The Internationalization of Corporate R&D

THE INTERNATIONALIZATION OF CORPORATE R&D• The need for long-term partnerships that promote and sustain investments in researchwith radical industrial-renewal potential.• The need for technologically advanced local demand that stimulates R&D-basedinnovation and production in Sweden.• The need for triple helix risk-sharing and cooperation in generating the necessaryresources and capabilities for such a regime.5.5 Innovation Policy ChallengesSwedish innovation and growth policy is facing some critical challenges in both the shortand long term. The Swedish National Innovation Strategy, presented by the Governmentin 2004, constitutes the strategic basis for such a policy (Regeringskansliet 2004).As a part of the National Innovation Strategy, significant steps have been taken to increaseand reform Swedish public R&D funding, both in terms of academically performedbasic research, and in terms of mission-oriented research (Regeringskansliet2005a). Moreover, the strategy has been the basis for new industry-focused programsfor R&D and innovation in key Swedish industries. The programs have been generatedand defined through a series of public-private dialogues. One of the programs addressesthe Swedish ICT industry (Regeringskansliet 2005b). Finally, the strategy has generatedambitious initiatives to stimulate R&D-based startups and R&D in small and medium-sizedenterprises (SMEs).These policy developments are important and historically unique steps towards a coherentstrategy for improved competitiveness of Swedish industry. And, as the challengestend to vary considerably across different industries, the industry approach tocompetitiveness policy is sound. The aim of this section is to note critical points forfurther developing national strategies for improved technological performance andeconomic competitiveness of the Swedish ICT industry.Both the size and the character of the challenges facing Sweden are very different fromthose that have faced Swedish industry and policy in past decades. The scale and scope ofpublic stimulation and intervention have been increasing, which has generated a globalrace in providing attractive national conditions for investments in R&D and production.5.5.1 Quest for a New RegimeAs a consequence of the radically changing, global conditions, the future strength ofSwedish ICT-related innovation policy cannot rely on repeating historically effectivemeasures (Arnold & Deiaco 2002). Instead, the objectives and design of future competitivenesspolicies must be continuously informed by foresight and global intelligence inbusiness, technology and policy developments. In the following section we address criti-146