. Mayor Karl Petersen
has no doubts about the reasons for
its success.
– The universities and heavy industry
are the backbone of the region.
BROADER RESEARCH
The challenges that Luleå faces are
the same as in the north of Sweden as
a whole – the primary industries must
produce more at ever lower cost, and at
the same time new, highly qualified jobs
are needed. Sweden’s two northernmost
counties are now cooperating within
the framework of the ProcessIT project
in order to achieve this goal. Anders
OE Johansson of Luleå University of
Technology is the project leader:
GROWTH PROGRAMMES IN THE REGION
The aim of the VINNVÄXT programme
(Growth in regions by R&D and effective
Innovation Systems) is to promote
sustainable growth and international
competitiveness in regions by means
of needs-driven research. Another aim
is to develop the innovation system so
that it attains an internationally competitive
level in a specific growth area.
The ProcessIT project is a VINNOVA
project implemented within the VINN-
VÄXT framework. The participants are
the authorities and universities in Umeå
– We have long experience of dedicated,
needs-driven research. LKAB
and other industrial companies realize
that they must go a step further and engage
in broader research together with
the universities. One of the aims of the
ProcessIT project is to produce generic
lessons. It must be possible to apply the
technological solutions not only in mining,
but also in the chemical industry,
paper manufacturing and engineering
industries.
This opens the door for new cooperation
projects in which the industries
concerned support small local researchbased
companies at the cutting edge of
technological development. With the
primary industries as customers, they
and Luleå and the following companies:
LKAB, Boliden, SSAB, Kappa Kraftliner
and SCA.
Lorentz Andersson, governor of Västerbotten
county, chairs the board of
the ProcessIT project.
– Our aim is, together with our neighbouring
county, to support cooperation
between large companies and the universities.
Today, the technological level
in the primary industries is at least as
high as in the telecom industry.
Lorentz Andersson is looking even
will be able to grow and create new
jobs. The ProcessIT project started by
carrying out an analysis of the region’s
companies and their production. This
generated a hundred proposals for
improvements, including measurement
data that will make it possible to control
production chains, which are often
complex, more efficiently.
Close collaboration is the motto
for the ProcessIT project, a winner of
the VINNVÄXT award. Competitive
companies and new jobs are the top
priority for Mayor Karl Petersen, Lars-
Eric Aaro, Director of Research and
Development at LKAB, and Anders
OE Johansson of Luleå University of
Technology.
further afield and would like to expand
cooperation to the Gulf of Bothnia
region as a whole.
– A large proportion of Europe’s
suppliers of raw materials, i.e. iron ore,
steel, forest products, oil, natural gas
etc., are to be found in this region.
Successful companies are not only crucial
to regional growth, but competitive
primary industries in the north are vital
to Europe as a whole.
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INNOVATIVE THINKING
From steel pellets
to meatballs
Small balls of iron ore are one reason why the Swedish
production chain from iron ore to finished quality
steel is the most profitable and efficient in the world.
Using pellets instead of ordinary ore makes steel
production more reliable and less energy-consuming.
THE CONVEYOR BELT trundles at the
rate of a few metres per second towards
the top of Furnace 3 at SSAB. Several
thousand tonnes of ore pellets, coke and
lime are poured into the 40 metre high
furnace every day. After eight hours at
a temperature of 2,000° C the iron minerals
are converted into liquid pig iron
that can be tapped from the bottom of
the furnace and be worked into quality
steel.
THE KEY TO SUCCESS
The ore pellets with a diameter of one
centimetre that constitute the raw
material are the key to SSAB’s success.
The process in the blast furnace is
complicated. It requires great precision
to produce high-quality pig iron with
the minimum of energy. Using pellets of
a consistent quality rather than lumps
of ore makes it easier to control the
process, although the size and quality of
the ore pellets must be checked, too.
– But when we get the results of the
day’s slow test the ore is already in the
furnace and it is too late to change the
After eight hours at a temperature
of 2,000° C the iron minerals are
converted into liquid pig iron.
mixture of pellets, coke and slag-forming
materials, explains Robert Johansson,
who is a development engineer.
With the help of the ProcessIT
cooperation project the aim is now to
measure the properties of the pellets at
the same time as the furnace is charged,
thus optimizing the quantity of coke in
relation to the size of the pellets.
– This could save several million euros
a year if we were able to avoid using too
much coke – having too low a temperature
in the furnace might otherwise
mean that we would have to stop production.
John Erik Larsson is the man
who will make this possible. He used to
be a researcher at Luleå University of
Technology and runs an optical metrology
business called MBV Systems.
– Using high-speed measurements
we can create high-resolution threedimensional
images of the pellets while
they are on the conveyor belt. Advanced
calculation methods then tell us the size
distribution and roundness deviations,
which give an indication of the quality
of the pellets.
Iron pellets are a rapidly growing product
that is profitable both for mining and
steel companies. Work is in progress on the
development of a laser-based method for
measuring deviations in the quality of the
small pellets.
FLEXIBLE SYSTEMS
The ore pellets, which consist of finely
ground grains of ore and various binders,
are easy to handle and reduce the
need for treatment steps at the steel
works, explains Lars-Eric Aaro, Director
of Research and Development at
LKAB.
– Ten years ago we only made one
kind of pellet. Nowadays pellets account
for more than 80 per cent of
sales and we have a range of seven
different types that have all been
developed to meet the requirements of
various customers, he says.
John Erik Larsson mentions the
breadth of the ProcessIT project.
– The technology we develop should
not be restricted to the needs of a single
customer. My system can measure
and monitor the quality of everything
from wood chips in heating plants and
pulp plants to meatballs!
V I N N O V A M A G A Z I N E | 1 1

INNOVATIVE THINKING
Interdisciplinary
collaboration produces
sensitive sensors
A product no larger than a fingertip – the result of a decade of
research – has the potential to break into the world auto market.
The gas sensor will make diesel engines cleaner by measuring
emissions in the hot exhaust gases. The tiny sensor is one result
at S-SENCE, a VINNOVA-supported Competence centre.
SENSORS CAN BE USED for many industrial
applications. They are useful for
measuring gases and liquids in many
different areas, such as the food industry,
water treatment, medical diagnostics and
Sensors are important in a wide range of
industries, from process industries to
medical diagnostics, according to Tina
Krantz-Rülcker.
process and environmental engineering.
S-SENCE has taken advantage of
this. Close cooperation takes place at
this Competence centre at Linköping
University between researchers at the
university and the development departments
of the participating companies.
VINNOVA is contributing 623 000 euro
per year for a period of 10 years, and
these funds are being matched by corresponding
contributions from industry
and the university. The director, Tina
Krantz-Rülcker, has noted many advantages
as a result of close collaboration
with industry.
– Companies gain access to advanced
and successful research findings related
to their business areas and researchers
like us get the opportunity to work on
topics that interest us. Thanks to our
collaboration at S-SENCE we can test
our research findings directly in the
company’s processes!
WINNING COLLABORATION
Higher education benefits, too. Doctoral
students may be employed by
the university and work at one of the
companies affiliated to the Competence
centre. At the same time, industrial
doctoral students who are employed by
the companies can visit the academic
environment, so that both groups benefit
from this collaboration.
One concrete example is Helena
Wingbrant, who recently became the
20th student at the centre to obtain her
PhD. She has now completed the last
tests of a new gas sensor based on heatresistant
silicon carbide. It is designed
to measure the hot exhaust gases in
a diesel engine in order to optimize
exhaust emission control.
– It has been stimulating to work
so close to the product development
side. I have carried out measurements
with sensors in the test laboratories at
both Volvo in Gothenburg and Ford in
Detroit.
MULTIMILLION EURO AGREEMENT
Per Holmberg, development manager
at AppliedSensor, which paid for some
of Helena Wingbrant’s research at S-
SENCE, says that they are now going
ahead with the patented sensor.
– This demonstrates how our collaboration
works – the researchers are
ahead of us, but they are not in our way.
We believe that the sensor has great potential
in view of future stringent exhaust
emission standards, for example in the
USA. Now we are involved in discussions
with several car manufacturers. This
1 2 | V I N N O V A M A G A Z I N E

