Invest in Sweden Agency (ISA) recently organized pitch sessions in Silicon Valley -- a good sign that Swedish startups are coming of age. http://www.tradingmarkets.com/.site/news/Stock%20News/2658242/
If Skype was the poster boy, Spotify is the current darling. More innovative ventures are coming since Sweden is the perfect R&D lab "under the radar" with state-of-the-art IT infrastructure. I'm bringing a few Swedish startups with me to test the waters. Let's see how we fare.
Before I left Arlanda Airport to return home, one of my business partners at GrEEEnglobal.se asked: "What gold nuggets from Sweden will you take with you to California?" A good question that I've been mulling it over for a week. Now that I'm settling down in San Francisco, here are my reflections on Swedish nuggets:
A Great Environment. Sweden is definitely one of the most beautiful, well-preserved countries that I've ever visited. The countryside is a rolling landscape of pine trees, lakes, small towns, and rivers untouched by visual and chemical blight. Looking back at my two years there, it almost seems like a dream in a fairytale painting.
Pleasant Urban Design. Almost every city and town is well-conceived and planned. The urban layout is logical, efficient, and pleasant. The cities are designed for walking and bicycling. I have nothing but pleasant memories of walking and exploring Swedish cities and towns.
Kind, Respectful People. Although Swedes have a reputation for being cold and aloof, they are very generous and kind once you break into their tightly-closed circle of family and friends. Swedish politeness is refreshing after being in the U.S. where people insult and impose on each other all the time. Of course, politeness is a way to maintain distance from strangers, but it's also nice being treated with kindness and respect.
R&D Lab - Due to the heavy government funding of education and research, Sweden is one large R&D lab where researchers and entrepreneurs can test their ideas at leisure "below the radar." This freedom to experiment and innovate is a blessing that Swedes take for granted. They don't realize how lucky they are to have such supportive government agencies and universities. I expect to see much innovation from Sweden in the coming years.
Stockholm innovation. Although still small compared to Silicon Valley, Stockholm has a growing number of ventures and entrepreneurs working to develop breakthrough products and services. The Kista Science City is one of the world's top centers for mobile phone innovation. SymbiosCity and Hammarby are leading green communities. Stockholm wants to position itself as a Creative, Green City and is doing well in the green area. Cultural activities are picking up, but Stockholm needs to open up and encourage more international and multicultural events and festivals if it wants to become a world-class arts city.
I'm also bringing few startups -- "Down to Earth" space tech commercialization, Maxireach.se mobile learning, and GrEEEnglobal.se greentech exports -- and lots of good friends and fond memories, so I'm bringing back lots of nuggets to California. I'm keeping in touch with my Swedish friends and look forward to meeting you in San Francisco.
To contact me: info at dreamscapeglobal.com
Swedish, Finnish, Danish and Norwegian designers vary tremendously, but to me they mirror a common feeling of simplicity, calm, naturalness and introspection because of their beautiful natural surroundings. You see this "Nordic look" in furniture, interior design, clothing and glassware.
If Sweden and its neighbors want to grow economically and create new jobs, I think design is one of their signature strengths. Here are areas which are strong, but could be developed even more:
- Furniture design: We all know about IKEA, but I would like to see more genuine Nordic furniture that endures and appreciates, not depreciates in appearance and value over time. I've seen some great hardwood designs that wow me and want to see more outside of Sweden. Besides wood, I would like to see new green textiles and materials.
- Interior design: Simplicity is a Nordic hallmark, with splashes of color. How will greentech influence interiors, from passive heating/cooling to heated floors and multi-layer insulation?
- Urban design: Hammarby, a riverfront industrial zone renovated with state-of-the-art green technologies such as vacuum waste disposal, and Stockholm's SymbiosCity are two examples of green urban design that deserves more study by outsiders.
- Airport design: Arlanda Airport near Stockholm is the world's #1 Green Airport, with numerous innovations in heating, recycling, and transit.
- Fashion design: H&M is making a splash overseas with affordable fashion and adding local color like Jimmy Choo's LA designs. I see lots of multicultural fashions in downtown Stockholm shops with African, Indian, Arab and Asian motifs, textiles and designs mixed with Swedish designs, which are very striking and reflect a more open, cosmopolitan atmosphere.
