Think of the tech you use daily and you'll see Sweden's fingerprints all over it. From music streaming giant Spotify to the communication app Skype, Swedish ingenuity made our lives easier.

Maybe you didn't you know but these everyday items also hail from Sweden:

• The Tetra Pak cartons that hold your favorite juice box
• The Bluetooth technology
• The design of the Coca-Cola bottle
• The zipper that keeps your jackets and bags closed
• The life-saving three-point seatbelt
• and the list goes on...

Spotify, Skype (acquired by Microsoft for $8.5 billion) and Klarna (recently valued at $46 billion) have emerged from Sweden. The country has the third highest startup rate in the world (20 startups per 1,000 employees) behind only Turkey and Spain. It also enjoys the highest three year survival rate for startups across the world (74%).

Stockholm, Sweden’s capital, is second only to Silicon Valley in terms of unicorns (startups valued at over $1 billion) per capita (0.8 per 100,000 people compared to 1.4 in Silicon Valley).

(Equity Mates Media, 2021)

What is behind Swedish innovation success?

One crucial element is the government's proactive approach to digital literacy.

In the late 1990s, a visionary policy aimed to equip a quarter of Swedish households with computers. This initiative, delivering over 850,000 computers, laid the foundation for a population comfortable with technology. This early exposure proved invaluable as the internet age dawned, creating a fertile ground for future generations of tech-savvy individuals.

Sweden recognized the critical role of infrastructure in fostering innovation. The government's strategic investment in nationwide broadband connectivity ensured the country was well-positioned for the rise of streaming services like Spotify. While competitors like Apple's iTunes relied on downloads, Sweden's robust internet infrastructure allowed Spotify to fully embrace the streaming model, ultimately propelling it to global dominance.

Some other factors that played a role:

• Strategic Government Investment:

The Swedish government isn't just a passive donor. It strategically invests R&D funds in critical areas like bioscience, technology, and climate change, ensuring maximum impact.

• A Collaborative Ecosystem:

Innovation agencies like Vinnova and The Knowledge Foundation play a crucial role. They fund research projects and foster collaboration between universities, businesses, and entrepreneurs, creating a fertile ground for ideas to flourish. As one successful tech company emerges, so too does a pool of experienced entrepreneurs and investors. These individuals then reinvest their time, talent, and capital into the next generation of startups, creating a virtuous cycle of innovation.

• Thinking Outside the Box:

Sweden's vast size and relatively small population have fostered a "necessity breeds invention" mentality. People have had to find creative solutions to challenges, leading to innovations that benefit the global market.

• Education: Seeding the Future:

Sweden's education system emphasizes critical thinking and innovation from a young age. This cultivates a population comfortable with new ideas and equipped to tackle challenges.

Beyond the tangible elements, Sweden's generous social safety net plays a significant role. This system allows aspiring entrepreneurs to take calculated risks without facing financial ruin. Knowing they have a safety net to fall back on, individuals are more likely to pursue innovative ideas and launch startups. This is great for fostering innovation and entrepreneurial spirit and a culture of calculated risk-taking.

Sweden's ascent to the top of the tech world is not a stroke of luck but rather the result of a well-orchestrated strategy and its success story offers valuable insights for other nations.

In short, Sweden has created an environment where ideas can flourish and entrepreneurs can thrive.