Sweden strategy an important step - but without talent strategy we lose competitiveness

TechSverige welcomes the strategy for a stronger image of Sweden abroad presented by the Swedish Institute (SI) yesterday during a launch event opened by the Minister for Development Cooperation and Foreign Trade Benjamin Dousa (M). "This is a strategy that TechSverige has contributed to and that we see is important for the tech industry. A positive image of Sweden is a cornerstone for Swedish competitiveness, for the tech industry's ability to continue to grow globally and to attract investment. But for the strategy to have full impact and ensure access to international excellence, the next step is needed: a clear and ambitious talent strategy.

The Sweden strategy is a communication strategy for Sweden abroad and the ambition is that we all contribute to spreading the positive story of Sweden as an innovator, with a strong democracy as its foundation. The strategy emphasizes that a positive image of Sweden with the country's qualities such as reliability, cooperation and creativity, is important for Swedish competitiveness. In his speech, Benjamin Dousa emphasized Sweden's strengths and how Swedish companies have long contributed to establishing and strengthening Sweden's position internationally - a message that conveyed a clear optimism for the future.

The strategy aims to create even more business for Swedish companies abroad, strengthen the free tradeand attract more researchers and excellence to Sweden. During the afternoon, the tech sector, including startups, was described as an important part of Sweden's success.

One message that emerged was that the potential lies in our own future, a future we can shape. At a time when other countries are choosing to close themselves off, Sweden is choosing to stay open. This is a perspective that has not previously been discussed to the same extent but is now being emphasized. Swedish values are highlighted as part of the country's international strength and success.

Yesterday's theme was not really talent attraction, but talent attraction is dependent on a positive image of Sweden, so it was not surprising that it was mentioned many times. Access to talent is a prerequisite for Swedish competitiveness, not least in a global context. So now that we have a well-established Sweden strategy, TechSverige hopes that the government will also take the next step and develop a talent strategy. The government has launched initiatives to strengthen the ability to attract, recruit and retain international talent, shortened the processing times for highly skilled work permits and investigated tax incentives for research and development. These are all welcome initiatives that are important pieces of a larger puzzle. 

In 2023, the tech industry had a turnover of over SEK 1 100 billion and contributed around SEK 350 billion to GDP - which is more than the traditional basic industry. The industry is a pillar of the Swedish economy. But unfortunately, there is a major skills shortage in the industry, with 18,000 tech specialists missing annually. Some of these skills need to be recruited internationally. At the same time as there is a skills shortage, we see that the number and proportion of advanced labor immigration has decreased. 

In 2024, 2 588 work permits were granted to non-EU/EEA IT architects, system developers and test managers etc. In 2023, 3 703 work permits were granted for the same professions. In total, this is a decrease of 30%. Unfortunately, the declining trend continues even when we look at the statistics for January to March 2025, in terms of share, IT architects, system developers and test managers etc. only account for just over 14% compared to just under 20% in 2024.

Of course, the decline cannot be attributed solely to the lack of a talent strategy. There are many interacting factors. But the decline shows the importance of governance that prioritizes where conflicting goals arise. Other countries are investing in talent attraction, not least in these times, and a country like Sweden, which is dependent on international excellence, needs goals, resources, governance and strategically prioritized measures to stand up in the international competition for (tech) skills. 

Regardless of a positive image of Sweden, if we don't do the right things and do enough, the talent will choose another country. It is that simple. Even if it is difficult. 

Pia Högset
Industrial policy expert