The sensor developed by researcher Helena Wingbrant, which measures exhaust emissions,
has the potential to conquer the world auto market. It is the result of successful research collaboration
between Linköping University and industry at the S-SENCE Competence centre.
may lead to sales of millions
of sensors, he says.
The company has been
successful in commercializing
research results. A few
years ago it signed an agreement
with Texas Instruments
worth over 50 million
euro relating to another gas
sensor. The sensor measures
concentrations of noxious
gases in vehicle ventilation systems.
When these concentrations reach a
certain level the sensor causes the air
damper to close long before the driver
has noticed anything.
S-SENCE’s current success just goes
to show how long the road from research
to commercial product normally is.
– Long-term funding has really paid
off. It takes time to build up a research
team with the right people and equipment.
Working in a centre has also
given us a strong team spirit, although
we have very different backgrounds
– from physics to chemistry to biology,
explains Tina Krantz-Rülcker.
She is now planning the future of the
centre after the project in its present
form comes to an end in mid-2006.
Collaboration will continue in some
form, and many new companies have
‘Long-term funding has
really paid off. It takes
time to build up a research
team with the right people
and equipment.’
joined as partners during the last year.
They include NIBE, which produces
heating systems, and the paper manufacturer
Billerud, which apart from
COMPETENCE CENTRE FOR SENSOR TECHNOLOGY
S-SENCE is one of VINNOVA’s 28
Competence centres for collaboration
between industry and university. It is
based on the Department for Applied
Physics at Linköping University.
S-SENCE focuses on gas and liquid
sensors. These may be used to monitor
processes in the food industry and
rinsing water in household appliances,
and also in connection with medical
diagnostics and to detect narcotics
and explosives. They may also be
used to measure exhaust emissions
the project at the centre also
collaborates with Senset, a
spin-off company on measurements
of emissions from its
paper mills.
– Counter-financing from
VINNOVA has naturally attracted
these companies, since
they have not had to pay for
all the research themselves.
The fact that several new
partners have appeared, now that the
product does not have long to go, is a
sign that they believe that cooperation
will continue in the future.
and the quality of oil in vehicles.
VINNOVA’s aim is to develop worldclass
research resources at universities
for the benefit of, and in cooperation
with, industry. Asko Cylinda, Volvo,
Ford, Billerud, AppliedSensor, Biacore,
Biosensor Applications, NIBE,
Senset and Tekniska Verken i Linköping
AB all take an active part in the
S-SCENCE Competence centre in
the expectation of long-term benefits
from cooperation.
V I N N O V A M A G A Z I N E | 1 3

CHRONICLE
THE BRANDING OF A NATION
‘For a rich country,
it can help update
people’s perceptions,
to communicate
technological expertise,
creativity and
dynamism, alongside
the images of heritage
and tradition.’
Nation branding is a phrase we hear
very often today, and it isn’t surprising
that places are trying to compete
on the global market by building their
brands. It’s the natural consequence
of a crowded marketplace where competing
‘products’ need to attract the
attention of the ‘consumer’.
I define nation branding as the
process of aligning
the policies,
investments,
innovations, behaviours
and communications
of a
country around a
clear strategy for
achieving enhanced
competitive
identity.
The process
can add value
to countries in
many different
ways. For a poor
country, surviving on handouts and
labouring under a negative ‘brand
image’ of war, poverty, disease and
corruption, nation branding can be
a way of eliciting more than pity, of
communicating that the country also
offers attractive prospects for investment,
export, tourism and cultural
relations.
For a rich country, it can help update
people’s perceptions, to communicate
technological expertise, creativity
and dynamism, alongside the images
of heritage and tradition.
Whoever is doing it, true nation
branding has little to do with slogans,
logos or advertising.
Most places ultimately
get the reputation they
deserve, and the only
way to change it is by
doing different things.
This means creating
a culture where every
player in every sector,
from policy-making to
industry, from tourism
to exports, strives to
achieve constant innovation,
implemented
to impeccable international
standards, but
always in line with the national brand
strategy. All these innovations have
to prove the point about the way the
country wishes to be perceived.
When a country starts to practise
innovation clearly guided by a common
strategy, the media take notice:
promotion becomes simpler and cheaper
when there is always something
new to say, when it is all part of the
same compelling new story.
The only way to acquire a reputation
is by earning it, and brand strategy
provides a good way of planning
and aligning the change in national
behaviour which ultimately leads to a
better national reputation: one which
is more fair, more true, and more useful
to the country’s economic, social
and political goals.
© 2005 Simon Anholt
Simon Anholt is one of the world’s leading specialists
in creating brand strategies for countries,
cities and regions. He is the British Government’s
advisor on Public Diplomacy.
Breast milk speeds up healing
A refinement of an innovation at Sahlgrenska
University Hospital has proved
effective in speeding up wound healing
and scarring. This innovation may
even provide a solution to an unsolved
problem that occurs in connection with
operations on the abdomen. There is a
risk after such operations of the intestines
growing together with the healing
surface. This restricts mobility in the
abdomen and causes ileus, which is
very painful. Breast milk may provide
a solution to the problem. It contains
lactoferrin, a protein that regulates and
strengthens the immunological defence
mechanisms of babies. A peptide (a
string of amino acids) that helps operation
wounds to heal has been identified
and isolated. A group of entrepreneurs
have refined this patented innovation
and established a company called PharmaSurgics.
A material with extreme properties
A fantastic new material – MAX – can be
used instead of gold in the manufacture of
electrical components. MAX has low friction,
low resistance, high heat resistance
and high abrasive resistance, which makes
it suitable as an alloy. Apart from that, it
is cheap: gold costs 12,500 euro per kg,
while MAX costs 36 euro per kg.
Thin film made from MAX has been
produced by the Impact Coatings company
in Linköping in cooperation with ABB,
Sandvik Kanthal, Uppsala University and
Linköping University. The role of Impact
Coatings was to scale up laboratory experiments
and develop a mass production
process.
The object of the project was to industrialize
a completely new nanomaterial
consisting of three elements (titanium,
silicon and carbon). In no time at all this
work has made Sweden a leader in this
field. The whole value chain is here, from
basic materials science to know-how
1 4 | V I N N O V A M A G A Z I N E

