Welcome to Stockholm! Sergey Baranov, Stockholm Region Office in St. Petersburg Nevsky prospekt 1, St. Petersburg, Russia [email protected].

Welcome to Stockholm!

Sergey Baranov, Stockholm Region Office in St. PetersburgNevsky prospekt 1, St. Petersburg, Russia [email protected]+7 (812) 314 68 18

Stockholm Business Region Development at a glance

Background Official investment promotion agency of Stockholm region Fully owned by the City of Stockholm Responsible to 49 municipalities in the Stockholm region A subsidiary to Stockholm Business Region.

Staff 17 employees, sector specialists with business backgrounds Extensive regional and national network. Representation in EU and 5 countries (ISA).

Investor service Decision support, matchmaking and practical establishment

support free of charge.

Achievements Assisted in 830 investments since 1997

SBRD your point of contact for

Consolidating your business in the region Taking part in research cooperation Opening a regional sales office Considering an R&D center Setting up a production facility Establishing a regional headquarter Etc

Sweden and Stockholm in general

One of the ten largest economies in the world

Surce: Norden i tal 2009

GRP: € 130 billion Inhabitants: 3,4 million Workforce: 1,8 million Companies: 360 000 Universities: 28 Students 101 000 Researchers 8 400

Stockholm

Scandinavia & Sweden GDP: € 1,072 / 314 billion Inhabitants: 30 / 9,3 million

April 10, 2023

1,8

1,8

1,9

2

2,3

2,3

2,5

2,6

3,0

3,6

Germany

Denmark

France

Euro area

Norway

UK

US

Netherlands

Sweden

Finland

GDP growth in selected countries2004–2008, average annual change, percent

3,3

2,4

2,3

2,2

2,1

2

1,9

1,7

1,7

1,6

US

Euro area

UK

France

Germany

Denmark

Norway

Netherlands

Sweden

Finland

Inflation rate2004–2008, annual average, percent

Strong and stable economy

Source: National Institute of Economic Research Eurostat; OECD, 2008 (Figures for 2008 are preliminary)

Source: National Institute of Economic Research Eurostat; OECD, 2008

Source: Swedish Energy Agency, based on data from Statistics Sweden and Swedish Environmental Protection Agency

Economic growth and emissions reductions

Many well known multinationals are of Swedish origin

Given its size one of the largest recipients of International investment

Source: Unctad, 2009

67

141

146

166

178

190

304

350

535

689

Sweden

Spain

Germany

Hong Kong

Canada

Belgium

China

France

UK

USLargest recipients of FDI worldwide2003-2008, US$ billion

Approximately 50% of total FDI

projects end up in Stockholm

• The largest city at the heart of the growing Scandinavian market

• Excellent business climate

• Key Clusters of similar companies

• World leading innovations and R&D in some clusters

• Political and economical stability

• Transparency

• Competence and language skills

• Competitive costs

• Quality of life

Nine reasons to invest in the Stockholm region:

Stockholm – The Capital of Scandinavia

• Stockholm is Scandinavia’s largest city and its natural center

– The Central Capital of Scandinavia

• The Stockholm region is Scandinavia’s economic center

– The Business Capital of Scandinavia

• Stockholm is Scandinavia’s trendsetting cultural city

– The Cultural Capital of Scandinavia

The Stockholm region Population: appr 3,400,000 (2009)Regional GDP: 134,735 million Euro 2006 Eurostat

The Stockholm region Population: appr 3,400,000 (2009)Regional GDP: 134,735 million Euro 2006 Eurostat

• The region includes Scandinavia's largest city and natural center

• World-class wired and wireless communication

• The ports of Stockholm are the Baltic Sea's largest meeting place

• Several international airports • World class academic institutions• No 1 IT-Intelligent Community of

the Year 2009

• Innovations centre with, among others, world-class ICT, cleantech and automation

• One of Europe’s largest biotechnology clusters

• Highest representation of multinational companies

• Leading financial centre and largest stock exchange

• Logistics centre for the Scandinavian and Baltic market

• Largest GDP• Largest tourism industry • The first European Green Capital 2010

• The Nobel Prize• Music production centre• International food culture • Unique selection of galleries

and museums • World-class form and design• Nature and quality of life• The Polar Prize• The Stockholm Water Prize

The Stockholm region in cooperation.

