This report provides input to a national review of the public research funding system in Sweden. It is designed to inform a broader dialogue that is taking place amongst different research stakeholders in Sweden. The report contains proposals and options for changes for Swedish public funding of research and innovation to effectively promote research excellence, support innovation and respond to societal needs. These proposals are supported by relevant international examples. The analysis takes into account insights from the OECD review of innovation policy in Sweden in 2016, and recent OECD work on different aspects of public research funding and research infrastructure.