Without accurate business data, the life science sector risks missing out on important actions

The new statistics point in the same direction as the main report published in the spring. But it also actualizes a need to get access to data from the companies in life science. Otherwise, the sector risks missing out on important measures.

The highly automated method that generates statistics for the report shows that companies need to classify themselves more clearly to give a more accurate picture of the life science sector. This is so that decision-makers can take a position on important measures for the sector's development and competitiveness.

Without accurate data from the industry, we risk missing important support for the health sector.

- It is of the utmost importance to describe the importance of the life science industry for Sweden as a nation if we are to be able to assert ourselves in the international competition, says Maja Neiman, science director at the industry organization SwedenBIO.

Maja Neiman, science director at the industry organization SwedenBIO

- If the government intends to use the annual statistics from Vinnova to assess whether the industry is important for Sweden, if the industry needs support or tax breaks, then it is important that the statistics are as complete as possible.

Maja Neiman, who represents Swedish life science companies, believes that overall accurate statistics can help guide how legislation is designed to promote new innovation for the benefit of patients.

- Without correct data from the industry, we risk missing important support for the health sector. We would like to call on the sector to help and deliver correct SNI codes and data.

More difficult to define companies

The report is part of a government assignment that will provide a deeper understanding of the life science sector's development and needs. It is an important basis for planning expedient efforts and policies that can contribute to the long-term strengthening of Sweden as a leading life science nation. Therefore, it is of great value that the development of the Swedish business population within life science can be described in detail, quantified and followed over time.

We would like to call on the sector to help and deliver correct SNI codes and data.

But with life science companies' rapid development and cross-border technology collaborations, it has become much more difficult for companies to classify industry affiliation. It is a challenge to classify and describe the companies' activities based on new themes that are not reflected in the classic business divisions.

- There was a time when the exact words and terms in a company's proposal to the Swedish Companies Registration Office or in annual reports did not matter so much. But with increasingly automated text processing and algorithms that follow self-reinforcing inclusion and exclusion criteria, it suddenly becomes decisive which words are used when companies describe their activities, explains Maja Neiman.

In order to be able to define what Swedish life science companies look like and what activities they carry out, there are, among other things, different SNI codes (standard for Swedish industry classification). These codes are part of the basis that Vinnova uses in its analyzes to identify and follow the companies in the life science sector.

- Vinnova's report, which defines and follows the development of the life science industry, is based on an impressive semi-automated process of reading public sources and databases based on, among other things, keywords that determine the algorithms for whether a company should be included in the statistics or not, explains Maja Neiman.

- Life science is a growing industry, both in number of companies and in importance. Where life science was previously a cutting-edge industry with narrow, niche companies, we now constitute a significant mass in both the number of employees and in economic value for Sweden. Therefore, it is very important that we are also seen as a uniform industry in the statistics for Sweden.

Starting in 2023, Vinnova will publish annual reports summarizing trends and developments in the life science sector, the next report within the mission will be published in mid-October 2024.

Here you can take part in the first main report's mapping of the Swedish life science companies, as well as in the supplementary report which is in Appendix 5 a little further down the page.

At the link below, you can also watch the recorded seminar on trends and developments in the sector, which was held after the report was released.

How do we ensure the supply of competence in the strongly growing life science sector?

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How can company data be captured more easily in the statistics?

This is what companies can do to help provide an accurate picture of the life science sector, and thus a better decision-making basis for measures:

• Update your SNI codes so that they reflect the activities you have today
• Update and sharpen your business description
• Please respond in detail to surveys from Statistics Sweden and other organizations that collect company data