The global finance crisis hit the African countries south of the Sahara hardest. A new World Bank report estimates that the crisis has thrust 64 million more people into extreme poverty. The crisis has also demonstrated the importance of innovation, trade and investment for the economic progress of the poor and to improve their conditions.
The Confederation of Swedish Enterprisein collaboration with Swedish Institute of International Affairs has come up with three concrete suggestions for how innovation and enterprise can contribute to growth and sustainable development both in Sweden and in the world’s developing countries. The suggestions are deliberately limited in scope; the reason is a strong desire for political and economically feasible proposals that stand a chance of being realized right now.
Our first suggestion is to stage a competition for the best innovations to meet the special challenges facing developing countries. Entries would be turnkey business models with the winning ones receiving financial support and qualifying for the existing support programs for business development offered by the Swedish authorities.
Our second suggestion is to establish new business ‘hothouses’ with special focus on new growth markets. Simultaneously, existing hothouses would be offered know-how, training and links to growth markets. A hothouse facilitating early contacts and development against customers would almost certainly prompt more successful Swedish innovations. This would benefit not least growth countries where needs and conditions are often vastly different from the Swedish market.
Knowledge about innovations and entrepreneurism in growth countries is poor in Sweden. So our third suggestion is for a new research centre concentrating on innovations and entrepreneurism in emerging markets. The centre would be cross-disciplinary and work with applied and needs-focused research in close cooperation with business and the rest of society.
Despite the increased poverty in the wake of the finance crisis, much indicates that in the long-term, the world is returning to the balance that existed before the industrial revolution: the world’s economic axis will again shift to Asia. Even Africa seems to be on the way to regaining a position in the world economy in parity with the continent’s historic role. Countries such as Angola and Botswana have enjoyed very strong GDP growth in recent years.
On paper, Sweden has every possibility to play an important role in this development, both in helping poor countries develop faster and in continuing to supply goods and services to countries that are becoming even richer. Sweden is one of the world’s foremost research nations. Swedish companies are extremely innovative and are in the forefront of a number of important fields. Last but not least, Sweden has a good reputation.
Fundamental changes are afoot on the global economic and political stage — changes that imply great challenges for Swedish business but also huge opportunities. Sweden has a history of innovators and entrepreneurs working together and would be able to shoulder a far greater role in improving life through new services and products for the world’s growth economies. The private and public sectors, as well as academe, would have to cooperate for these opportunities to become realities. Otherwise, Sweden risks missing an historic chance.
Maria Anvret, Professor, Director of Research and Innovation, Confederation of Swedish Enterprise
Emil Görnerup, Senior Advisor on Research and Innovation, Confederation of Swedish Enterprise
Dr Jan Joel Andersson, Programme Director, Swedish Institute of International Affairs
Harry McNeil, associate researcher, Swedish Institute of International Affairs
