Sweden to Boost Medical Research, Innovation Spending

Sweden’s government will spend a total of 11.5 billion kronor ($1.74 billion) in additional funds on research and development with a focus on life sciences from 2013 to 2016.

The spending will rise yearly starting in 2013 to about 4 billion kronor by 2016, the government said in a statement today in Stockholm. The government will this year spend about 30 billion kronor on research and developments, or about 0.9 percent of gross domestic product.

The plan is one of the investments Prime Minister Fredrik Reinfeldt’s government has promised to boost the potential of the largest Nordic economy ahead of elections in 2014. It last week announced road and railway investments in the north of Sweden to boost export capability. Next year’s fiscal policy will be presented on Sept. 20.

Reinfeldt has come under pressure from the Social Democrat- led opposition for not spending enough to stimulate an economy whose exports to Europe remain at risk as the region’s debt crisis drags on. The premier’s four-party coalition has 42.8 percent backing, versus 50.1 percent for the opposition, according to a Novus Opinion and TV4 poll published Aug. 29.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net

To contact the editor responsible for this story: Kim McLaughlin at kmclaughlin6@bloomberg.net

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Sweden's Prime Minister Fredrik Reinfeldt

Casper Hedberg/Bloomberg

Sweden's Prime Minister Fredrik Reinfeldt told news agency TT on Aug. 28 that independent agency heads have responsibility for their own budgets and need to use better judgment in how they spend taxpayers’ money.

Sweden's Prime Minister Fredrik Reinfeldt told news agency TT on Aug. 28 that independent agency heads have responsibility for their own budgets and need to use better judgment in how they spend taxpayers’ money. Photographer: Casper Hedberg/Bloomberg