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Executive Report on Strategies in Sweden
ICON Group International, June 2007, Pages: 392
How to Strategically Evaluate Sweden
Perhaps the most efficient way of evaluating Sweden is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
Framework for Prioritizing Countries
Demand/Market Potential Driven Firm
Relative Accessibility
Accessibility/Supply Averse Firm
Relative Accessibility
In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market - neither a market-driven nor a cost-driven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities.
Latent Demand and Accessibility in Sweden
This report provides an extremely detailed overview of factors driving latent demand and accessibility in Sweden. Latent demand is largely driven by economic fundamentals. But, latent demand only represents half of the picture. A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks.
Chapter 2 deals with macro-accessibility. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Sweden:
Openness to Trade in Sweden
Openness to Direct Investment in Sweden
Local Marketing and Entry Strategy Alternatives
Local Human Resources
Local Risks
Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are also covered in Chapter 2, which is presented from the perspective of an American firm, though it is equally applicable to most firms entering Sweden. This chapter has been authored by local offices of the U.S. Government. I have included a number of edits to clarify the provided information as it relates to the general strategic framework.
In Chapter 3, I summarize the economic potential for Sweden over the next five years for hundreds of industries, categories, and products. The goal of this chapter is to report my findings on the real economic potential, or latent demand, represented by Sweden when defined as an area of dominant influence. The data presented are the result of various spatial econometric and time-series forecasting models which, for each category presented, are applied to forecast and allocate latent demand across all countries of the world and major distribution centers or centers of dominant influence within each country. This is accomplished knowing that economic fundamentals (e.g. income) generally vary from one country to another within a given country over time. In this chapter, I report the allocation for each category for Sweden as an area of dominant influence in Europe and, potentially, the world.
The report concludes with trade indicators for Sweden. Often, the amount of trade flowing into and out of a country is a strong indicator of trading partners, trade openness, and related latent demand. Trade indicators are purely statistical in nature. Although international trade is not a direct measure of latent demand, it does provide an indicator of general market conditions with respect to trade flows and trade openness in Sweden.
As a whole, this report presents a strategic assessment of Sweden by considering an extremely broad set of factors affecting both latent demand and accessibility, as outlined in the following chapters.
MACRO-ACCESSIBILITY IN SWEDEN
Economic Trends and Outlook
Sweden has a stable macroeconomic setting, and in the last years of the nineties the government managed to greatly improve fiscal credibility. Since the mid-nineties the export sector has been booming, acting as the main engine for economic growth. The Swedish krona has strengthened significantly against virtually all other currencies, most notably against the USD.
Principal Growth Sectors
The U.S. has taken over (from Germany) as Sweden’s largest export market. The automotive industry and pharmaceuticals are growing sectors. A marked shift in the structure of the exports during the last years of the nineties, where services, the IT industry, and telecommunications took over from traditional industries such as automobiles, steel, paper, and pulp, has now had a violent swing back to traditional industries in the wake of the crisis in the telecommunications industry.
Government Intervention Risks
Sweden combines a free market economy with extensive social welfare services. Central and local authorities play a dominant role in providing educational, health, old age, disability, unemployment, and a wide variety of other social services.
The governing Social Democratic Party, in particular, includes full employment and maintenance of current living standards among its basic planks. While government expenditure is just over 50 percent of GDP, almost half of that amount is expended as domestic transfer payments, the bulk of which are to households.
Balance of Payments
Sweden is a small country with a large dependence on international trade. The contribution of exports to GDP is around 45 percent, why Sweden’s international competitiveness is of utmost importance.
Competitiveness dropped considerably in the second half of the 1970s, due to a rapid increase in costs. Sweden lost market share and suffered from weaker trade and current account balances. The devaluations in the 1980s improved competitiveness only temporarily, since costs increased faster in Sweden than in its main competitors.
After the Swedish krona was de linked from the Ecu in 1992, the currency’s value dropped considerably. Together with drastic rationalization of Swedish industry, this led to increased competitiveness. Sweden started to regain lost market share. The current account returned to surplus in 1994 after nine years of deficit, and it has shown stable surpluses since. Swedish exports have thrived on the weak krona. Further currency fluctuations could have significant impact on Swedish competitiveness.
Infrastructure
Sweden has world-class infrastructure with excellent highway and railway systems, modern ports for containerized shipping, and deregulated telecommunications. Internet usage, as well as broadband and cellular phone penetration rates are among the highest in the world.
