Sweden is often described as one of the world’s most innovative countries. But in today’s global competition, innovation is no longer enough. The real challenge lies in transforming groundbreaking technology into scalable businesses that shape entire industries.
That was the message from Darja Isaksson, Director General of Vinnova, as she shared her perspectives on Sweden’s role in the global technology race.
A New World of “Polycrisis”
“We are in a world of polycrisis,” said Isaksson. “Geopolitical tensions and the sustainability crisis demand that we not only manage the short term but also accelerate the long-term changes that are necessary.”
The war in Ukraine has highlighted the importance of speed and resilience. Innovations there are happening on the battlefield, where drones and digital tools are being developed and deployed in weeks or even days.
“Decentralization, mandate, and partnerships at every level make it possible to respond quickly to known needs,” Isaksson explained. “That is the mindset we also need to strengthen, we cannot rely only on long procurement cycles or long-term planning.”
The Technologies That Will Shape the Future
The technology horizon continues to expand: AI, connectivity, semiconductors, biotechnology, quantum, and synthetic biology are all advancing rapidly.
“AI has already changed our lives,” Isaksson noted. “But we are still in the early stages of its development. The question is how we will use it to safeguard health and security, or to reinvent food production.”
At the global level, analysis from institutions such as Bruegel shows that China and the U.S. are pulling ahead in frontier innovation, while Europe falls behind.
“We have the competence and the talent in Sweden and in Europe,” said Isaksson. “What we lack is capital, and sometimes ambition. Do we truly make the most of the opportunities in front of us?”
Closing the Innovation Gap
The European Commission has already flagged the need to close the innovation gap, with proposals such as “One Fund to Rule Them All” and new models for scaling research-driven ventures.
Vinnova has earlier identified six strategic technology areas starting in 2024, where Sweden must invest to secure competitiveness.
Reports from the Royal Swedish Academy of Engineering Sciences (IVA) also point to underrepresentation: Sweden is strong in many technologies, but struggles to commercialize them.
Isaksson argues that demand must be the driver of acceleration.
“We need customers who are curious, bold, and willing to test new solutions. That’s what creates the pull that drives scaling.”
Learning from Others
Germany is one example to watch. Through SPRIN-D Challenges, the country invests directly in solutions to urgent societal issues, combining public funding with entrepreneurial drive to create breakthrough innovations.
“It takes an ecosystem to build capability,” said Isaksson. “We must invest in the future,in the companies that do not yet exist, but that will define our competitiveness tomorrow.”
The Path Ahead
For Sweden to claim a position in the global tech race, three things are needed:
- Capital at scale – more resources for growth stages, so Swedish and European companies don’t have to leave for the U.S. or Asia.
- Ambition and demand – strong, curious customers in both the public and private sector to drive commercialization.
- Ecosystem strength – collaboration across state, academia, startups, and industry to accelerate innovation into impact.
The opportunity is there. The question is whether Sweden and Europe will seize it.