INTERVIEW
Smooth cooperation
at ABB
No country with such a small population
has produced so many complex
products.
– It’s not that we are smarter than
anybody else. Sweden’s advantage
is that we have long experience of
developing technical systems, says
Charlotte Brogren, Vice President of
Technology at ABB Robotics.
– But competition in a globalized
world is becoming keener all the time.
That is why Sweden must concentrate
on areas where we already possess
advanced know-how.
ABB’s product portfolio is full of robots
and power transmission products.
Superficially, it looks like old technology,
but the customers’ constantly
changing wishes create an environment
of continuous change. In order
to succeed, ABB is engaged in close
cooperation with researchers at many
universities all over the world.
– It is thanks to our contacts with
The Linköping and Lund universities
of technology that we are successful
robot manufacturers today.
CORE AREAS
According to Charlotte Brogren, cooperation
with Swedish researchers is
smooth, direct and unbureaucratic. But
relations with some foreign universities
are more complicated, and regulations
make it more difficult to conduct joint
research projects with them.
Although ABB only sells 3 per cent of
its products in Sweden, almost a third
of all research is done in this country.
– We continuously evaluate where
we can get the best value for our
research grants. So far, our Swedish
partners hold their own. But we cannot
live on our past successes. Sweden’s
future growth lies in our core areas,
automation and power transmission,
but also in the telecom, vehicle and
process industries. All these areas
require broad experience of technically
complicated system solutions.
about processes and production equipment
to finished applications. Apart from
having a market worth many millions of
euros for its thin film processes using
MAX, the company also intends to sell
complete production plants.
A new superglass
Innovations are not always planned.
Diamorph in Stockholm started with a
failed experiment. This gave rise to a new
superglass that is extremely hard, impactresistant
and with a refraction index on a
par with diamonds. Saeid Esmaeilzadeh
is a researcher at the Department of Inorganic
Chemistry at Stockholm University.
Two years ago he was studying silicon
nitride ceramics. Silicon nitride and
additives were melted in his experiments
at high temperature and were then set to
cool at a controlled rate so that crystals
were formed from the melt. But one
night something unforeseen occurred.
They usually work with melts at a
temperature of 1,500 to 2,000° C and
always keep the coolant connected to
the kilns. In the middle of the night the
cooling system broke down, the kiln was
automatically shut down and the melt
cooled much faster than usual. When
Saeid examined the sample it was not
crystalline but glass, with very interesting
properties. It was the hardest silicate
glass that has ever been produced. In
addition, it has an extremely high refraction
index, virtually the same as that
for diamonds. It can be endowed with
magnetic properties by adding high concentrations
of various metals. Apart from
all this, it can be produced by means of
a simple process technology. The innovation
has got to the commercialization
stage and discussions are in progress
with several cooperation partners.
Award-winning high-performance
processes
ECPR (ElectroChemical Pattern Replication)
is a completely new method for
manufacturing conductor patterns on
certain types of electronic chips. It has
reduced 6 steps of the 10-step fabrication
process to just one. The fabrication
time has been cut from two hours to 2 or
3 minutes! The innovation was developed
in connection with a degree project
in Lund and the company Replisurus
is now located in Kista. The company
has won a number of awards, including
VINNOVA’s VINN NU competition.
V I N N O V A M A G A Z I N E | 1 5

TOWARDS THE FUTURE
Key measures are required at various
levels to achieve long-term growth. In
order to know where these measures
should be taken we need analyses of
future needs and strategies. These may
relate to education, research, innovation
and interplay between actors.
VINNOVA (the Swedish Governmental
Agency for Innovation Systems) has
identified a number of areas in which
such key measures can promote growth
in Sweden.
One example is Sweden’s national
strategy for security research, which
includes a plan for making better use
of knowledge and skills to produce
products, processes and services.
Another example is the national
innovation and research strategy for
biotechnology. This strategy focuses on
areas where there are good prospects
of high growth and international competitiveness.
Structures are identified
in industry and in clusters of biotechnology,
pharmaceutical and medical
technology companies in various
Swedish regions.
A third example is wood manufacturing.
Swedish sawmills, construction
companies and researchers are collaborating
on the development of rational
wood processing. And they are well
on the way to success. Here follows
a more detailed presentation of the
above three examples of how research
stimulates growth in Sweden.
Security research creates growth
Sweden needs a programme for security research. This would enhance preparedness for
all kinds of threats and disasters and promote Swedish exports of security products.
Many Swedish ideas about security solutions
are more advanced than those in the
USA, says Svante Bergh, director at
Ericsson Microwave Systems.
THE MAIN THREAT today is not an
invasion by a foreign power. Nowadays,
the threats and risks that we must watch
out for are the spread of serious infection,
acts of terrorism, natural disasters
that put essential infrastructure out of
action and technical breakdowns in
power, telecom and IT systems.
According to the study ‘Knowledge
for Safety’s Sake. Proposals for a national
security research strategy’, which
was conducted by VINNOVA, strategic
changes are needed.
Several members of the study group
speak in terms of transformation from
a society that is capable of meeting
military threats alone to a society that
can deal with all types of threats.
– We must build a system in which
our response is geared to the needs, regardless
of whether this involves sending
combat units to other countries or
dealing with power failures in different
parts of the country. In some cases the
armed forces can operate under police
command, while in others a fireman
could be the key person, says Svante
Bergh, the Confederation of Swedish
Enterprise representative.
According to the authors of the study,
about 300 companies and institutes in
Sweden may benefit from research programmes
in order to develop new civil
security products. The main sectors are
complex IT systems, simulation and IT
security, followed by mobile solutions,
sensor technology, physical transports,
NBC technology and the arms industry.
– Sweden is already in the forefront in
many areas, both in research and in the
SWEDISH SECURITY RESEARCH STRATEGY
VINNOVA presents the following proposals:
• Invest 15,5–20,7 million euro per
year on security research.
• Make the Swedish Emergency Management
Agency responsible for
coordinating security research.
• Set up a four-year national R&D
programme to promote research in the
EU.
• Facilitate participation in US security
research programmes.
corporate sector. This gives us an excellent
starting-point in the nascent international
market for civil security products, says
Head of Department Eva Lindencrona at
VINNOVA, who led the study team.
But there is no time to lose. The
European Commission plans to improve
protection against terrorism,
serious organized crime and natural
disasters in the EU. The EU is to spend
375 million euro on space and security
research during the period 2007‒2013.
– We must be on that train, and
preferably among the leaders, says
Svante Bergh.
He also says that many Swedish
ideas about security solutions are more
advanced than those in the USA, despite
the fact that America spends vast
sums on research into civil security.
• Create innovative capacity for the
security sector by enhancing public
authorities’ purchasing capacity and developing
common technical standards.
The group included representatives of
VINNOVA, the Swedish Emergency Management
Agency, the Swedish Armed
Forces, the Defence Materiel Administration,
the Swedish Defence Research
Agency, the Swedish National Defence
College and the Confederation of Swedish
Enterprise.
1 6 | V I N N O V A M A G A Z I N E