- Glassware: Orefors and Kosta Boda are famous glassmakers in southern Sweden that sell amazing, almost magical glass sculptures. Rather exclusive and pricey, I would like to see more designs targeted at mainstream users, just as Kyoto ceramics makers are developing door handles, kitchen countertops and other interior designs using ceramics.
- Online gaming: Sweden has the #1 online gaming festival in the world, Dreamhack.se. With the country's strength in visualization, simulation, design and gaming, I'd like to see totally new types of virtual worlds, perhaps even based on Nordic myths.
There are probably dozens of other design fields where Nordic countries are excelling, but these are the ones off the top of my head. I'd like to hear of other fields where designers are reshaping industry and society.
My designer friend says: "Enough with the Jante Law. Focus on challenges, not just restating problems." What can Swedes do to break through the glass ceiling? Working for JIBS, one of the most entrepreneurial business schools in Sweden, I welcome the challenge. My initial reactions are mostly questions:
- Swedish bloggers should write about and celebrate genuine success stories in business, careers, sports, music and other fields. How did these people achieve their goals? How did they overcome the challenges? What tips do they have for other Swedes? Where can I find this information online?
- Has free school choice improved innovation and creativity in thinking and achievements by students, teachers and parents? If so, how? What are the best practices?
- How have immigrants achieved success? How did they leverage their national origins and local communities? What would they have done differently?
- How have Swedes achieved success on a smaller scale overseas, not just large firms like IKEA and H&M? For example, Dreamhack.se is opening online gaming centers in six Chinese theme parks and expanding into Asia through a new Singapore development center. How are they doing this? What opportunities do they create for others?
- There is a boomlet in entrepreneurship training and events in Sweden. Is this triggering many new startups? What are they doing? How successful are they in Sweden and abroad?
- Sweden and other Scandinavian countries are strong in design, both artistic and commercial, which could be leveraged in all industries. At JIBS, we're launching "Down to Earth", a design program focused on space tech commercialization for sustainable earth applications. For example, multi-layered spacesuit designs are being used for thinner building insulation. Lunar module designs could be used to design prefab housing with built-in water and waste recycling systems for emerging megacities in Asia, India and Africa. Design contests could jumpstart whole new businesses, industries and ways of thinking, just as the 1960's Apollo Project catalyzed the chip and PC industries, which are nearly half $500 billion a year industries -- a huge return on investment and lots of exciting new careers. We need more industry leaders with vision and action.
As I wrote below, I believe the fastest way to innovate is through services, which are typically smaller, more entrepreneurial, and targeted at market niches. JIBS.se has done a lot of entrepreneurship research, but more needs to be done to turn economic history into tips for future success. If I were to wave a magic wand, I would set up TV channels, websites and mobile services devoted exclusively to entrepreneurs and people pursuing their dream careers.
Think Swedish Idol focused on business and careers.
Swedish business news dwells heavily on layoffs and shutdowns among manufacturers because the bad news sells papers -- and anti-ingestion pills. Except for entrepreneurship groups, most news overlooks the major shift to services going on in Sweden. The old social democrat-led manufacturing era of the 20th century is dying and being outsourced to China, but the media acts as if the service economy didn't exist.
Many visibly worried professionals and students ask me: Is there a future for Sweden? Should I leave and move abroad? Will I be able to return? How can I leverage Swedish business overseas?
I tell them to look carefully at Stockholm, which accounts for 30% of the GDP and 70% of its tax receipts. Like other European cities, Stockholm has virtually no heavy manufacturing. Its economy consists mostly of services -- legal, finance, education, healthcare, IT, communications, media, tourism, entertainment, greentech, biotech, etc. -- which are growing and dominated by thousands of tiny companies serving niche markets. This isn't that different from the U.S., which is becoming a service economy. The problem is that Swedish politicians and older citizens are living in the past. They still see Sweden as a manufacturing country even though factories are dying a rapid death. They have not yet entered the 21st century and understood the importance of global services. Sweden's future is bits, not just atoms.