• 47 municipalities

• A formalized partnership

• Promotes Stockholm in order to attract foreign investments

• Develops local entrepreneurship and business climate

The Stockholm region Population: approx 3.4 million (2009)

Regional GDP: 134,735 million Euro (SBA 2006)

Why Stockholm?1. Access to knowledge, exciting technologies and talents

1. Sweden 82,2

2. Finland 77,8

3. USA 77,5

4. Switzerland 77,0

5. Netherlands 76,6

6. Singapore 76,5

7. Canada 74,8

8. United Kingdom 74,6

9. Norway 73,5

10. New Zealand 73,4

A knowledge intense and innovative country

Innovation Capacity Index 2009–2010

Top ten in world knowledge competitiveness survey of 145 regions

Source: Centre for International Competitiveness 2008

Rank Region Index Score 2008

1 San Jose, Sunnyvale, Santa Clara, USA 248

2 Boston, Cambridge, Quincy, USA 175

3 Hartford, USA 175

4 Bridgeport, Stamford, Norwalk, USA 174

5 San Francisco, Oakland, Fremont, USA 161

6 Stockholm 152

7 Seattle, Tacoma, Bellevue, USA 151

8 Providence, Fall River, Warwick, USA 147

9 Tokyo, Japan 147

10 San Diego, Carlsbad, San Marcos, USA 146

Substantial R&D expenditure

Source: IMD World competitiveness yearbook 2009

R&D expenditure 2006, percent of GDP

2,6

2,6

2,6

2,7

2,9

3

3,4

3,5

3,6

4,7

Germany

Austria

Taiwan

US

Switzerland

Korea

Japan

Finland

Sweden

Israel

Strong university-industry research collaboration2008, country rank

1. US

2. Switzerland

3. Sweden

4. Finland

5. Singapore

6. Germany

7. Denmark

8. Belgium

9. UK

10. TaiwanSource: World Economic Forum, 2008

Highest growth in patent applications2008, percent

1,4

3,4

3,6

4,2

4,6

6,2

7,8

11,9

12,0

12,5

Switzerland

Germany

Japan

Canada

France

Finland

Israel

China

Republic of Korea

Sweden

Source: World Intellectual Property Organization 2008

Why Stockholm?Knowledge-driven business and investment opportunities

Business sector opportunities

Information & communication technologies (ICT)

Life sciences

Cleantech Automation Automotive

Key sectors in the Stockholm region:

• ICT

• Life Sciences

• Financial Services

• Automation

• Cleantech

• Hospitality

• Logistics

Why Stockholm and Sweden ? 2. Access to large, growing and advanced markets

Why Stockholm?3. Easy to set up and do business

Easy to set up a business

Source: IMD world competitiveness yearbook, 2008

Protectionism does not impair the conduct of your business

Product and service legislation does not deter business activity

Bureaucracy does not hinder business activity

Reliable intellectual property protection

Balance betweensecurity, reliability,

transparencycost-effectiveness

Balance betweensecurity, reliability,

transparencycost-effectiveness

Least corrupt society 2008 ranking, selection of countries

1. Sweden

1. Denmark

1. New Zealand

4. Singapore

5. Finland

5. Switzerland

7. Netherlands

12. Austria

14. Germany

Source: Transparency International, Corruption Perceptions Index 2008

Swedish companies pay on time

Source: European Payment Index 2009

Due to legislation and the Swedish culture, companies can expect to receive payment on time for their goods and services sold in Sweden

1. Finland

2. Sweden

3. Norway

4. Denmark

5. Iceland

6. Switzerland

7. Ireland

8. Faroe Island

9. France

10. Estonia

Industrial disputes rare in Sweden

0

0,59

0,73

1,71

1,91

2,01

2,97

3,7

11,11

11,62

13,48

14,04

54,11

Austria

Sweden

Switzerland

Netherlands

Poland

Estonia

Germany

France

UK

Norway

Italy

Denmark

Finland

Source: IMD World Competitivness Yearbook 2009

Working days lost due to strikes per 1,000 inhabitants per year (2005–2007)

Why Stockholm?4. First rate infrastructure and high availability of skilled labor

Highly developed transportation network

Five international airports Seven major seaports Railroads and high speed trains Logistic parks Good public transportation

Best ICT infrastructure in the world

Source: Connectivity Scorecard 2010

1. Sweden

2. US

3. Norway

4. Denmark

5. Netherlands

6. Finland

7. Australia

8. UK

9. Canada

10. Japan

• The world’s biggest open fiber network.• High usage of computer, internet and

mobile phones.• Stockholm and Sweden

are ranked nr 1 in several rankings rating ICT infrastructure and network readiness. “ The Intelligent Community of 2009”?