STRATEGIES FOR THE FUTURE
Wood
Manufacturing
– a high-tech
sunrise industry
Wood is beautiful, practical and strong,
and it has more uses than people
realize. In addition, it has such good
environmental properties that
using more wood instead of other
materials would lower atmospheric
carbon dioxide concentrations.
A beautiful air control tower in Skellefteå, in the north of Sweden. The
facade is made of glulam panel and is assembled in whole lengths.
WE ARE NOT TALKING about a magic
new material, but about ordinary wood,
albeit subjected to high-tech processes
in which its functional, aesthetic and environmental
properties are improved in
order to produce higher-value products.
Nowadays wood research is conducted
at most universities of technology,
often in close cooperation with
the timber industry and wood research
institutes such as SP Trätek. VINNOVA
has identified wood manufacturing as a
fast-growing industry and contributes
research funding to it. Two sectors that
are considered to have growth potential
are the interior industry and woodbased
construction.
Martinsons is a family firm that was
founded in 1939. In those days it was just
an ordinary sawmill.
Laminated wood (glulam) was the first
processed wood material. Nowadays it is
often used for structural beams in many
different types of buildings. Another
processed product on the market is
called solidwood. It consists of crossglued
laminated timber that can be
used for beams and other load-bearing
structures. The technology ensures a
strong, dimensionally stable and very
light material. Solidwood can have a
free span of up to 12 metres, but is only
a quarter the weight of concrete.
Martinsons, a company in the village
of Bygdsiljum in northern Sweden, has
conducted intensive research in order to
develop the new products glulam and
solidwood.
– We have laid a good foundation for
a successful business with excellent export
opportunities, says Lars Martinson,
the managing director.
– The new products are important,
but at the moment we are concentrating
on developing effective and efficient
system solutions. So we are designing
standard modules that can be used in
flexible applications. Building a wooden
house should not be any more difficult
than building one with Lego, says Lars
Martinson. Martinson is very keen on
the idea of building large apartment
blocks of wood. A long-term research
project has been started to produce finished
modules with all the installations
made at the factory. The buildings could
then easily be assembled on the building-site.
Five six-storey apartment blocks
of wood with a total of 96 apartments
have just been completed in Sundsvall,
a seaside town in the north of Sweden.
All those involved in the project were
pleasantly surprised by the result.
A SUNRISE INDUSTRY
– We were worried that noise might be
a problem in these buildings, says Lars
Martinson. But our newly developed
patented sound-absorption system
works better than we expected.
The residents agree that the buildings
are quiet. The sounds that can be
heard are soft and less invasive than in a
building built of hard materials.
Japan is the company’s largest export
market at present. There is such great
demand for glulam that a new production
line has been built to meet it. One
of the reasons why glulam is so popular
nowadays is that it is both stronger
and lighter than steel. The company’s
Japanese customers have realized that
wooden buildings offer a better chance
of surviving an earthquake.
V I N N O V A M A G A Z I N E | 1 7

STRATEGIES FOR THE FUTURE
Knowledgebased
biotechnology
industry
Swedish life science
companies have achieved
great success and improved
many people’s lives.
Sweden can continue to create innovative products thanks to collaboration between higher
education, the health services and industry.
THE LIFE SCIENCE industry is the fastest
growing in Sweden. World-class
innovations such as ulcer drugs, other
pharmaceutical products and dialysis
equipment, the pacemaker and other
medical technology are the result of
collaboration between enterprises and
Swedish universities.
– The new knowledge about our
genes and basic body functions offers
the industry new challenges. It is
important, in order to take advantage
of the commercial opportunities, the
cutting edge of science, says Harriet
Wallberg-Henriksson, President of
the Karolinska Institute in Stockholm,
which is one of the world’s leading
medical universities.
TRADITION
A long tradition of outstanding research
and close collaboration with the Swedish
health service, with its large proportion
of researcher physicians, is one of
the main reasons why the Swedish biotechnology
industry has a world-class
reputation. However, it is an extremely
competitive industry. Developing new
products is very costly and takes a long
time.
– But this is Sweden’s comparative
advantage, explains Per-Erik Sandlund,
CEO of SwedenBIO. Sweden’s topclass
– and cost-effective – know-how
is what enables it to compete. Swedish
biotechnology enterprises are streamlined
and flat, and there are no hierarchical
obstacles in the industry, he says.
NEW JOBS
Furthermore, Sweden has an efficient
system of patient records and bio banks,
and it is a relatively simple matter
to carry out clinical studies of drugs,
compared with the situation in the USA
and Asia.
VINNOVA has formulated a national
biotechnology strategy with a view to
strengthening the industry. In addition,
the government is discussing these issues
with representatives of the industry,
higher education and trade unions. The
goal is to create new jobs and increase
export earnings, even though the industry
already accounts for a quarter of
Successful medical research is important
to ensure that the Swedish biotechnology
industry is a growth industry, says
Harriet Wallberg - Henriksson, President
of the Karolinska Institute.
Sweden’s exports. Among other things,
there are plans to set up a national
programme for researchers who wish to
divide their time between academia and
industry. The government is also examining
the possibility of aiding companies
that have a large R&D budget.
Interesting areas for the future mentioned
by Harriet Wallberg-Henriksson
include individualized medicine,
with tailor-made treatments for small
groups of people on the basis of genetic
information. This would be a completely
new approach for pharmaceutical
companies.
– There is also great potential for
combining medical and technological
research, for example in the form
of nanomedicine and new sensors for
different types of IT solutions for telemedicine
and self-tests.
PROFITABLE OPERATIONS
In the longer term, biotechnology may
also play an important part in transforming
traditional industries such as
food, forestry and chemicals.
– It is clearly profitable to support
medical research, says Harriet
Wallberg-Henriksson. According to
American studies, there is a 10-dollar
return on each dollar invested. Per-Erik
Sandlund agrees.
– Developing the life science sector is
one of our great challenges. Apart from
generating export profits for enterprises
and creating new jobs, it could also
reduce healthcare expenses.
1 8 | V I N N O V A M A G A Z I N E