When asked what I think of Sweden, I tell people it is one big lab because of its heavy R&D spending and environmental policies. Like the U.S., Sweden has an amazing number of innovative technologies but it fails to commercialize and export them as new products and services.
How can Sweden break this bottleneck? Here are some ways:
- Encourage school children to study global markets and learn persuasive presentation and marketing skills. Like Japanese, Swedes are terrible presenters -- stiff, robotic and boring. They need to loosen up and smile more.
- Universities should require all students to learn how their field of study can contribute to exports and encourage them to study and travel abroad as much as possible to become global citizens. The Vikings were great traders and town builders, not just pillagers, so their positive achievements are a shining example for homebound Swedes.
- Small business groups and universities should partner with foreign business associations, trading companies, distributors, and marketing agencies to promote service exports. My school, JIBS.se, is partnering with the International Trade Management association to offer degrees in exporting.
- Encourage wealthy Swedes repatriating their wealth due to lower estate taxes to invest in small businesses trying to go global and export.
If Sweden gets off its duff and works harder to help small businesses export services, it can avoid a job collapse and a "lost generation." Fortunately, Sweden is a small country -- almost a big, extended family -- so changes are easier to make here. I wish it well. I'll be cheering and helping from San Francisco.
The more I talk with Swedes and immigrants, the more I believe the "Jante Law" (i.e. don't think you're better than anyone else) is seriously holding back Sweden in all endeavors. Many friends and business colleagues are so frustrated and fed up that they prefer leaving Sweden to achieve their dreams, which are regularly crushed here. Many take short breaks to revive their spirits, but have to return to an oppressive conformity.
For more about the "Jante Law", see: http://en.wikipedia.org/wiki/Jante_Law
Swedish startups have scored a couple of times -- Skype, MySQL, and perhaps Spottify and Dreamhack. Today, JIBS met with Tillvaxtverket, a government agency promoting regional economic growth. Their latest mission: nurture young entrepreneurs into the next Skype. Where are the next Swedish Steve Jobs?
Aside from the question of whether government programs can effectively nurture startups, it's a good challenge worth pursuing. With unemployment rocketing past 20% among youth like elsewhere around the world, Sweden needs to help young people before they become a "Lost Generation."
There are three youth groups that could realize Mother Sweden's goals: university spinouts, immigrant ventures, and women ventures.
The first is a challenge since there's little angel money in Sweden, so startups rely on university incubators. The only way to really grow is to go global fast and find foreign investors. ISA.se is trying to help, having taken some groups to Silicon Valley.
Immigrant youth are the explosive potential (see my articles below). Currently isolated from the labor market, they have the potential to develop ventures for fast-growing immigrant communities and their home countries. SEB and other banks are beginning to target this group since it's the most entrepreneurial in Sweden.
Young women are another big opportunity. Chalmers School of Enterpreneurship reports that 60% of its entrepreneurs are female students, which bodes well for the future. But like guys, they need mentors, coaching, seed financing and export training.
JIBS and Chalmers have a great track record in launching student ventures and are very international, so they hold the key to Sweden's entrepreneurial aspirations and, most importantly, reducing youth unemployment.
Skype and MySQL prove that Sweden can produce their own Steve Jobs. The country just needs thousands more like him -- and fast.
As a Northern Californian, I knew little about Sweden, which many Americans view as a distant, quiet land in the far north known primarily for its Nobel prizes, IKEA and Abba. Beyond that, Sweden is totally unknown to most foreigners. Having lived here for two years, I have found many delightful things about Sweden. Here are my favorites:
- Gorgeous environment - Sweden is one of the most beautiful, environmentally clean countries I've ever visited. Its forests, coastlines, and lakes are absolutely pristine and stunning due to tough environmental laws enacted during the 1970s. Sweden ranks at the top in environmental quality, which I believe should be a model for the world.
- Urban design - As one trained in urban planning, I love walking and exploring Swedish cities and towns because of their thoughtful layout and design -- walking and bike paths, traffic patterns, parks, river and lake fronts, historic buildings, small cafes and shops, and street sculptures and landscaping. I wish the U.S. would study Swedish towns, which are very energy efficient and conducive to walking, biking and outdoor activities. Definitely visit Sweden to learn what I mean.
