An example for other European countries and for the European Union as an entity, as it combines innovation in technology and strong social programs, is Sweden according to Mario Draghi, who will soon present his views on how the EU can regain its lost competitiveness. According to the New York Times, this European country may be able to teach the EU how to become competitive again.
At least half of Sweden’s GDP comes from exports, with its technology sector representing 11% of total exports – based on 2022 data. As the American newspaper highlights, Sweden’s success is the result of initiatives and policies promoted during the 1990s aimed at maximizing the use of personal computers and the Internet among its citizens. At that time, most Europeans were still being trained to use old conventional modems. According to investment firm Atomico, Sweden ranks second in Europe after Estonia in terms of the number of per capita “unicorns” – startups with a stock market value of at least one billion dollars – it has created, while its companies Spotify and Skype have a global presence and reputation. Analysts point out that another key factor in Sweden’s success is its tradition of public and private sector investment in research and development, which today amounts to 3.4% of its total GDP, one of the highest rates in Europe.
There has long been a large pool of assets from family foundations, such as the Wallenberg family and the Ikea foundation, as well as the state-controlled pension fund system, which provided sources of initial capital for investments. Furthermore, Swedish companies have always been encouraged by the state to seek customers outside of the country, which has a population of just 10 million.
This policy has led both its startups and the industry in general to be competitive within the global economy. As the Financial Times point out, the northern part of Sweden has the potential to be the European green Silicon Valley, with an iron ore mine and a rare earth deposit discovered last year.