The Internationalization of Corporate R&D

THE INTERNATIONALIZATION OF CORPORATE R&D11.5 Swedish-Indian Economic and R&D Relations11.5.1 Swedish-Indian Economic and S&T RelationsEconomic and technology relations between Sweden and India have graduallystrengthened, but lag other countries, like China and Japan. Trade and investment linksbetween Sweden and India are poised to expand substantially in the long-term. Thisalso applies to R&D activities by Swedish companies in India. In addition, Indian companies’operations in Sweden are poised to expand.Swedish exports of goods to India amounted to 935 million dollars in 2005 (0.7 percentof Sweden’s total exports) while imports stood at close to 395 billion dollars (0.4 percentof total imports) (Statistics Sweden 2006). According to data published by theCentral Bank of Sweden, Swedish FDI to India amounted to 57 million dollars from1994 to 1998, and 109 million dollars from 1999 to 2003. Swedish companies employedabout 7,200 people in India in 2003, per data compiled by the Swedish Institutefor Growth Policy Studies (ITPS). A broader definition including all Swedish-relatedcompanies, as well as outsourcing to Indian companies, results in a significantly largernumber. While no more comprehensive data is available, it is reasonable to assume thatthe total number employed in Swedish-related (broadly defined) corporate activities inIndia has grown significantly since the 1990s and reached about 20,000 in 2006.Swedish and Indian official data do not provide a complete picture of trade, investmentand employment, R&D and other forms of S&T collaboration. Typically, data on foreigntrade and investment and specific R&D developments are incomplete and underestimated(Mitra 2006a). In short, official data does not allow for accurate analysis ofeconomic relations and R&D ties between the two countries. Therefore, an analysis ofcorporate R&D relations must be supplemented by company-level case studies.The development of the ties between the two countries is reflected in a number of domains.The Swedish Trade Council has developed New Delhi operations and opened anoffice in Bangalore in 2006. The Sweden-India Business Council (SIBC) was establishedin 2003 as a result of initiatives by the Swedish government and the private sector.An agreement (MoU) was signed between the Confederation of Indian Industry(CII) and the Confederation of Swedish Enterprise. SIBC was entrusted with responsibilityfor development of opportunities and activities between the parties. SIBC cooperatesin Sweden with the Swedish Trade Council, the Import Council and ministriesamongst others (Swedish Trade Council 2006 and SIBC 2006).The Royal Academy of Science (IVA) and Invest in Sweden Agency (ISA) have begunto give more attention to India. The Swedish International Development CooperationAgency (SIDA) places major emphasis on S&T collaboration in the areas of environment,ICT and biotechnology, as per its India country strategy presented in 2005.291