Nordic defense technology investments are increasing sharply, but Sweden is lagging behind its competitors

Danske Bank is now presenting the new report Nordic Defence Tech 2025 which clearly shows how investments in Nordic defence and dual-use technology have exploded in recent years. The combined enterprise value of defence and dual-use companies in the Nordic region has reached USD 5.4 billion. This represents an increase of approximately 500 percent since 2019 and shows how quickly the region is strengthening its innovative power in critical security areas.

Strong growth in dual-use technology

The report points out that dual-use solutions, where civilian and military applications are combined, have become a central part of both national security and economic stability. Companies in areas such as advanced sensor systems, AI, cybersecurity, space technology and autonomous platforms are now driving development forward.

Finland leads Nordic Sweden last in the region

Despite the fact that the Nordic region as a whole stands out as Europe's strongest region in defense technology investments per capita shows the report clear differences between countries. Finland is in a class of its own with 203 USD per capita since 2019. This is followed by Denmark and Norway with high levels.

Sweden, on the other hand, ranks very last in the Nordic region. Only 8 USD per capita since 2019 and 3 USD per capita since 2024. This is far below the other Nordic countries and means that Sweden's investment rate has now fallen significantly behind.

Stefan Granlund Head of Growth and Impact at Danske Bank comments development and believes that it is worrying given Sweden's heavy history of defense technology. He believes that a continued low investment rate could risk Sweden's future competitiveness.

Governments' efforts are increasing to achieve NATO goals

The report also shows that the Nordic governments are increasing their efforts to achieve NATO's defense goals and to strengthen long-term security in the region. Several technology areas are considered to have great innovation potential.

Key areas highlighted in the report

• Stockpiling and security of supply
• Integrated defense systems and common platforms
• Dual use logistics and emergency technology
• Advanced technologies such as quantum computing, space infrastructure and autonomous systems

150 Nordic startups create new opportunities

There are now over 150 startups operating in the Nordic region in the defense and dual-use technology space. This opens up great opportunities for investors and authorities to drive innovation together with industry. The report highlights the importance of collaboration between countries, companies and capital players to fully benefit from emerging technological developments.