Political Environment
Bilateral Relationship with the United States
Sweden and the U.S. enjoy strong bilateral relations based on extensive trade, shared political values, and deeply rooted cultural ties. Sweden’s criticism of U.S.-led action against Iraq placed short-term stress on the relationship. Sweden has been a valued partner in the Global War on Terrorism and an active advocate of building strong institutional links between the U.S. and the European Union. The U.S. and Sweden cooperate actively on EU issues, as well as regional challenges including combating organized crime and HIV/AIDS in the Baltic Region and environmental projects with Russia. Regardless of political party affiliation, there is an active schedule of official visitors to both countries and regular high-level government meetings.
The Political System
Sweden is a constitutional monarchy and a multi-party, parliamentary democracy. While the King is the Head of State he has only ceremonial duties and holds no power. All executive authority is vested in the Cabinet, chosen by the Prime Minister, mainly from the Parliament. Sweden has universal suffrage and the voting age is 18. The Cabinet consists of the Prime Minister (Head of Government) and approximately 20 Ministers.
Major Political Parties
Seven parties are presently represented in the Riksdag, or Parliament: the Social Democratic Party, the Moderate Party, the Left Party, the Christian Democratic Party, the Centre Party, the Liberal Party, and the Green Party. These parties form two blocs - left and right. The ruling SDP, together with the Left and Green parties, forms the Left bloc while the Right bloc is composed of the Moderate, Liberal, Christian Democrat, and Center parties.
Social Democratic Party (SDP) - The largest party in every single election since the introduction of universal suffrage and the governing party for over 60 of the last 70 years. The party has strong ties to the trade union movement and is a proponent of a strong public sector. Blue-collar trade union members and public-sector employees, the segments of the electorate that benefit most from the country’s extensive system of transfer payments, remain important bases of support. Among younger voters the party is losing supporters to the Left party.
Moderate Party - A center-right conservative party proposing a scaling back of government involvement and regulation. It is in favor of lower taxes, the private sector replacing public sector functions, and a strong defense. It is strongly pro EU and views NATO membership as inevitable.
Liberal Party - The party advocates an economy characterized by free competition, yet is mindful of excessive economic disparities and exploitation of the environment. It is the strongest pro-EU and NATO party in Parliament.
Christian Democratic Party - Entered parliament in 1991. A center-right party that would like to ensure continued support for society’s needy, particularly of the elderly, which form the most important support base for the party. Places high importance on family values and healthcare.
Center Party - Originally an agrarian party, the party’s primary support base remains outside of the large cities. The Center Party advocates a European Union with limited areas of responsibilities, but further empowerment in certain spheres such as a common Foreign and Security Policy.
Left Party - The former Communist party, traditionally plays a supporting role to a Social Democratic government. It is the most popular party amongst young voters. The party advocates withdrawal from the European Union. Since the Invasion of Iraq the party has voiced populist anti-American sentiments.
Green Party - Prioritizes environmental policy over economic growth. The party entered parliament in 1988, initially considering itself as falling outside of the Left/Right spectrum, but with time the party has become increasingly identifiable as leftist. It advocates withdrawal from the EU.
Marketing Strategies
Distribution and Sales Channels
Consumers and businesses alike are very trade-oriented in Sweden. They are strong believers that good imports strengthen their economy. Sweden’s two-way trade with other countries is equivalent to some 80 percent of Gross Domestic Product (GDP), of which one fifth is trade in services. Sweden offers American exporters a wide range of methods for the distribution and sale of products. A very high level of efficiency characterizes the distribution system. The Swedish Federation of Trade (Svensk Handel) is the principal organization for private sector importers and traders in Sweden. Within this federation, the Import Council works to encourage Swedish importing by supplying American exporters with knowledge concerning items such as customs regulations and antidumping laws, while also providing Swedish companies with information on potential American contacts/suppliers. The federation’s membership includes 15,000 member firms, importers, wholesalers, distributors, and general agents for all types of goods.
The major distribution centers in Sweden are Stockholm, Gothenburg and Malmo. Stockholm is the capital and business center of the country with a metropolitan area population of 1.8 million. The head offices of most Swedish industrial, and commercial associations, and most large corporations are located in Stockholm. Many multinationals also use Stockholm as the headquarters for their Nordic and Baltic operations.
Gothenburg, Sweden’s second largest city (population 800,000) is the nation’s foremost port for international shipping. Located on the southwestern coast, Gothenburg is also the center of a fast growing industrial complex representing a wide spectrum of manufactured products ranging from motor vehicles to petrochemicals.
