Sweden's R&D investment has the highest share in the GDP in the world. The country's science and technology policy shows many differences with that of Japan, particularly in the role of universities. Swedish universities play the role of R&D centers of the industry. For big projects, the Swedish government limits itself to take measures that favor scientists and engineers instead of leading the projects. The present report describes basic features and present status of the science and technology policy of Sweden as compared with the Japanese conterpart.