GOOD IDEAS
RECEIVE SUPPORT
Maria Gröndahl and Lisa Eriksson with their new packaging material.
PRODUCING PACKAGING FROM WASTE
Waste can really turn to gold. The
Xylophane company has invented a new
packaging material. Maria Gröndahl, a
doctoral student of biopolymer technology
at Chalmers University of Technology,
succeeded a few years ago in producing
a thin film of the renewable material
xylane. This biopolymer is present in
grain, straw and wood, but until recently
it was regarded as a residue without any
economic value.
– We have produced a film from this
material that can be used in environmentally
sound packages instead of aluminium
and other non-renewable materials,
she says. She collaborated on this
project with her colleague Lisa Eriksson,
who has a degree in engineering biology.
– We discovered that the films we
developed are an excellent barrier
against oxygen. They are very useful in
the packaging industry, which uses large
quantities of oxygen barriers to protect
sensitive products such as food and
drugs, she says.
Developing alternative packaging,
whether for juice, fast food or headache
pills, is a timely idea. The EU Packaging
Directive regulates the design of the
packages of the future. It stipulates,
Many good ideas are created in
Sweden. VINNOVA supports innovative
ideas with growth potential, thus
promoting the establishment of new
technology-based companies. The
VINN NU competition provides funding
for small companies at an early stage,
thus creating opportunities for them
to realize their ideas. Here are three
examples of projects that have been
supported in this way.
among other things, that packaging must
be environmentally sounder in future.
Xylophane is also the name of the product
developed by the two engineers together
with Paul Gatenholm, a professor
at Chalmers University of Technology.
– We are already in touch with the
packaging industry with a view to scaling
up our laboratory results to a larger
pilot scale, says Maria Gröndahl.
The product has raised great expectations,
and she mentions that the
company has also established international
contacts.
A CAMERA THAT SEES THROUGH THE SKIN
Our skin is often used to study the
safety of all sorts of products from
cosmetics to drugs. A company called
WheelsBridge has developed a system,
for which a patent has been applied
for, that makes such tests simpler and
more effective.
– The camera that we have developed
can see “through” the outer
layers of skin and photograph the blood
circulation in the deeper skin layers. It
may detect signs of inflammations or
allergic reactions to an ointment, for
example, explains Gert Nilsson.
He is Professor of Medical Technology
at Linköping University and runs the
company together with others, including
a dermatologist. Their customers
are manufacturers of skincare products
and drugs who need to test the safety
of their products.
– Sometimes the aim may be to
measure the effectiveness of a product,
such as a product designed to increase
blood circulation.
At present, dermatologists assess
red spots subjectively. The camera can
provide more accurate values and also
monitor the development of a reaction
in the skin over time. The technology is
based on the changes that take place
in polarized light when it strikes red
blood cells in the skin. Development is
complete and the product will soon be
launched on the market.
– We have gone from development to
marketing in order to sell the product.
The money from VINN NU will help us
to establish a distribution network in
Europe.
V I N N O V A M A G A Z I N E | 1 9

GOOD IDEAS
RECEIVE SUPPORT
AIR STREAMS
CONQUER
THE WORLD
A new, revolutionary cooling technology
offers completely new heat transfer
possibilities. The method is silent and
extremely effective. It can make existing
cooling systems better and cheaper,
as well as offering new ways of cooling
electronic and industrial equipment of
various kinds.
– One problem connected with the
cooling of materials is that air is a very
poor conductor of heat. A fan can be
used to blow away hot air to accelerate
the cooling process, but the material
always retains a thin layer of air around
itself that slows down the heat transfer,
explains Anna Borgström.
Together with her colleague Roderick
Barrett she has developed the cooling
technology used by Aureola Swedish
Engineering. The method is based on
fundamental physical phenomena that
the two Royal Institute of Technology
students use in a new way.
– We can manipulate air molecules
that are in direct contact with a heated
object so that they are repelled, thus
increasing natural heat transfer by a
factor of eight. We can even determine
the direction the molecules are moving
in and thus create circulation without a
fan, says Roderick Barrett.
A broad patent has been applied for,
and both inventors are still secretive.
All they will say is that the method does
not require surface treatment or moving
parts, that it is silent and uses almost
no energy. The VINN NU award was the
first of many.
– The money came in very useful, but
above all we got a lot of publicity. Several
of the companies that we are collaborating
with today called us after the competition,
says Anna Borgström. They have
great plans for the future. Cooling technology
is a multibillion euro industry, and
she believes that one of their cooperation
ventures with interested companies will
soon result in their first product.
The technology offers new possibilities
for the electronics industry, for
example when it comes to cooling
laptop computers or flat-screen TV
sets. Large industrial structures that
require extensive fan systems and more
efficient air heating are other potential
applications.
Quick help at sea
ject was Torbjörn Henriksson, managing
director of Kockum Sonics.
– We started with people spread out
everywhere, but they had a very interesting
mix of skills, says Torbjörn Henriksson.
As project leader, his first task
was to produce order out of chaos and
achieve effective cooperation in order to
make the best possible use of everyone’s
skills. Evidently he succeeded. Today a
working prototype has been installed in
M/S Skåne, a ferry operating the Trelleborg-Rostock
route.
SCS is an active security system
which, in the event of a leak on board or
cargo displacement, automatically starts
evaluating the stability of the ship and
simultaneously predicting its condition
at various intervals, in particular its final
condition. An automatic alarm is also
connected to the shipping company’s
on-call team so that people on land can
also receive up-to-date information about
From “chaos” to an exciting innovation.
Kockum Sonics’s new prototype Safety &
Cargo System shows how the twists and
turns of an innovation process can lead
to success in the end.
But such a project often needs one
or more driving forces to see it through.
One of these driving forces in this prothe
condition of the ship. This project
is included in VINNOVA’s safety at sea
programme, which was launched in 2001
in order to build up research and development
in this area. It is financed with funds
that were left over when the burial of M/S
Estonia was called off.
Keys to security
A pin-on-card is a smart card; you enter
the pincode in a keypad on the card itself.
It can be used, among other things,
as a pass card and bank card. Security
is guaranteed since the code is saved
on the card and not in a computer that
reads it, which would make it possible to
trace the number. The product is based
on a new intelligent technique called
RFID (Radio Frequency IDentification),
which was developed by the Swedish
company Cypak. The pin-on-card won
the European IST prize in competition
with 430 products from 29 countries!
2 0 | V I N N O V A M A G A Z I N E