Sweden’s third largest city and distribution center, Malmo, is located at the southern tip of the country, a short distance from neighboring Denmark. It is an important port for Swedish shipping to continental Europe. The Oresund bridge-tunnel stretching across the straight between Malmo and Copenhagen (in Denmark) was completed and opened in July 2000, increasing the growth and business significance of the region.
Helsingborg is also an active port in the southwest portion of Sweden. The northern two-thirds of Sweden is sparsely populated, but contain many large industrial sites for forest products, mining, and hydroelectric power. Major population centers there include Sundsvall, Skelleftea, Lulea and Umea.
Agents and Distributors
Swedish commercial agents and/or sole distributors are represented by the Swedish Association of Agents (Agenturforetagen). The Association has about 600 member companies, most of them being small owner-managed businesses. Industries represented include clothing industry (accounting for more than 50 percent of membership), footwear, electrical and electronic and food.
Normally, an exclusive agent or distributor is appointed to cover the Swedish market. Swedish agents/distributors often represent several foreign firms. A visit to the market is the best way to appraise the relative merits of prospective agents/distributors. Close contact between the American principal and the Swedish agent/distributor is very important and should be developed early.
Franchising
The interest in franchising in Sweden continues. According to the Swedish Franchise Association there are some 300 franchise systems in Sweden, employing 100,000 people and reporting an annual turnover of SEK 80 billion ($10 billion). Franchising is especially popular in the area of fast food, retail trade and consulting/business services.
It is strongly recommended that U.S. companies considering franchising in Sweden, conduct a qualified legal study to ensure full validity and enforcement of franchising agreements. The use of an American franchising agreement without adjustments for Swedish laws and practices could be detrimental to the franchiser’s business.
Franchise networks, which have been successful in the United States, will not automatically succeed in Sweden, but a name that is well known in the U.S. market does have a great advantage. However, to meet the needs of the Swedish market, U.S. franchisers should be prepared to modify their product mix or implement other changes in their marketing policy in order to boost competitiveness.
For detailed information on franchising contact should be made with:
Swedish Franchise Association
Box 5243, SE-402 24
Goteborg, Sweden
Tel: 46-31-83 69 43
Fax: 46-31-81 10 72
E-mail: info.franchiseforeningen@telia.com.
Web Address: www.franchiseforeningen.se/
Direct Marketing
American exporters of consumer goods may find it advantageous to sell directly to department stores, consumer cooperatives, chains, and other retail outlets. Some of the larger Swedish retailers have purchasing agents in the United States.
Direct marketing is expanding in Sweden. Although well-established mail-order firms strong in the areas of clothing, sporting goods and hardware already exist, there are good opportunities for specialties, such as up-market clothing and sporting goods. Telephone marketing is still uncommon, but use of cable TV sales channels is growing.
Joint Ventures and Licensing Options
In Sweden a joint venture is an agreement between two or more parties to carry out a project. It is not a legal entity, but only an agreement, and a legal vehicle must be formed to pursue the project. This legal vehicle may be either a limited liability company (AB), with the joint-venture participants as shareholders, or a partnership (HB), with the joint-venture participants as partners. Agreements on production of U.S. products in Sweden are common. Royalty and license fee payments may be freely transferred out of Sweden.
Creating a Sales Office
There are no restrictions on foreign-owned firms establishing companies in Sweden. The legally recognized forms of business enterprise in Sweden are:
Limited liability companies (two categories exist: public and private)
Branch of a foreign company (filial)
Limited partnerships (handelsbolag, kommanditbolag)
Trading partnerships
Non-trading partnerships
Foreign investors in Sweden have historically favored the limited liability corporate form. The number of limited liability companies, large and small, is growing steadily. Sweden has always accepted single owner limited liability companies.
The two forms of limited liability companies are public (publikt) and private (privat). The difference between the two is determined by the right to turn to the public for capital.
A subsidiary of a foreign company established in Sweden in accordance with Swedish law is considered a Swedish company in all respects, and generally no legislative distinction is made between companies whose shares are wholly or principally owned by foreigners and those owned by Swedes.
The Swedish Companies Act (Aktiebolagslagen) governs the founding of a company. However, an investor need not start from scratch, as it is much easier to acquire an already registered shelf-company and adapt its articles of association to the needs and intents of the investor. The share capital must be at least SEK 100,000 in a private liability company and SEK 500,000 in a public limited liability company.
