Chapter 8. Industry Specialization and Leveraging Intellectual Capital

Names such as "Mobile Valley" and "Wireless Valley" have been given to Sweden's seven large mobile ICT clusters, which together comprise a regional network unsurpassed in the world. The largest and most important one is the Stockholm-Kista cluster. Sweden has become a "high-speed globile innovations community," ^[1] centered around cutting-edge innovation for global applications in mobile computing technologies, while preserving the traditional Swedish small community character.

Sweden's high-tech success has in part been enabled by the Swedish people's natural acceptance and thorough utilization of information and communication technologies. During the past 10 years , these technologies have become well integrated into professional and personal life.

Table 8-1. Facts at a Glance ”Sweden

Swedish Demographics
Population	8.9 million
Population density	19.7 per square kilometer
Area	450,000 square kilometers ( roughly the size of California)
GDP per capita 1999	$26,616
Exports 2000	$11,711 (44% of GDP)
Unemployment rate 2001	Less than 4%
The Stockholm-Kista ICT Cluster
Stockholm (capital city) population 1999	1,783,000
Number of IT and telecom jobs	90,000 (45% of Sweden's IT employees )
Location of Kista	15 minutes from Stockholm Arlanda International Airport, north of city center
Foundation of Kista Science Park	1976 by Ericsson, IBM, et al.
Number of IT companies in Kista	700, with 29,000 employees
Gross salary of a network engineer 1999	Low: $33,000; High: $41,000; for total cost add 33%
Largest company in Kista	Ericsson (founded 1880; 13,000 employees in Kista today)
University in Kista	Royal Institute of Technology IT University (3,500 students)
Cross-fertilization in Kista	Electrum Foundation (cooperation of state, city, and industry)