Acreo is a Swedish R&D institute which
designs innovative microelectronics, optics
and communication solutions that contribute
to growth and profitability. Acreo uses
a commercial printing press to print displays
and electronics onto flexible substrates
at high speed in a reel-to-reel process.
outer packages. The system gives a
complete picture of the distribution chain
and shows where there may be flaws,
says Bengt Sahlberg, Managing Director
of Bioett AB.
Linköping University and Acreo, a research
institute, have developed a method
for printing plastics with built-in electronics
on ordinary paper or cardboard.
This makes it possible, for instance, to
produce packages that instead of a date
stamp have a little display showing that
the contents (fish, say) will remain fresh
for X more days. The text is generated
by a small computer that is printed on to
the package and measures the temperature
and/or gases inside.
– At the moment we are working on
ways of transmitting printed electronic
components such as displays, diodes,
transistors and small logic circuits, as
well as sensors, from “plastic to paper
reel”, says Mårten Armgarth, sales
manager at Acreo in Norrköping. Acreo’s
method uses a technique for printing
plastic electronics on ordinary paper.
STFI-Packforsk, a research institute in
the fields of pulp, paper, graphic media,
packaging and logistics, is working on
embedding electrical tracks and other
components in cellulose.
– We are investigating how we can go
one step further and build these functions
into the cellulose itself, says Staffan
Nyström at STFI-Packforsk.
STFI-Packforsk is examining this
particular method by using chemically
modified wood fibres. These are incorporated
into various solutions to deposit
electrically conducting polymers on the
fibre surface.
– This will make it possible to customize
various solutions later on. The fibre
material could, for instance, be used as
a circuit board on which components,
such as temperature sensors or RFID
components, are installed.
Talking packages
Nowadays paper and cellulose can incorporate
electronics, both on the outside
and inside.
“Active packages” are a new range of
products that interact with their surroundings.
Some of them are food packages
that scavenge oxygen or have protective
barriers built into the cardboard.
– Development continues. “Smart
packages” can now even communicate
with the consumer, says Tim Nielsen of
the Swedish Institute for Food and Biotechnology,
which conducts strategic and
applied research in an industry-driven
research programme.
These packages can do anything from
telling the customer that the product
has reached “eating temperature” in the
oven to reading aloud a declaration of
ingredients or giving a warning that there
are too many microorganisms in a food
product.
Such a function has been developed
by the Swedish company Bioett AB. It
has developed a product that measures
the temperature of food, for example
during transport from the producer to the
supermarket. The measurement device,
a circuit with a built-in biosensor, is located
on the transport packaging, where it
measures the temperature and stores the
measurement values.
– This is the first step towards smart
Leverage through research
Sweden has many Competence centres
in research and innovation. The
basic idea is to transform universities
and research organizations into a
resource for industry and the public
sector.
One of them – PSCI, the Parallel
and Scientific Computing Institute,
which was set up in 1995 – has
developed simulation methods that
offer cost-effective solutions to design
and development problems in industry.
The centre has given companies
with large calculation requirements
access to advanced knowhow in the
field of mathematical modelling and
simulation so as to improve their competitiveness.
The Institute can also
simulate electromagnetic properties in
various products, such as the effects
of high-frequency electromagnetic
radiation on technical systems or
living creatures. The picture illustrates
the field intensity in a Saab 2000 aircraft
whose nose has been struck by
lightning. The simulation was carried
out within the framework of a project
called GEMS.
V I N N O V A M A G A Z I N E | 2 1

The cradle of
Swedish growth
High-quality research is essential to
continued growth in Sweden.
– MOST OF WHAT IS produced by
Swedish companies is for export and
must be better than the products of
foreign competitors. Swedish companies
are therefore constantly on the search
for new, competitive products.
As president of Sweden’s largest university
of technology, Anders Flodström
is aware that research has a key role
in more or less all social sectors today.
Knowledge generated by the Royal
Institute of Technology in Stockholm
is used in everything from banking
systems and telecom services to drug
development and forest raw materials.
- A strong innovation system that
helps to produce new ideas is at the
heart of what we are trying to achieve:
broad-based growth for Sweden. And
Strong, internationally competitive universities
play a key role in Sweden’s growth,
according to Anders Flodström.
our research must be world-class.
Companies cannot afford to invest in
anything but the best in today’s global
competition.
DIRECT CONTACTS
He regards the extremely open and
direct contacts with universities as the
key to success for Swedish companies.
There is also a tradition of cooperation
between central government and
industry on major development projects,
such as the expansion of power supply
and telephony systems.
In view of the increasing importance
AN INTERNATIONAL PERSPECTIVE
Few countries spend as much on R&D
in relation to their size as Sweden
does. About 4 per cent of GDP is invested
in research in Sweden. Industry
accounts for a large proportion of this
investment, particularly in areas such
as vehicle technology, drug development
and telecommunications.
The Swedish higher education system
has been expanded rapidly in the
last 10 years in order to increase the
breadth of higher education as a whole
and research in particular. Today,
almost 50 per cent of each cohort of
school leavers go on to higher education,
a figure that is not matched by
any other country. There are 36 staterun
universities and university colleges
in Sweden, as well as a further 10
non-state centres of learning.
Institutions of higher education play
a major role in the Swedish funding
agencies. Researchers are often in a
of small and medium-sized enterprises
(SMEs) for growth, the challenge for
Sweden is to establish closer collaboration
with SMEs as a complement to the
existing collaboration between universities
and large companies.
– The ambitious expansion of regional
centres of learning in Sweden has
made a great difference. Small companies
often make their first contacts
with these centres before embarking
on cooperation with one of the larger
universities.
The important task of linking up the
expertise that is available at centres of
majority on the boards of these agencies.
The Swedish model with strong,
independent agencies is unique and
contributes to high-quality research.
The largest research funding agencies
are the Swedish Research Council,
which allocates 260 million euro per
year for basic research in the natural
sciences, engineering, medicine,
humanities and social sciences, and
VINNOVA (the Swedish Governmental
Agency for Innovation Systems), which
has a budget of 115 million euro and
supports problem-oriented research
in the fields of technology, transport,
communications and working life.
A unique feature for Sweden is that
researchers at universities etc. retain
the copyright on their research findings.
National bodies and support
structures at the Swedish centres of
learning assist in commercializing
ideas.
2 2 | V I N N O V A M A G A Z I N E

Advanced production of nanothreads in semiconductor materials could generate new Swedish export successes. Mikael Björk and Ann
Persson have made path-breaking discoveries that may result in new electronic components and medical sensors.
learning around the country is accomplished
by research schools, common
education programmes and Competence
centres. Anders Flodström also
regards international cooperation as
important for the quality of Swedish
research. Above his desk there is a map
of the world with pins for the 75 universities
around the world with which the
Royal Institute has research exchanges.
COOPERATION PARTNERS
– During the 1980s Sweden educated
more Chinese guest students than any
other country in the world. Many of
these are now professors in their home
country and they make good cooperation
partners.
Maintaining a leading position in
science is also important when it comes
to establishing research-intensive
companies in future growth areas. Lund
University of Technology in the south
of Sweden is involved in a nanotechnology
research venture that is unique in
Europe. It ranges over disciplines such
as quantum physics and materials science
to electronics and life science.
– Many young world-class researchers
are working in this multidisciplinary
environment. Our success is due to
the support we have received for many
years from courageous and far-sighted
research funders, says Lars Samuelsson,
who is leading the research project.
The most exciting project at the moment
is building electronic components
from the atomic level in the form of
nanothreads in semiconductor materials.
This research has been designated
one of the country’s strongest scientist
environments. A new, unique production
plant makes it possible to produce
nanothreads in a laboratory environment
that is optimized for nanotechnology
and nanoelectronics.
The nanotechnology research being
done in Lund has resulted in the
establishment of a number of companies,
some of which are collaborating
with Philips and IBM. This offers great
potential, explains Lars Samuelsson.
In many respects, microelectronics and
optics are already based on nano effects.
– One future challenge is to make
even smaller and more energy-efficient
components based on nanothreads.
And before long there will be applications
in the field of medical technology.
We hope that by setting up innovative
companies supported by first-class nano
research we will pave the way for future
export successes and new jobs.
V I N N O V A M A G A Z I N E | 2 3