- Interior design - I love Sweden/Scandinavian interior designs because of their simplicity, clean lines, and affinity for woods and nature themes, which are very similar to Japanese design. In fact, my ideal is a mix of Scandinavian and Japanese design because they create islands of calm, reflection and thoughtfulness in a hectic world. In particular, the colorful furniture and wall hangings designed to counter winter depression are very comforting.
- Cool technologies - Sweden invests heavily in R&D, about 3% of GDP, so it offers leading-edge technologies, products and services, but Swedes are modest and self-effacing (except for IKEA and Absolut Vodka) compared to Americans and other foreigners so many people overlook them. This country is like an R&D lab that tests the latest and greatest, and serves as a springboard into the European market. More companies and investors should investigate the incredible variety of cool ventures and companies here.
- Swedish culture of respect - Unlike the U.S, which has gotten rather rude and uncivil, especially in its politics, Sweden is like Japan in that it is a nation that values a certain formality, reserve and respect among generations. One area that requires improvement is intercultural relations, but in general I like Swedish politeness. It will probably be a shock for me to return to the U.S., where disrespect has become mainstream. We could learn much from Sweden.
These are just my initial thoughts. I welcome your comments and will add more as I think of them.
Although I've only lived here two years, I think Sweden could improve in many ways. Here are my top recommendations to policymakers, educators, students and entrepreneurs:
- Overcome the "Jante Law" - Like other conservative societies, Sweden keeps its people down by discouraging initiative and enforcing conformity through ridicule, isolation and ostracism. This may have worked in rural towns, but Sweden is becoming a multicultural service economy that needs to encourage excellence. More training in personal growth, presentation skills, teamwork, and entrepreneurship are sorely needed in schools and companies.
- Integration of immigrants - As discussed in my previous articles, Sweden is rapidly becoming a multicultural society so it needs to totally revise its immigration and immigrant policies to encourage social, economic and cultural integration.
- More SME exports - Like most nations, small and medium enterprises (SMEs) in Sweden stay close to home, thus missing the huge growth potential in developing nations. The Swedish Trade Council is trying to promote exports, but it needs help from municipalities, business schools and chambers of commerce to get SMEs to wake up and export since big corporate exports are often flat or declining.
- Promotion of arts and culture - Sweden has many artists, musicians and designers who cannot find venues both locally and internationally. Greater effort to brand Sweden should be made by the foreign ministry and companies.
- Openness to foreigners - Foreigners have a tough time getting into Swedish society, which tends to be very tightknit and closed to outsiders. Sweden needs more "welcome wagons", international studies programs and student exchanges, collaborative projects, sister cities and regions, and international events to promote intermingling. No region is an island in a global era.
These are just some suggestions. I welcome other ideas for how Sweden can become a more dynamic, open nation.
My Japanese business friend says Sweden seems like a Nordic Hawaii since people here are so relaxed, mellow and slow moving. I agree with his impressions, but why is this? Definitely not the freezing weather half the year.
I think this mellowness is due to two factors. The "Jante Law", which says that nobody should think himself or herself better than anyone else, keeps Swedes in their place; everyone must conform or is criticized and ostracized. Also, the 65% effective tax rate on higher incomes, including the 25% VAT tax on goods, discourages Swedes from working hard. Why do it if you're basically working for the government. Easier to relax and enjoy the "nanny state."
The result is that Sweden is a mellow place, but it's slow and boring for a lot of Swedes, especially students and creative people who tell me they need to go to New York, Paris, or LA to wake up, be inspired and free themselves. Otherwise, they get totally frustrated and depressed. The problem is they have to come back, then get depressed again. A vicious cycle. Many envy that I'm returning to San Francisco, which is more open, diverse and free.
Some of my artistic and entrepreneurial friends are struggling to change Swedish society by battling against the Jante Law and encouraging people to stand up and challenge conformity, but it's an uphill battle that tires down even the hardiest Viking soul. I encourage them, knowing it's easier said than done. Hopefully, a new generation of Swedes, many immigrant in origin, will bring more openness and diversity so Sweden can break out of its self-imposed "Jante Law." Then Sweden can truly tap its true potential as a nation. Until then, it's a long, hard, dark winter coming.