Did you know that Stockholm is

“ The IT-Intelligent Community of 2009”?

Did you know that Stockholm is

“ The IT-Intelligent Community of 2009”?

Availability of skilled labor 2009

Source: IMD World Competitivness Yearbook 2009

1. Ireland

2. Japan

3. Switzerland

4. Sweden

5. Denmark

6. Finland

7. Phillippines

8. Israel

9. Singapore

10. US

Swedes are hard workingAverage working hours per year, 2007

Source: IMD World Competitivness Yearbook 2009

1,607

1,723

1,730

1,735

1,760

1,776

1,816

1,876

France

Germany

Denmark

Austria

Belgium

Netherlands

Sweden

UK

Why Stockholm?5. Quality of life

Great place to live

1. Iceland

2 Norway

3. Australia

4. Canada

5. Ireland

6. Sweden

7. Switzerland

9. Netherlands

10. France

23. Germany

Source: Human Development Index, UNDP, 2008

Cost of living competitiveSelection of cities

1. Moscow

2. Tokyo

3. London

7. Copenhagen

9. Zurich

12. Paris

22. New York

25. Amsterdam

31. Stockholm

Source: Mercer Consulting 2008

Among Europe’s best healthcare systems

Source: Euro Health Consumer Index 2009, Health Consumer Powerhouse

Sweden is ranked in the top ten among Europe’s healthcare systems and outperforms in the areas of treatment outcomes and range and reach of service provided.

How to establish a company ?

REGISTER WITH THE SWEDISH MIGRATION BOARDWork-permit or residence permit

How to buy a hi-tech company?

No discrimination on foreign investors

M&A process build on openness and transparency

Contact a broker or a an investment bank.

The corporate tax in Sweden

Competitive corporate tax rate2009, percent

Source: Öhrlings PricewaterhouseCoopers, 2009

12,5

25

25,5

26

26,3

28

30

30

32,5

34,4

Ireland

Denmark

Netherlands

Finland

Sweden

UK

Germany

Spain

Italy

France

Tax relief for foreign key staff

• Sweden offers special income tax relief to encourage highly skilled people, such as international executives, experts, researchers and others with special skills, to work in Sweden and to make it easier for companies to attract experts and other key people from abroad to work in Sweden.

• Employees qualifying for the tax relief are taxed on only 75 percent of income in their first three years of employment in Sweden. The remaining 25 percent is tax free.

• The tax relief for key foreign employees also offers a financial incentive to employers, where the employer contributions are based on only 75 percent of total income.

The support system for SMEsTaking ideas to the market

Cities with science parks and incubators

Source: Swedish Incubators & Science Parks, Invest in Sweden Agency 2009

3

23

28

29

2732

12

17

21

24

25

191

31

15

10

2220

26

24

5

11

616

7

918813

14

23. Stockholm

Karolinska Institutet Science Park

Karolinska Institutet Innovation

SU Innovation

SSE Business Lab

Stockholm Cleantech Park

Stockholm Cleantech Park (Incubator)

Kista Science City

STING

28 Uppsala

Uppsala Innovation Center

29 Västerås/Eskilstuna

Idélab

Munktell Science Park

Create Business Incubator

Teknikbyn

Teknikbyn Inkubator

31 Örebro

Inkubera

5. Choose type of finance?

• Own funds• Bank loan (personal guarantee)• ALMI loan• Business angels• VC firms

• Credit from suppliers • Advances from customers • Loans from the bank• VC firms

• Vinnova• Innovationsbron• City of Stockholm

ALMIs’ role in the financial market

Risk

Interest/return

Bank

ALMI

Shareholder

Stockholm Business Region Development

Address: Drottninggatan 33 Stockholm Phone + 46- 8-508 280 00

Fax +46-8-508 280 90

www.stockholmbusinesregion.com

Stockholm International Fairs

• 60 exhibitions per year

• 10,000 exhibitors per year

• 1,500,000 visiters per year

• www.stofair.se ( www.stofair.ru )

Thank you!

Stockholm Region Office in St. Petersburg

Visiting address: Nevsky Prospect 1

Postal address: Box 1005

190000 St. Petersburg, Russia

Tel.: +7 812 314 68 18

Fax: +7 812 314 68 53

[email protected]

www.stockholmregion.org