Global market for
small enterprises
Sweden is actively encouraging the research activities of small and
medium enterprises. This is done by means of direct support, but above
all with the help of know-how available in our regional university
colleges. One example of this is the Water Jet Sweden company.
‒ SWEDISH COMPANIES seldom get any
orders because they are cheapest. We
have to be best instead. We set aside 10
per cent of our turnover for research in
order to succeed, says Jan Ryd of Water
Jet Sweden.
Hurrying from machine to machine
in the assembly shop, he explains:
– In five years’ time we aim to lead
the world. He is full of confidence and
has every reason to be.
– This machinery is going to China,
over there is a shipment for Russia,
and the truck outside is on its way to
Germany with a machine.
Water Jet Sweden, based in Ronneby
in southern Sweden, is growing at a
phenomenal pace. Ten years ago Jan
Ryd worked alone from his garage, but
now the company has 50 employees and
is aiming for 100. They have customers
all over the world.
The company is one of many examples
of the way Swedish small and
medium sized companies collaborate
with both regional, national and international
universities in order to achieve
optimal results. This is in line with
the recommendations issued by the
Confederation of Swedish Enterprise,
a cooperation organization for Swedish
enterprises: advanced research in
strategic areas is the key to ensuring the
competitiveness of industry.
CUTTING WITH WATER
Water Jet Sweden has developed a
machine that can cut through all types
of material except hardened glass with
very fine jets operating at high pressure,
up to 4,200 bar, with the very greatest
precision.
The jets are precision-controlled,
with a margin of error of less than 0.2
millimetres, by means of sophisticated
mechanics and software.
Waterjet cutting has mostly been
used with flat materials up to now, but
special machines are now being developed
for three-dimensional cutting.
The advantage of this technology is
that it makes no impact on the material.
Other methods, such as laser cutting or
punching, usually modify the properties
of the cutting surface. When it comes to
high-performance applications, such as
aero parts, waterjet-cutting is the only approved
method. Since the machines can
be used to cut various types of materials,
customers buy jet cutting machines for
a variety of applications, ranging from
sponges to turbine blades in jet engines.
– Often, a customer will buy a machine
for a particular application, but
once it is installed they often find new
uses for it. Waterjet cutting is a technology
with great future potential.
The main challenge at the moment
is to increase the cutting speed process.
Jan Ryd makes a comparison with a
Formula 1 race to illustrate this particular
problem.
2 4 | V I N N O V A M A G A Z I N E

3G OPENS UP NEW OPPORTUNITIES
– Cutting fast is simple enough in a
straight line, it’s the bends that are a
problem. Any manufacturer who succeeds
in developing a control system
that makes it unnecessary to slow down
in bends will get the jackpot.
Although Water Jet Sweden is quite a
small company, it is involved in intense
collaboration with higher education institutions,
mostly with Blekinge University
of Technology, which is in the next
town. Exchanges are mutual. Sometimes
Water Jet Sweden wants help with calculations,
at other times the university
asks the company to let students do their
degree projects at the company.
– Having access to a regional university
is a great advantage for us. They are
very much involved in our development,
which would hardly be the case if it was
a bigger university.
The fact that Blekinge University of
Technology is small does not mean that
it lacks capacity. There are five waterjet
cutting companies in Ronneby, a small
town with 30,000 inhabitants. As a
result, a natural cluster has been formed
that enables the companies and the university
college to develop side by side.
– They are also very good at information
technology. We are now incorporating
this knowhow into our machines,
says Jan Ryd. With 3G technology we
can use a web camera to control our
machines. We can see, hear and control
them without an operator being present.
COOPERATION WITH MANY PARTNERS
60 per cent of Water Jet Sweden’s
contacts in academia are with local
researchers. But when their expertise is
not sufficient, Jan Ryd applies to a university
that has the specific knowhow
that the company needs.
– We often use the universities in
Stockholm or Gothenburg. But just as
often we use universities in other countries.
Today the workshop is full of German
voices. Jan Ryd and his colleagues
are working on an advanced project, and
the only universities with the specialist
expertise are the universities in Berlin
and Hannover.
– Having access to a regional university
college that can help us with our
long-term development work and being
able to take advantage of specialist
expertise for specific problems enables
us to get all the help we need.
A traditional problem for many
SMEs is the lack of time and money
for research and development. In order
to strengthen and stimulate research in
such companies the Swedish government
has set aside 10.5 million euro in
direct aid, which is administered by
VINNOVA. The overall objective is to
help the companies so that they can
compete in global markets. Increased
research will hopefully enable companies
to bring new products or services to
market more quickly.
STRATEGIES FOR STRENGTH
Sweden is a world leader when it comes
to knowledge-intensive industrial
production. Together with representatives
of key industries and trade unions,
the Swedish government is now
working on common strategies that
will help Sweden maintain its leading
position. The goal is to reach agreement
on important challenges and
comparative advantages in research,
production etc. The industries concerned
contribute more than 80 per cent
of Swedish industry’s total investment
in R&D, generate 57 billion euro in
export earnings and provide about
600,000 jobs. Here are some examples
of important growth areas.
• The aerospace industry is an
international growth industry in
which Swedish companies have
doubled their sales in the period of
10 years. R&D accounts for a high
proportion of costs in the industry.
• The automotive industry is one of
Sweden’s most important industries
and one of the most dynamic and
knowledge-based in the world. The
Swedish automotive industry is
better prepared for the future than
many of its competitors.
Waterjet cutting technology makes it possible
to cut detailed patterns in almost all types of
material. The water passes the cutting head
with a speed of 900 metres per second.
• The Information & Communication
Technology industry in Sweden
includes several very successful
companies and accounts for almost a
third of R&D in the industrial sector
as a whole. Apart from large export
earnings, the ICT sector also helps to
improve productivity in other sectors.
• Sweden’s mining and metal industry
leads the world in certain strategic
areas. Leading-edge technology,
highly processed products and
sustainable resource use ensure
international competitiveness.
• The pharmaceutical and biotechnology
industry is strong in Sweden,
and collaboration between research,
industry and the health service is
very well-developed. This collaboration
has led to several world-class
innovations.
• The forest and timber industry
is very important for Sweden’s
economy and also accounts for a
large percentage of the balance of
trade. Sweden is the world’s fourth
largest exporter of pulp, the third
largest exporter of paper and the
second largest exporter of sawmill
products.
V I N N O V A M A G A Z I N E | 2 5

