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
