How the Nordic countries can strengthen their space industry—for the benefit of Europe’s autonomy

The space industry isn’t just about futuristic plans to send humans to Mars; it’s just as much about making life on Earth easier. Satellites are perhaps the clearest example. Today, data from satellites is used for everything from weather forecasts to navigation. To put it simply, one could say that information from space serves as the basis for decisions on the ground. 

This information is particularly important in times of war or crisis. Satellites can help the military detect military threats and keep communication channels open when ground-based networks have been knocked out. Space technology is thus a key component of our preparedness, and control over this technology is a matter of independence and security.

Great potential for the Nordic space industry 

The Nordic region is home to over 650 space-related companies and world-leading research environments, according to a report published by Nordic Innovation and co-authored by RISE. Together, the Nordic countries possess capabilities across nearly the entire space technology value chain, with varying strengths. The report shows that the Nordic region could build an exceptionally comprehensive space ecosystem—but it also highlights a gap between research and commercial scaling. 

– This report has been prepared because space has become increasingly relevant due to various external factors, not least the war in Ukraine and the realization that Europe needs to strengthen its independence. We can no longer rely on non-European satellites in the same way we have in the past; we need to have control over both intelligence gathering and communications, says Tobias Edman, Director of Space Technology at RISE, and continues: 

– The European approach to achieving this has, so far, primarily been through the European Space Agency (ESA). Member nations have collaborated on space research, and this has been both a strength and a weakness. Each country focuses on its own industrial base, its own interests, and its own capabilities, and these national positions are then conveyed to the ESA, determining which projects are launched and which industries participate.

The call: break down national positions

The problem with this approach, according to Tobias Edman, is that it is too narrow. It becomes more difficult for Swedish space companies to develop into major global players if Swedish space policy has a one-sided focus on Swedish companies’ ability to contribute capabilities to European collaborative projects through the ESA. Nordic cooperation focused on procuring capabilities creates opportunities for companies to scale up both their focus and their market globally. The Nordic missions serve as a springboard that enables more companies to reach the global market. 

– It’s about breaking down national barriers to create a better environment for Nordic companies—and, by extension, Swedish ones, explains Tobias Edman. 

Another challenge is that many of the projects receiving funding from ESA are purely research and development projects focused on developing new ideas. Less emphasis has been placed on the transition to commercial use. Companies adapt their projects and business models to this system.

– At the same time, the industry has historically been very risk-averse. It’s in the space industry’s DNA to create safe and reliable products. They build large, reliable systems to avoid failures. That mindset has been partially overturned by what’s known as “New Space,” of which SpaceX is a clear example. They let their rockets explode because they want to understand the limits of what they’re capable of. Quality is partly replaced by quantity, because they want to learn from their mistakes and understand their limitations, says Tobias Edman, continuing:

– If you stick with the old ways—taking orders and making money using the old mindset—it’s very difficult to make the leap to a more commercial approach to running the space industry. 

For space technology to serve as a key component of Europe’s preparedness, new solutions must be tested, further developed, and put into use more quickly. A smart communications solution contributes to European security only once it reaches orbit.

Real-world needs should drive the development of the space industry

– The Swedish government, in its capacity as a procuring entity, plays an important role in future development, Tobias Edman points out. He argues that Sweden procures products primarily out of national pride and the ambition to maintain national capabilities, rather than based on actual needs. 

– It’s a weak commercial incentive. It’s better to order things that the government really needs, because then there’s a good chance that other countries need them, too. That way, we create the conditions for a Swedish space industry to grow, just like any other industry, he says. 

The report “The Nordic Space Technology Ecosystem,” which RISE helped produce, offers a number of concrete proposals on how to strengthen the Nordic ecosystem for space companies. It specifically mentions the importance of Nordic coordination ahead of application rounds for ESA and EU programs, as well as lowering the barriers to testing and validating new solutions. 

This involves, among other things, creating a shared overview of test facilities, labs, infrastructure, and data platforms to make it easier for companies to find the right expertise and test environment for the next stage of development. Another proposal is to more clearly position and promote the Nordic region as a place where space technology is tested to strengthen society’s preparedness and ability to manage crises. Read about the proposals in the report.

– It is particularly important for our Swedish companies to be able to conduct tests in Sweden and the Nordic region in an efficient manner that shortens lead times and lowers barriers, compared to traveling to Germany or France for lengthy test missions, says Tobias Edman.

RISE facilitates the transition from research to application

RISE is already helping companies make the transition from research to market-ready products and services. The research institute serves as both a workbench and a toolbox for Swedish space companies as well as for players from neighboring countries, by bringing together test environments and a broad range of expertise relevant to the industry. 

– Our mission is to support the industry by taking basic research and advancing it so that it can be implemented and put into production, so that’s where we need to be—in the gap described in the report. Moving forward, we need to further expand the infrastructure and package our space offerings more clearly than we have done so far, says Tobias Edman.

RISE has participated in several projects in which space research and space technology are used to address specific societal needs. These projects have included investigating the impact of climate change on vegetation, monitoring changes along coastlines, and analyzing how pasturelands are used with the help of satellite data and AI. 

In collaboration with Chalmers, RISE has also investigated how satellite data can be combined with ships’ radar data to provide a better picture of ice conditions, thereby contributing to safer and more efficient winter navigation.

– This type of operationalization of space technology will be important going forward. We need to determine what services we actually want, how we can use space systems, and what societal benefits they provide, says Tobias Edman.

Clusters of Excellence can bring together Swedish space expertise

As of September 2026, when this article was written, an initiative focused on clusters of excellence is underway, in which the Swedish Research Council and Vinnova aim to fund about ten clusters for groundbreaking technology. One of the initiatives seeking funding is focused on space. A Swedish space cluster has the potential to contribute to the collective capabilities of the Nordic region and Europe. 

– The cluster would be a clear opportunity for both Sweden and RISE, in its role as a research institute, to create the conditions needed to bring ideas into orbit, says Tobias Edman. 

At the same time, he emphasizes that this development must not depend on whether or not a cluster of excellence is established. Many of the conditions needed to strengthen the Nordic space industry—and thereby also Europe’s independence—already exist. Now it is up to the industry’s players and stakeholders to come together to tackle this task.