The financing system is impact-oriented and is designed to support the development of industry research institute’s strategies. For the period 2009-2017, resources were placed at the disposal of the boards within the RISE institute groups, with the parent company for RISE establishing the overriding owner focus of facilitating sustainable growth in Sweden by strengthening competitiveness and innovation in the business community.
The design of the financing system has been governed by the Swedish Government’s appropriation directions and Government Bill 2008/09:50 – A Boost to Research and Innovation. These documents have been supplemented with the following principles:
- Responsibility delegated to implementing units
- Simplicity and transparency
- An industry-independent financing system
Taken together, these boundary conditions are important components of the owner governance process that are intended to ensure that RISE Research Institutes of Sweden is a world leader in the development and renewal of commerce and industry and contributes to sustainable development.
This system means that the grant in its entirety is earnings-related, based on normalised earnings as fixed by parent company RISE. Normalised earnings are defined as the organisation’s most recently reported turnover minus their Strategic Competence (SC) fund allocation and extraordinary items.
The purpose of dividing SC funds according to the principle of normalised earnings is to reward the individual industry research institute’s business-related activities in accordance with the Research and Innovation Bill. These funds shall be used with a specific focus on collaboration with higher education institutions, other institutes and small and medium-sized companies. Funds can also be used for EU projects. SC funds shall also be used for the structural development of institutes and costs associated with restructuring, as well as to promote collaboration within RISE in strategically important areas.