The Challenges of Defense Innovation in Sweden

July 28, 2025

This article is part of a summer series exploring the future of defense innovation in Sweden. Next up: What It Means to Be a NATO Host Nation


We live in an era shaped by geopolitical instability, hybrid threats, and accelerating technology. Russia’s actions in Ukraine have underlined the need for a more agile and more advanced defense also in Sweden. Traditional defense structures need updating to address hybrid threats, cyberattacks, and rapid technological advancements. The new transparent battlefield is also a paradigm shift.

It is not exaggeration to say that we are at a pivotal moment in our history of defense. We have, in fact, embarked on our most substantial military buildup since the Cold War. But, with the evolving security landscape in Europe, we face pressing issues:

How to modernize our defense capabilities? What role does innovation play? And how does this align with our commitments to the European Union and NATO?

The rapid pace of technological change means that defense systems must be more adaptable. We need to see more innovations in AI, autonomous systems, and cyber defense.

Modern defense strategies integrate civilian technologies. In this context we talk about ‘dual use’ (civilian and military applications). [Stay tuned for more about dual use]

“A dual-use approach can make sure that innovations benefit both military and civilian applications. This enhances overall national resilience”, says Johan Vaernholt, Head of Business Development and one of the initiators behind AMYNA

Defense innovation is no longer something that can happen behind closed doors in government labs. Defense innovation is essential and is getting more distributed.

Sweden is Committed

Sweden has made significant financial commitments to enhance defense.

In the 2025 defense budget Sweden allocated an additional SEK 13 billion. This was a ten percent increase from the previous year

In Sweden, the expenditure on defense is projected to reach 2.4% of GDP in 2025. This has been aligned with NATO’s recommendations.

On June 30, Sweden attended the NATO summit where members agreed on a five (5) per cent defense spending target. Along with our allies, we will be required to spend at least 3.5 per cent of GDP on core defense requirements and 1.5 per cent on defense- and security-related investments. These resources will be used to modernize and expand defense capabilities.

As we ramp up our defense capabilities in response to new security realities, the spotlight turns to innovation. Sweden, naturally, has strengths as well as challenges when it comes to building a smarter, more resilient defense sector.


Previous articles in the series:

Barriers, Bottlenecks, and Bold Moves – This Is Why We Are Building AMYNA

  • https://ideon.se/blog-posts/why-do-we-need-defense/
  • https://ideon.se/blog-posts/amyna-why-does-sweden-need-defense-accelerators/
  • https://ideon.se/blog-posts/why-defense-innovation-is-about-more-than-weapons/
  • https://ideon.se/blog-posts/the-power-and-risk-of-dual-use-tech/
Published in Blog posts

More news