Small country
– large car industry
The task is clear: to build a “green” car. The Swedish government has joined
forces with the car industry, and together they have invested 187 million euro
in the Green Car programme in order to accomplish this task.
THE NEXT GENERATION of cars will
soon be here – hybrid ethanol-electric
cars. The development of green cars is
a top priority at Saab. As a result, the
Saab 9-5 Biopower car – which can use
ethanol, a renewable and carbon-dioxide
neutral fuel – was launched in 2005. It
was an immediate sales success, in fact
more so than anyone had dreamed of.
Environment-friendly fuels are needed,
but it is equally important to develop
technology to lower fuel consumption.
Hybrid technology is one way of making
vehicles more energy-efficient. Fuel consumption
can be reduced by combining
an electric traction motor and a battery
with the internal combustion engine.
The secret is to recover energy when the
vehicle brakes or coasts downhill.
– But building a hybrid car is complicated,
says Yngve Larsson, who is
responsible for hybrid development
both at Saab and at GM Europe.
– Everything, from engine suspension
to control systems, has to be modified.
We have to look at every single detail
in the car and see what needs to be
adjusted.
IN-HOUSE DEVELOPMENT
Saab’s engineers have designed and
produced all the parts for the hybrid car.
Now they need to be assembled and the
laborious task of getting everything to
work together will begin.
– To start with we had two options,
either to buy all the technology or to
develop it ourselves and learn it from
scratch, says Tommy Lindholm, project
manager.
– The Green Car programme has
given us the necessary resources to
develop the technology in-house. The
reason why we have made so much
progress is that we have worked together
with Lund University of Technology.
They participated in the project with
an enthusiasm that drove it forward at
great speed.
– They have knowhow there that car
manufacturers usually do not possess.
It will take several years before Saab’s
hybrid car is ready for the consumer. It
normally takes three years or so from
the time when the development process
is complete and until the first car leaves
the production line.
There is a continual struggle among
the global car companies as to where
various technologies are to be developed.
Developing a hybrid car means that many of the parts need to be modified. For example, the car must have a high-voltage electrical system
to drive the electric motors instead of the usual 12V system.
2 6 | V I N N O V A M A G A Z I N E

SAAB RESPONSIBLE FOR HYBRID CARS
Saab’s engineers were assigned responsibility
for the task of developing
the hybrid technology for the European
market. They are also developing
software for the GM group as a whole.
Software development is essential for
the future, when modern cars in general
and hybrid cars in particular will be
equipped with increasingly advanced
control systems.
– The sky’s the limit when it comes to
what we can do with computer support.
A hybrid car could, for instance, use
the navigation system to predict what is
around the corner. If it is a hill, the car
could prepare by giving the battery an
extra charge, says Tommy Lindholm.
The collaboration between the car
industry and university is two-way. The
industry gets help in the areas where it
does not possess the necessary knowhow.
In exchange, car companies help to
train the automotive researchers of the
future.
A Saab 9-3 being transformed from a
traditional singe-engine petrol-driven car
into a two-engine hybrid.
SET TO CONTINUE
The automotive industry and its subsuppliers
are among Sweden’s most
important industries and account for 15
per cent of the country’s export earnings.
Brands such as Volvo, Saab and Scania
are well known around the world.
But the industry is constantly threatened
by the ever keener competition
in a globalized world. Manufacturers
who cannot deliver the technology that
customers want will be wiped out.
The Green Car programme has
helped the Swedish automotive industry
turn a threat into an advantage.
Customers have started asking for cars
that do not destroy the environment or
change the climate. The first round of
the Green Car programme has come to
an end, but thanks to the good results
everyone has agreed to continue the
programme.
Useful Swedish contacts
VINNOVA
(the Swedish Governmental Agency for
Innovation Systems)
SE-101 58 Stockholm
Street address:
Mäster Samuelsgatan 56
Phone: +46 8 473 30 00
Fax: +46 8 473 30 05
E-mail: VINNOVA@VINNOVA.se
www.VINNOVA.se
VINNOVA, the Swedish Governmental
Agency for Innovation Systems, integrates
research, development and innovation.
VINNOVA’s mission is to promote
sustainable growth by funding needsdriven
research and developing effective
innovation systems. Through its activities
in this field, VINNOVA aims to make
a significant contribution to Sweden’s
development into a leading knowledge
based economy.
Invest in Sweden Agency (ISA)
PO Box 90, SE-101 21 Stockholm
Street address: World Trade Center,
Klarabergsviadukten 70 B6
Phone: +46 8 402 78 00
Fax: +46 8 402 78 78
E-mail: isa@isa.se
www.isa.se
The Invest in Sweden Agency is a
government agency that assists foreign
investors and informs them about business
opportunities in Sweden. Companies
that are planning to establish or
expand business operations in Sweden
can, free of charge, obtain information
and assistance from ISA and its regional
and international network.
Swedish Trade Council
Box 240, SE-101 24 Stockholm
Street address: World Trade Center,
Klarabergsviadukten 70
Phone: +46 8 588 660 00
Fax: +46 8 588 661 90
E-mail: infocenter@swedishtrade.se
www.swedishtrade.com
The Swedish Trade Council helps companies
to do business with Sweden. It
identifies the right suppliers and can
also answer questions about Swedish
exports quickly and free of charge. It
also helps Swedish companies that want
to establish a presence abroad.
Swedish Research Council
SE-103 78 Stockholm
Street address: Regeringsgatan 56
Phone: +46 8 546 44 000
Fax: +46 8 546 44 180
E-mail: vetenskapsradet@vr.se
www.vr.se/english
The Swedish Research Council is a
government agency under the Ministry
of Education, Research and Culture.
The Council provides support for basic
research of the highest scientific quality
in every field of science. Its main areas
of responsibility are research funding, research
policy and science communication.
Government Offices of Sweden
SE-103 33 Stockholm
Phone: +46 8 405 10 00
www.sweden.gov.se
The Government is assisted by the
Government Offices, an integral authority
comprising the Prime Minister’s Office,
the ministries, the Permanent Representation
of Sweden to the European Union
and the Office of Administrative Affairs.
Swedish Institute for Growth Policy
Studies (ITPS)
Studentplan 3, SE-831 40 Östersund
Phone: +46 63 16 66 00
E-mail: info@itps.se
www.itps.se
The ITPS is a government agency that
is responsible for policy intelligence,
evaluation and various areas of official
statistics.
V I N N O V A M A G A Z I N E | 2 7

The field intensity in a Saab 2000 aircraft whose nose has been struck by
lightning. The aircraft simulation is one example of the work at the PSCI,
the Parallel and Scientific Computing Institute, which is one of VINNOVA’s
Competence centres for collaboration between industry and university.
Research is a growth factor of strategic importance to industry. More and
more examples show that funds allocated to research and development
stimulate growth in society as a whole.