A Nation’s Innovation: The Impact of National Indicators on Industry-Specific Startup Growth

Although Sweden is a small nation, with a population just over ten million, (0.13% of the world’s population), it has made a substantial impact on the startup industry. Companies such as Spotify, Klarna, and Northvolt have grown to become global leaders in their respective markets. The country has demonstrated promising growth in the startup and venture capital (VC) scene. With a 6.1x growth from 2017 to 2021, Sweden is one of Europe’s growing hubs in VC funding. Additionally, it has the highest enterprise value per capita within Europe. This is especially true within climate tech and impact investing, verticals in which the nation has proven itself to be a leader. With €4.3B invested in 2021, Sweden leads Europe’s VC investment in impact startups. This level of entrepreneurial activity is surprising for a tiny nation such as Sweden. What characteristics unique to Sweden have contributed to a thriving startup community, especially in the field of climate tech? And, can we observe and quantify similar trends in other countries?

In my senior thesis, I want to delve deeper into understanding how a nation’s economic, technological, social, and educational indicators affect its startup ecosystem. On a more granular level, I aim to understand how these factors can affect the growth and presence of specific 3 Dealroom.co. (2022). 2022 report: Sweden’s tech scene. Retrieved from https://sweden.dealroom.co/2022-report 2 Dealroom.co. (2022). 2022 report: Sweden’s tech scene. Retrieved from https://sweden.dealroom.co/2022-report 1 Dealroom.co. (2022). 2022 report: Sweden’s tech scene. Retrieved from https://sweden.dealroom.co/2022-report industries within a nation’s startup landscape. Can we find indicators in Sweden’s governance that allows for their innovative spirit?