The MAX IV laboratory in Lund.
The MAX IV Laboratory is a super-modern synchrotron radiation facility in Lund, south Sweden. Photo: Per Pixel Petersson/

A country of innovation

Sweden has long fostered innovation and entrepreneurship. Here’s how.

The vital Swedish startup scene has garnered much international attention, but the country has a long history of innovation.

There are several factors that might explain why, for example Sweden's global outlook – export is an important driving force for Sweden, seeing that the domestic market is relatively small. Other factors are social stability and the access to government support, as well as a high degree of equality.

Education and research

Sweden’s long-term focus on education and research has also had a major impact on the capacity for innovation. In 1842 the country introduced compulsory schooling for 7- to 13-year-olds (today for 6- to 15-year-olds). This was a game-changing move, as it raised the overall level of education among the people, and became a vital component in Sweden’s journey from poor agricultural nation to prosperous innovation leader. Today about one-third of the population has post-secondary education.

When it comes to research and development (R&D), Sweden proves its commitment by investing, as a rule, more than 3 per cent of the country’s growth domestic product (GDP) in R&D.

Green technology and life sciences are two fields in which Swedish researchers and companies excel. The government has created an office of life sciences dedicated to developing a national strategy for the life sciences to further promote the field.

The MAX IV Laboratory

Swedish life science research hubs

Key players

Government agency Vinnova plays a central part in Swedish research. The innovation agency promotes and funds research projects in a wide range of fields, from health and transport to industrial material and smart cities.

To strengthen Sweden’s competitiveness, the Knowledge Foundation (KK-stiftelsen) funds research and competence development at Sweden’s university colleges and new universities.

The Swedish Agency for Economic and Regional Growth (Tillväxtverket) also strengthens competitiveness and facilitates entrepreneurship around Sweden.

A woman in a lab coat and goggles stands by a machine.
The Graphene Flagship is a giant research project coordinated by Chalmers University of Technology in Gothenburg. Photo: Sofia Sabel/

Sweden and road safety

Sweden's ‘Vision Zero’ has become a global road safety role model. The idea? That no one should be killed or seriously injured as a result of traffic accidents.

It is, in short, about adapting the roads, and the vehicles they carry, to match the capabilities of the people that use them.


Sweden is a large country, stretching far from north to south. This is why a well-functioning infrastructure has been vital to Sweden’s development – from railways to telecommunications and broadband. Policies offering access to technology and the internet have contributed to making Sweden the innovative nation it is today.

In the 1990s, the Swedish government pushed out a widely developed broadband network and Swedes’ early access to fast internet coupled with subsidised computer-lending programmes helped cultivate a society of early adopters.

In 2016, the government adopted a broadband strategy that aims to get all of Sweden connected to high-speed internet by 2025.

Ranking high

Considering that Swedes represent just 0.13 per cent of the global population, the Nordic nation has a disproportionate amount of influence on global innovation. On several occasions, Sweden has topped the European Innovation Scoreboard, a yearly index published by the European Commission. The index assesses the strengths and weaknesses of national innovation systems and helps countries identify areas they should address.

Sweden also usually achieves high rankings in innovation surveys such as the Global Innovation Index and the Legatum Prosperity Index.


The World Economic Forum (WEF) has ranked Sweden as one of the most competitive countries in the world in its Global Competitiveness Report, with top grades for macroeconomic stability and innovation capability. Challenges include relatively high taxes and labour regulations.

Other potentially negative factors are steep rents and a lack of housing in the bigger cities, which in some cases makes it hard for Stockholm in particular to attract young talent in competition with other European cities. High tuition fees for students from outside the European Union may also have a negative effect on Sweden’s attraction.

Another cited challenge is the weather. Sweden’s persistent, dark and cold winters might be a tough selling point. At the same time, those harsh winters are given as an explanation for the high degree of creativity in Sweden. Some argue that the long, cold season encourages would-be innovators to stay indoors to hone their skills and develop their ideas. If that’s true, the Swedish spirit of innovation may just be a force of nature.