Strategy for Building Innovative Cluster in Sweden: A Study on Kista Science City
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1 Strategy for Building Innovative Cluster in Sweden: A Study on Kista Science City Sang-Chul Park, Korea Polytechnic University/ Korea Advanced Institute of Science and Technology (KAIST)/Gothenburg University, Sweden
2 1. Introduction A New Economic Order based on Globalization and Localization The Role of Nation-State, Industry, and Uni versity National Innovation System (see fig. 1) Regional Innovation System: Key Factor for National Competitiveness and Sustainable Development (see fig. 2, table 1)
3 Figure 1: Triple Helix
4 Figure 2: Quadruple helix Source: Author s own adaptation
5 Table 1: Global Country Ranking ( ) Country Finland USA Sweden Denmark Taiwan Singapore Iceland Switzer-land Norway Australia Global Country Ranking ( ) Global Country Ranking ( )
6 2. Theoretical Background Traditional Innovation Theory: Linear Model, Chain- Linked Model Modern Innovation Theory: Innovation as Technical and Social Process, Learning Economy, Cluster as Systemic Innovation, Innovative Milieu Path Creation Theory: Weakness of Path Dependent Theory during lock in phenomenon, strong interaction of all actors with multilateral direction
7 3. Regional Innovative Cluster in Sweden RIS based on Innovative Clusters: Auto vehicle, steel, IT, new materials, biotechnology, etc. (see table. 2 ) Local embedded and specific local environment (see table 3, 4, fig. 3) Cluster policy: focused on linkage and collaboration (policy-oriented corporatism) (see table 5) 17 innovative clusters and 38 industrial clusters: 1.4 million employees (37% of total number of employees) 12% of economic growth ( ) in innovative clusters while 6% of economic growth in others
8 Table 2: National and Regional Clusters in Sweden National Clusters Regional Clusters Existing IT/ Telecom IT/ Mobile Internet Paper and pulp industry Steel/ raw materials industry Health and medical care industries Trucks and busses Biotech Technical aids Furniture design industry (Småland) Industrial automation (Mälardalen) Medical technology (Eastern central Sweden) Packaging (Skåne) Aerospace (Östergötland) Power industry (Eastern central Sweden) Cutting technology (Småland) LCD technology (Dalarna) Automotive test industry (Norrbotten) Potential Geriatric care Children s play, learning and environment Interactive learning Bio informatics Environmental management Music industry Green energy Smart homes Vehicle safety Specialized textile and clothing industry Audiovisual (Fyrbodal) Functional Food (Skåne) Satellites and communication (Kiruna) Woodworking business (Västerbotten) Creative and experience industries (Mälardalen) Source: NUTEK, Innovative clusters in Sweden, 2001
9 Table 3: Major Innovative Clusters in Sweden Region Specialized industry Main products Norrbotten Auto vehicle driving-test Auto vehicle driving-test infrastructure Umeo Biotechnology Biotechnology, medical technology, laboratory equipments Vaesterbotten Forest industry Forest-related products Dalarna LCD LVD-related products Stockholm Communication, media, IT, mobile telephone, entertainment communication equipment Sormland Information design Design Hultsfred Music, digital media Digital-related music Vaestra Gotaland Audio, video Film Gnosjo Polymer Plastic, polymer Smoland Aluminum Aluminum Karlskrona IT, communication Communication equipment Oeresund Pharmacia, medical Pharmacia Source: NUTEK, Innovative Clusters in Sweden, 2001
10 Figure 3: Telephone tower of SAT, Table 4: International comparison of telephone subscribers Stockholm Berlin London Paris Copenhagen 22.5/ / / / /1000
11 Table 5: Patterns of Innovative Clusters in OECD Member States Member Australia Belgium Denmark Finland Italy Canada Mexico Netherlands Switzerland Spain UK Sweden Germany USA Austria Patterns of Innovative Clusters Production network, technology innovation network, linkage network Production network, technology innovation cooperative network Resource areas Coordination between corporate holding specialized knowledge Knowledge exchange between industries Technology innovation system Knowledge exchange between industries Production network, supporting new clusters Technology innovation network Technology innovation system Regional technology innovation system Corporate collaboration in all industries Technology innovation between corporate in same sectors Production network, supporting new clusters Industrial district Source: A. T. J. & den Hertog, Cluster Analyse & Cluster-based Policy in OECDcountries, 1998
12 4. Regional Innovative Habitat Clear division of work between innovative actors Close collaboration between innovative actors Win-win approach (see fig. 4)
13 Figure 4: Regional Innovative Habitat Source: Author s own adaptation
14 5. Kista Science City Major actors: City of Stockholm (Jaerfaella, Sollentuna Sundbyberg), Royal Institute of Technology, major companies (see table 6, fig. 5, 6, 7, 8, 9, 10, 11, 12) Operating system: corporative system, clear cut of ownership and management (good corporate governance) (see fig ) Creating innovative environment: commercialization, entrepreneurship (Permanent Growth Center), professional working group, leadership forum, communication platform, professor privilege (see table 7 )
15 Table 6: Major Actors in Kista Science City (As of 2006) Sector Company University Research Institute Source: Author s own adaptation Name Adobe, Compac, HP, Microsoft, Nokia, Ericsson, IBM, Sun Micro System IT-University, Royal Institute of Technology, Stockholm University National Computer Science Institute, National System Development Institute, Center for Industrial Micro Electronics, Institute for Technology Information Standardization
16 Figure 5: Location of Kista Science City
17 Figure 6: Location of Silicon Valley
18 Figure 7: View and Fact of Kista Science City
19 Figure 8: Major Companies in Kista Science City
20 Figure 9: View of Kista in 1980
21 Figure 10: View of Kista in 2005
22 Figure 11: Future Prospect of Kista in 2015
23 Figure 12: Inside views of Kista Science City
24 Figure 13: Operating System in Kista Science City Source: Author s own adaptation
25 Figure 14: Structure and Ownership of Kista Science City AB Source: Author s own adaptation
26 Figure 15: Process of Company Growth and Development
27 Figure 16: Partners and strategic areas of Kista Source:
28 Table 7: Ranking of Global Innovative Clusters (As of 2000) Rank Name Mark 1 Silicon Valley 16 2 Kista Science Park 15 2 Boston Route London 14 4 Helsinki 14 4 Research Triangle Park 14 7 Austin Texas 13 7 Bungalow, India 13 7 Taipei, Taiwan Cambridge, UK 12 Source: Wired Magazine, July 2000
29 6. Problem and Solution Measures Ericsson dominated structure (see table 8, fig. 17) Kista Science Tower: Ericsson s headquarter Attraction to SMEs (see table 9, fig. 18) Attractive location IT University and Kista Innovation & Growth (KIG) New Value Chain: R & D, commercialization, market expansion, sustainable growth
30 Table 8: Structure of Ericsson s Employees in Kista Science City ( ) Name of company Number of employee Ratio (%) Ericsson Radio System 5, Ericsson Radio Access 1, Sony Ericsson Ericsson Microelectronics 1, Ericsson Telephone Ericsson-related companies 1, Total Source:
31 Figure 17: Development of Employment Trend in Kista ( )
32 Table 9: Facts of new entered IT companies in Kista Science City ( ) Year Numbers of new established company Numbers of new job , , , , * Source: Note*: until the end of June 2004
33 Figure 18: New ICT Startups in Kista ( )
34 7. Conclusions Competitive collaborative operating system between industry, university and government: positive operating mechanism between major innovative actors Economic discipline in building innovative cluster: targeting economic growth Balanced roles of participated actors Local embedded industry and local brand Bottom-up approach instead of top-down approach
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