"Too Many Companies Stop After the East Coast"

In 2023, Business Sweden strengthened its presence in Silicon Valley. In an interview, U.S. Head Vlad Månsson talks about missed opportunities for Swedish companies, the corporate climate in Silicon Valley, recent criticism, and the potential impact of the upcoming U.S. election.

Vlad Månsson, who has been Business Sweden's head of the US since 2021, relocated himself and his role from Chicago to San Francisco just over a year ago.

"We work across the U.S., focusing more on sectors than geography. Still, strengthening the San Francisco office was essential due to the need for expertise in AI, deep tech, and quantum technologies," Månsson explains.

This move also aligned with the opening of the Swedish Consulate General in early 2024, with Månsson serving as trade commissioner to the US.

"For the role to be official, I had to be connected to a government authority, which narrowed down my options to New York, Washington, or San Francisco," he adds.

Different from Chicago

Månsson highlights that Silicon Valley offers a unique business culture compared to other regions, including Chicago.

"It's easier to get meetings here, and people are much more open to networking. Over just one year, I've built an entirely new network," he says.

Still, he underscores the fierce competition:

"There's an openness to collaboration, but make no mistake—it's cutthroat."

Swedish Companies in California

California remains one of the top markets for Swedish businesses, according to Månsson.

"In our Business Climate Surveys, California, New York, Texas, and Florida consistently stand out. Many of our projects involve California, but manufacturing here can be costly, we often see companies setting up production in southern states," he notes.

Still, many companies don't stay in Silicon Valley for long.

"While many Swedish companies come to Silicon Valley for inspiration, few set up permanent offices due to high operational costs."

Renewable energy and green tech are two areas that Sweden has focused on in California. California's regulatory hurdles and complexity are well-known, but Månsson believes these challenges can also be advantageous.

"Swedish companies are often ahead in product development and can meet higher requirements regarding environmental standards. Many companies generate half of their U.S. revenue in California, especially those offering sustainable products."

What are Swedish companies doing well in the U.S.?

"Swedish companies have successfully integrated sustainability into the U.S. market, which has become a strong selling point, particularly in California where energy-efficient products are in high demand," Månsson notes.

Where are they falling short?

One common mistake Swedish companies make is becoming too comfortable after securing business on the East Coast and assuming they've covered the U.S.

"We've seen too many examples where firms stop there, missing key opportunities in markets like California," Månsson explains.

Additionally, Swedish companies often underestimate the pace of the U.S. market.

"Americans expect fast responses and immediate follow-up. Some Swedish companies don't realize how quickly they need to act, and by the time they respond the opportunity is gone."

Månsson also points out that Swedish companies sometimes struggle with clear communication when entering the U.S. market.

"It's important to highlight what's unique about your product or service. Having a Swedish brand is a bonus you can mention later," he says.

Business Sweden's Services

Business Sweden offers various services to help Swedish businesses expand into the U.S.

"We help Swedish companies grow abroad, offering services like business incubation, where we manage accounting and administration for over 150 Swedish firms in the U.S. Many companies prefer outsourcing this to us because we understand the Swedish context," Månsson says.

Business Sweden also conducts market research to identify the best opportunities across U.S. states and advises in deals. The companies themselves typically pay for these market research services, though smaller companies can receive subsidies for up to half of the project costs.

Additionally, Business Sweden creates platforms in strategic sectors such as energy storage, life sciences, and AI. These platforms are co-financed by both Swedish companies and the government, facilitating collaboration between stakeholders.

"This model allows us to promote Sweden within strategic industries while helping companies capitalize on opportunities they might otherwise miss," Månsson explains.

This collaborative approach helps companies focus on their areas of expertise while Business Sweden facilitates essential services and networks, ensuring Swedish businesses can thrive in the competitive U.S. market.

Unique model

In 2023, Business Sweden’s total global revenue amounted to nearly 835 million SEK. Most of the funding came from a mix of government assignments and private company revenues.

"Most of the work we do here in the US is paid for directly by the companies we support, ensuring that we don't overlap with private-sector services," Månsson notes.

Business Sweden operates under a unique public-private partnership model, with the Swedish government holding 50 percent ownership and Svenskt Näringsliv holding the other 50 percent.

In December 2023, the Swedish National Audit Office (Riksrevisionen) sharply criticized Business Sweden. The authority highlighted the need for improved governance and a clearer separation of roles between public and private.

Do you compete with private consulting firms?

"I understand the concern, but our mission is to help Swedish companies grow abroad. We avoid competing with smaller private firms and have turned down assignments where we felt other actors could handle them better," Månsson says.

Impact of the 2024 U.S. Election

Looking ahead to the 2024 U.S. election, Månsson shares his thoughts on how it might affect Swedish businesses, particularly those in green technology sectors.

"If Trump wins, we may see some rollbacks on environmental policies, but much of what's been established under the Inflation Reduction Act will likely continue. States like California have their own incentives that won’t disappear," he says.

Månsson also advises Swedish companies to prepare for potential shifts in trade policies, especially around tariffs and supply chains.

"The trend toward a more closed U.S. economy and decoupling from Chinese supply chains will continue regardless of who wins. Swedish companies need to be ready for these changes and have a solid plan," he adds.

Månsson stresses the importance of long-term planning for Swedish companies in the U.S.

"The future is uncertain, especially with changing U.S. trade policies. But with a clear strategy and a plan B, Swedish companies can continue to thrive in Silicon Valley and the rest of the U.S.," he concludes.