Sweden Reclaims Title as Most Innovative Country in the EU
Sweden reclaims its title as the leading innovative country in the EU, overtaking Denmark and highlighting challenges for SMEs.
Key Points
- • Sweden is ranked first in the EU's innovation scoreboard, surpassing Denmark.
- • Stockholm is recognized as Europe's most innovative region.
- • Sweden's innovation score improved by 2 percentage points in the last year.
- • SMEs face significant hurdles in accessing financing, which impacts economic growth.
Sweden has regained its status as the most innovative country in the EU, surpassing Denmark, according to the latest European Innovation Scoreboard (EIS) report released on July 16, 2025. The country previously held the top position but ranked second over the last three years while Denmark led the innovation rankings. Energy and Business Minister Ebba Busch highlighted that this achievement reflects the resilience and strength of Sweden’s innovation ecosystem, stating, "This is a testament to the long-term investments that are beginning to yield results."
The report indicates that Sweden improved its innovation score by 2 percentage points, with significant advances in areas like cloud service usage and research and development (R&D) investments. Notably, Stockholm has been distinguished as the most innovative region in Europe, showcasing the capital's leading role in driving innovation forward. Additionally, Västsverige and Sydsverige also made the top ten, ranking ninth and tenth respectively in the EU’s regional innovation standings.
In comparison, Switzerland, though not an EU member, ranks as the overall most innovative country in Europe, scoring 139.8% above the EU average, while Sweden follows at 138.1%. This nuanced difference emphasizes Sweden's strong position despite the competitive landscape across Europe.
The report also sheds light on important challenges, particularly for small and medium-sized enterprises (SMEs), which continue to struggle with access to financing. Recent statistics show that loans to SMEs stand at only 208 billion SEK, starkly contrasted against 4,899 billion SEK for households. High collateral demands and a lack of understanding from lenders about SME needs have been identified as significant barriers that hinder their growth potential, raising concerns about sustainable economic progress in Sweden.
Minister Busch affirmed the necessity of fostering an environment that nurtures innovation and addresses financing obstacles for SMEs, reinforcing the government’s commitment to enhance overall economic performance. As Sweden celebrates its regained innovation ranking, attention turns towards ensuring that this growth is inclusive and that SMEs are supported through better finance conditions.