Overview

Sweden is renowned for its innovation-driven economy, with a strong focus on research and development. With world class R&D performance and a thriving startup scene, Sweden offers the perfect springboard for taking new ideas to global markets.

Sweden provides great opportunities for SMEs to grow and flourish. It is considered a highly favourable investment destination offering a competitive, open economy with access to new products, technologies, skills, and innovations. With its well-educated labour force, outstanding communication infrastructure, stable political environment, leading-edge research, and superior ICT infrastructure, it is seen as a frontrunner in developing new technologies and setting new consumer trends.

Sweden is at the global forefront of Industry 4.0. This, combined with unique digital technology capabilities, high innovation capacity, world-leading universities, and close public-private collaboration, has created an unrivalled environment for innovations in areas such as life science, fintech and deeptech. 

Sweden has also seen rapid advances in electrification, alternative fuels, autonomous vehicles, connectivity, and platforms for shared mobility, which together with world class know-how in digitalisation, automotive manufacturing, testing and road safety, provide a powerful springboard for new opportunities in transportation. To illustrate the success of the services sector, Sweden has had a tremendous impact on the global music scene, with artists and groups like ABBA, Roxette, Avicii and Swedish House Mafia, to music producers and songwriters like Max Martin and Stig Anderson, to global online streaming platform Spotify. Sweden is currently the largest exporter of pop music in the world per capita. 

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The political and economic situation in Sweden is very favourable and creates a high quality business environment. The corporate taxes are among the lowest in Europe: The country applies participation exemption, authorises a total tax deduction for interest and has no strict capitalisation rules. The economy is open, diversified (specialised in high-potential sectors such as high-tech products and sustainable economy) and extremely competitive. 

Demographics are becoming increasingly dynamic and are fuelling a highly qualified workforce attuned to export industries. The judicial system is balanced and allows for safe, transparent and reliable decisions. The quality of management and advisory services is very high, and the business procedures are simple to undertake. Swedish consumers have one of the highest levels of purchasing power in Europe.  

Sweden's incubator scene is vibrant, with strong government support and diverse programs tailored to various industries. Startups benefit from access to funding, networking opportunities, and support services like mentorship and education. Many incubators have a global perspective, emphasizing international expansion. Overall, Sweden's ecosystem fosters innovation and entrepreneurship, making it a hub for startups.