Focus on tech when Sweden's strategic technology areas are defined 

In May 2024, the Government commissioned Vinnova (the Swedish Agency for Innovation Systems) to lead a process to identify and propose strategically important technologies for Sweden. This week, the report was released to serve as a knowledge base for the government and to provide strategic direction for future efforts to strengthen Sweden's competitiveness and business investment in research and development.

For this type of effort, time has been short and the work intensive. TechSverige, together with several of our member companies, has contributed both through direct input and through workshops together with Vinnova. This type of close dialog in strategic work is incredibly important and appreciated by the industry.

The six strategic technology areas identified in the report are 

It is gratifying that these areas are in line with TechSverige's proposals in this area. In particular, the focus is on prioritizing key areas such as artificial intelligence (AI), advanced digital technology and quantum technology. In addition, tech is identified as a crucial enabler in energy technology and the critical climate transition, in smart production technology and biotechnology, where the strength of AI and quantum technology in life science is particularly clear. This creates significant opportunities for the tech industry to contribute and strengthen its competitiveness in both the national and international arenas. 

A key proposal in the report is to promote startups and scaleups, especially in deep tech*, which is seen as a key driver of innovation and growth. It is proposed that these companies receive increased support in the form of access to venture capital, innovation support and better collaboration between academia and business. The report emphasizes that for these startups to reach their full potential, there needs to be a strong infrastructure for innovation and conditions to scale up operations. This is very much in line with TechSweden's view on promoting startup ecosystems, where strong entrepreneurship is and will be an investment for Sweden's future productivity. 

The report also suggests measures to reduce the regulatory burden, especially in data management and AI, which is crucial for tech companies to develop and adopt new technologies and be competitive without high compliance costs. TechSverige has long highlighted the importance of creating a more predictable and supportive regulatory framework to encourage innovation and lower bureaucratic thresholds. The proposals in the report to develop regulatory sandboxes and explore alternative regulations for AI and data sharing are important steps in that direction.  

Finally, it is proposed that clear national roadmaps should be developed and coordination within technology policy strengthened to create predictability and a stable basis for future investments. It is precisely this type of clarity and long-term approach that are important pieces of the puzzle for the industry's success in what we call a coherent tech policy for Sweden.  

In summary, it is positive that a clear compass direction has been set and that Vinnova has dared to prioritize in the report. It is now important that this is translated into initiatives and reforms by politicians adopting the proposals and that this direction is reflected in the forthcoming R&D bill.  

As usual, time is of the essence and policy should act now where possible. In conclusion, it is therefore gratifying that the government last week, through an additional directive, is investigating how a new internationally competitive tax incentive for R&D in Sweden can be constructed. TechSverige has long advocated this mechanism and we hope that the investigation dares to stick its neck out so that the best of conditions will exist in the future for a favorable environment for investment and innovation for a competitive Sweden.

Peter Kjäll
Business policy expert

*Deep tech is advanced technology based on breakthrough innovations, often requiring long development times and addressing complex societal challenges, for example in AI, quantum technology or biotechnology.