tueaft_neergaard

8/8/2019 tueaft_neergaard

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Financing the Knowledge Society

Seed and Venture Capital Financing,the roles of the public and the private sector

Claes de Neergaard

CEO Industrifonden


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The commercialisation of R&D the driving forces

The technology transfer challenge how does

Sweden tackle it?

The regional dimension of venture capital financing

Can EU policy to improve technology transfers2007-2013 benefit from the Swedish experience?

T H E M E S


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Sweden tackle it?



T H E M E S


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What do we get out of R&D investments?

Financial Times Nov 8, 2005


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0 1 2 3 4 5

Businesssector Universities& colleges Governmentorganisations

R&D expenditures in relation to GDP 2003

Per cent of GDP

Source: OECD 2005

New ZealandIreland (2001)

NorwayUnited Kingdom

Netherlands (2001)CanadaFrance

BelgiumDenmark (2001)

GermanyUnited States

KoreaJapan

FinlandSweden

Israel


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Commercialisation of R&D

EU vs. the US Stronger output from US research clusters

Stronger tax incentives in the US

Stronger incentives for US universities

The US capital market is more powerful

US military spending boosts research

US one homogenous market.EU still too fragmented

EU doesnot catch up!


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The road map from idea to invoice

Technology transfer

Basic Applied

R&D

Market

Collaboration industry

research organizations

Licensing

Creation of a

new company


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Good ideas can end up in

Knowledge Market

Jan Edling

The Valley

ofDeath


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Sweden tackle it?



T H E M E S


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Enhancement ofTechnology Transfer

some Swedish measures Increase government funding for R&D

Focus on cutting edge research in centres of excellence

Public/private partnership program in sixindustry branches

Improve the effectiveness of both Tech Transfer Officesin universities and Joint Research Institutes

Innovationsbron a dedicated financing vehicle for the

commercialisation of research Maintain a strong Industrifonden

A welcoming approach to venture capital


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BasicR&D Applied

R&DPre-seed

SeedStart-

up

Financing in different stages

Expansion

Commercial financingPre-commercial financing

Private sector

Public sector


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Conclusions from a joint US-EU report

The venture markets in US and EU invest too littlein early stage start-ups

Constitutes a market failure

Public sector measures are justified to plug this gap Public measures should

work with markets and not crowd out privateinvestment

support funds with the necessary track recordand economies of scale

Source: Department of Commerce and EU Commission, 2005


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Venture capital investments in EU-152004

SeedEUR 148 m

Total investments EUR 12,000 million

Start-upEUR 2,200 million

ExpansionEUR 7,900 m


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Market

Criteria for an effective innovation system

IdeaIncreases flow of high quality business ideas

Provides rigorous screening

Involves business angels

Brings in marketperspective early

Based on centresof excellence


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South

WestEast

Stockholm

Uppsala

Ume

Lule

Seed capital

Three focus areas

Seven

regionalcompanies

Infrastructure -Incubators

Academia Business co-op.


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Invests in high-tech companies in ICT,Life Science and Industrial and EnergyVentures

Direct investments in about 100 companiesCo-owner in 11 regional VC-companiesand Innovationsbron

Independent trust set up by the Swedishgovernment in 1979

Total equity: SEK 3.2 billionInvested capital: SEK 1.6 billion


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Regional venturecapital companies


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Venture capital investments

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Denm

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Hun

arrtual

rance

Nr

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Net

erlan

sinla

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Bel

ium

erman tal

ercent f D

VCA


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Sweden tackle it?



T H E M E S


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The regional dimension of venture capital

Private sector venture funds usually covers Swedenor the Nordic countries from one or several capitals

There is room for smaller regional venture funds for

early stage investments in proximity to companies Co-investment funds copied on the model developed in

Scotland are helpful additions

Proximity to companies is an advantage but company

selection can be too much influenced by regional/localpreferences

Regional investment funds should not be seen as a toolof regional policy but of innovation policy


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Sweden tackle it?



T H E M E S


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Can EU policy to improve technologytransfers benefit from the Swedishexperience ?

Can EU policy to improve technologytransfers benefit from the Swedishexperience ?

Measures to stimulate commercialisation of research mustget a high priority

Create two European incubator support programs;one for Life Science and one forTechnology

Focus on national and European R&D centres of excellence

Positive attitude to mixing financing from the Commission,European Investment Bank, European Investment Fund

and national sources Do not go too far in defining European interest. Good

research benefits all EU-countries

Documents

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