Selling Strategies
Selling techniques are comparable to the practices in the U.S. General competitive factors such as price, quality, promptness of delivery and availability of service are those that determine the success of a supplier. Swedish firms do not change suppliers readily and many commercial relationships have been built up and maintained over decades.
Advertising and Trade Promotion
Advertising plays a major role in Sweden’s commercial life. All types of media are available. Daily newspapers and other publications are by far the most important media accounting for over half of all advertising expenditures. Direct mail is the second most important advertising medium, followed by radio and television commercials. Other forms, useful for certain types of products, are point-of-sale advertising, motion picture advertising, outdoor posters, and billboards. Commercial broadcasting exists and is growing in importance.
In order to place advertisements in newspapers, magazines, and trade journals, an agency must be authorized to do so by:
Swedish Publishers Association (Tidningsutgivarna)
Box 22500, 104 22
Stockholm
Tel: 46-8-692 46 00
Fax: 46-8-692 46 38
E-mail address: tidningsutgivarna@tu.se
Web address: www.tu.se/
Authorization requires that the agency have experience in advertising and that its books be open for audit by the association.
The major metropolitan papers in Stockholm, Gothenburg and Malmo have wide geographical circulation. The three large Stockholm dailies - Dagens Nyheter, Svenska Dagbladet, and Dagens Industri - enjoy nationwide circulation. While the large dailies in Gothenburg and Malmo (Goteborgs Posten and Sydsvenskan respectively) provide important media for advertising exposure in western and southern Sweden.
In recent years another facet of trade promotion is making its way to the forefront. Business-to-business e-commerce is becoming a major player, not only in Sweden, but also all across the globe. B2B Web sites have started to do for the business world what eBay and Amazon have done for the everyday consumer (i.e. affording consumers more and better purchasing opportunities). Providing an online marketplace where businesses can go to purchase the goods and raw materials they need from other businesses is helping streamline markets from pharmaceuticals to wood pulp to clothing. Just as the classified sections of newspapers provide current information on local sales, B2B Web sites allow for up-to-date spot quotes on goods from across the world. Placing your goods for sale on a B2B Web site opens up your product to an entirely new type of buyer that previously may have been unreachable.
Advertising sources are listed below.
Advertising Brokers
Carat Sverige AB
Box 7054, S-103 86 Stockholm
Tel: 46-8-698 68 00
Fax: 46-8-522 207 00
www.carat.se/
MBP Outcome AB
Box 1782, S-111 97 Stockholm
Tel: 46-8-507 574b 00
Fax: 46-8-679 33 90
http://www.outcom.se/
Mediekompetens AB
Box 7783, S-103 96 Stockholm
Tel: 46-8-588 081 00
Fax: 46-8-588 081 90
www.mediekompetens.com/
TV Commercials
Kanal 5 AB
S-114 99 Stockholm
Tel: 46-8-520 555 55
Fax: 46-8-459 44 44
E-mail: info@kanal5.se
www.kanal5.se/
TV4 AB
S-115 79 Stockholm
Tel: 46-8-459 40 00
www.tv4.se/
TV3 AB
Box 17054, S-104 62 Stockholm
Tel: 46-8-562 023 00
E-mail: info@tv3.se
www.tv3.se/
Sveriges Television
S-105 10 Stockholm
Tel: 46-8-784 84 84
Fax: 46-8-784 15 00
www.svt.se/
ZTV AB
Box 17105, S-104 62 Stockholm
Tel: 46-8-562 02 500
Fax 46-8-562 02 575
E-mail: info@ztv.se
www.ztv.se/
Major Newspapers
Svenska Dagbladet
S-105 17 Stockholm
Tel: 46-8-13 50 00;
E-mail: annons.bolag@svd.se
www.svd.se/
Dagens Nyheter
S-105 15 Stockholm
Tel: 46-8-738-10 00
E-mail: info@dn.se
www.dn.se/
Sydsvenskan
205 05 Malmo
Tel: 46-40-28 12 00
Fax: 46-40- 0 93 54 75
www.sydsvenskan.se/
