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He said innovation is related to the two countries' economic and trade development and the growth of bilateral ties.
The vice premier proposed the two nations expand innovation cooperation in the fields of energy saving, environmental protection and economic restructuring.
"This will help promote China-Sweden relations and benefit both peoples," he noted.
Li also said the current international financial crisis is yet to subside, and a full recovery in the world economy will be slow and complex.
In the face of this situation, Li urged the international community to rely on innovation development and technological progress to play a leading role in economic growth.
Li met with the Swedish King before the forum, applauding the latter's contribution to the development of China-Sweden ties.
Apart from his meeting with Hu and Chinese Vice Premier Li Keqiang in Beijing, the Swedish King will attend the national pavilion day of Sweden at the Shanghai World Expo.