Sweden’s next industrial leap requires a systems approach

Every truck that rolls off the production line in Gothenburg or Södertälje. Every fighter aircraft that takes off from Linköping. Every industrial robot assembled in Västerås. Behind these familiar Swedish success stories lies something that is rarely visible from the outside: an advanced and complex production capability built up over decades, and today one of the country’s most important assets.

That still holds true, but it is no longer enough on its own as international competition intensifies, not least from Asia. This need to strengthen Sweden’s industrial capabilities is also highlighted in the report Advanced Production produced as part of IVA’s Swedish Futures project, which forms part of a broader effort to develop a long-term vision for Sweden as a leading nation in technology and innovation by 2035.

Sweden has strong research and a solid technological position in industrial production. The challenge is turning that knowledge into industrial capacity at scale: enabling new technologies and processes to make the full journey from laboratories and pilot facilities to industrial production.

At the same time, resilience and competitiveness depend on the same capabilities. The ability to rapidly adapt production, manage disrupted supply chains and scale up when needed is also what determines industry’s long-term growth. We cannot build one without the other. This is not only a question of Swedish exports, but also of Sweden’s security.

The report’s recommendations centre on three areas:

• From research to industrial application: Sweden has a strong research base, but greater expertise and more test and demonstration environments are needed to support industrialisation.
• Resilience through the circular transition: Business models, regulations and incentives in manufacturing need fundamental change if circularity is to become the rule rather than the exception.
• Innovation through industrial clusters: By strengthening established industrial clusters, Sweden can build a more robust innovation environment.

From a focus on technology to a focus on systems

The question raised in the report is not whether Sweden needs a plan, but how that plan should be implemented – and by whom. No single actor can do this alone.

What is needed are structures and environments with the capacity to connect different parts of the system, bring together stakeholders with partly different interests, and turn strategy into practical action.

RISE operates a large number of test and demonstration environments across Sweden, where new technologies can be verified and scaled up before reaching industrial production – exactly the kind of infrastructure called for in the report. Positioned between academic research and the needs of industry, RISE can help shorten the path from idea to industrialisation.

Our expertise in materials, circularity and new business models, combined with strong capabilities in AI, gives us an important role in addressing complex needs and connecting different disciplines. With operations in around 30 locations across Sweden, RISE also has the geographical reach needed to strengthen industrial clusters throughout the country.

Strengthening Sweden’s industrial capacity means strengthening its defence capability

Sweden is rebuilding its total defence in a challenging security environment. This involves far more than military actors. Society as a whole – and industry in particular – is critical to maintaining supplies, production and critical infrastructure.

The gap is rarely one of willingness. Most organisations want to contribute but do not know how. Clear roles, entry points and forms of collaboration are lacking. RISE’s role here is to provide development capacity where it would otherwise be missing. In other words, total defence and competitiveness are built on the same capabilities.

Sweden has the foundations in place. We have the industry, the research base and a tradition of collaboration that many countries envy. Whether we succeed will not ultimately be determined by whether we invest in the right technology. As the world becomes more uncertain and complex, what will matter is our ability to make the different parts of the system work together.