Goteborgs-Posten
405 02 Goteborg
Tel: 46-31-62 40 00
Fax: 46-31-80 27 69
www.gp.se/
Business Magazines and Trade Journals
Affarsvarlden (Business weekly)
S-106 12 Stockholm
Tel: 46-8-796 65 00
Fax: 46-8-20 21 57
E-mail: info@affarsvarlden.se
www.afv.se/
Veckans Affarer
Torsgatan 21, SE 105 44 Stockholm
Tel: 46-8-736 52 00
Fax: 46-8-736 50 22
www.va.se/
Dagens Industri (Business daily)
S-113 90 Stockholm
Tel: 46-8-728 85 90
Fax: 46-8-31 19 06
www.di.se/
Computer Sweden (Computer industry)
Karlbergsv 77, S-106 78 Stockholm
Tel: 46-8-453 60 00
Fax: 46-8-453 60 05
www.idg.se/
Dagens Medicin (Medical)
Box 4612, S-116 91 Stockholm
Tel: 46-8-545 123 00
Fax: 46-8-411 01 02
www.dagensmedicin.se/
Elektronik i Norden (Electronics)
Box 1387, S-172 27 Sundbyberg
Tel: 46-8-445 20 70
Fax: 46-8-445 20 90
E-mail: elektronik.i.norden@elinor.se
www.elinor.se/
ForsakringsVarlden (Insurance)
Kammakargatan 38, S-103 54 Stockholm
Tel: 46-8-791 17 00
Fax: 46-8-20 87 95
E-mail: ftf@ftf.org.se
www.ftf.org.se/
Motormagasinet (Automotive)
Svenska Pro Motor AB
Box 52, S-250 53 Helsingborg
Tel: 46-42-16 83 00
Fax: 46-42-16 39 15
E-mail: annons@promotor.se
www.motormagasinet.net/
Habit (Fashion)
Box 72001, S-115 93 Stockholm
Tel: 46-8-670 41 00
Fax: 46-8-661 64 55
www.fashionnet.se/
Tidningen RES (Travel)
Biblioteksgatan 3, S-111 46 Stockholm
Tel: 46-8-545 06 400
Fax: 46-8-679 57 10
www.res.se/
Allt om mat (Food)
Sveavagen 53, S-105 44 Stockholm
Tel: 46-8-736 53 00
Fax: 46-8-34 00 88
www.alltommat.se/
Aperitif (Food)
Box 15, S-112 46 Stockholm
Tel: 46-8-545 120 00
Fax: 46-8-545 120 11
E-mail: info@tidningsmakarna.se
www.tidningsmakarna.se/
ICA-Kuriren (Food)
Box 6630, S-113 84 Stockholm
Tel: 46-8-728 23 00
Fax: 46-8-728 23 50
E-mail: annonsavd.kuriren@forlaget.ica.se
www.icakuriren.se/
Business-to-Business Web Sites (B2B)
www.buyusa.com/
www.eceurope.com/
www.eurotradeconcept.nl/
www.worldbid.com/
Trade Fair Venues
There are three major trade fair venues in Sweden. Together they host approximately two million visitors each year. The largest is Stockholmsmassan (Stockholm International Fairs) with one million visitors, followed by the Svenska Massan (Swedish Exhibition and Congress Center) and Malmo Massan (Malmo Fairs). for further information, contact the addresses below.
Stockholmsmassan
SE-125 80 Stockholm
Tel: 46-8-749 41 00
Fax: 46-8-99 20 44
E-mail: staff@stofair.se
www.stofair.se/
Svenska Massan
SE-412 94 Goteborg
Tel: 46-31-708 80 00
Fax: 46-31-16 03 30
E-mail: info@swefair.se
www.swefair.se/
Malmo Massan
SE-202 80 Malmo
Tel: 46-40-690 85 00
Fax: 46-40-690 85 01
E-mail: info@malmomassan.se
www.malmomassan.se/
Pricing
Prices are set individually by companies. According to the Swedish Competition Act (which is in line with EU rules), companies are not allowed to practice price fixing. All goods and services are subject to VAT (value-added tax), which ranges from 6 percent to 25 percent, 25 being the normal percentage, 12 percent which is for food or hotel charges, and 6 percent for products such as newspapers, books and magazines, and admission fees for commercial sporting events. Products in Sweden are priced using the following formula: CIF price + import duty + excise tax + profit + VAT.
Supplying Customer Service
Sales services and customer support are comparable to the practices in the United States. American firms wishing to enter the Swedish market will have to provide outstanding service and support to successfully replace a Swedish supplier.
Selling to the Government
In Sweden the EC Council directive on public works contracts has been implemented by means of the Public Procurement Act (Lagen om offentlig upphandling, LOU). Bodies governed by public law must procure goods and services in a businesslike, competitive and non-discriminatory way.
