Three percent of Swedish companies receive some form of government support in connection with investments, either as preferential loans, direct grants or subsidies. This is the lowest of all countries in the entire EU, where the average is 16 percent, according to a study by the European Investment Bank.
"This reflects Sweden's unusually limited use of public support instruments compared to the rest of Europe," writes the European Investment Bank.
Possible causes
The bank has no sure answers as to why it looks the way it does, but possible reasons could be that it is relatively difficult to apply for money from, for example, the state climate action plan or other variants.
"More generally, Sweden's industrial strategy has recently emphasized tax breaks, streamlined permits and infrastructure investments over direct financial support," says the bank's economist Matteo Gatti in a written comment to TT.
Swedish companies are generally relatively frugal in raising external funds – loans and new issues from owners as well as support from the public sector – for their investments. 22 percent of Swedish companies do so, the lowest among all EU countries where the average is 42 percent.
This may be due to the fact that Swedish companies generally have strong balance sheets, which means they can afford to finance their investments with their own funds, according to Matteo Gatti.
“Remarkably high level”
Despite this, Swedish companies invest in increased production or development of new products at a higher level than their European competitors.
"Swedish companies continue to invest at a remarkably high level, even in a more uncertain environment," said EIB Vice-President Karl Nehammer in a written comment.
Swedish companies are also well ahead of the curve when it comes to new technology, such as investments in AI and/or the green transition.
The study is based on data from 13,000 companies and has been conducted annually since 2016.