The act applies to bodies that award public works contracts: central government agencies, municipalities, county councils and Church of Sweden units. Also covered by the Act are central and local government-owned companies, associations, special districts and foundations established to perform tasks for the benefit of the public.
The act applies to large as well as to small procurement. In the case of procurement above certain threshold values, the EC directive’s rules on advertising, grace periods, and so forth must be applied. The threshold values for supplies and services are SEK 1.7 million (in the utilities sectors there are other higher values and for central government a lower value, around SEK 1.1 million), and for a construction contract just under SEK 44 million (threshold values in Swedish currency are determined in an ordinance and apply for a period of two years). To make it possible for all conceivable suppliers to become aware of forthcoming and concluded procurement, notification of such procurement shall be published in the Supplement to the Official Journal.
Procurement below the threshold values must follow the same basic principles as procurement above the threshold values, but the tender procedure is not regulated in as much detail.
The Public Procurement Board is responsible for contacts with public agencies, organizations and the public. One of the tasks is to provide information and general advice on how the Public Procurement Act and the WTO agreements shall be interpreted.
Under the WTO “Agreement on Government Procurement,” signatories to the agreement, including Sweden, will not discriminate against or among the products, certain services and construction of other signatories in purchases covered by the agreement. The agreement’s coverage extends to purchases of goods by specified government entities (e.g. ministries and Government authorities) listed in the agreement on contracts valued at 130,000 Special Drawing Rights (about $190,000). The list includes all the central government entities of the major developed countries.
The agreement does not apply to purchases of national security items, purchases by local governments, or purchases by any entity that has not been specified as being covered.
To eliminate discrimination against foreign products at all stages of the procurement process, the agreement includes detailed requirements as to how government procurement is to be conducted. and with more than SEK 400 billion estimated spent on public procurement each year, entry into this market could prove quite lucrative. Many Swedish government procurement announcements, covered by these codes, are published in the U.S. Department of Commerce’s publication, Commerce Business Daily. Code-covered tenders are also published in the Journal of Commerce, a private sector newspaper.
Local Government Procurement
Local government procurement has become increasingly significant and in some cases offers American companies excellent trading opportunities. Local governments are not subject to the national procurement procedures but are free to adopt their own procurement rules. The Swedish Association of Local Authorities and the Federation of Swedish County Councils have, however, adopted a recommendation aiming at rules for local government procurement, which follow closely the rules of the national procurement regulations.
As is also the case with procurement on the national government level, purely business considerations determine the methods and sources of procurement by local governments and similar bodies, and no distinction is made between domestic and foreign suppliers or contractors. The normal procedure in inviting bids is through circular letters addressed to firms known to be reputable and reliable. Such firms could be Swedish or foreign, the latter often being the local subsidiary or sales representative of a foreign company. Local governments and their procurement procedures and practices are reputed to be liberal and completely nondiscriminatory in character.
Health Care Equipment Procurement
The county councils arrange centralized equipment procurement for the medical care sector. The 21 councils are autonomous units, and the degree of centralization varies.
The normal procurement procedure is for the county medical care authority, together with end-users of the equipment, to survey the equipment needs for hospitals and forward them to the purchasing departments. In the case of replacements, the procurement request originates in the hospital department involved, with the decision to purchase made by the county authority. There is a high degree of uniformity in the Swedish hospital organization.
Intellectual Property Risks
The Swedish legal system provides adequate protection to all property rights, including intellectual property. As a 1993 signatory to the EEA agreement, Sweden has undertaken to obtain adherence with a series of multilateral conventions on industrial, intellectual, and commercial property.
Sweden is a member of the “Paris Union” International Convention for the Protection of Intellectual Property (patents, trademarks, commercial names, and industrial design) to which the United States and about 80 other countries adhere. American business executives and inventors are thus entitled to receive national treatment in Sweden (treatment equal to that accorded Swedish citizens), under laws regarding the protection of patents and trademarks.
American nationals are also entitled to certain other benefits, such as the protection of patents against arbitrary forfeiture for non-working and a one-year “right of priority” for filing a patent application. The “right of priority” period for trademarks is 6 months. Applications or inquiries pertaining to intellectual property should be addressed to:
Director General
Patents and Registration Office
(Patent & Registreringsverket)
Box 5055, S-102 42 Stockholm
Tel: 46-8-782 2500
Fax: 46-8-666 0286
www.prv.se/
Patents
Patents are adequately protected under the terms of the EU agreement, which states that the signatory countries comply in their law with the substantive pr
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